A STUDY ON DIGITAL TRANSFORMATION IN BANKING AT STATE BANK OF INDIA

Abstract

Digital transformation in banking represents the comprehensive integration of digital technologies across all banking operations, fundamentally altering how financial institutions create value, deliver services, engage customers, and manage risk. State Bank of India (SBI), India's largest commercial bank with total assets exceeding ₹62 lakh crore and over 500 million customers, has undertaken one of the most ambitious digital transformation programmes in Indian banking history, transitioning from a predominantly branchcentric service model to a digital-first omnichannel banking ecosystem. This study examines SBI's digital transformation journey, analysing technology investments, digital banking platform adoption, operational efficiency gains, customer experience improvements, financial inclusion outcomes, and cybersecurity governance. Primary data was collected through structured questionnaires administered to 120 respondents comprising SBI employees across digital banking, IT, and operations functions, and SBI customers using digital banking channels. Secondary data was sourced from SBI Annual Reports (2021–2024), RBI Digital Payments reports, NASSCOM banking technology publications, and academic literature on digital transformation in banking. Findings indicate that SBI's YONO (You Only Need One) platform has crossed 78 million registered users, digital transaction share has grown from 52% to 84% of total transactions, and digital banking has reduced SBI's cost per transaction from ₹45 (branch) to ₹2.1 (digital), generating annual operating cost savings exceeding ₹18,000 crore. Recommendations address AI-driven personalisation, cybersecurity framework strengthening, rural digital banking expansion, and API-enabled ecosystem partnership development.