“Progressively, we are seeing that there has been a shift away from branches and even from ATMs. The number of transactions on ATMs have come down from 55 to 29 per 100. On the other hand, the digital transactions, which are on mobile and internet banking, have gone to 55 out of 100 transactions,” Kumar said at the Global Business Summit.
“This shift is permanent and is going to remain. People are experiencing the convenience of digital and mobile banking,” he added.
However, physical branches will remain as visibility helps.
“The necessity for physical will remain. The size and the shape of the branches will change. And now, any new branch we are opening, it is branded as a digital branch,” Kumar said.
The bank is redesigning and renaming all its branches as Yono branches or digital branches.
Kumar said the bank is able to offer many pre-approved loans using data analytics.
“Bank’s digital lending book is growing. Whether pandemic or Saturday or Sunday, that business remains unaffected. We are moving to a scenario where based on the data analytics, and eventually for the new-to-bank customers, using the big data, banks will be able to offer instantly the loan products and that is a big benefit,” he added.