Public Sector Banks (PSBs) in India have rapidly embraced digitisation, making most banking services available online. From opening accounts to applying for loans, the transformation in the Indian public sector has been significant.
As of FY 2020-21, nearly 72% of financial transactions in PSBs were conducted through digital channels . Additionally, digital payment systems like the Unified Payments Interface (UPI) have revolutionised transaction processes. By the end of 2024, UPI accounted for 83% of India’s cumulative digital payments ecosystem, more than doubling since 2019. In 2024 alone, India recorded 208.5 billion digital payment transactions, highlighting UPI’s crucial role in financial inclusion and accessibility .
However, despite these advancements, some banking services still require physical documentation and in-person visits. This is where services like Doorstep Banking offered by PSB Alliance bridge the gap by deploying agents to deliver banking services at the user’s preferred location. This not only benefits the elderly and disabled but also offers a time-saving solution for busy urban professionals.
Similarly, Non-Performing Asset (NPA) auctions have evolved from traditional physical bidding to digital platforms like BAANKNET. This platform streamlines property listings and e-auctions, enabling banks to recover NPAs more effectively while improving service delivery and financial stability. BAANKNET also reduces turnaround time, increases bidder participation, and ensures better price realisation.
Banking digitisation is an ongoing journey, with technologies like Artificial Intelligence and blockchain driving the next wave of transformation. The future of banking will focus on enhancing user experience and decentralisation, making financial services more accessible and efficient.
Another key trend shaping the future of banking is the integration of data analytics and machine learning to offer hyper-personalised financial services. Banks are leveraging these technologies to predict customer needs, provide tailored loan and investment options, and improve fraud detection mechanisms. This data-driven approach not only enhances customer satisfaction but also strengthens risk management, ensuring a more secure and efficient banking ecosystem.
As banking evolves, so will the ancillary products that support it, shaping a more interconnected and technology-driven financial ecosystem.