India’s banking system is now experiencing a tidal wave of change that is reshaping the very bedrock of its financial landscape. By embarking on a journey of innovation and adaptation, Indians are visibly getting comfortable stepping away from dusty ledgers to digital dashboards and from bustling brick-and-mortar branches to virtual wallets. The winds of transformation are sweeping through the country, heralding a new era in the world of finance, and it’s exciting to see where it’s all headed and what other collaborative measures banks can take to ensure a smooth transition to tomorrow.
Through the looking glass, or reality?
Union Bank of India offers a unique solution to their customers that allows them to log into their bank’s physical branch virtually.
Five years ago, this would have been unfathomable. However, thanks to emerging tech and their capabilities, several banks across the globe have started offering hi-tech solutions to their customers. Undoubtedly, the changing landscape of customer behaviour, propelled by rapid technological advancements, leaves banks with no alternative but to swiftly respond to these shifts to ensure their survival.
Banks are driven by evolving customer expectations and the potential for financial sector disruptions, requiring them to constantly innovate and adapt to new solutions.
Over the past decade, the influx of fintech companies has spurred banks into action, encouraging them to adapt or foster strategic partnerships to provide customers with an improved banking experience. Not only have we seen a rise in UPI payments and digital wallets, we have also witnessed the rising popularity of open banking and initiatives towards a cashless country. According to DigFin, “Open banking’s greatest opportunity in Asia Pacific is India because it has the region’s largest population of underbanked people”. In addition, India launched the pilot for a cashless country in 2020 with a goal to reduce the number of ATMs and physical branches in the country. All of this have left traditional banks trailing in their wake, seizing substantial market share in the UPI realm.
And let’s remember the millennial customers who are like tech wizards in their own right! They’re all about those smart speakers and voice assistants, casually tossing out voice commands to handle everything, even their financial transactions. Plus, they’re not shy about hopping on a video call with their banks, whether for KYC checks or just a friendly chat about their accounts.
Staying ahead of the curve is now a priority!
According to Ashish Kakar, Research Director at IDC Financial Insights in Asia/Pacific, approximately 65 percent of mid to large-sized banks in the APAC region have chosen to develop their engagement banking platforms internally to pursue digital transformation. However, 70 percent of these initiatives have encountered setbacks, primarily attributed to the high costs and protracted timelines associated with in-house development.
What does this tell us?
Now is the time, more than ever, to rewind, reload, and collaborate!
Banks can adopt emerging technologies through partnerships with third-party service providers, eliminating the need for extensive building from scratch. Digital banking solutions providers can offer top-notch digital technology solutions that allow banks to focus on what matters most. At the same time, the partner engages in dealing with everyday issues and challenges.
Clayfin is a pivotal player in third-party digital banking solutions, offering a lifeline to banks seeking to modernise and stay abreast of the ever-evolving financial landscape. In an era where customer expectations are rapidly shifting, Clayfin empowers banks to pursue two paramount objectives: embracing digital transformation and fulfilling their customers’ needs.
With our expertise, you can usher into a new era of personalised banking experiences. By leveraging our cutting-edge solutions, banks can offer tailor-made services that resonate with each customer. In doing so, you transform your customer interactions from tedious transactions into memorable, personalised journeys.
Moreover, our role extends beyond merely adopting technology; it enables you to refocus on your core missions and strategic goals. By shouldering the responsibility of technological innovation and digital optimization, we liberate you to channel your time and energy into what truly matters – serving your customers and fulfilling their unique missions.
We are your ridge to the future, helping you navigate the complexities of the digital age while staying true to your core values and objectives.
With Clayfin as a trusted partner, you can confidently stride into the modern banking landscape, offering your customers financial services and a seamless and personalised financial journey.
