India Digital Banking Industry By Total Number of Banks in India (Bank Type), By Total Deposits in India (Deposit Type, Bank Type, Region), By Total Digital Lending in India (Bank Type), By Total Transactional Value Paid Digitally in India (Value), By Total Number of Transactions Paid Digitally in India (Volume), By Total Number of ATMs in India (Bank Type), Opportunities, 2015-2022
Digital banking systems exhibit remarkable versatility, allowing banks to swiftly introduce and expand services in contrast to traditional systems. Emphasizing cost-effectiveness, security, and flexibility for both banks and customers, digital banking leverages advanced process automation, web-based services, and APIs. Modern banking systems facilitate real-time data streams and enhance vital analytics, enabling a seamless digital customer journey. Traditional banking functions, procedures, and operations are undergoing digital transformation to enhance client service through online channels. Positioned as the "future model of banking," digital banking paves the way for QR codes and UPI payments. The advent of COVID-19 in India has notably amplified the evolution of digital banking, witnessing rapid adoption and the entrance of new financial players.
Acceleration of Digital Payment Transactions in India
Over the past five years, India's digital payment transactions have surged significantly. Instruments like Pre-paid payment instruments (PPIs), Immediate Payment Service (IMPS), Bharat Interface for Money-Unified Payments Interface (BHIM-UPI), and the National Electronic Toll Collection (NETC) system have experienced substantial growth, reshaping the industry landscape. The trajectory of digital payment transactions reveals a substantial ascent from USD 613.69 million in 2019–20 to USD 745.50 million in 2020–21 and USD 1.19 billion in 2021-22.
Infrastructure Development Driving Expansion
The expansion of digital payments can be attributed to the growth of acceptance infrastructure, particularly following the operationalization of the Payments Infrastructure Development Fund (PIDF). The deployment of Bharat Quick Response (BQR) codes increased by 39.3% to USD 66.71 thousand, while Points of Sale (PoS) terminals grew by 28.6% to USD 81.48 thousand. Automated teller machines (ATMs) also expanded from USD 3.21 thousand in 2020-21 to USD 3.33 thousand in 2021–22.
Smartphone Adoption Propelling Industry Growth
Increasing smartphone adoption rates are propelling India's digital banking sector. Favorable internet costs have elevated the utilization of digital platforms and mobile apps for professional use. As smartphone and internet penetration deepens, demand for comprehensive banking platforms is expected to surge. Preliminary data from the International Data Corporation's Worldwide Quarterly Mobile Phone Tracker indicates a 3% year-over-year (YoY) rise in smartphone sales to India, with 35 million units sold in 2022 (April-June).
Consumer Demand for Convenience Driving Expansion
Customers are embracing a plethora of payment methods, including wearable technology, mobile wallets, credit cards, debit cards, and QR codes. The digital banking sector's promising future hinges on recognizing consumer preferences across these methods. Furthermore, digital banking provides heightened personalization, enabled by AI and machine learning-driven software. Automation streamlines operations, reducing costs by eliminating redundant back-office processes, enhancing customer engagement with automated budgeting, expenditure analytics, savings reminders, and more.
Government Endeavors Amplifying Industry Momentum
Government initiatives are playing a pivotal role in bolstering digital banking adoption in India. Kerala stands as the first state to make all eligible accounts accessible for digital banking, aligning with the Reserve Bank of India's "Expanding and Deepening of Digital Payments Ecosystem" initiative. The establishment of 75 digital banking units (DBUs) across as many districts, as announced in Budget 2022-23, further exemplifies the government's commitment to nurturing digital banking across the nation.
Industry Segmentation
The India digital banking industry is segmented based on total number of banks in India, total deposits in India, total digital lending in India, total transactional value paid digitally in India, total number of transactions paid digitally in India, total number of ATMs in India, and competitional landscape. Based on total number of banks in India, the sector is explained with banks. In terms of total deposits in India, the industry is divided on the basis of deposit type, bank type and region. In terms of digital lending, the industry is explained with bank type. Based on transactional value paid digitally in India, the sector is explained with payment mode. In terms of number of ATMs in India, the market is explained with bank type.
Company Profiles
HDFC Bank Limited, ICICI Bank Limited, Bank of India Limited, State Bank of India, Axis Bank Limited, Punjab National Bank, IndusInd Bank Limited, Bank of Baroda, Kotak Mahindra Bank Limited, Yes Bank Limited are among the some of the industry players in the India digital banking industry.
