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To achieve long-term growth, public sector banks should focus on younger, digitally active customers, according to Bank of Maharashtra Chairman Sushil Muhnot. The banks should even consider launching a separate brand for such customers, he said here on Monday, addressing a session on digital banking at the FIBAC Banking Conclave.
The average age of banking customers is 45 years, said Muhnot. Such customers are not very savvy with digital banking. On the other hand, customers aged 25-45 are native users of digital banking,
This customer segment is aligned with India’s demographic dividend and has more disposable income. Costs of serving such customers is also low, therefore a separate brand could serve them, he added.
“Today technology is available with all banks in the form of mobile wallets and online payment systems. The challenge is to make non-native customers use such technologies. We need to have different strategies for native and non-native customers,” he said.
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