Introduction: The Digital Divide in Banking

In a world where digital banking is rapidly becoming the norm, not all customers are ready to make the shift. While urban users seamlessly adopt mobile banking apps and UPI payments, millions of people—especially in semi-urban and rural India—still rely on traditional banking methods. Canara Bank, with over 10 crore customers, has taken on the massive challenge of bridging this digital divide.

But how do you convince a user base that prefers physical passbooks and in-person transactions to embrace mobile apps and digital payments? The answer lies in personalization, grassroots activation, and strategic innovation. As Vishal Bhatia, Chief Digital Officer of Canara Bank, puts it:

“Our 9,600+ branches have Digimitras who personally guide customers into digital banking.”

This blog explores how Canara Bank is cracking the digital adoption code, bringing millions of non-tech-savvy users into the digital banking ecosystem.

1. Meeting Customers Where They Are: Hyperlocal Digital Adoption Strategies

One of the biggest hurdles in digital adoption is habit change. Customers in smaller towns and rural areas are often hesitant to trust digital transactions due to a lack of awareness and past experiences with fraud. Canara Bank’s solution? A hyperlocal, branch-led approach.

Instead of relying solely on traditional marketing, Canara Bank introduced Digimitras—digital facilitators stationed across 9,600+ branches. Their role is to educate customers at the branch level, guiding them through app downloads, UPI registrations, and online transactions.

“Digital Melas bring banking to the people—helping them experience digital firsthand before adopting it.”

Beyond branches, Canara Bank hosts Digital Melas—community-driven events where customers receive hands-on assistance in setting up digital accounts, using net banking, and understanding cybersecurity. This grassroots-level activation ensures that digital banking doesn’t feel like an elite service, but an accessible and trustworthy solution.

Key Takeaways for Businesses:

• Bring digital transformation to customers instead of expecting them to come to you.

• Use hyperlocal strategies and community events to encourage adoption.

• Appoint dedicated digital facilitators to hand-hold first-time users.

2. Custom-Built Digital Solutions for Different Customer Segments

A one-size-fits-all digital strategy doesn’t work, especially when your customer base spans diverse demographics. Recognizing this, Canara Bank tailors its digital offerings for different user groups:

• Senior Citizens: Since older customers prefer simplicity, Canara Bank launched a mobile app exclusively for passbook updates, eliminating the need for branch visits while keeping the experience intuitive.

• Small Businesses & Schools: Many institutions lacked the digital infrastructure for payments. To solve this, Canara Bank introduced Easy Fee, a white-label payment solution enabling schools to collect fees seamlessly from parents without requiring custom-built websites.

• Women Entrepreneurs & Unbanked Users: The bank has self-help groups that visit communities, open accounts for women-led businesses, and introduce them to digital lending opportunities.

“Senior citizens don’t need complex apps, they just want a digital passbook. We built one just for them.”

These customized solutions remove friction and encourage adoption by offering digital tools that actually solve users’ everyday challenges.

Key Takeaways:

• Personalize digital solutions based on user preferences and needs.

• Solve real customer problems before expecting digital adoption.

• Provide low-tech entry points for less digitally savvy users.

3. Leveraging AI & Data to Drive Engagement and Trust

A key challenge in digital adoption is trust—especially in an era where cyber fraud is a growing concern. To build customer confidence, Canara Bank integrates AI-driven fraud detection and personalized banking experiences.

Here’s how AI is helping:

• Fraud Prevention: AI-powered systems detect suspicious transactions and flag potential fraud before they happen.

• Pre-Delinquency Checks: AI predicts which customers might struggle with loan repayments and enables proactive interventions.

• Personalized Offers: The bank now sends tailored loan and credit offers based on customer behavior, increasing engagement and usage.

“AI in banking isn’t just hype—we use it for fraud detection, marketing, and early delinquency checks.”

By ensuring a secure and personalized digital experience, Canara Bank is making its customers feel confident, rather than intimidated, by digital banking.

Key Takeaways:

• Use AI to enhance security and build trust in digital platforms.

• Deploy predictive analytics to anticipate customer needs.

• Leverage AI for personalization to increase customer engagement.

4. Banking Beyond the App: Omni-Channel Accessibility

Many banks assume that an app-first approach is the best way to drive digital adoption. But Canara Bank takes a 360-degree approach, ensuring that digital banking is accessible across multiple touchpoints:

• WhatsApp Banking: Recognizing that WhatsApp is a widely used platform, Canara Bank enables basic banking services through WhatsApp chatbots, making it easy for customers to check balances and transfer funds.

• Voice Banking for Feature Phone Users: To serve customers without smartphones, the bank offers IVR-based banking, allowing users to make transactions via voice commands.

• AI Chatbots for Rural Users: AI-powered regional language chatbots help customers navigate digital banking in their preferred language.

By embracing multiple digital touchpoints, Canara Bank ensures that digital banking feels like an extension of everyday life, rather than a disruptive shift.

Key Takeaways:

• Offer digital solutions on multiple platforms, not just mobile apps.

• Leverage popular platforms like WhatsApp to meet users where they are.

• Provide alternative digital options for customers with low-tech access.

Conclusion: The Road Ahead for Digital Banking in India

Canara Bank’s approach to digital adoption isn’t about forcing change—it’s about enabling it. By combining on-ground education, personalized digital solutions, AI-driven security, and multi-channel accessibility, the bank is setting a benchmark for how legacy institutions can modernize without alienating their core customers.

The journey toward full-scale digital banking in India is still evolving. But as Canara Bank continues to break down barriers, its approach serves as a blueprint for businesses worldwide navigating the challenge of bringing traditional users into the digital era.

Want to dive deeper? Watch the full interview with Vishal Bhatia here!