The report also explores the area of regulatory changes and moral principles and how they affect the banking industry.
Performics India, a division of Publicis Groupe India has launched its Banking & Financial Services Round-Up Report for the year. This report delves into the remarkable digital evolution of the Indian banking and financial services sector, highlighting both the driving forces behind this transformation and the opportunities and challenges it presents.
The report emphasises the pivotal role of digital transformation in propelling the banking sector forward. With a shifting demographic profile, banks are facing the need to cater to a digitally-savvy new generation. The emergence of enticing financial products, the presence of new market players, increased adoption of fintech services, and growing financial literacy all contribute to this evolution. This digital growth is further accelerated by the widespread embrace of digital mediums for educating and engaging with the public. The report supports this assertion with an analysis of organic search intents across various financial products. Furthermore, the report identifies intriguing trends in the banking and financial services industry, such as open banking, voice banking, personalised banking, search trends, Generative AI, the rise of 'Finfluencers' (financial influencers), and the associated regulatory mechanisms.
The report highlights the main factors driving digital transformation, especially the growing popularity of digital payment methods, which are driving the expansion of the banking industry. There has been a noticeable change, with 93% of payments being made digitally in the last year, surpassing the use of traditional cards and cash. QR code transactions have become more prominent, and the increasing use of biometric payments indicates a growing trust in biometric technology compared to traditional cards and devices.
Lastly, the report delves into the realm of regulatory updates and ethical practices and their impact on the banking sector. It underscores the significance of bills like the Digital Personal Data Protection Bill and AI regulation in India, aiming to enhance data protection and promote ethical AI use, safeguarding the interests of consumers and financial institutions.
Lalatendu Das, CEO of Performics India, shared his insights on the report, underlining the imperative for digital transformation in the evolving financial services sector. He emphasised how key trends such as open banking, personalisation, and Generative AI promise to enhance customer engagement and the overall banking experience. Cyrus Shroff, vice-president of banking and financial services at Performics India, added that the report serves as a guide for navigating the dynamic landscape of the Indian banking and financial sector. It showcases the sector's journey, driven by innovation, fintech adoption, and evolving customer expectations, and provides valuable insights for stakeholders in this transformative era.