The Hype Around Virtual Banking is not Hypothetical

Mar 2, 2021 | Tech

Yes, you heard it right. The hype around virtual or digital banking is not at all imaginary. A big chunk of banking operations was being run digitally in the pre-COVID era, but post the virus spread and lockdowns, the practices have gone mostly digital.

Indian digital transactions market is expected to touch a whopping USD 1 trillion by 2023.

A recent Statista survey noted that 33% of Indians used digital payment options much aggressively in 2020 than ever before.

But being a BFSI organization is not easy at the moment as you are forced to offer all your banking services on the web, digitally, as the government has implemented several restrictions on physical banking in the ‘new normal’. You face the two biggest challenges in your history of existence as a financial services firm. One, the non-availability of foolproof digital-ready infrastructure, and second, the pressure to train the entire staff on the new system and e-banking tools in almost no time.

A Perplexed Banking Workforce Seeks Training, Desperately

The state of current banking landscape globally, has unintendedly put the banking workforce in a spot. As they now need to deal with a plethora of changes, both, in terms of the sudden advent of hyper-digitalized banking infrastructure, along comes the challenge of coping with the familiarization with the same. A lot needs to be learned in a short span. The circumstances are even tougher for the sales executives, as they now need to sell banking products and services over the call, or video.

What’s Making Digital Banking Gain Traction Worldwide?

As per a McKinsey report, there are three primary factors contributing to the unprecedented digitization of the banking sector:

  • It offers the scope of adopting new & innovative business models.
  • Possibility of making inflated revenues through digital sales of financial products & services, backed by the access to customers’ digital data which embraces personalized sales targeting & cross-selling.
  • Cost-cutting with assistance from the unparalleled automation offered by the new-age digital banking solutions.

Dr. Jasmine Gupta, National Product Head, Equitas Small Finance Bank, in an interview with HCMguru, discussed in detail about the future of virtual banking in India.

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