Report Description

Digital banking systems are versatile and enable banks to add and expand services much faster as compared to conventional systems. In order to offer banks and their customers the highest levels of cost effectiveness, security, and flexibility, digital banking relies on high-level process automation, web-based services, and APIs. Modern banking systems create real-time data streams and enhance essential analytics to enable a fully digital customer journey. All traditional banking services, procedures, and operations are being digitalized in order to better serve clients through internet channels. Digital banking is serving as a "model banking of the future," paving the way for the adoption of QR codes and UPI payments.  In India, COVID-19 has effectively added a new dimension to the development of digital banking. During that time, digital adoption in India grew rapidly. At the micro level, change was facilitated by the advent of new digital participation from other financial firms. According to a Mastercard global poll, Indians are the most open to adopting new digital payment methods in the Asia Pacific region.

Over the past five years, India's digital payment transactions have increased significantly. Pre-paid payment instruments (PPIs), Immediate Payment Service (IMPS), Bharat Interface for Money-Unified Payments Interface (BHIM-UPI), and the National Electronic Toll Collection (NETC) system are examples of digital payment methods that have experienced significant growth and changed the landscape of the industry. Digital payment transactions totaled USD613.69 million in 2019–20, USD745.50 million in 2020–21, and USD1.19 billion in 2021-22, respectively.

Moreover, the expansion of digital payments can be ascribed to the availability of acceptance infrastructure, which has seen significant growth in the year after the Payments Infrastructure Development Fund became operational (PIDF). While the number of Bharat Quick Response (BQR) codes deployed rose by 39.3% to USD66.71 thousand over the same time, the number of Points of Sale (PoS) terminals increased by 28.6% to USD81.48 thousand. Furthermore, the number of automated teller machines (ATMs) grew from USD3.21 thousand in 2020-21 to USD3.33 thousand in 2021–22.


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Rising Smartphone Adoption Fueling the Industry Growth

The rising smartphone usage in the country has been boosting the digital banking sector of the nation. Low internet costs have only increased the use of digital platforms and mobile apps for work-related purposes. More people are projected to utilize the internet and more smartphones in India, which is expected to increase demand for all-in-one banking platforms and drive the market ahead. 35 million smartphones were sold to India in 2022 (April-June), according to preliminary data from the International Data Corporation's (IDC) Worldwide Quarterly Mobile Phone Tracker, representing a 3% year-over-year (YoY) gain.

Increasing Consumer Demand for Convenience Aiding the Industry Growth

Customers can make payments through wearable technology, mobile wallets, credit cards, debit cards, and QR codes. For the digital banking industry to have a bright future, fintech companies, banks, regulators, and most crucially, the government, should know that consumers are demonstrating in these payment methods. Moreover, digital banking offers higher personalization. Artificial intelligence (AI) and machine learning-based personalization are made possible by digital banking software (ML). At the appropriate moment, banks can provide customers with pertinent financial solutions, interactive tools, and educational materials. Customers are informed and engaged by a variety of solutions, including automated budgeting, expenditure analytics, savings reminders, and others. Also, the rising popularity of digital banking can be attributed to various benefits offered by it, such as cost effectiveness. Operating costs are reduced considerably by digital banking software by removing redundant back-office procedures. By automating the procedures related to daily transactions, digital banking systems relieve banks of a lot of work.

Government Initiatives Boosting the Industry Growth

In order to boost the usage of digital banking in India, the government has been continuously launching various initiatives. For instance, Kerala is becoming the first state in India to make all eligible accounts available for digital banking. The State-Level Bankers' Committee (SLBC) reports that 3.76 billion accounts in the state now have at least one product that can be used digitally. This action was taken by the state government in accordance with the Reserve Bank of India's "Expanding and Deepening of Digital Payments Ecosystem" scheme (RBI). Also, in 2022, the government announced the establishment of 75 digital banking units (DBUs) across 75 districts in Budget 2022-23.

Industry Segmentation

The India digital banking industry is segmented based on total number of banks in India, total deposits in India, total digital lending in India, total transactional value paid digitally in India, total number of transactions paid digitally in India, total number of ATMs in India, and competitional landscape. Based on total number of banks in India, the sector is explained with banks. In terms of total deposits in India, the industry is divided on the basis of deposit type, bank type and region. In terms of digital lending, the industry is explained with bank type. Based on transactional value paid digitally in India, the sector is explained with payment mode. In terms of number of ATMs in India, the market is explained with bank type.

Company Profiles

HDFC Bank Limited, ICICI Bank Limited, Bank of India Limited, State Bank of India, Axis Bank Limited, Punjab National Bank, IndusInd Bank Limited, Bank of Baroda, Kotak Mahindra Bank Limited, Yes Bank Limited are among the some of the industry players in the India digital banking industry.

