Indian banks risk losing $9 billion revenue to e-wallets by 2025

TIL Desk/Business/New Delhi/ As much as 14 per cent of Indian banks payments revenue, or $9 billion, is likely to be displaced by the growth of digital payments and competition from non-banks, an Accenture report said on Thursday.

“With the digital boom as payments become more instant, invisible and free, banks need to reinvent themselves to grow customer loyalty, revenues and profitability,” Rishi Aurora, a managing director at Accenture who leads its financial services practice in India, said in a statement.

Payments revenue in the country will likely grow at an annual rate of 10.7 per cent, from $38 billion in 2019 to more than $70 billion by 2025, said the report titled “Banking Pulse Survey: Two Ways To Win”.

Only banks that change their business models to adopt the latest technologies and focus on providing value-added services to customers will capture a share of the $32 billion in incremental revenue growth. “To succeed in the post digital era, banks need to redefine innovation strategies around scaling technology and adding value to address the payments challenges,” Aurora said.