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A recent report from Deloitte, the 6th Global Digital Banking Maturity (DBM) Survey, has recognized nine Indian banks as ‘Digital Champions’. These banks are part of the 40 global banks that received this title. Since the last survey in 2022, India’s Digital Banking Maturity (DBM) Index has improved from 43% to 59%, showing a 16 percentage-point (pp) increase. This progress reflects the growing digital maturity of Indian banks, which are increasingly focusing on offering customized advisory services, technological advancements, AI integration, and beyond-banking services.
The Digital Banking Maturity is the largest and most comprehensive benchmarking study of digital retail banking, conducted every two years.
- Nine Indian banks have been recognised as ‘Digital Champions’ among 40 banks that received the title globally.
- India’s DBM Index has grown from 43% to 59%, witnessing a 16-percentage point (pp) increase.
- Indian digital champions have outperformed global digital champions across most journey steps, with India’s overall DBM Index of 59% exceeding the global average DBM Index by 20 percentage points (pp)
Methodology of the Survey
The Global DBM study is conducted every two years, and in its latest edition, 349 banks across the world participated. The survey evaluated banks based on their maturity in retail banking across three main channels:
- Public websites
- Internet banking
- Mobile banking (including messenger service-based banking)
The study used a mystery shopping methodology to assess each bank’s performance across six customer journey steps:
- Information gathering
- Account opening
- Customer onboarding
- Day-to-day banking
- Expanding relationships
- End relationships
For the first time, the survey also added a focus on user experience (UX) as part of the evaluation criteria.
Key Findings
The report highlights that Indian banks, particularly those recognized as Digital Champions, have outperformed their global counterparts in most of the customer journey steps. The Indian DBM Index is now 20 percentage points higher than the global average. Indian banks scored notably higher in areas like:
- Information gathering
- Customer onboarding
- Day-to-day banking
- User experience
However, there is still room for improvement, especially in day-to-day banking and expanding relationships. To further enhance their digital offerings, banks need to focus on areas like personal finance management, conversational solutions for personalized support, and cross-selling of products.
India’s Digital Banking Progress
Himanish Chaudhuri, Partner and Financial Services Industry Leader at Deloitte India, expressed pride in India’s digital banking progress, stating that the country has outpaced the global average in many areas. He also highlighted that India, in its second year of participation, has emerged as a rising force in global digital banking, joining the ranks of global powerhouses like the US, China, Brazil, and the European Union.
Chaudhuri further emphasized that India’s digital banking sector is on a strong growth trajectory. With regulatory support, the rise of GenAI, industry convergence, and a focus on fraud prevention, Indian banks are well-positioned to contribute to the country’s vision of becoming a ‘Viksit Bharat’ (Developed India).
Factors Driving Digital Transformation in India
India’s digital banking transformation is being driven by several key factors, including:
- Favorable regulatory environment that encourages digital growth.
- The expansion of digital public infrastructure.
- Increased investment and spending capacity.
- Improved internet connectivity and mobile penetration.
However, this progress is not without challenges. The sector faces issues like macroeconomic uncertainties, geopolitical concerns, rising deposit costs, and credit quality concerns.
Areas for Improvement
Suchintan Chatterjee, Partner at Deloitte India, noted that while Indian banks have excelled in areas like account opening and customer onboarding, there is still a need for improvement in day-to-day banking and expanding relationships. To meet growing customer expectations and scale effectively, banks must address data architecture issues, fill skill gaps, and ensure enterprise-wide data agility.
Progress in Day-to-Day Banking and Expanding Relationships
The survey identified key areas where Indian banks made notable gains in day-to-day banking and expanding relationships. Some of the significant improvements include:
- Transfers & Payments: Saw a 2.4 pp increase since 2022, surpassing the 1 pp global average.
- Personal Finance Management: Improved by 1.9 pp, compared to a 0.1 pp global rise.
- Account and Product Management Services: Recorded a 2 pp increase, against the 1 pp global benchmark.
- Card Management Services: Experienced a ~2 pp rise, with a secure and seamless banking experience, although this was still lower than the 3 pp global average rise.
In the area of expanding relationships, Indian banks achieved a 1 pp increase in beyond-banking offerings, outperforming the 0.1 pp global average. However, ecosystem services and account aggregation services, which are crucial for deeper customer engagement, showed a modest 0.5 pp increase.
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