The future of Digital Banking in India and how to be ready for it
The pandemic brought a new dimension to the future of digital banking in India. Overnight customers became keen on turning the digital way to take care of day-to-day activities. The Indian fintech ecosystem is setting an example as model banking that takes into account the changes in the landscape paving way for successful UPI payments, and QR codes. This approach should be adopted for lending and data management too.
Digital banking is propelling key changes in the ecosystem with financial access, inclusion, and literacy taking center stage both at the industry and at the consumer level. Deep internet penetration and availability have accelerated credit access and efficient payment systems for now and the future of digital banking. The pandemic acted as a catalyst for this transformation. Here is a quick list of the major factors:
New-age finance technology: The advent of new technologically powered payment methods like digital currency, blockchain, and distributed ledger systems has advanced the adoption of fintech
Willingness to adopt: An increasing number of Indians are making payments through digital methods with a lot of these transactions being done via QR Code.
Consumer comfort with digital payment methods: Consumers now have access to wearable technology, mobile wallets, credit cards and debit cards, and QR codes that enable such payments.
Ready usage of BNPL: Indian consumers are also getting apprised of such options and when they find BNPL players backed by major payment networks, they are readily resorting to them in case of personal necessities and emergencies.
Enabling credit access where due: Online loans and players offering them have changed the game for people across India. No longer are they dependent completely on traditional lending guidelines and the limitations of the bank.
Bridging the Gap in Digital Banking
India is witnessing a huge inclusivity agenda in digital banking. However, there’s still the need to make enhancements in digital banking to ensure last-mile outreach where internet connections are often patchy, people are less technically savvy and therefore hesitant, and literacy levels obstruct digital adoption.
How to be ahead of the limitations?
Educate yourself: Lack of education and awareness make you susceptible to online fraud and cybercrimes. Choose finance companies that not only go the extra mile in terms of their own security standards but also make an effort to make their customers more financially literate.
Stay abreast with new technology: Teach yourself the ropes of technology so that you can make the most of any online players and their app-based platforms. Spend time exploring the features of the app and learning about ways to save, refer & earn, and achieve daily goals, among other incentive-based offerings on these apps.
The Conclusion
India is going through an exciting dawn of change in financial technology led by fintech companies like SmartCoin driving access and trust in the ecosystem with unmatched customer service. Going forward, a mindset to adapt among customers will continue to be complemented by simultaneous impetus from the government on the sector, the watchful eye of the RBI keeping malpractices in check, and accelerated innovation in digital banking.
