According to a recent fintech survey conducted by World Retail Banking for 2025–2026, about 73% of banking clients (around 8000 annual banking customers) are likely to transfer providers for a better loyalty experience. Convenience, customization, and perceived value now trump heritage trust alone, reflecting a deeper structural change in the sector. Customer retention is currently one of the most difficult issues for digital banks due to the significant reduction in switching barriers brought about by the emergence of neobanks, embedded finance loyalty platforms, and super-app ecosystems.

India’s banking sector is on a historic growth trajectory. As per the Reserve Bank of India (RBI), total banking system assets crossed ₹225 trillion (~$2.7 trillion) in 2024, while digital payment transactions surged past 130 billion annually, driven by UPI and mobile-first adoption. This momentum is further validated by the Press Information Bureau (PIB), which notes that bank deposits and credit have nearly tripled between 2015 and 2025, alongside a sharp improvement in asset quality, with gross NPAs declining from 11.46% in 2018 to nearly 2.3% in 2025, reflecting stronger balance sheets and risk management. At the same time, profitability has reached record highs, with scheduled commercial banks reporting over ₹4 lakh crore in net profits, signalling a structurally stronger and more resilient banking ecosystem.

In the first half of 2025, digital payments accounted for 99.8% of transaction volume in India, according to the Reserve Bank of India. At the same time, global fintech markets are projected to reach over $420 billion by 2029. The message is clear: digital-first finance is no longer an alternative; it is becoming the default.

In 2026, the battle for the “top-of-wallet” position is no longer won by interest rates alone; it is won by relevance. As digital-first competitors erode traditional loyalty, 24% of financial institutions have pivoted to integrated platforms to combat rising churn.