In today’s digital landscape, where technology is reshaping industries at an unprecedented pace, the banking sector stands as no exception. The rise of neobanks and digital banking platforms has set a new standard for innovation, forcing traditional banks to up their game in delivering exceptional customer experiences. As the world embraces digital transformation, the Indian retail banking sector finds itself at a crucial crossroads, with customer experience (CX) emerging as the defining factor for success.

The evolution of customer experience in banking: Traditional vs. Digital

In the past, customers interacted with banks primarily on their brick-and-mortar presence, service efficiency, and security. However, the advent of smartphones and the subsequent proliferation of banking apps have redefined the rules of engagement. Today, a bank’s mobile app has become the modern customer’s window into their financial world, offering convenience, accessibility, and personalized services at their fingertips.

From 2015, Neobanks have been trailblazers in creating customer-centric, digitally immersive experiences, and traditional Indian banks have had to play catch-up. Many traditional banks initially struggled with outdated and clunky apps that failed to meet the evolving demands of tech-savvy customers. Today, leading incumbent banks have bridged the gap in app experience meeting the need of a seamless, intuitive, and secure way to manage customer journeys.

Growth opportunities for App-based banking in India

Framework and methodology

In this report, we meticulously benchmark the digital app experiences of the leading traditional retail banks in India. Our comprehensive analysis dives deep into the strengths and weaknesses of each bank’s app, evaluating parameters such as mobile app experience, customer onboarding experience and customer service experience.

Top 7 retail Indian banks to ace customer experience

• #1 Mobile app experience

The mobile app experience parameter refers to the assessment of user-friendliness and effectiveness of a bank’s mobile application. We evaluate three sub-parameters to gauge the mobile app experience offered by seven prominent Indian banks.

Among seven banks, Kotak Mahindra Bank emerged as the leader due to its exceptional features and capabilities within its mobile app.

Top 3 best practices by Kotak bank includes:

1. Clear Call-to-Action (CTA) for account opening and product applications: Kotak Mahindra Bank’s app stands out by providing easily identifiable and user-friendly CTAs (Call to Action), making it simple for customers to navigate through the account opening process and apply for various banking services.
2. App-enabled MPIN (Mobile Personal Identification Number) setup during account opening: Kotak’s app excels by enabling users to establish an MPIN as part of the account opening procedure. This feature not only adds a layer of security but also streamlines the onboarding experience, eliminating the need for a separate step to set up the MPIN later.
3. No separate app registration process: Kotak’s app demonstrates a superior approach by eliminating the need for a distinct app registration process. Customers can seamlessly transition into the app’s functionalities during the account opening process.

• #2 Customer onboarding experience

The customer onboarding experience parameter refers to the evaluation of how user-friendly, informative, and efficient a bank’s process is for welcoming new customers and helping them open accounts. We evaluate five sub-parameters to assess the onboarding experience.

Among these banks, Bank of Baroda emerged as the leader due to its outstanding features and capabilities within its onboarding process.

Top 5 best practices by Bank of Baroda includes:

1. Clear steps for account opening journey with document requirements: Bank of Baroda’s onboarding process shines by providing clear and concise information about the four steps involved in opening an account. The bank informs customers about the necessary documents needed at each step. The transparency ensures that customers are well-prepared and easily understand the account opening process.
2. Comprehensive information about different account types with benefits: Bank of Baroda excels in offering comprehensive information about several types of accounts available, coupled with cross-product benefits. This empowers customers to make informed decisions about the type of account that best suits their needs.
3. Transparency about costs, Quarterly Average Balance (QAB), and virtual card: The bank’s onboarding process includes the provision of information about hidden costs, the required QAB, and additional feature like virtual card. This transparency aids customers in making financial decisions that align with their preferences and requirements.
4. Convenient features and services during account opening: The bank’s onboarding process offers valuable features such as the option to backtrack to a previous step and auto-selection of additional services like UPI (Unified Payments Interface). The process also enhances customer experience by automatically fetching Aadhar details and address.
5. Instant account opening: Bank of Baroda stands out by providing customers with the ability to instantly open an account. This significantly reduces the waiting time and provides a seamless and swift onboarding experience.

• #3 Customer service experience

The customer service experience parameter refers to the assessment of how effectively a bank caters to its customers’ inquiries, concerns, and issues, ensuring a seamless and supportive interaction. We evaluated four sub-parameters to gauge the customer service experience.

Among these banks, Axis Bank stood out as the leader due to its exceptional features and capabilities within its customer service offerings.

Top 5 best practices by Axis bank includes:

1. Visual cues and aids in customer support section: Axis bank’s customer service experience shines by incorporating visual cues and aids within its support section. These visual elements enhance user navigation and understanding, making it easier for customers to find the information they need.
2. Voice assistance in search bar: Axis bank enhances its customer service experience by incorporating voice assistance in the search bar of its customer support page. This feature simplifies query search and provides an additional layer of convenience for users seeking assistance.
3. Multiple customer support channels and chat options: The bank’s customer service experience is bolstered by offering customers a range of support channels (Email, Live chat, WhatsApp). These channels cater to different preferences, allowing customers to choose their preferred mode of interaction. Axis Bank provides the option to chat with customer support agents, ensuring personalized assistance for more complex queries
4. Clear CTA for WhatsApp banking sign-Up: The customer service experience is enhanced by including a clear Call-to-Action (CTA) for signing up for WhatsApp banking. This streamlined communication channel enables customers to reach out for assistance using a platform they are familiar with.
5. AHA! AI-Chatbot with categorized services: Axis bank’s customer service experience includes an AI-powered chatbot named AHA! which offers categorized services to assist customers efficiently. This chatbot provides quick responses and guidance for a wide range of queries, further optimizing the support process.

By dissecting the digital app experiences of these prominent banks, we aim to provide valuable insights into their current mobile app CX strategies, shed light on areas for improvement, and offer actionable recommendations for enhancing app experiences in line with the evolving customer expectations.

To gain detailed insights on each customer journey for the top 7 banks

In conclusion, the digital era has ushered in a paradigm shift in banking, necessitating a renewed focus on customer experience. The journey to delivering exceptional app experiences requires a comprehensive understanding of customer needs, continuous innovation, and a commitment to providing the best possible CX. Through this report, we invite you to explore the dynamic landscape of India’s top 7 retail banking apps and discover how these banks are delivering top-notch digital experiences that redefine the future of banking.