Banking branch loses its craze

Growth in technology has its effect on every industry. Banking is never an exception. The growth in technology has brought in unexpected changes in banking. Lack of branches was a cause of shutting down many banks in early days. But, today branches have lost its craze. Banking is mostly happening in online than in person.

20 – 40% increase in online banking has been experienced by the Indian banking system. SBI has experienced a drastic increase in the number of online customers; numbers were manipulated to be 2.10crore in December 2014 from 1.65 crore in December 2013. Mobile banking has also manipulated to increase by 65% in the same period.

Most banks face just 15% o their transactions through branches, whereas the rest 85% is disseminated across online, ATMs, debit and credit cards. Further introduction on payment banks would still reduce the branch banking facilities. It is said that a major driver for this trendy change is the youngsters. Since most of the customers in banks are youngsters and it is forecasted that by 2020 average age will be 29, who mostly prefer online and smart phones for all transactions. So, as the customer base changes the trend also has to change to keep the competitive fire high.

Though changes are happening in banking industry, rural areas are still ignorant to the trends. Real success falls in our hands only when rural areas are digitized and also only when rural people are educated about these trendy changes. Hope for the best.

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