Attribute

Details

Base Year

2022

Historical Years

2015 – 2021

Industry Overview

Digitalization, Digital Payment Index, Digital Accounts in India, Digital Banking Units in India as per RBI

Segments Covered

Total Number of Banks in India

Total Deposits in India

Total Digital Lending in India

Total Transactional Value Paid Digitally in India

Total Number of Transactions Paid Digitally in India

Total Number of ATMs in India

Regional Scope

Growth Factors, and Trends

Key Companies Profiled

HDFC Bank Limited, ICICI Bank Limited, Bank of India Limited, State Bank of India, Axis Bank Limited, Punjab National Bank, IndusInd Bank Limited, Bank of Baroda, Kotak Mahindra Bank Limited, Yes Bank Limited

Customization Scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and Purchase Options

Avail of customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)

Report Scope:

In this report, the India digital banking industry has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • India Digital Banking Industry, By Total Number of Banks in India:
    • Bank Type
  • India Digital Banking Industry, By Total Deposits in India:
    • By Deposit Type
    • By Bank Type
    • By Region
  • India Digital Banking Industry, By Total Digital Lending in India:
    • Bank Type
  • India Digital Banking Industry, By Total Transactional Value Paid Digitally in India:
    • Payment Mode
  • India Digital Banking Industry, By Total Number of Transactions Paid Digitally in India:
    • Payment Mode
  • India Digital Banking Industry, By Total Number of ATMs in India:
    • Bank Type

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India digital banking industry.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

India digital banking industry is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.    Introduction

1.1.  Industry Overview

1.2.  Key Highlights of the Report

1.3.  Industry Coverage

1.4.  Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Assumptions and Limitations

