Digitization of Banking System in India- Opportunities and Challenges

Abstract

In the present day digital economy digitization of banking services is no longer an option. Banks are exploiting information technology not just for enhancing employee productivity and efficiency but for a variety of reasons like improving their market share, reducing non- performing assets, promoting cross selling of products etc. Apart from this, for the present day Gen -Y customer population, availing themselves of services digitally makes them feel more contemporary and gives them a reason to stick to the banks as customers. This paper studies various opportunities that a bank can use while promoting digitization and also enumerates the challenges involved in this process. The paper is the result of extensive field research carried out by the author at the State Bank of India, the second largest bank in the world and of a study of several published materials on the subject.