Indian Banks Surpass Global Peers in Digital Transformation and Everyday Banking

• Indian banks have become global leaders in digital transformation, with nine banks recognized as "Digital Champions" in Deloitte's 2024 DBM report.

• India’s DBM index rose from 43% in 2022 to 59% in 2024, driven by innovations in day-to-day banking, payments, and personal finance tools.

• Improved customer relationships through ecosystem services, "Beyond Banking" features, and enhanced user experience have boosted engagement.

• Despite progress, challenges in ecosystem integration and scalability remain, requiring further investments in digital infrastructure and skills.

  
  

Indian banks are making remarkable progress in digital transformation, surpassing their global counterparts in several core banking areas. According to the 2024 Digital Banking Maturity (DBM) report by Deloitte, India’s banking sector has emerged as a global leader in digital innovation and customer-centric solutions.

The India-focused edition of the DBM survey evaluated 12 major Indian banks, with nine earning the prestigious title of “Digital Champions.” This designation places them in the top 10% globally in terms of digital maturity. India’s DBM index has seen a dramatic rise from 43% in 2022 to 59% in 2024, reflecting a 16-percentage-point improvement that exceeds the global average.

Himanish Chaudhuri, a partner at Deloitte India, expressed optimism about India’s trajectory, stating, “Indian banks have made substantial strides in digital banking services, consistently outperforming the global average and solidifying their position among global powerhouses like the US, China, Brazil, and the EU.”

Key Drivers of India’s Digital Banking Growth

One of the primary contributors to the rise in India’s DBM score is the enhancement of day-to-day banking services, which accounted for nearly 10 of the 16 percentage points gained. Banks in India have introduced cutting-edge features such as real-time payments, future-dated transactions, app-based banking via messaging platforms, and virtual card issuance for online use. These innovations have propelled a 2.4-point increase in the transfers and payments category, more than double the global average of 1 point.

Personal finance management (PFM) tools have also seen significant advancements, with Indian banks achieving a 1.9-point improvement in this area compared to the global average of just 0.1 points. These tools now allow users to categorize expenses, set savings goals, and access automated financial advice. Additionally, card management features have been enhanced to include customizable and recyclable cards as well as automatic credit limit adjustments, contributing to a solid two-point rise in this category.

Strengthening Customer Relationships

Indian banks have made notable progress in fostering deeper customer relationships, with a three-point increase in the DBM index. The integration of “Beyond Banking” features—such as loyalty programs, gift card options, and non-financial perks—has aligned Indian banks with the super app models popular in Asia and South America. New ecosystem services, including account aggregation and hyper-personalized advice, have further enriched customer engagement. However, India’s growth in this area (0.5-point) still trails the global average of 3 points.

Improvements in user experience (UX) have also played a pivotal role. Simplified navigation, intuitive interfaces, and enhanced accessibility have led to better customer satisfaction and higher engagement levels across digital channels. Indian banks now outperform the global average in key customer journey areas like account onboarding and service delivery via mobile and online platforms.

Global Trends in Digital Banking

Globally, banks are shifting their focus from launching new features to refining existing digital offerings. The DBM 2024 report, which analyzed 349 banks across 44 countries, highlights a trend toward “evolution over revolution.” The emphasis is on improving service quality, ensuring customer convenience, and delivering hyper-personalized communication.

Digital Champions worldwide are 2.5 times more likely to provide hyper-personalized services than their peers. Features such as interactive financial dashboards, emoji-enhanced transactions, and e-commerce-inspired user interfaces are reshaping how customers interact with banks. Additionally, the adoption of super apps—already mainstream in parts of Asia and South America—is gaining traction among Indian banks, further narrowing the gap with global leaders.

Challenges and Opportunities Ahead

Despite its impressive progress, India’s banking sector still faces challenges in areas like ecosystem integration and product cross-selling, where global Digital Champions maintain an edge. However, the report emphasizes that Indian banks are uniquely positioned to leverage digital public infrastructure, regulatory support, and evolving consumer preferences.

Suchintan Chatterjee, another partner at Deloitte India, noted, “While Indian banks have excelled in account opening and customer onboarding, they must continue enhancing day-to-day banking and customer relationship management to meet rising expectations. Addressing data architecture and skill gaps will be critical for achieving scalability.”

To sustain their momentum, Indian banks are encouraged to deepen their capabilities in customer support, PFM, and end-to-end digital journeys. With ongoing investments in hybrid (phygital) models and ecosystem partnerships, India is poised to set new global benchmarks in digital banking maturity.

Indian banks have demonstrated that innovation and customer-focused strategies can propel them to the forefront of global digital banking. As they continue to evolve, the stage is set for India to redefine the standards of excellence in the digital banking landscape.