The Impact of Digital Technologies on the Banking Industry in India

This paper examines the transformative impact of digital technologies on India’s banking sector through 2025. Using data from

2010-2024, we analyze how technologies including mobile banking, UPI, AI, blockchain, and cloud computing have

revolutionized banking services, customer experiences, and operational models. Our findings reveal that digital adoption has

accelerated dramatically, with mobile banking transactions increasing by 63% annually since 2016 and UPI processing over

130 billion transactions by early 2024. The COVID-19 pandemic served as a significant catalyst, accelerating digital adoption by

an estimated 3-5 years. We identify emerging trends including banking-as-a-service models, embedded finance solutions, and

increasing cybersecurity concerns. The research concludes that while digital technologies offer tremendous opportunities for

financial inclusion and operational efficiency, they also present challenges related to cyber risks, digital divide issues, and

regulatory complexity. We offer strategic recommendations for banks, regulators, and policymakers to navigate this evolving

landscape

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