Does COVID-19 a Compelling Force for the Growth of Digital Banking in India?

What is it about?

The Banking sector India has been succeeding in implementing IT enabled techniques for its operation for last few years. By offering better quality services and products, the banks can able to retain its major customer base and the customers are experiencing feasible banking operations with the help of information technology. The COVID 19 pandemic outbreak has adversely challenged the banking sector in India. Earlier the banking customers used to visit the bank branches to avail banking services. But during the pandemic period, banks have experienced a more shift towards the digital or internet banking. The banking sector has been facing a difficult task in understanding the new behaviors and to meet the requirements of consumers with relevant products and convenient services, and to adapt their business services to social changes related to the pandemic situation. The article throws a light towards the banking services during the pandemic times and the growth of electronic banking. The general objective of the study is to provide a practical perspective on the impact of covid-19 on consumer behaviour of banking products and services and thereby analyzing the growth of digital banking. For the purpose, we have analyzed the total digital payments and settlements in the banking transactions for the period of three years from 2017. The present study highlights COVID-19 pandemic effect on digital banking and the influence pandemic toward digital payments and settlement system in India.

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Photo by Joshua Hoehne on Unsplash

Photo by Joshua Hoehne on Unsplash

Why is it important?

The Banking sector India has been succeeding in implementing IT enabled techniques for its operation for last few years. By offering better quality services and products, the banks can able to retain its major customer base and the customers are experiencing feasible banking operations with the help of information technology. The COVID 19 pandemic outbreak has adversely challenged the banking sector in India. Earlier the banking customers used to visit the bank branches to avail banking services. But during the pandemic period, banks have experienced a more shift towards the digital or internet banking. The banking sector has been facing a difficult task in understanding the new behaviors and to meet the requirements of consumers with relevant products and convenient services, and to adapt their business services to social changes related to the pandemic situation. The article throws a light towards the banking services during the pandemic times and the growth of electronic banking. The general objective of the study is to provide a practical perspective on the impact of covid-19 on consumer behaviour of banking products and services and thereby analyzing the growth of digital banking. For the purpose, we have analyzed the total digital payments and settlements in the banking transactions for the period of three years from 2017. The present study highlights COVID-19 pandemic effect on digital banking and the influence pandemic toward digital payments and settlement system in India.

Perspectives