The global banking industry was moving towards digitization even before the COVID-19 pandemic hit. Neobanks or digital-only banks have been a part of the banking ecosystem for quite some time and have co-existed with the traditional banking entities, which have also started going the digital way.

The state-mandated social-distancing norms, as well as self-imposed isolations, only accelerated the process of digitization. The pandemic played a catalyst in the widespread adoption of digital banking services by people who may have been a tad skeptical about digital methods in the not-so-distant past. During these uncertain times, digital banking and fintech services, in a way, drove the financial systems that were plagued with decreasing demands and tightened credit conditions.

Fintech, which was once perceived to be a threat to the traditional banking industry, emerged as one of the most important allies for the banks. The fintech service providers offer digital banking solutions such as Core Banking System, Omni-channel Banking, Mobile and Internet Banking, WhatsApp Banking, and Agency Banking to help banks scale their points of services and reach new customers. The technologically advanced solutions let banks not only offer conventional services through digital channels but also cater to the unbanked and underserved who do not have access to branches.