Indian banks have observed the most notable gains in day-to-day banking (+9.8 pp) and expanding relationships (+3.4 pp)….reports Asian Lite News
As many as 9 Indian banks have been recognised as ‘Digital Champions’ among 40 banks that received the title globally, according to the Deloitte Global Digital Banking Maturity (DBM) survey released on Tuesday.
Since 2022, India’s DBM Index has grown from 43 per cent to 59 per cent, witnessing a 16-percentage-point (pp) increase. Indian banks have observed the most notable gains in day-to-day banking (+9.8 pp) and expanding relationships (+3.4 pp).
This change reflects Indian banks’ increasing digital maturity, showcasing their focus on customised advisory, rapid technological advancements, AI integration and beyond-banking offerings, the survey states.
In only its second year of participation, India has already asserted itself as a rising force among global powerhouses such as the US, China, Brazil, and the European Union. This year’s DBM survey extends its reach to 349 banks, spanning 44 key markets across six continents, the survey points out.
The Global DBM study, conducted biennially, assesses participants based on their retail banking maturity across three main channels: public websites, internet banking and mobile banking, which includes application messenger service-based banking.
Using mystery shopping methodology, the banks’ features were evaluated across six customer journey steps, namely information gathering, account opening, customer onboarding, day-to-day banking, expanding relationships, and end relationships.
The survey further highlights that Indian Digital Champions have outperformed their global peers across most journey steps, with India’s overall DBM Index exceeding the global average index by 20 pp. Indian Digital Champion banks scored significantly higher in information gathering, customer onboarding, day-today banking and overall user experience.
However, there is room for further improvement, especially across day-to-day banking and expanding relationships, focusing on areas such as personal finance management, conversational solutions for hyper-personalised support and product cross-selling, according to the report.
Himanish Chaudhuri, Partner and Financial Services Industry Leader, Deloitte India, said: “As we unveil the sixth edition of Digital Banking Maturity report, we are proud to share that Indian Banks have made significant progress across digital banking services, outpacing the global average on most fronts.”
“This remarkable trajectory underscores India’s growing capability to shape the future of digital banking. With regulatory support, the rise of GenAI, industry convergence and a sharper focus on fraud prevention, Indian banks are well-positioned to support the country’s vision for a ‘Viksit Bharat’,” he added.
The Indian banking sector’s digital transformation is driven by a favourable regulatory environment, expanding digital public infrastructure, increased investment and spending capacity and enhanced internet connectivity and mobile penetration.
However, this progress is accompanied by challenges such as macroeconomic and geopolitical uncertainties, rising deposit costs and concerns over credit quality, the report states.
While taking a deep dive into day-to-day banking and expanding relationships journey steps, where Indian banks observed the most notable gains, the survey report highlights significant progress within the key components of these areas.
In day-to-day banking, Transfers & Payments saw a 2.4 pp increase since 2022, surpassing the 1 pp global average. Personal Finance Management improved by 1.9 pp compared with the 0.1 pp global rise, while Account and product management services recorded a 2 pp increase against the 1 pp global benchmark. On the other hand, Card Management services showed a notable 2 pp rise, driven by seamless services and a secure banking experience, compared with a 3 pp global average rise.
In expanding relationships with banking services, Indian banks achieved a 1 pp increase in beyond-banking offerings, outperforming the 0.1 pp global average rise. However, the ecosystem and account aggregation services, a key area for further focus, registered a modest 0.5 pp rise, the report added.
