What makes Banking digital transformation the need of the hour?

The banking sector in India has undergone great change in terms of its customer facing processes. Although there are several factors triggering these changes, it can be safely said that the major impetus was provided by the government through its programs. In the last few years, a massive campaign has been launched by the government to promote the financial inclusion of the masses, through digitalization of financial activities. The most remarkable aspect of this is the introduction of Aadhar cards, a biometric identity for every citizen of the nation, and the directive to link the cards with bank accounts. At the same time, the government has also passed the ordinance bill for demonetization, rendering two high denomination currencies invalid, which eventually provided a great push towards the adoption of digital payments. Several surveys have reported that in the last two years, the digitalization of the banking system has witnessed a growth like never before.

Retail banking is the area of the Indian banking system that is currently undergoing the highest growth. The main factor behind this is the increasing penetration of mobile phones in the Indian market. Due to the increased usage of mobile phones, especially smartphones, Indians are embracing the convenience of digital banking. As a result, the banks have started preparing themselves to serve their customers in accordance to their changed behaviour. This has invited the concept of Banking digital transformation.

A retail bank must undergo complete digital transformation in all of its operational domains if it wants to satisfy the requirements of its digitized customers. It is definitely the responsibility of the bank to facilitate digital banking to its customers. This is possible only when the banks digital infrastructure is robust enough. These expenses are an investment to maintain the banks hold in the market and to secure their future in the face of increasing competition.

It is no surprise that a number of agencies have come up to help banks achieve their target of comprehensive digital transformation. These agencies offer a variety of models which help the banks digitize themselves. Although it might be possible for the banks to initiate their digital transformation process without the help of any external agency, it is always recommended to take the assistance of one of the established digital transformation service providing agencies. This ensures that the process is flawless and bug free.