PHYGITAL BANKING: WAY AHEAD FOR INDIAN BANKING INDUSTRY

The banking sector has witnessed a massive transformation in the last few years. The shelf life of physical banks has reduced immensely.

- Nilotpal Banerjee

In last 5 years or so the internet explosion in India marked the watershed moment which initiated the radical shift of things from physical to digital. Increasing numbers of Fintech apps and neo-banks have more or less replaced traditional banking, at least in urban India.

Phygital Banking:

The word Phygital is a blend of two words i.e. Physical and Digital. So phygital Banking is a form of banking that combines the comfort of digitalization with the trust of presence of a brick and mortar bank branch. It is a model that integrates convenience banking, mobile banking,internet banking and personalized banking with visiting a branch for cash withdrawal/deposit, locker operations and any other such requirement. Phygital Banking is making inroads to take banking operations to a new dawn.

Need for Phygital Banking

The banking sector has been progressing in terms of technology and therefore, digital customers want real-time solutions for their problems. The Covid-19 pandemic is ushering in a new, digital-oriented way of life for many people. Under lockdown restrictions, digital became the primary channel for retailers, doctors, governments, property, auto sales and banks. Now, the consensus is that many consumers will take a long time to return to regular physical engagements and some may not come back as this has become the new normal.