Report Scope:
In this report, the India digital banking industry has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
- India Digital Banking Industry, By Total Number of Banks in India:
- Bank Type
- India Digital Banking Industry, By Total Deposits in India:
- By Deposit Type
- By Bank Type
- By Region
- India Digital Banking Industry, By Total Digital Lending in India:
- Bank Type
- India Digital Banking Industry, By Total Transactional Value Paid Digitally in India:
- Payment Mode
- India Digital Banking Industry, By Total Number of Transactions Paid Digitally in India:
- Payment Mode
- India Digital Banking Industry, By Total Number of ATMs in India:
- Bank Type
Company Profiles: Detailed analysis of the major companies present in the India digital banking industry.
Company Information
- Detailed analysis and profiling of additional market players (up to five).
- 1. Introduction
- 1.1. Industry Overview
- 1.2. Key Highlights of the Report
- 1.3. Industry Coverage
- 1.4. Segments Covered
- 1.5. Research Tenure Considered
- 2. Research Methodology
- 2.1. Objective of the Study
- 2.2. Baseline Methodology
- 2.3. Key Industry Partners
- 2.4. Major Association and Secondary Sources
- 2.5. Assumptions and Limitations
- 3. Executive Summary
- 3.1. Industry Overview
- 3.2. Key Segments
- 4. Total Number of Banks in India, (Volume), 2015-2022
- 4.1. By Bank Type
- 4.1.1. Total Number of Private Banks
- 4.1.2. Total Number of Public Banks
- 4.1.3. Total Number of Foreign Banks
- 4.1.4. Total Number of Regional Rural Banks
- 4.1.5. Total Number of Small Finance Banks
- 5. Total Deposits in India, (Value), 2015-2022
- 5.1. By Deposit Type
- 5.1.1. Total Saving Deposits
- 5.1.2. Total Current Deposits
- 5.1.3. Total Term Deposits
- 5.2. By Bank Type
- 5.2.1. Total Deposits with Public Banks
- 5.2.2. Total Deposits with Private Banks
- 5.2.3. Total Deposits with Foreign Banks
- 5.2.4. Total Deposits with Regional Rural Banks
- 5.2.5. Total Deposits with Small Finance Banks
- 5.3. By Region
- 5.3.1. Total Deposits in Central Region
- 5.3.2. Total Deposits in Eastern Region
- 5.3.3. Total Deposits in North Eastern Region
- 5.3.4. Total Deposits in Northern Region
- 5.3.5. Total Deposits in Southern Region
- 5.3.6. Total Deposits in Western Region
- 6. Total Digital Lending in India, (Value), 2015-2022
- 6.1. By Bank Type
- 6.1.1. Total Digital Lending with Public Banks
- 6.1.2. Total Digital Lending with Private Banks
- 6.1.3. Total Digital Lending with Foreign Banks
- 6.1.4. Total Digital Lending with NBFCs
- 7. India Digital Banking Overview, 2015-2022
- 7.1. Digital Banking Introduction
- 7.2. Digitalization
- 7.3. History
- 7.4. Advantages & Disadvantages
- 7.5. Traditional vs Digital Banking
- 7.6. Digital Accounts in India Overview
- 7.7. Digital Payment Index
- 7.8. Digital Banking Units in India as per RBI
- 8. Total Transactional Value Paid Digitally in India (Value), 2015-2022
- 8.1. By Payment Mode Transactional Value
- 8.1.1. By UPI
- 8.1.2. By NEFT/IMPS
- 8.1.3. By Debit Card
- 8.1.4. By Credit Card
- 9. Total Number of Transactions Paid Digitally in India (Volume), 2015-2022
- 9.1. By Payment Mode Transaction Volume
- 9.1.1. By UPI
- 9.1.2. By NEFT/IMPS
- 9.1.3. By Debit Card
- 9.1.4. By Credit Card
- 10. Total Number of ATMs in India, (Volume), 2015-2022
- 10.1. By Bank Type
- 10.1.1. Total Number of Private Bank ATMs
- 10.1.2. Total Number of Public Bank ATMs
- 10.1.3. Total Number of Foreign Bank ATMs
- 11. Market Dynamics
- 11.1. Drivers
- 11.1.1. Rising Demand for Convenience
- 11.1.2. Increasing Smartphone Adoption
- 11.1.3. Growing Government Initiatives
- 11.2. Challenges
- 11.2.1. Stringent Government Regulations
- 11.2.2. Limited IT Infrastructure
- 12. Impact of COVID-19 on India Digital Banking Industry
- 13. Market Trends & Developments
