A latest IPSOS study, conducted by interviewing 19,000-plus respondents across 24 countries, has revealed that the trend of online banking is on the rise in India. Thanks to the changes in shopping ecosystem and shopping habits of the buyers, online transactions in India have increased by a whopping 43 percent in the last 3 years to stand at 78 percent. Let’s dive deep into the details of those industries which have helped uplift online banking.
Travel Reservation Online Travel Reservation
As people are becoming tech-savvy, 72 percent of travel reservations are being done online. This is a 32-percent hike in last 3 years.
The trend of buying books online has increased to 61 percent. It has increased by 9 percent in last 3 years.
Online Banking and IFSC
The huge success of online banking wouldn’t have been possible without IFSC Code. It ensures that the money withdrawn from the bank is transferred to the intended bank seamlessly. Finding IFSC code is very easy, you can find it either on your passbook or checkbook. Also, you can type <your branch name> space <IFSC code> and conduct a Google search. It’s simple. For example, if you are a State Bank of India accountholder, you can type SBI IFSC Code and conduct a Google search. We would recommend you to find your updated SBI IFSC code, since SBI has changed IFS codes of approximately 1,300 branches.
How Have Shopping Habits shifted from Online to Offline?
In coordination with the global shift from the offline mode of purchase (physical retail stores) to online shopping (e-commerce), India is witnessing a surge in convenience-oriented digital alternatives. However, industries like banking, entertainment and beauty are a few exceptions.
Two factors are responsible for impacting the shopping habits of Indian buyers. First, in the aftermath of post-demonetization, consumers were left with no option but online banking. Second is the Jio effect, which pushed many Indians to adopt digitization as Reliance Jio grabbed a fairly large market share by its massive promotion of free internet.
The Online Route
Reportedly, consumers are seeing fewer “Main Street” businesses across the globe. It’s because businesses are going online. Bookstores, newsstands, and furniture stores are rapidly vanishing from the markets. Contrary to this, consumers are seeing just as many or more pharmacies (73 percent) and drugstores, restaurants selling ready to eat or takeout food (66 percent) and franchise outlets (66 percent).
Interestingly, outgoing Indians are going to banks (71 percent), restaurants (70 percent), stores selling ready to eat or takeaway food (70 percent), pharmacies (68 percent), beauty salons (65 percent), movie theaters (65 percent), coffee shops/bars (64 percent), and franchise stores (60 percent).
However, there is a reduction of footfall at pubs and bars serving liquor (42 percent), and furniture stores (51 percent), etc.
Even though online fever has caught up, people are still making physical visits to banks, restaurants, and bookstores. This is a paradox to the gradual shift from “Main Street” businesses to e-commerce. It may be because we Indians like to go out and socialize during our free time. Naturally, with the latest technological advancements and development of unique IFSC code, online transactions have become a reality
Trends in the Global Markets
- Online Shopping- Buyers in Poland, Britain, and China are shopping online more than ever. Joining the league is India, with 65 percent of Indian consumers shopping online. However, Hungary, Serbia, and Peru have the lowest number of online buyers.
- Banking- Only 45 percent people across the globe are banking in person. 75 percent people (including 78 percent Indians) from these 24 countries are banking online.
- In-PersonBuying– 77 percent people buy food in person, 71 percent go for shopping at large retail outlets and 67 percent are shopping at small retail outlets.
About the Study
In order to conduct a Global Advisor survey on shopping behavior, 19,000 plus respondents hailing from 27 countries across the globe, including Australia, Argentina, Brazil, Belgium, Canada, Chile, Colombia, China, France, Hungary, Italy, Great Britain, Germany, India, Mexico, Peru, Japan, Russia, Poland, Saudi Arabia, Serbia, South Korea, South Africa, Spain, Turkey, Sweden, and the United States.
500 to 1,000+ people participated via the Ipsos Online Panel. The sample size was 1,000 plus in Australia, Brazil, China, Canada, France, Great Britain, Germany, Italy, Spain, Japan, and the United States. In all the other countries, the sample size was 500 plus.
Summing it up!!!
E-commerce has been growing exponentially not in India but also all over the world. In India, people swapped offline buying with online mode of purchase after demonetization. It was during this time that fintech companies boomed. Paytm, Freecharge, Airtel Money etc. came to the rescue when Rs. 500 and Rs. 1,000 notes ceased to be a legal tender. Only after then, people switched to the digital transaction.
The IPSOS study data revealed the paradoxical side of India. While people are switching to online banking, there are people who like to visit physical banks. If you go deep into details, you will find that this paradox may be attributed to the elderly population. Keeping a track of technological advancements may be easy for the youth, but can prove to be daunting for older people.
The young population, however, has a jam-packed schedule. As a result, whatever transaction they can conduct in a matter of few clicks, they are happily doing that.