PILOT STUDY LEADING TO GAP IDENTIFICATION ON DIVERSIFICATION & DIGITAL STRATEGY DEPLOYED BY PAYMENTS BANK IN INDIA
New Age tech based banking in India has completely transformed the financial transaction landscape in the country. The digital banks and the fintech institutions are performing complex transactions which was not possible earlier. The latest digital technology has led to increase in user accessibility as well as convenience. The advent of m- ATM, Automatic Teller Machine, Internet banking transaction, Mobile banking transaction, Debit & Credit Card along with innovative products and services in sachetized format has helped revolutionize the whole financial services territory providing maximum comfort as well as multiple options to the last mile customers. Payment banks are ―differentiated and niche institutions challenging the existing commercial banking space working towards maximizing banking coverage. They are supporting with online payments, investments, tax payments, utility bill collections, savings, insurance and e-commerce transactions etc. The main purpose of conducting pilot study is to help analyse the relevance and performance on Payments bank especially Digital strategy & Diversification strategy as part of business expansion deployed by commercial as well as Payments bank and come up with gap identification as well as Conceptual framework for Final study .As part of research proposal and deeper analysis ,we need to be able to have complete clarity on given topic and in sufficient information to be worked upon to help answer identified issues. The pilot study was conducted through the use of Google forms which proved to be an ideal way to reach out to a larger audience to test the tools designed and check their reliability and validity. This paper also identifies various factors, which contribute towards digital banking strategy deployed as well as diversification in products and services from Payments bank perspective. In addition, study will examine impact of Digital First Strategy on performance of selected Payments Bank in India and implementation of innovative dimensions in moving away from brick and mortar or traditional /physical banking to business correspondent, expanded rural franchise or virtual alternative model to help standardize service delivery processes resulting in reduction of cost of banking operations. The study will also discuss various digital transformation initiatives by payments bank to address customer convenience and satisfaction by facilitating anytime, anywhere banking along with adoption of innovative payments settlement system to aim for customer delight. The final finding of the pilot study points that in terms of product and service level differentiation innovation and understanding of end consumer requirement is critical and digital advent has resulted in fast tracking formalization of banking sphere. Finally, the study of Digital Initiatives and emergence of Payment Banks as alternative to traditional banking approach will aid all the stakeholders, including Financial Institutions, Policy makers, Regulators & even conduct their activities in the best possible way.