Digital Banking

Digital banking is the digitization (or moving online)

of all the traditional banking activities and programs
services that were historically were only available to
customers when physically inside of a bank branch

What is The earliest form of Digital Banking in India can be

Digital seen in the 1960’s with the introduction of ATM
Machines, later in the early 200’s, online banking saw
Banking? an improvement, showing a glimpse of what modern
banking may look like
 Evolution of Digital Banking in India
Pre digital/Traditional

Digital 1.0

Arrow stripes 4 Digital 2.0

Mainframe ATM

Social Mobile Robotics

Artificial Process
Intelligenc Automation
Branch Batch e

Analytics Cloud
Internet of Block Chain
Things
Open Banking
 1.0 2.0 3.0 4.0
E-Banking Multi-banking
Integration
• Dial-up experience
• Email contact Centre • Web-based Account
• Online Broucheware Origination
• Databases • Online Calculations and
• CRM Bill Pay
• Click to chat and call
• Data Warehouses
Omnichannel Internet of Everything
• Seamless Experience • Digital bank, Digital
• Full-Function Branches
Smartphone Apps • Rich Cross-Channel
• Internal and Hybrid Collaboration & Advice
Cloud • Omnichannel Analytics
• Click-to-video (Structured and
• Big data and Analytics Unstructured Data)
• 360-degree Customer • “Market of One”
View Customer Centricity
• InterCloud
 United Payments Interface (UPI) and Bharat Interface for Money (BHIM) launched
by the government was an important milestone not just for the banking system
but the entire country. Innovation and popularity of digital payments are resulting
in greater digital banking transactions.

Current UPI is a payment method which allows the transfer of money anytime without the
need to enter bank details every time we transact. UPI and BHIM are economical
scenario of ways of money transfer, making us free of cash.

digital As we are moving towards a cashless economy, we see a rising number of ATMs
in our country. Implementation of electronic payment system such as NEFT, ECS,
banking RTGS, Mobile banking, Debit cards, Credit Cards has become very common with
every Indian bank.
 Multi Channel Presence of Banks in the Digital Age

Branches Banking Correspondent

Channel

Call Centre Internet

banking

ATM
UPI
Payments
Mobile
Banking
Phone
Banking

Point of Sales
Application
 ● Unified Payments Interface (UPI)
● Mobile Banking
● Internet Banking
● National Financial Switch(NFS)
Digital ● NEFT
Services ● RTGS
offered
 Blockchain Data
No Card Transaction
Management

Latest trends
and
Mobile-Only Banking
developments Biometric Identification

AI-Driven Security Streamlined Client Billing

Chatbot Client Servicing Voice-assisted Banking

 Future outlook of Digital Banks

Payment Banks: A revelation, RBI’s decision to introduce payment banks will lead to further financial inclusion, and tap
a large segment of population with campaigns such as “Digital India”, “Aadhar Act”
Chevrons (rows) 4
Cognitive technology: The emergence of AI in banking has lead to development of many cognitive models such
as Language processing, natural language generation, Machine Learning, Computer Vision and many more
capabilities which will perform tasks a human brain would.

Blockchain and DLT: Individual players such as ICICI bank, Yes Bank and Axis bank has set up initiatives to
explore Blockchain and its many applications, while NBFC’s such as Muthool Finance have also invested in the
same

Artificial Intelligence: Artificial Intelligence is continuously contributing to the banking industry to deliver a
greater level of value to us, decreases risks, and gives better opportunities as the financial engines of our
modern economy.
Robotic Process Automation: RPA Automation has proven to be industry agnostic thus far. As long as there is manual
and repetitive work being done in a company, there is a good potential for automation using RPA. Many Global
Chevrons (rows) 4
Investment banks, Insurance firms and Financial Services have applied RPA

Fintech: With the Fintech disruptions, it opens up new avenues for banks to offer a wide spectrum of services,
which will allow them to compete effectively with the lean, agile and innovative Fintech Startups. Hence banks
are looking for collaborations to develop good vendor-customer partnership

Cyber Security: Many innovations have been introduced to tackle the many problems with Digital Wallet
payment frauds, such as Fake KYC, Phishing, and control such risks, Chip based cards, SMS-based OTP’s have
helped mitigate Cyber risk
 Pros of Digital Banking in India

Flexibility Banking Benefits Online Bill Payments Availability of Offers

Lower overheads for

Time saving Environment Friendly Higher Penetration
Banks
 Major drawbacks of Digital Banking in India

Preference for Lack of personal

Security Fear of online threats
traditional banks touch

Lower internet
Difficult for first time Regulations and Limited scope of
speeds at remote
users legalities services
areas
Thank You