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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470 | IF: 4.101

Presently we will find different services are Presently we will find different services are 5. Lack of Training g to Staff: Lack of Training g to Staff:
o
The he
provided by the banks and non banking financial provided by the banks and non banking financial T technical echnical i innovations nnovations in n t terms erms of f
i
t
Institutions. The combination of these services combination of these services d
digitalization of financial services require trained igitalization of financial services require trained
a
will definitely benefit the service providers and will definitely benefit the service providers and and updated staff as the digitalization at its nd updated staff as the digitalization at its
customers. This will also help to avoid the customers. This will also help to avoid the i inception stage due to delay. The instinception stage due to delay. The institutions are
unhealthy competition in the marketunhealthy competition in the market. n
not in position to offer for this due to cost or lack ot in position to offer for this due to cost or lack
of resources.
3. Replacement of Physical or Branch Banking and Replacement of Physical or Branch Banking and
improving efficiency: Suggestions:
The cost of operating the banking branches is very banking branches is very 1. Creating Awareness of digitalized benefits to the Creating Awareness of digitalized benefits to the
high in the present day of increasing prices. The high in the present day of increasing prices. The customers.
digitalization will be a better alternative to the digitalization will be a better alternative to the 2. More motivation by the Government for More motivation by the Government for
i
banks and financial institutions to lower the cost banks and financial institutions to lower the cost increasing digitalized Transactions.ncreasing digitalized Transactions.
the increase the efficiency. 3. Effective Regulatory system for monitoring system for monitoring
digitalized transactions.
4. The future prospects of Aadhaar eKYC will make The future prospects of Aadhaar eKYC will make 4. Provision of technological services by RBI for the Provision of technological services by RBI for the
people’s life easier with overall processing ople’s life easier with overall processing n
needy and poor financial institutions.eedy and poor financial institutions.
becoming easy. Further, the digitisation brings becoming easy. Further, the digitisation brings 5. Strong imitative towards the cashless economy.Strong imitative towards the cashless economy.
peace in people’s life with real time transaction peace in people’s life with real time transaction
with Immediate Payment. Conclusion
T
The digitalization in the financial services is not a he digitalization in the financial services is not a
Challenges of Digitalization in the Financial SectorChallenges of Digitalization in the Financial Sector new development but the application is widened with evelopment but the application is widened with
1. Dominance of Cash: t the new developments in the Finhe new developments in the Fin-tech services. The
In many areas in the economy we found the need In many areas in the economy we found the need key to survival in this sector will be the ability to key to survival in this sector will be the ability to
and existence of cash. All the transaction cannot and existence of cash. All the transaction cannot adapt to the technological changes and adjust. The adapt to the technological changes and adjust. The
be brought under the shelter of digitalization. be brought under the shelter of digitalization. best example of transmission we can quote is the best example of transmission we can quote is the
Therefore efforts are essential to reduceto reduce the cash mobile loan or internet based loan which has became le loan or internet based loan which has became
p
transactions. popular in recent years. The bankers who use to make opular in recent years. The bankers who use to make
t the borrowers to stand in a big queue in the past are he borrowers to stand in a big queue in the past are
Lower income and financial literacy levels Lower income and financial literacy levels (low now behind the search of the borrowers. This became now behind the search of the borrowers. This became
value transactions, smaller fees, need for user value transactions, smaller fees, need for user possible due to digitalization.
education)
The different financial services providers in India he different financial services providers in India
T
2. Weaker Technology and inability to replace:Weaker Technology and inability to replace: have stared adopting new technology in order to meet ave stared adopting new technology in order to meet
h
Majority of the institutions in the financial market Majority of the institutions in the financial market the fast growing needs of the customers. The key to the fast growing needs of the customers. The key to
are operating on the traditional technology. technology. The survival in this sector will be the ability to adapt to the survival in this sector will be the ability to adapt to the
t
replacement and up gradation is expensive. replacement and up gradation is expensive. technological changes and adjust. Thereechnological changes and adjust. There are
c
challenges which the service providers need to accept hallenges which the service providers need to accept
3. Threat : f for the survival and progress in the financial market. or the survival and progress in the financial market.
The customers and the service providers in the The customers and the service providers in the
financial markets are under the threat external of financial markets are under the threat external of REFERENCES:
hacking not only that they are exposed to the are exposed to the 1. Peterson K. Ozili “ Impact of Digital Finance On Peterson K. Ozili “ Impact of Digital Finance On
Stability” tability”
And nd
Financial inancial
frauds by the employees. F I Inclusion nclusion A S Borsa
ISTANBUL Review, 2 OctoberOctober 2017; revised 28
4. Lack of Awareness and Mindset: D
December 2017; accepted 28 ecember 2017; accepted 28 December 2017
Once need to accept the fact that in spite of efforts Once need to accept the fact that in spite of efforts
2. Orcale and EFMA whiteEFMA white paper on “dig digital
by the Government there are still people without people without transformation” 2016.
having bank account. In such anan environment
there is a lack of awareness digitalized benefits of there is a lack of awareness digitalized benefits of 3. Ecompass “digital financial services: challenges Ecompass “digital financial services: challenges
a
financial financial sector. sector. Further Further certain certain category category and opportunities for emerging market banks” nd opportunities for emerging market banks”
customers are reluctant to adopt and adjust with reluctant to adopt and adjust with note 42, 2017
the changes.

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