Digital banking has to respond to the consumer behaviour. Banks have to assess the needs of the consumers in real-time. Big Data is the most widely used mantra, since it analyses, based on life styles, the requirements of the consumers so that they can be offered the right product at the right time. The data that is processed is both demographic and financial. Social media platforms provide a wealth of data. The banks can use both the internal data and external data. Based on your past choices, the banks try to predict about the future choices. Internet either on the computer or mobile opened up vast avenues for digital banking. The loans are being approved online. In case of an existing customer, there is pre-approved amount being shown on his account. He has just to click on agree to get the amount in his account. In an emergency situation such as hospitalization, how convenient this becomes.There is an app that divides the bill equally among friends at the food outlet. Digital banking is not just used to acquire the the new customers but it tends to serve the existing customers better. SBI uses USSD interface for customers not having a smart phone. SBI’s InTouch branches has just two staff members. An account can be opened at an InTouch branch through the use of machines in 12 minutes, with a debit card being given bearing the name and photo of the customer. There is gamification table for planning investments and expenses. There is dreamwall to look up options available to finance the customer’s needs. A remote expert is a bank official to advise a customer. InTouch Light is another digital branch of SBI which has just account opening facility.

Traditional banking through cheque payments and the use of counters is still strong. Perhaps, banks are not proactive in educating the customers about the digital initiative.

Digital banking by digitizing the processes end to end will improve productivity and sales and would bring down the manpower costs. It will lead to higher CASA balances. There would be alerts before an account becomes bad.