A study of growth in digital finance: Empirical evidence on mobile banking growth and user expansion in India’s public and private banking sectors (2017 - 2026)
Keywords:
Mobile banking, digital banking, SBI, HDFC Bank, financial inclusion, digital transformation, transaction performanceAbstract
In India, mobile banking has become a significant driver of the country's digital financial development. This study uses secondary data and statistical methods including CAGR, Pearson's correlation, t-test, ANOVA, and regression analysis to assess the performance of mobile banking services at SBI and HDFC Bank between 2017 and 2026. According to the results, HDFC Bank showed more increase in transaction value (44.8% CAGR) than SBI (34.5%), however SBI led in transaction volume (1.81 billion transactions) and active users (97.84 million). Adoption of mobile banking and transaction performance were shown to be strongly positively correlated (r = 0.986–0.997). T-tests, ANOVA, and regression results confirmed the substantial differences between the two banks and showed that active mobile banking users had a significant impact on transaction outcomes (R2 = 0.975–0.990). The study's conclusions show that whereas SBI takes a scale-driven strategy focused on financial inclusion, HDFC Bank places a higher priority on revenue growth and transaction efficiency. The findings underscore the importance of consistent investment in digital infrastructure and technology-enabled banking services for the long-term growth of India's digital financial ecosystem.
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