STUDY ON DIGITAL & DIVERSIFICATION INITIATIVES BY PAYMENTS BANK IN INDIA –ADOPTION & FINDINGS
Abstract
The emergence of Payment banks in India has brought about a significant shift in the financial services sector, offering specialized and unique services that cater to specific needs. These new age financial institutions are carving out a niche for themselves by providing a wide range of services such as online payments, investments, tax payments, utility bill collections, savings, insurance, and e-commerce transactions.
They mostly focusing on maximizing banking coverage and are challenging traditional commercial banks and reshaping the landscape of financial services in the country. Through the introduction of innovative products and services, Payment banks are revolutionizing the way financial transactions are conducted, providing customers with a plethora of options and maximum convenience. With the support of digital technology, these banks are enabling users to access services like m-ATM, Internet banking transactions, mobile banking transactions, and debit & credit card facilities. By offering these services in sachetized format, Payment banks are ensuring that even the last mile customers have access to a wide array of financial services, ultimately enhancing user accessibility and convenience in the financial transaction landscape.
The current study employed research methodology that incorporated primary research from the viewpoints of both payment bank users and employees in India. Prior to the final implementation, a pilot study was carried out to evaluate the efficacy of the research tools. The study utilized structured questionnaires, which proved to be a successful approach in reaching a wider audience both payment bank users and employees in India and assessing the reliability and validity of the designed tool.
The research paper also recognizes patterns that impact the digital banking strategy and the utilization of various products and services by payment banks. The results of the study emphasize the significance of innovation and comprehending consumer needs in distinguishing products and services. The digital transformation has hastened the formalization of the banking industry.
The examination of digital projects and the rise of payment banks as a substitute to conventional banking methods will be advantageous for all parties involved, such as financial entities, policymakers, regulators, and individuals engaging in financial transactions.The study's final conclusion highlights the crucial role of innovation in product and service differentiation, as well as importance of understanding the needs of end consumer.
