Domestic banks have been one of the leading adopters of IT technology; a trend accelerated in recent months by the Covid-19 pandemic.
But with the widespread adoption of mobile and Internet banking by customers, which has led to the rise of fintechs and neobanks but also frequent outages, are the investments by lenders in IT systems adequate?
With initiatives ranging from digital payments, video KYC (know your customer), WhatsApp banking and paperless and online loan approval to operating call centres in work-from-home mode, banks have been unveiling measures aimed at more customer convenience and fewer branch visits.
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“One of the biggest ways banks supported Indian companies in 2020 was by helping them make the abrupt shift to remote work and digital channels in the early days of the Covid-19 crisis,” says a recent report by Coalition Greenwich titled ‘Covid crisis could contribute to continued consolidation’.
It further noted that by forcing companies to embrace digital solutions, the crisis has given banks leeway to use technology to generate efficiencies and reduce costs.