More than eight in ten Indians with a bank account in Metro cities now use mobile banking apps that saw a surge amid the Covid-19 pandemic.
Mobile banking apps are the most popular banking channel in Asia, with 83 percent of Metro Indian and 78 percent of Metro Chinese online adults with a bank account using their mobile banking app at least monthly, according to global market research firm Forrester.
“The pandemic has redefined how customers engage with banks and accelerated digital transformation in banking,” the report added.
ATM use is in decline as digital payments soar, and the Covid-19 pandemic has driven consumers toward digital payments.
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Fintech and tech giants disrupt the industry by innovating with technology.
“Tech titans Amazon, Ant Group, Apple, Google, Meta, Ping An, and Tencent are using digital technologies like mobile, cloud, application programming interfaces, real-time data, and flexible architecture to enable collaboration and together build broader platforms and ecosystem businesses,” said the report.
However, banks are struggling to transform fast.
“Many banks now acknowledge that digital transformation is never-ending, with 35 per cent of global decision-makers at banks saying their organisation is expanding their digital transformation and 19 per cent saying they are currently transforming,” the report mentioned.
Security is also a concern, with 25 percent of decision-makers at banks saying that security is among the biggest obstacles to executing their digital transformation.
As Covid-19 reshapes customer expectations and competition heats up, a growing number of banks have embraced end-to-end transformation, focusing more on improving their IT to promote agility and innovation, the report noted.