Indian banks outperform global peers in digital transition, daily services

Indian banks have made considerable progress in digital transformation, outperforming global peers in several core banking functions, according to Deloitte's 2024 Digital Banking Maturity (DBM) report. The average DBM index for India jumped from 43% in 2022 to 59% in 2024, surpassing the global average. Nine of the 12 leading Indian banks surveyed were classified as “Digital Champions,” a title reserved for the top 10% of global banks. Improvements in day-to-day banking accounted for nearly 10 percentage points of the overall 16-point increase. Indian banks introduced features like real-time and future-dated payments, app-based banking through messengers, and virtual card issuance for online transactions. These innovations resulted in a 2.4-point jump in transfers and payments, more than double the global average rise of one point. Personal finance management (PFM) also saw a 1.9-point increase in the DBM score for Indian banks, far exceeding the global average of 0.1 points. Indian Digital Champions now offer tools to help users categorise expenses, set savings goals and receive automated financial advice. 

Card management also witnessed improvements, with banks introducing services such as customisable and recyclable cards and automatic credit limit settings. The global average in this category rose by three points, but India still saw a solid two-point increase. Indian banks also made gains in expanding customer relationships, marked by a three-point rise in the DBM index. Innovations under the “Beyond Banking” umbrella include loyalty rewards, gift card purchases, and access to non-financial benefits. The emergence of ecosystem and account aggregation services has further strengthened customer relationships. However, India's growth in this area (0.5 points) still lags the global average of three points. User experience (UX) saw a two-point improvement driven by enhanced navigation, simplified interfaces, and increased accessibility. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.