Rise of Financial Wellness Apps by Retail Banks Could Bridge the Gap Between India’s Rich and Poor
New Delhi, Delhi, India – Business Wire India New data released in a Backbase study commissioned by Forrester Consulting released this week shows India’s retail banking sector is moving towards digital Make full use of financial wellness apps as a means of interacting with their customers. This move by the sector could help increase India’s digital literacy and provide new consumers with money management, budgeting and savings tools to address the imbalance in financial progress across India’s wealth gaps.
To be fully adopted by Indian banks, financial wellness and digital money management apps are becoming mainstream around the world, with large traditional banks using them to compete in the digital space. Of Indian retail business decision-makers interviewed for the report, 96% said their financial institution would “plan” or “actively expand” its financial wellness and money management tools, and 50% said it was a “critical priority” and reveals that India is on the cusp of great change.
About the results of the study, Iman Ghodosi, Regional Vice President for Backbase Asia Pacific, spoke about what this could mean for Indians who were not yet privy to the tips on financial decision-making: “Digital money management via a mobile device is the big compensation because everyone now has access to financial instruments such as spending analysis, budgeting and support with savings goals wherever and whenever he wants. This could have a huge impact on improving financial decision making for those most in need. ”“ Our research shows that the retail banking sector in India is rapidly increasing its spending in this area. 62% of respondents said their spending on financial wellness apps will increase dramatically over the next 12 months. The business case for this is compelling too – these apps, when properly designed, provide exceptional customer loyalty and a wealth of data that can be collected and used by the financial institutions that own them. ”India’s Digital Banking Explosion It is it’s no secret that India is rapidly digitizing. The average smartphone user currently consumes more than 8 GB of data per month, which exceeds the average in more digitally advanced countries like China and South Korea. India’s economy has also been a hotbed of innovation in financial services in recent years. Numerous fintech startups from the banking and financial market sectors have formed.
“The urgency, focus and action that we see in the report are the result of the number of key players developing apps in this area,” adds MrGhodosi, who sees the next six months as a turning point in this area. “India’s highly digitized population is ready – people want a high degree of customer orientation and flexibility for financial services. They want to have access to their personal finances and money management tools anytime, anywhere and through any channel. ”“ Being in a relationship with your customer is more important than ever. We have now entered the era of Engagement Banking, a development that emphasizes a unified platform approach to banking. The top priority in this new era is to completely redesign the bank around the customer and move away from isolated technology investments. At Backbase, we help banks introduce and build modern, cloud-native banking platforms to keep pace with changing consumer demands, gain 360-degree insight into banking behavior, and increase market share across all business areas. We focus on customers before products and develop digital money management tools that suit individual needs. ”But it is not without its challenges, according to Riddhi Dutta, Regional Director for Backbase ASEAN & South Asia. Unlike nimble and dynamic digital banks, legacy financial institutions struggle with many aspects of implementing such mobile-first digital services. 74% of Indian retail business decision makers surveyed said that “legacy technology” is a major challenge in developing such tools. 64% said a “lack of understanding of customer needs and outcomes” was challenging, and 56% said it was “organizational silos”. “You can see that fintechs and digital disruptors have a head start,” added Dutta, “but also established banks like HDFC Bank are trying to keep up with some of their own purely digital offerings and apps.” Protection One of the most interesting results of the report was the drive by the Indian retail business to offer its customers more care and protection through such apps. With advances in AI and data analysis from app users’ spending behavior and financial decision-making, banks can now support their customers in new ways. This technology will provide financial literacy, better decision making, and avoid debt and exploitation for many poorer Indians who previously did not have access to such tools.
Of the participating decision-makers from the retail banking sector, 80% said it was important to “offer financial literacy tools” through wellness apps. 70% said their company plans to use such apps to “prevent exploitation of vulnerable and elderly customers” and 68% of respondents said “identifying the risks of vulnerability and financial hardship” in their customers is one their duties.
“Our study shows that advances in financial wellness and digital money management tools in India are largely a positive force and that any customer with a smartphone will benefit from it regardless of where they are in India’s wealth gap,” added MrGhodosi.
MrGhodosi adds, “The data suggests that financial wellness apps are a primary interface between banks and their customers as we move into the future. As the leader in engagement banking platforms that help banking disruptors and incumbents alike, Backbase is poised to meet this real need. Our unified engagement approach helps banks adopt modern, cloud-native banking services that keep pace with change while delivering a great customer experience to both consumers and employees across all touchpoints and business areas across the bank. ”About Backbase Backbase has set itself the task of transforming the broken banking system so that financial institutions not only interact but also interact with the people they serve.
This is made possible by the Backbase Engagement Banking Platform, which supports all business areas on a single platform, including retail, SME & corporate and wealth management. From digital sales to everyday banking, the entire design of the platform focuses on delivering a seamless and engaging experience for customers and employees.
Industry analysts Ovum and Celent continuously recognize Backbase’s leadership position, and the Backbase Engagement Banking Platform supports over 120 major financial firms around the world – including AIB, Barclays, Banamex, Bank of the Philippine Islands, BNP Paribas, Bremer Bank, Citibank, Citizens Bank, CheBanca !, Discovery Bank, Greater Bank, HDFC, IDFC First, KeyBank, Lloyds Banking Group, Metrobank, Navy Federal Credit Union, PostFinance, RBC, Société Générale, TPBank, Vantage Bank Texas, Westpac and Wildfire Credit Union .
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(This story was not edited by Devdiscourse staff and is automatically generated from a syndicated feed.)