Digital Banking – Would it lead the Banks and Fintech to Merge or Conquer?

The world is under the spell of digitization! Just a decade back, when people were skeptical about making a transaction online, the recent reports are highlighting the mass adoption of technology into their lives. Sample these –

  • As per stats, the rise of Omni-digital banking customer has grown from 27% in 2012 to 46% in 2017.omnichannel

Image  Source – PWC 2017

  • As per a post from Yourstory, in India post-demonetization there was an increase in availing services like mobile banking, mobile wallets, other digital payment solutions like Sodexho, pre-paid cards and debit cards transaction on PoS.

Such a massive growth is a collaborative effort of fintech firms and banks.

So, could we say Digital Banking is dependent on fintech firms? Or Are banks dependant on their technology providers? Could we in future see banks more like regulators and fintech firms as an operating wing? With concepts like branchless banking, contactless banking evolving would bank be merged? Do we foresee fintech firm expansion that results in bypassing banks? To answer many such questions, we decided to come up with this post.

What is Digital Banking?

In layman terms – any of the banking services/activities when availed via digital/electronic mode is referred to as Digital banking. So, if you are using your e-wallet or logged in to your bank website for funds transfer or online shopping. In fact for banks like e-KYC or automation of opening a bank account are also some of the examples of digital banking.

The Present state of Digital Banking in India

In India, as per 2017 Oracle J.D. Power India Retail Banking Study, 94% of retail banking customers have visited the branch/store at least once in the past 12 months that signifies how services are availed via digital means. Only 51% of retail banking customers have a reliable online banking experience with their primary financial institution.

While individuals specified concern of security as the prime reason for non-usage of digital channels. The most surprising fact highlighted in the study was – ~94% of urban customer prefer Continue reading


Banks Need to Be Centralized – Could Blockchain be the answer?



Banks Need Centralization


The queues in banks have lessened, the digital transformation is progressing, few people are for banks getting redundant, and few believe banks to rise and serve as the operating system. However, I vote –  Banks to be centralized! And to some degree, Blockchain could help banks to achieve that.

Why Banks Need to Be Centralized?

Unlike olden days when data/information was maintained in the ledgers and files, now data could be cryptic and stored on cloud servers. So, if the account information that was fed in ABC city, why that can’t be accessed from XYZ city?

Thanks to globalization that customer is not at “one place” now. Continue reading