Digitalization of Banks: an evidence from India
Financial institutions are seeking to increase their knowledge in relation to technological innovation, both through partnerships with tech companies and by investing in or acquiring such companies. Despite this, there are wide differences in the preparedness of market participants for these changes in practice. While such innovation facilitates the entrance of new users to the financial system, it may also move the provision of some payment services to non banking companies that are not regulated as financial entities. There are a number of web based and mobile based payment applications that primarily focus on the customer experience and often aim to better integrate payment transactions within the commerce value chain. These service providers usually do not offer banking services other than payments, and they normally do not apply for banking licenses. The modern world in which we are living is dominated by the concept called "Digitalization" The government of India recently announced Digital India Programme with a vision to transform India into a digitally empowered society and knowledge economy. The concept of digitalization has been playing major role in all sectors of the economy and banking sector is not exception to it. Digitalization has become decisive for Indian Banking sector, which plays major role in furthering financial inclusion and which is mainly concerned with providing better services to customers along with an opportunity to gain more in near future. Indian banking sector is achieving tremendous growth in recent years, encouraging higher amount of capital formation, which is because of digitalization of banking. Even though Indian banking sector is moving towards digitalization, there are various issues and challenges to be addressed, especially in rural banking. This conceptual research paper is an attempt made to analyze the issues and challenges in the area of Digitalization of Rural Banking and to gain a new perspective in that area.