Despite the recent demonetisation drive carried out by the Indian government, use of traditional bank branches continues to surpass digital banking channels in India, revealed the 2017 Oracle J.D. Power India Retail Banking Study.
Around 94% of retail banking customers in India were found to visit a branch/store at least once in the past 12 months. On the other hand, only 9% of customers were found to use mobile banking for daily transactions.
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Of the 78% using smartphones, 42% were found to make use of at least one mobile wallet. Also, more customers were found to use non-banking apps as their main mobile wallet, with just 5% found to use banking app as their main app.
Despite less usage, overall customer satisfaction with mobile banking stood at 693 when measured on a 1000-point scale, higher compared to 676 in case of in-person branch interaction.
Around three-fourths of customers said their financial needs were not fully understood before being delivered new products. Only 7% of the respondents said that they were explained fees and pricing of products.
In addition, the study found consumers rating private banks higher in overall satisfaction (680) versus public banks (666).
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By GlobalDataJ.D. Power senior director Gordon Shields said: “Only 51% of retail banking customers have a reliable online banking experience with their main financial institution. If this is the alternative to in-person banking at the branch, a stronger emphasis must be placed on improving overall service.
“In fact, overall customer satisfaction with banking in India is lagging significantly behind other key markets at 672 index points, compared to the industry average score reported in other J.D. Power studies in China (806), the USA (793) and Australia (748), thus, underlining the need for banks in India to improve their overall service and offerings to a growing banking populace.”
The study measured overall satisfaction in account activities, account information, facility, product offerings, and fees.
