Banks should try to educate the customers about various aspects of digital banking so that they can use these channels easily.
“I think branches as a medium or channel will not be exempted completely. There is still a large population that would be more comfortable in one-to-one transactions rather than just digital ones.
“Therefore, this world of physical plus digital or physical There will be a way forward,” State Bank of India Managing Director Ashwini K Tiwari said at a virtual summit organized by ET BFSI.
N Kamakodi, Managing Director and CEO, City Union Bank said that although the older generation is very comfortable with the manual banking channel, many of them are now trying to use the digital channel as well.
“Nearly 90 percent of banking transactions in India are now going to non-branch channels like internet banking, Mobile Banking or ATM. The number of transactions taking place at branches is in single digits,” he said.
Ajay Kanwal, Managing Director and CEO, Jana Small Finance Bank said that according to a World Bank survey, most customers trust the bank more if they can see its branches.
“Therefore, I think (likely the bank) branches are coming down to zero,” he said, adding, however, that the role of branches will change in the future.