Why are digital skills imperative in the banking sector?

As per a report published by an expert this year on August 31, almost 114 billion digital payments were recorded across India in financial year 2023,. This was a significant increase compared to the previous three years.The total value of digital payments also included large-scale interbank payments. Moreover, online payments are expected to grow rapidly in the next few years and by 2025, 71.7% share of all payments in India will be digital.

Therefore, the banking sector is witnessing a rapid shift towards digitisation, fueled by advancements in technology and changing consumer preferences. And so, there is a need to rethink talent in this sector. The professionals are no longer expected to just possess technical skills but are increasingly required to be tech savvy as banks and other financial organisations are pivoting themselves as well as redefining job roles to facilitate various digital banking initiatives.

Emphasising a similar thought,  Amay Shukla, Sales and Relationship Manager with HDFC Bank, highlights,

“The rapid advancement of technology has transformed the way banking operations are conducted, with digital platforms and online services becoming increasingly prevalent. And so to adapt and thrive in this digital landscape, banks require professionals with digital expertise. Having digital skills enables efficiency and secure financial transactions.”

Alumnus of Apeejay School of Management Amay also susggests, “ Automation and artificial intelligence offer cost savings and operational efficiency. Aspirants in the banking sector can develop digital skills through specialised courses, certifications, hands-on training, and staying updated with industry trends. This will enhance their employability and open doors to a wide range of opportunities in this ever-evolving banking industry.”

With respect to the above-mentioned context, let’s further explore why there is a rising demand for banking professionals possessing new-age digital skills: 

Enhancing operational efficiency: As Amay already mentioned that digital skills are playing a crucial role in streamlining banking operations and improving efficiency. Hence, automation, data analytics, and artificial intelligence technologies are being adopted to automate manual processes, analyse vast amounts of data, and make data-driven decisions. Professionals with digital skills can leverage these technologies to automate routine tasks, reduce errors, improve operational speed, and enhance overall efficiency. By optimising processes and workflows, banks can allocate resources effectively and focus on delivering value-added services to their customers.

Meeting changing customer expectations: With the rise of technology, customers now expect convenient, personalised, and seamless banking experiences. Digital skills enable banks to meet these evolving customer expectations by developing user-friendly online and mobile banking platforms, implementing innovative digital payment solutions. Professionals with digital skills can enhance the customer experience, building trust and loyalty in an increasingly competitive landscape.

Expanding reach and accessibility: Digital skills enable banks to expand their reach and provide financial services to previously underserved populations. Professionals possessing these skills will help banks to create inclusive and accessible platforms, bridging the gap between traditional banking and underserved communities. This expansion of reach not only benefits customers but also opens up new market opportunities for banks.

Driving innovation and competitive advantage: Fintech startups and tech giants are disrupting traditional banking models, offering innovative financial products and services. Banks need professionals with digital skills to stay at the forefront of innovation, identify opportunities for technological integration, and collaborate with fintech partners. By embracing digital skills, banks can foster a culture of innovation, adapt to evolving market trends, and stay ahead in the digital era.

As the banking industry continues to evolve in the digital era, professionals with digital skills will play a crucial role in shaping the future of banking. Investing in digital skills development and attracting talent proficient in digital technologies will be key for banks to remain competitive and deliver exceptional customer experiences in the digital landscape.