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The Indian banking industry in its heydays had its name written in history as one of the pioneers of Indian economy however it too seems to shows signs of cracks, reports ET.

For over a period of time, Banks were accustomed to the petty competition for which they carried on with a traditional outlook and failed to realize that the technology advancement would soon impact their profits. Indeed new sets of companies eventually came forward and stood as financial intermediary with a different identity.

Furthermore, back in 1982 the first of its credit cards was released followed by debit cards.  At Present, the Indian banks, has issued around 57.4 crore debit and credit cards which is 1.6 crore cards on average (yearly). On the other hand since the launch of mobile wallets in 2007, the number  of which  is 11.5 crore, this is an average of 1.4 crore a year.

Jairam Sridharan, president and head, retail lending and payments at Axis Bank  said "The growth in this space is so dramatic that everybody, banks included, are going to participate in it (ewallets).''

As per the, 'India Payments 2015’ report by broking firm Motilal Oswal, payment volumes are likely to grow by 100 pct year on year for the next couple of years. It further stated that the mWallets is expected to become the key factor for digitization of flow.  

Indian banking not only has to face up to loan recovery but also to tackle the profits in future business. 

With a decade low of loans growth, there are hardly any feasible options other than retail customer and wait until the economic expansion picks up. The progress of digital wallet transactions has rise with the emergence of feasible internet access, mobile commerce and the growth of mobile penetration

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