India Digital Banking Industry By Total Number of Banks in India (Bank Type), By Total Deposits in India (Deposit Type, Bank Type, Region), By Total Digital Lending in India (Bank Type), By Total Transactional Value Paid Digitally in India (Value), By Total Number of Transactions Paid Digitally in India (Volume), By Total Number of ATMs in India (Bank Type), Opportunities, 2015-2022

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.

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]