How India’s Banking Sector Has Evolved And Will Continue To Evolve


Customer journeys have recently taken interesting new directions. Branchless banking is gaining traction for daily interactions. KYC has switched to digital channels in large numbers, and loan origination, application, and disbursement processing have scaled rapidly, thanks to automation. Automation has been the driving force behind many of these developments. Delivering gains in productivity, efficiency, safety, and convenience.

With India’s Immediate Payment Service (IMPS) being the only system to earn level 5 in the Faster Payments Innovation Index, the country’s digital payments system has advanced the most among 25 countries (FPII). Nowadays, YONO and other mobile banking apps are gaining popularity as speedier payment methods.

India’s bank applications, according to the RBI, are well-capitalized and well-regulated, and Indian banks are usually resilient and have weathered the global crisis well. The growth of the captive industry has been a remarkable success story during the last decades, with the Indian banking sector experiencing upheaval. After more than two decades of steady development, it’s clear that appeal stems from advantages.

The financial services industry has the most captive operations. Not only has the regulatory environment changed to promote expansion in internal procedures and technology, but it has also changed the way banks generate money. The way captive centers operate has undergone a shift. Captives are increasingly responsible for end-to-end procedures at the top end of the value chain, such as credit and decision analytics, financial risk management, and anti-money laundering, in addition to the delivery of services.

The Role Of Captive Centers In Indian Banking

Many international banks have established global in-house centers (GIC) in Mumbai, Bengaluru, and Chennai. They provide shared services in operational, analytical, financial, accountancy, and human resource processing.

Vacancies for Hire

The majority of global captives in India are rising up the value chain in hiring, not just for back-end labour but also for high-end operations, which involves hiring highly talented tech and analytics personnel from sectors.

Taking Care of Risks

In banks, the cost of a data error is exceedingly high. Back office employees can improve data quality and accuracy by utilizing expert knowledge or automation in recent years.

There is room for improvement.

Ownership, increased company effectiveness, and a better bottom line are all benefits. With the emergence of more captive centers, numerous bank activities are being handled, resulting in a rapid rise for the institutions.

Final Thoughts

Not only has technology transformed internet banking, but it has also heightened consumers’ perceptions and expectations of the business as a whole. The global banking business is undergoing a fast pace. This is ushered in by disruption and fueled by rising digital technology. Technology is advancing at such a breakneck pace that it is now possible to do things that were before unthinkable.

Digitalization provides banks with numerous options, including increased overall profit, market growth, and quality of service. According to a recent poll conducted by Accenture Research, 77% of banking institutions use artificial intelligence (AI) to automate processes in the next 3 years.