Lenders in India on aggregate spend between 1.5% and 2.0% of their annual revenue on technology, compared with a range of between 7.0% and 10% by global banks, according to PwC India. Indian banks have invested more on customer-facing solutions than on their infrastructure backbone. Vivek Belgavi, India fintech and technology consulting leader at PwC, advised local lenders to scale up their technology spending to 5.0%, and up to 8.0% of their revenue.
“Indian banks will need to materially increase their spend on technology," Renny Thomas, senior partner, and Milan Mitra, associate partner at McKinsey & Company, said. "This is largely in turn dependent on their transaction and product mix, with a larger intervention needed in retail banking segments," they said.