A recent study by global consultants, McKinsey & Company has revealed that as much as 7% of the total accountholders in India who actually use net banking facilities for banking transactions. The study has also indicated a 15% decline in branch banking transactions by customers.
"Use of the Internet for banking has seen a massive rise in the 2010-11 survey, taking the overall number of bank consumers who use the Net to close 7% of the total bank account holders -- a seven-fold jump since 2007 -- even as for the first time in the past 13 years, branch banking has come down by a full 15 percentage points during the same period," McKinsey & Company India partner and head of its retail banking services Renny Thomas said.
"For the first time since we started this survey in 1998, we see a marked shift away from using branches as a main channel for interaction in many markets. This is a fundamental shift in consumer behaviour, and has significant implications for banks. The scale of branch network is a less decisive factor for capturing customers now," Thomas said.
There has also been a rise in the number of customers opting for financial planning services in the country.
"On an average, only 51% are satisfied with their financial planners in 2011, as compared to 73% in 2007," Thomas however said.