Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
12,018.40-24.8
Stock Analysis, IPO, Mutual Funds, Bonds & More

Digital adoption to boost retail profit for financial services by $3.5 bn

More than 50% of consumers are dissatisfied with their online banking and mobile app experience largely because of fear of hidden charges, lack of trust and complicated information provided, among others.

PTI|
Updated: Jun 21, 2017, 04.56 PM IST
0Comments
MUMBAI: With Internet users embracing online shopping and banking like never before in India, the adoption of digital technologies can substantially improve customer-level profitability and add to the retail profit pool by $3-3.5 billion by 2020, a new report said on Wednesday.

According to the report prepared by Facebook and The Boston Consulting Group (BCG), in spite of a growing digital adoption, financial institutions are yet to fully harness the opportunity.

More than 50 per cent of consumers are dissatisfied with their online banking and mobile app experience largely because of fear of hidden charges, lack of trust and complicated information provided, among others.

"As more and more Indians access the Internet on their mobile phones, there is a big opportunity for the financial companies to create a powerful digital experience that is intuitive and secure for their customers," said Umang Bedi, Managing Director, Facebook India and South Asia, in a statement.

The report confirms that consumers are leaning towards digital adoption of financial services faster than previous estimates.

"The time is now for the financial services industry to invest so we can help more people contribute to a digital future," Bedi added.

Today, nearly 70 per cent urban internet users are digitally influenced, which is much larger than other categories like consumer electronics or travel.

The adoption of online banking fuelled by the ongoing digital drive is expected to double to reach 150 million people from the current 45 million active urban online banking users by 2020 in India, the report observed.

"Wide-scale adoption of digital has the potential of reducing cost of acquisition and cost of servicing to 1/10th," added Amit Kumar, Partner and Managing Director, The Boston Consulting Group, India.

The report requested financial institutions to transform themselves to increase their appeal to customers in three steps.

"First fix the basics through automation of most of their day-to-day tasks; next they should transform customer experience by leveraging data and analytics and finally support customers in their entire journey and go above and beyond just traditional products and services," the report said.

Also Read

Xiaomi bets big on financial services in India

New IBC rules to cover financial service providers

Sachin Bansal ventures into financial services

Edelweiss Financial Services bags National CSR Award

Vreedhi Financial Services receives an NBFC licence

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service