Amid the COVID-19 pandemic in 2020, payments banks and small finance banks found acceptance in the sector and contributed to improving the arterial support system. Digital payment banks and neo banks also received a boost in terms of customer response due to the ‘no-touch’ service in the crisis. However, there were some prominent banks that not only led with high sentiment but also matched the massive shift in demand from physical to online banking. According to a recent ‘BFSI Movers and Shakers 2020’ report released by Wizikey, the HDFC bank, ICICI bank, and the State Bank of India (SBI) are the top three banks that transformed almost overnight to serve account holders through arterial reach this year.
These three banks had volumetric scores and also trumped their newer counterparts including Axis Bank and Kotak Mahindra Bank. According to the report, the top 10 banks in India in 2020 were HDFC Bank, ICICI, SBI, Yes Bank, PNB, HSBC Bank, Kotak Mahindra Bank, Bank of Baroda, Deutsche Bank, and IDBI. This year, the banking system played a critical role in the economic recovery by supporting businesses and individuals amid the COVID-19 crisis.
The year also witnessed demand backed by digitization. The contactless payments, through QR Code, wallets, UPI, or contactless cards, gained popularity as they offered safety and security while allowing the consumers to maintain physical distancing. Additionally, uninterrupted 24X7 digital banking services were launched, however, the real differentiator for banks was their ability to play a more significant role in the lives of customers.
The report added that in terms of e-wallets and UPI, Google Pay emerged as the number one mode, followed by Phone Pe. Whatsapp had a launch of payments, but it stayed behind the other players in the category. In terms of neo banks, given that branchless counterparts of traditional banks led the trend amid a high demand of digitization, YONO emerged as number one followed by Niyo and Kotak 811.