New Delhi, April 21 (IANS): The entire Indian banking industry ecosystem is at the cusp of a digital revolution, which requires adoption of technology to stay ahead of competition, a CII and PricewaterhouseCoopers study said here on Tuesday.
The study titled 'Banks taking a quantum leap through digital' said digital foreground is a big opportunity for the banking industry to attract new customers, lower costs, develop new propositions and business models and explore customer value to its maximum.
"With non-traditional players such as telcos, fintech start-ups and niche payments companies disrupting the digital space, there will be an increased onus on traditional banks to augment their current capabilities with innovation in the ecosystem, potentially leveraging investments, to maintain their differentiation," Vivek Belgavi, leader of the financial services technology, PwC India said.
The top trends to lookout for in 2015 are innovative customer acquisition and engagement strategies, data driven innovation, disruptive solutions in the payments space, convergence of regulations, emphasis on data management and new security frameworks for combating fraud and cyber security and disruptive innovations from non-conventional financial players.
According to the study, e-commerce boom in India made customers feel comfortable with online purchases and this trend has given a shot in the arm for online financial transactions as well.
Tying up with online market spaces is another strategy for acquiring customers, the report said.
Exploding mobile-based services and the falling price of smartphones is good for digital banking and has to be aided by policy framework, the report said.
Banking industry CEOs believe that mobile technologies are the strategic focus for better customer engagement as mobile phone user base would grow at a compounded annual growth rate (CAGR) of 91 percent from 2012 to 2016.
The report also stated that digital platforms are susceptible to security risks and negative effects can destroy trust and jeopardise investment made in digital solutions and advocated financial institutions to adopt cyber-security approach to address the associated risks.