In the recent times, a drift from the conventional visits to bank branches for carrying out banking activites has been observed in the behavior of customers. The techno savvy young customer base has been finding it more convenient to carry out banking transactions via internet banking or E-banking.
A survey conducted by consulting firm, McKinsey & Co. has revealed that there has been an average 15% decline in visits made by customers to banks.
Also, usage of internet banking facilities has seen a 130% rise since 2007.
"We see a marked shift away from using branches as a main channel for interaction in many markets. The scale of the branch network is becoming a less decisive factor than before in capturing customers' ‘share of wallet'," says Renny Thomas, partner in McKinsey's India office.
"While Indian consumers say they want to consolidate their banking relationships, they continue to shop around because banks are not delivering the products and services, such as frontline services, that can lock them in,"added Thomas.