Indian banks outperform global average in digital banking
Report also highlights that Indian banks have significant room for growth, particularly in day-to-day banking and expanding relationships and customer journey.
In a recent report by Deloitte India, it is revealed that Indian banks are outperforming their global peers in terms of digital maturity, setting the stage for further growth and the potential to become "Digital Champions." The Digital Banking Maturity (DBM) survey, a comprehensive benchmarking initiative, examined 304 banks across 41 countries, including key economies like the US, China, the UK, Brazil, and India.
The survey assessed these banks based on 1,208 digital banking functionalities across six customer journeys in the retail customer lifecycle. Indian banks displayed commendable performance, surpassing the global average in various key customer journeys. Notably, they scored 3 per cent higher than the global average in mobile banking and 1 per cent higher in internet banking, earning them the titles of "Digital Smart Followers" and "Digital Adopters."
India's Digital Public Infrastructure (DPI), which includes initiatives like the Jan Dhan, Aadhaar, and Mobile (JAM) trinity and the Unified Payments Interface (UPI), played a crucial role in boosting digital banking transformation. Although the UPI was not included in the survey, it underscores the elevated view of India's digital maturity.
Room for growth
The report also highlights that Indian banks have significant room for growth, particularly in day-to-day banking and expanding relationships and customer journeys. Key sub-steps offering the potential for value creation include personal financial management, beyond banking, ecosystem and account aggregation, and account and product management.
"Digital Champions" in the banking sector have made strategic investments in digital transformation, resulting in higher returns on assets and return on equity compared to their peers. Despite India's strong performance, there is a need for continued customer engagement and innovative solutions to address various pain points.
Himanish Chaudhuri, Partner and Financial Services Industry Leader at Deloitte India emphasised the importance of delivering exceptional user experiences for all types of users. Vijay Mani, Partner and Banking and Capital Markets Leader at Deloitte India highlighted the potential for Indian banks to build further on their digital foundations and address customer pain points related to financial goals.
Published By : Anirudh Trivedi
Published On: 7 November 2023 at 17:35 IST