Tech Trends In Digital Banking: An Empirical Study

Abstract

The Banking Industry plays a significant role in the financial structure of the Indian economy. It enables the creation and maintenance of a vital payment structure to fulfill the needs of the Government, Business, and the public. The banking industry of India is witnessing a revolution in Information Technology and is heading towards digitalization. Digital banking has opened new doors to another continuum of banking by allowing customers to conveniently conduct their daily banking activities. The banking operation has changed rapidly from conventional to model banking, which offers massive opportunities to move towards a less-cash and cash-less society. The government of India has taken various actions to enhance and encourage the digital banking system to encourage 'Digital India.' The Government of India intends to build a 'digitally empowered' economy as part of the initiative: 'Faceless, Paperless, and Cashless.' Due to growing technology, internet penetration, and smartphone users in India, the Digital Banking Market is expected to grow over 22% CAGR during 2019-2024. This paper studies the growth and recent tech trends in digital banking facilities in the Indian economy. As a study methodology, data was collected from the RBI database and another report and analyzed using index number methods. The researcher analyzed the data for 12 years (2011-12 to 2022-23) to determine the trend of digital banking technologies. Research findings indicate that technologies like RTGS, Retail Electronic Clearing, Credit cards, Prepaid Payment Instruments (Mobile Wallets), and Mobile Banking show increasing trends. In contrast, Debit cards show decreasing trends due to increased smartphone use and mobile banking and mobile wallets.