SCOPE OF ONLINE RETAIL BANKING SERVICES BY INDIAN BANKS

According to a report by the Boston Consulting Group in collaboration with FICCI and the Indian
Banks’ Association (IBA), India has around 470 million banking customers. Among this
demographic, 60 million of them, amounting to 13% of the total users, use online banking. And
within this category, 10% prefer the hybrid model of regular online and online banking. About
1% of users primarily prefer the online channels for all their banking needs.

With the above data, compared to EU,U.S. and Scandinavian countries, we can visualize there is
a huge potential and scope for the growth of online retail banking services in India. More and
more people are joining online banking daily and starting the use of comfortable available
banking services. This can also be understood through the following graph which shows India is
still majorly branch banking rather than online banking.

A major market which can be tapped would be the Rural India Market as well. As internet is
reaching deeply in the rural areas, there is a high scope of Internet Banking as well. The major
challenge for banks is to provide the knowledge, awareness, benefits of Online retail Banking to
the customers. For that seminars and fairs can be held to make aware the people of villages

A Research study states that Online banking System provides greater reach to customers.
Feedback can be obtained easily as internet is virtual in nature. Customer loyalty can be gain.
Personal attention can be given by bank to customer also quality service can be served. The
scenario suggests that there will be an increase of net banking in future because the cost of net
banking is 6 R/s and cost of branch banking is 80R/s.

As we are living currently in the lockdown-struck world of covid19, we have seen that going out
is almost becoming impossible, only way to use essential services is through online and online
banking is one thing that is being extensively used currently staying at home. With all the above
facts and growing online banking awareness, future of Online retail baking is really bright.