Lenders expect spurt in digital lending, deposit mobilisation in 5 years

44% of them expect to collect more than 50% of deposits through online modes

Banks’ deposit mobilisation and credit disbursal through digital modes will see exponential growth, says a survey by the Reserve Bank of India (RBI).

According to the survey conducted in March 2024 and covering 25 banks and 68 non-banking financial companies (NBFCs), banks mobilise only a small portion of their deposits through digital mode but the importance of this channel is perceived to be increasing rapidly. In five years, 44 per cent of them expect to collect more than 50 per cent of deposits through online modes. On the credit side, about three-fourth of the surveyed banks are extending up to 10 per cent of their total lending through digital modes. In the next five years, 33 per cent of banks indicated that they would lend more than 50 per cent digitally. These trends can be expected to improve credit deepening in the country going forward.

The survey forms part of the RBI’s 'Report on Currency and Finance' released on July 29 with the theme being 'India’s Digital Revolution'.

The survey also had it that 84 per cent banks and 35 per cent of surveyed banks and NBFCs are partnering with fintechs to offer digital banking solutions. These collaborations are used to distribute products and services on banking platforms, including digital banking solutions. According to the survey, 92 per cent of the banks reported that collaboration is effective in driving digital innovation as against 60 per cent of NBFCs.