- 13.1. Increasing Customer Awareness
- 13.2. Growing Adoption of Digital Banking Platform Among SMEs
- 13.3. Ease of Usage & Ensured Affordable Costs
- 13.4. Rising Trend of Going Cash-Free
- 13.5. Technological Advancement in Digital Banking Solutions
- 14. SWOT Analysis
- 14.1. Strengths
- 14.2. Weaknesses
- 14.3. Opportunities
- 14.4. Threats
- 15. Policy & Regulatory Landscape
- 16. India Economic Profile
- 17. Competitive Landscape
- 17.1. Company Profiles
- 17.1.1. HDFC Bank Limited
- 17.1.1.1. Company Details
- 17.1.1.2. Product & Services
- 17.1.1.3. Financials (As Reported)
- 17.1.1.4. Digital Banking Services
- 17.1.1.5. Key market Focus & Geographical Presence
- 17.1.1.6. Recent Developments
- 17.1.1.7. Key Management Personnel
- 17.1.2. ICICI Bank Limited
- 17.1.2.1. Company Details
- 17.1.2.2. Product & Services
- 17.1.2.3. Financials (As Reported)
- 17.1.2.4. Digital Banking Services
- 17.1.2.5. Key market Focus & Geographical Presence
- 17.1.2.6. Recent Developments
- 17.1.2.7. Key Management Personnel
- 17.1.3. Bank of India Limited
- 17.1.3.1. Company Details
- 17.1.3.2. Product & Services
- 17.1.3.3. Financials (As Reported)
- 17.1.3.4. Digital Banking Services
- 17.1.3.5. Key market Focus & Geographical Presence
- 17.1.3.6. Recent Developments
- 17.1.3.7. Key Management Personnel
- 17.1.4. State Bank of India
- 17.1.4.1. Company Details
- 17.1.4.2. Product & Services
- 17.1.4.3. Financials (As Reported)
- 17.1.4.4. Digital Banking Services
- 17.1.4.5. Key market Focus & Geographical Presence
- 17.1.4.6. Recent Developments
- 17.1.4.7. Key Management Personnel
- 17.1.5. Axis Bank Limited
- 17.1.5.1. Company Details
- 17.1.5.2. Product & Services
- 17.1.5.3. Financials (As Reported)
- 17.1.5.4. Digital Banking Services
- 17.1.5.5. Key market Focus & Geographical Presence
- 17.1.5.6. Recent Developments
- 17.1.5.7. Key Management Personnel
- 17.1.6. Punjab National Bank
- 17.1.6.1. Company Details
- 17.1.6.2. Product & Services
- 17.1.6.3. Financials (As Reported)
- 17.1.6.4. Digital Banking Services
- 17.1.6.5. Key market Focus & Geographical Presence
- 17.1.6.6. Recent Developments
- 17.1.6.7. Key Management Personnel
- 17.1.7. IndusInd Bank Limited
- 17.1.7.1. Company Details
- 17.1.7.2. Product & Services
- 17.1.7.3. Financials (As Reported)
- 17.1.7.4. Digital Banking Services
- 17.1.7.5. Key market Focus & Geographical Presence
- 17.1.7.6. Recent Developments
- 17.1.7.7. Key Management Personnel
- 17.1.8. Bank of Baroda
- 17.1.8.1. Company Details
- 17.1.8.2. Product & Services
- 17.1.8.3. Financials (As Reported)
- 17.1.8.4. Digital Banking Services
- 17.1.8.5. Key market Focus & Geographical Presence
- 17.1.8.6. Recent Developments
- 17.1.8.7. Key Management Personnel
- 17.1.9. Kotak Mahindra Bank Limited
- 17.1.9.1. Company Details
- 17.1.9.2. Product & Services
- 17.1.9.3. Financials (As Reported)
- 17.1.9.4. Digital Banking Services
- 17.1.9.5. Key market Focus & Geographical Presence
- 17.1.9.6. Recent Developments
- 17.1.9.7. Key Management Personnel
- 17.1.10. Yes Bank Limited
- 17.1.10.1. Company Details
- 17.1.10.2. Product & Services
- 17.1.10.3. Financials (As Reported)
- 17.1.10.4. Digital Banking Services
- 17.1.10.5. Key market Focus & Geographical Presence
- 17.1.10.6. Recent Developments
- 17.1.10.7. Key Management Personnel
- 18. Strategic Recommendations/Action Plan
- 18.1. Key Focus Areas
- 18.2. Target Segment
- 18.3. Target Services
- 19. About Us & Disclaimer
- (Note 1: The data given for any year represents the market during the period, i.e., 1st April of the previous year to 31st March of that year. E.g. For 2022E, the data represents the period, 1st April 2021 to 31st March 2022. Note 2: The companies list can be customized based on the client requirements.)
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