Technology's Contribution to Financial Inclusion in the Indian Banking Sector
Abstract
“Digitalization is the use of digital technologies to change a business model and provide new revenue and value-producing opportunities. It is the process of moving to a digital business.”- Gartner Glossary
Integrating digital technology into social and corporate processes with the intention of making them better is known as "digitalization."
"Digital" is the latest mantra in every industry. Along with other industries, banking is becoming more digitalized worldwide. Financial institutions, regardless of their size or location, are heavily investing in digital efforts to stay competitive and provide optimal client service.
Digitalization adoption is crucial for the banking industry. Digitalization allows banks to offer better customer service. Customers will find this convenient, and it also saves time. Manual procedures, transactions, and activities have been replaced by digital services as a result of digitalization. Customer requirements have been satisfied in completely novel ways across all verticals, upending established company value chains. Because digitalization decreases human error, it increases consumer loyalty.
The Unified Payments Interface (UPI), which has seen remarkable acceptance. The government's platform approach to UPI development has led to the development of supreme payments products on top of it, redefining the way that money is transferred between individuals by enabling payments to be made with a single click on a mobile device, not only at retail locations but also peer-to-peer. Before the introduction of UPI, the banking sector's ability to support reasonable financial growth was mostly dependent on many card systems, the Real Time Gross Settlement (RTGS) system, and transactions made via the National Electronic Funds Transfer (NEFT) system.
This research study highlights the technological advancements in payment infrastructure, tools, and methodologies that the Indian banking sector has embraced. It also acknowledges the obstacles that the Indian banking system has in achieving digital financial inclusion in the nation.
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References
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