CHALLENGES FACED BY RETAIL BANKING FROM FINTECH IN PRIVATE SECTOR BANKS IN INDIA
Priya jhajharia1, Dr. Tina shivnani2, Dr. Jampala Maheshchandra Babu3
1Research scholar, 2Associate Professor, 3Assistant ProfessorManipal University Jaipur, Jaipur
Abstract: The banking sector is undergoing a radical shift due to digitization, one of the most significant developments in the business. As a result of digitalization, financial institutions now have more ways to prioritize their customers’ needs. The retail financial service value chain is seeing sustained disruption from new technologies entering and remaining in the industry. Both the current leaders and the newcomers have access to cutting-edge tools. Banking and finance have been reimagined as an “enabler” rather than a “supplier” of goods and services in response to the dynamics driving these shifts. According to the World Retail Banking Report 2022, 75% of consumers are interested in using FinTechs because of the low prices and convenient nature of the services they provide via their emphasis on financial automation. Because of this, they now have much higher standards for their online banking experience. Oracle’s research shows that eighty-one percent of clients prefer digital channels over branch visits when communicating with financial institutions. Online and mobile banking services have been down for most retail banking users. This is due to the fact that most Indian banks are still not comfortable with cloud migration and the fact that all conventional Indian banks are based on security rather than scalability. In this respect, cutting-edge FinTech firms of the future generation are prevailing over their more established counterparts in India’s conventional retail banking sector. To begin with, technology and Fintech have threatened the status quo of traditional retail banking, which has negatively affected their income. As Fintech in India grows, it is time for widespread adoption of financial automation throughout the country’s banking system.
Keywords: Bank, blockchain, digital, finance, Fintech, investment, online, payment service, peer-to-peer, third-party integration.