Digital Innovation in the Banking Industry -Apps and Wallets were the year’s flavour

Digital innovation in retail banking through products such as apps and wallets were the year’s flavor

Digital innovation has been the best invitee during the year 2015 and much has been stressed by RBI in the area of NPAs and asset quality of these categorized loans.  It is unfortunate that though there was a reduction in the REPO rate, no much benefit has been passed on to the consumer.

Other laudable factors can be…

1. Private Sector banks have gone all the way faster, in Digital Innovation. Several apps have been developed as also various web sites which has been an encouraging factor towards digitalization.
2. Private Sector banks state that over 60% of the transactions are done through digital channels, out of which 20% is done through Mobile platform.
3. ICICI Bank states that out of 2.8 million Pocket customers, round three fourths of them happen to be other bank customers. Pocket contains an app and an e-wallet, through which one can send money.
4. Under Public Sector banks category, SBI has been far ahead in digital innovation, followed by Bank of Baroda, Bank of India and Punjab National Bank in popularizing Digital banking and providing wallet to their customers.
5. Retail banking system now accepts wallet payment. There is a mixed feeling about usage of wallets. Some feel fraudulent transaction can take place through wallets loaded with money.  Several banks have shifted focus from ATM to APPs.  Digital products are now being developed by banks.
6. Customers’ information are collected through different ways by credit information companies, while allotting credit scores to such companies. They aim at using SMSs and social media details in analyzing individual’s credit worthiness.
7. The digital banking is expected to help the small finance banks and payment banks, with innovations and competition in the row, in delivering an array of effective products to the customers.
8. The proposal of 2 bank accounts per family, to ensure that 75 million unbanked families across the country are brought under financial inclusion has terribly increased the bank accounts which now hold a balance of 27,288 crores against Rs. 6580 during 2014.
9. The year 2015 has been an year of Digitisation which cannot be denied.  We hope the schemes are successfully carried over to the next also….

Thank you..