One of the biggest challenges that digital banking faces in semi-urban and rural markets is the absence of proportionate digital connectivity in these regions.
Players in the space – whether traditional banks, NBFCs, fintech companies, or institutional lenders – will also have to earn the trust of the non-metropolitan consumers.
The past year has seen a significant rise in the number of scams aimed at defrauding users – most of which exploited the end-user’s lack of awareness to steal money from e-wallets and online banking platforms
Digital banking has grown exponentially in urban India over the last few years. At the helm of this growth are younger users who, buoyed by the smartphone revolution and growing high-speed internet connectivity, have disrupted traditional banking patterns. No longer content to wait in long lines or deal with cumbersome processes, they fulfil their banking needs with the touch of a button – tap, tap, done.
Unfortunately, their peers in rural and semiurban India cannot make the same claim. The benefits of the ecosystem and efficiencies being enabled through APIs, SaaS-enabled platforms, artificial intelligence, and data analytics are unavailable to them.