A significant majority of consumers, 78%, in India now prefer to conduct their banking digitally through mobile apps or websites, according to a recent report by Alkami Technology.
This shift underscores the broader move towards cashless transactions and contactless payments, trends that have accelerated significantly since the COVID-19 pandemic.
The report highlights that nearly 80% of financial institutions have observed a marked increase in cashless transactions over the past two years.
This surge, driven by pandemic-induced changes in consumer behavior, saw about 60% of these institutions reporting a more than 20% rise in cashless payment volumes.
While cashless payments have been part of the financial landscape for decades, with personal checks and credit cards paving the way, today’s digital transactions—whether made via smartphones, laptops, or tablets—are rapidly becoming the norm.
The convenience and perceived safety of these methods, particularly in a post-pandemic environment, have boosted their popularity.
Allison Cerra, Chief Marketing Officer at Alkami Technology, noted the evolving landscape: “The banking leaders of the future will be those that can harness data effectively, gain a comprehensive view of customer relationships, and adapt to the rapidly changing demands of digital consumers.”
As digital banking adoption grows, traditional methods are declining. Chad Rogers, Executive Vice President at Connexus Credit Union, observed a shift even among millennials, who are now less likely to use checks or ATMs, opting instead for digital platforms to manage their finances remotely.
Despite fewer in-person bank visits, overall customer engagement with banks has increased, driven by the ease of mobile and online banking. Customers now interact with their banks more frequently, often daily.
However, while cashless transactions are booming, the uptake of cryptocurrency remains slower. Approximately 21% of financial institutions reported customer interest in Bitcoin products, though 35% of banks see offering cryptocurrency options as a potential competitive edge.
Traditional banks are feeling pressure from fintech firms like PayPal, Stripe, and Venmo, which JPMorgan Chase CEO Jamie Dimon described as “enormous competitive threats.” In response, around half of banks and 40% of credit unions have partnered with fintech companies in the past three years to enhance their digital offerings.
