Indian banks outpace global average in digital banking services: Deloitte report

According to the Global Digital Banking Maturity (DBM) survey, nine Indian banks have been recognised as 'Digital Champions' among 40 banks that received the title globally.

Since 2022, India's DBM Index has grown from 43 percent to 59 percent, witnessing a 16-percentage point (pp) increase. Indian banks have observed the most notable gains in day-to-day banking (+9.8 pp) and expanding relationships (+3.4 pp).

This change reflects Indian banks' increasing digital maturity, showcasing their focus on customised advisory, rapid technological advancements, AI integration and beyond-banking offerings, the report said.

The Global DBM study, conducted biennially, surveyed 349 banks in its latest edition,assessing participants based on their retail banking maturity across three main channels: public websites, internet banking and mobile banking, which includes application messenger service-based banking.

The survey further highlights that Indian Digital Champions have outperformed their global peers across most journey steps, with India's overall DBM Index exceeding the global average index by 20 pp. Indian Digital Champion banks scored significantly higher in information gathering, customer onboarding, day-today banking and overall userexperience.

Himanish Chaudhuri, Partner and Financial Services Industry Leader, Deloitte India, said, "In only its second year of participation, India has already asserted itself as a rising force among global powerhouses such as the US, China, Brazil and the European Union."

The report says that the Indian banking sector's digital transformation is driven by a favourable regulatory environment, expanding digital public infrastructure, increased investment and spending capacity and enhanced internet connectivity and mobile penetration.

However, this progress is accompanied by challenges such as macroeconomic and geopolitical uncertainties, rising deposit costs and concerns over credit quality, said the report.

While taking a deep dive into day-to-day banking and expanding relationships journey steps, where Indian banks observed the most notable gains, the survey report highlights significant progress within the key components of these areas.

In day-to-day banking, Transfers & Payments saw a 2.4 percebtage point (pp) increase since 2022, surpassing the 1 pp global average.

Personal Finance Management improved by 1.9 pp compared with the 0.1 pp global rise, while Account and product management services recorded a 2 pp increase against the 1 pp global benchmark. On the other hand, Card Management services showed a notable 2 pp rise, driven by seamless services and a secure banking experience, compared with a 3 pp global average rise.

In expanding relationships with banking services, Indian banks achieved a 1 pp increase in beyond banking offerings, outperforming the 0.1 pp global average rise.

However, the ecosystem and account aggregation services, a key area for further focus, registered a modest 0.5 pp rise, added the report.