3.    Executive Summary         

3.1.  Industry Overview

3.2.  Key Segments

4.    Total Number of Banks in India, (Volume), 2015-2022

4.1.  By Bank Type

4.1.1.     Total Number of Private Banks

4.1.2.     Total Number of Public Banks

4.1.3.     Total Number of Foreign Banks

4.1.4.     Total Number of Regional Rural Banks

4.1.5.     Total Number of Small Finance Banks

5.    Total Deposits in India, (Value), 2015-2022

5.1.  By Deposit Type

5.1.1.     Total Saving Deposits

5.1.2.     Total Current Deposits

5.1.3.     Total Term Deposits

5.2.  By Bank Type

5.2.1.           Total Deposits with Public Banks

5.2.2.           Total Deposits with Private Banks

5.2.3.           Total Deposits with Foreign Banks

5.2.4.           Total Deposits with Regional Rural Banks

5.2.5.           Total Deposits with Small Finance Banks

5.3.  By Region

5.3.1.           Total Deposits in Central Region

5.3.2.           Total Deposits in Eastern Region

5.3.3.           Total Deposits in North Eastern Region

5.3.4.           Total Deposits in Northern Region

5.3.5.           Total Deposits in Southern Region

5.3.6.           Total Deposits in Western Region

6.    Total Digital Lending in India, (Value), 2015-2022

6.1.  By Bank Type

6.1.1.           Total Digital Lending with Public Banks

6.1.2.           Total Digital Lending with Private Banks

6.1.3.     Total Digital Lending with Foreign Banks

6.1.4.     Total Digital Lending with NBFCs

7.    India Digital Banking Overview, 2015-2022

7.1.  Digital Banking Introduction

7.2.  Digitalization

7.3.  History

7.4.  Advantages & Disadvantages

7.5.  Traditional vs Digital Banking

7.6.  Digital Accounts in India Overview

7.7.  Digital Payment Index

7.8.  Digital Banking Units in India as per RBI

8.    Total Transactional Value Paid Digitally in India (Value), 2015-2022

8.1.  By Payment Mode Transactional Value

8.1.1.     By UPI

8.1.2.     By NEFT/IMPS

8.1.3.     By Debit Card

8.1.4.     By Credit Card

9.    Total Number of Transactions Paid Digitally in India (Volume), 2015-2022

9.1.  By Payment Mode Transaction Volume

9.1.1.     By UPI

9.1.2.     By NEFT/IMPS

9.1.3.     By Debit Card

9.1.4.     By Credit Card

10.  Total Number of ATMs in India, (Volume), 2015-2022

10.1.              By Bank Type

10.1.1.  Total Number of Private Bank ATMs

10.1.2.  Total Number of Public Bank ATMs

10.1.3.  Total Number of Foreign Bank ATMs

11.  Market Dynamics

11.1.              Drivers

11.1.1.  Rising Demand for Convenience

11.1.2.  Increasing Smartphone Adoption

11.1.3.  Growing Government Initiatives

11.2.              Challenges

11.2.1.  Stringent Government Regulations

11.2.2.  Limited IT Infrastructure

12.  Impact of COVID-19 on India Digital Banking Industry

13.  Market Trends & Developments

13.1.              Increasing Customer Awareness

13.2.              Growing Adoption of Digital Banking Platform Among SMEs

13.3.              Ease of Usage & Ensured Affordable Costs

13.4.              Rising Trend of Going Cash-Free

13.5.              Technological Advancement in Digital Banking Solutions

14.  SWOT Analysis

14.1.              Strengths

14.2.              Weaknesses

14.3.              Opportunities

14.4.              Threats

15.  Policy & Regulatory Landscape

16.  India Economic Profile

17.  Competitive Landscape

17.1.              Company Profiles

17.1.1.  HDFC Bank Limited

17.1.1.1.      Company Details

17.1.1.2.      Product & Services

17.1.1.3.      Financials (As Reported)

17.1.1.4.      Digital Banking Services

17.1.1.5.      Key market Focus & Geographical Presence

17.1.1.6.      Recent Developments

17.1.1.7.      Key Management Personnel

17.1.2.  ICICI Bank Limited

17.1.2.1.      Company Details

17.1.2.2.      Product & Services

17.1.2.3.      Financials (As Reported)

17.1.2.4.      Digital Banking Services

17.1.2.5.      Key market Focus & Geographical Presence

17.1.2.6.      Recent Developments

17.1.2.7.      Key Management Personnel

17.1.3.  Bank of India Limited

17.1.3.1.      Company Details

17.1.3.2.      Product & Services

17.1.3.3.      Financials (As Reported)

17.1.3.4.      Digital Banking Services

17.1.3.5.      Key market Focus & Geographical Presence

17.1.3.6.      Recent Developments

17.1.3.7.      Key Management Personnel

17.1.4.  State Bank of India

17.1.4.1.      Company Details

17.1.4.2.      Product & Services

17.1.4.3.      Financials (As Reported)

17.1.4.4.      Digital Banking Services

17.1.4.5.      Key market Focus & Geographical Presence

17.1.4.6.      Recent Developments

17.1.4.7.      Key Management Personnel

17.1.5.  Axis Bank Limited

17.1.5.1.      Company Details

17.1.5.2.      Product & Services

17.1.5.3.      Financials (As Reported)

17.1.5.4.      Digital Banking Services

17.1.5.5.      Key market Focus & Geographical Presence

17.1.5.6.      Recent Developments

17.1.5.7.      Key Management Personnel

17.1.6.  Punjab National Bank

17.1.6.1.      Company Details

17.1.6.2.      Product & Services

17.1.6.3.      Financials (As Reported)

17.1.6.4.      Digital Banking Services

17.1.6.5.      Key market Focus & Geographical Presence

17.1.6.6.      Recent Developments

17.1.6.7.      Key Management Personnel

17.1.7.  IndusInd Bank Limited

17.1.7.1.      Company Details

17.1.7.2.      Product & Services

17.1.7.3.      Financials (As Reported)

17.1.7.4.      Digital Banking Services

17.1.7.5.      Key market Focus & Geographical Presence

17.1.7.6.      Recent Developments

17.1.7.7.      Key Management Personnel

17.1.8.  Bank of Baroda

17.1.8.1.      Company Details

17.1.8.2.      Product & Services

17.1.8.3.      Financials (As Reported)

17.1.8.4.      Digital Banking Services

17.1.8.5.      Key market Focus & Geographical Presence

17.1.8.6.      Recent Developments

17.1.8.7.      Key Management Personnel

17.1.9.  Kotak Mahindra Bank Limited

17.1.9.1.      Company Details

17.1.9.2.      Product & Services

17.1.9.3.      Financials (As Reported)

17.1.9.4.      Digital Banking Services

17.1.9.5.      Key market Focus & Geographical Presence

17.1.9.6.      Recent Developments

17.1.9.7.      Key Management Personnel

17.1.10.      Yes Bank Limited

17.1.10.1.       Company Details

17.1.10.2.       Product & Services

17.1.10.3.       Financials (As Reported)

17.1.10.4.       Digital Banking Services

17.1.10.5.       Key market Focus & Geographical Presence

17.1.10.6.       Recent Developments

17.1.10.7.       Key Management Personnel

18.  Strategic Recommendations/Action Plan

18.1.              Key Focus Areas

18.2.              Target Segment

18.3.              Target Services

19.  About Us & Disclaimer

Figures and Tables

Frequently asked questions

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Digital banking is serving as a "model banking of the future," paving the way for the adoption of QR codes and UPI payments. The management of data and lending both need to use this strategy. These vital drivers of growth serve as the foundation for Indian banking's digital revolution.

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The definition of digital banking involves doing financial transactions entirely online without using paper documents like demand draft, pay-in slips, or cheques. It denotes the accessibility of all banking functions online.

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Customers of a bank can access banking services and products online or through an electronic platform because of digital banking. Digital banking refers to the digitization of all banking processes and the replacement of the bank's physical location with an ongoing online presence, which eliminates the requirement for customers to visit a branch.

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Online banking offers benefits such as the potential for much higher interest rates on savings. There are less and fewer fees at some online banks. Most online banks a person to start an account with little to no money.

profile

Srishti Verma

Business Consultant
Press Release

Government Initiatives are Boosting the India Digital Banking Industry Growth

Mar, 2023

Rising smartphone adoption, increasing usage of mobile payment services, and government initiatives are the leading factors driving the growth of India digital banking industry.