As the reach and impact of digital banking is growing constantly in the IT age, the career opportunity graph in the new-tech-led banking sector is also rising with the same vigour, and opening up wide range job opportunities for millions of tech-savvy professionals in India.
Careers360, recently, talked to Devendra Singh, subject matter expert in Banking Management at TimesPro, on various aspects of digital banking scenario in the country, where a significant share of rural customer composition still depends on the traditional mediums of banking facilities.
In this interview, Devendra Singh talks on the growth of digital banking, core challenges in its implementation, emerging career opportunities in net-banking, government initiatives in its promotion, among other elements of digital scenario in the banking sector of India. Read below the full interview to know about various dimensions of digital banking in India.
“In the era of digitization, there will be more demand for candidates who have good communication skills with technical and professional knowledge about banking processes.”
Careers360: From internet to mobile, banking opportunities are going digital. How do you see growth of digital banking in India?
Devendra Singh: The banking system in India has witnessed drastic changes leading to evolution of 24x7 banking concept. With digitisation and end user experience being the primary focus, a number of products and services have been launched in the sector. Most customers are now using internet banking, mobile banking, ATMs for their day to day transactions. Plastic money usage has catered to users’ convenience and has also boosted the e-commerce segment consistently. Core banking solutions have improved the banking sector and banking is not a tedious task anymore. With facilities like RTGS/NEFT/IMPS, have made fund transfer easy. Clearing system have also been mechanised through CTS leading to error free reconciliation & quick settlement. Banks have shifted their focus from contemporary banking patterns to digitalised service providers.
Careers360: What are the core challenges in implementing digital banking in India?
Devendra Singh: Digital Banking is a relatively new concept in the area of electronic banking that aims to enrich standard online and mobile banking services by integrating digital technologies. Strategic analytics, social media interactions, innovative payment solutions, mobile technology are the tools used to focus on user experience and convenience.
However, there are a large number of people in the rural and remote areas who are not very internet friendly and not so pro to net-banking. Banking inclusion is not possible without involving this segment.
Careers360: How feasible is digital banking for diverse set of customers, including those who are not tech savvy but form a major part of customer universe?
Devendra Singh: Banking inclusion is all about providing banking services to regions and people across the country. The Reserve Bank of India broadly defines financial inclusion as providing access to a wide range of financial services at a reasonable cost.
Interestingly, a massive percentage of population having mobile phones is much higher than the population having bank accounts. The status is likely to improve through technological interventions as brick and mortar businesses are proving to be an uneconomical proposition for banks in rural or remote areas. The areas face enormous distribution challenges due to localised constraints. Conventional banking models are not feasible for low ticket size transactions, deposits, loans, etc. in such regions. Several accounts are no-frills in nature. There is a lack of awareness of financial products. Unbanked economies have tapped the potential of digital technology, particularly in the mobile space, to gauge the impact of technology-driven inclusion.
Careers360: How digital banking is transforming the economic landscape of India?
Devendra Singh: Digital banking will drastically change the purchasing behaviour of the consumers. The growing interest in e-commerce and convenience of online transactions, consumers hardly indulge in traditional methods of banking. This will definitely change the consumer market scenario.
Careers360: What are the new and emerging career opportunities after the advent of digital banking in India?
Devendra Singh: There might be an apprehension about availability of career opportunities in banking sector. In the era of digitization, there will be more demand for candidates who have good communication skills with technical and professional knowledge about banking processes. VRM (Virtual Relationship Manager) and TRM (Telephonic Relationship Manger) are the hottest job roles in the upcoming scenario.
Careers360: What are the government initiatives in promoting the digital work in Indian banking sector?
Devendra Singh: The newly-introduced Government reforms for start-ups involve tax benefits for online transactions. With the start-up trend prevailing in the country, it will be an additional feature in the banking sector.
The Reserve Bank of India has also provided for a networking system, commonly known as IMPS (Instant Mobile Payment System) at national level. This enables the users to avail banking services even during non-working days and during non-working hours. The system is beneficial to transfer smaller amounts. The system caters to people with medium or low income.
Careers360: How digital channels have emerged as challenge to traditional banking?
Devendra Singh: Digital modernisation gives traditional banks a second chance. It is a smart approach to banking services and positions the banks to deepen customer satisfaction and loyalty. It formulates a long-term customer relationship and enhancing profitability for banks. Such an approach also has the potential to meet consumers’ expectations and bring them back to the bank.
Careers360: What impacts do you see the digital banking will have on Indian banking scenario in the next 10 years?
Devendra Singh: The banking scenario will be totally computerised and instant. It will focus solely on instant services and providing utmost convenience to the customers. In addition to current ATM and fund transfer services, availing loans will also become an instant service.
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