The age of digitization and move towards the adoption of new technology have transformed the way banks do business today. Information Technology has played a vital role in shaping India’s banking scenario. Banking technology is today directly influenced by the spread of smartphones and extensive availability of 3G and 4G networks. Advances in technology have also created newer customer expectations, multi-channel structure, and progressive product offerings in the banking industry.
Banks today have the onus of being proactive in technology, making themselves available to customers anytime and anywhere and staying ahead of the competition. Interestingly, these factors also serve as the basis for emerging trends in the banking industry of 2016. Banking technology is emerging as synonymous with the concept of everyday banking. This becomes a credible reality only when there is complete digitization of banking operations, as well as a strong ecosystem of cross-industry partners and providers. Here are the anticipated trends that are likely to take the Indian banking industry by storm in 2016.
1. Diligent Multichannel Network: Exploring and uncovering multiple channels of communication to customers and other banking partners will be critical for banking industry growth in 2016. Banks should invest wisely to understand customer analytics, as this can help derive efficient channels to engage with customers.
2. Proactive Social Engagement: Engaging with customers on social media platforms and other social networks fosters customer trust and confidence. One of the most important needs in banking technology for the future – social media engagement allows customers to regard the bank as a go-to source anytime.
3. Re-engineered Workforce: Synchronizing the advantages of technology with the skills and capabilities of the workforce is a significant attempt to maximize operational efficiency and workplace safety.
4. Smart Banking: Smart banking involves tapping software intelligence at every stage of banking, from decision-making, to exploring innovative opportunities. Proactive deployment of relevant banking technology is critical.
5. Tapping the Potential of the Internet: In 2013, India’s online user base crossed 200 million and thereafter, it has been growing in leaps and bounds. Despite the rise in internet usage, the Indian banking industry has been rather slow in terms of online penetration. Online users and banking customers have moved from desktop to hand held gadgets, thereby increasing the need for responsive websites and mobile friendly banking elements.
In order to rise above the competition, banks will be expected to make a clear customer-centric proposition and define capabilities that include digital innovation, a vision for the future, appropriate investment choices, and scalability to work towards the goal.