Banks and financial institutions need to make enough investment in technology upgradation for survival in this era of digital banking, SBI Chairman Rajnish Kumar said on Wednesday.
Observing that the country has made rapid strides as far as adoption of digital technology is concerned, he mentioned that as a result, India has the maximum number of mobile and internet banking users in the world.
In this era of digital banking, he said, "any institution or bank which is not investing enough resources both in terms of manpower as well as the financial investment in digital and latest technologies won't be able to survive." Going forward, he said, mobile banking transactions would take over and become the most preferred digital channel even more than the internet.
"Ultimately the capability to develop and offer the product which can be consumed digitally that capability whichever institution or bank creates, they would survive. Those who lag behind survival for them would be difficult," he noted.
Kumar also emphasised the need to focus on the cyber security aspect with proliferation of digital banking. As banks embark upon the digital journey, the equal amount of attention has to be given on the security aspect, he said at NPCI event. Speaking about SBI's mobile banking app, Kumar said it is omni-channel experience and it covers all business segments. Despite digital expansion, there would be a need for physical presence, he said, adding, so 'Phygital' would be the way forward.