Technology enabled New Age Banking Access
In today’s world, where everyone is busy in their professional lives, visiting bank for depositing amount or withdrawing amount in working hours is the biggest problem. But do we really need to go to bank for these small transactions? Well the answer would be definitely “NO”. Most of our banking needs are completed either within a click at the coffee shops, airports, railway station, malls etc. The new age banking not only provides the cash withdrawal but deposits as well. It also provides you with other services such as mini statements, balance enquiries, or cheque deposition, even a request for loan also can be done. Advancement in technology and changing client preferences (such as the demand for convenience and around-the-clock access to banking services) have driven a shift in customer demands and usage patterns of traditional banking channels such as branches.
There are so many delivery channels getting added to traditional core banking. With this delivery channels we can say banking is beyond branches.
There is no doubt that technology will be the biggest enabler for the branch of the future. For multi-channel banking to work efficiently, mobile phone, internet banking and emerging technologies will have to complement rather than compete with the branch in service delivery to reduce the cost by using low cost channels.
What benefits do bank get through multi channel banking?
• Reduced cost
• Enables true relationship banking
• Higher cross selling opportunities
• Competitive differentiator
What benefits does customer get through multi channel banking?
• Ease of use
• Reduced time spent for banking activity
Below is the schematic representation banking Products accessible to customer via channel banking
Below are some of the channels enabled through technology. We will briefly see as what they currently offer and what features can we expect from these channels.
The Internet banking is changing the banking industry and is having the major effects on banking relationships with customers. Present world of internet banking channel aims towards enhancing customer experience. Now a day’s internet banking provides various facilities such as mini statement, utility bill payments, profile view, sweep in FD, RD booking, application for loan etc. The list of offerings is too long and it is getting increased. Banks have started looking for ways to collaborate with customers to understand their needs better and accordingly create products and services, so that customer’s expectations are met.
New technologies are helping Internet banking to become better channel and are concentrating on performances like better response time, more reliability as compared to earlier versions
The growth of Smartphone’s, technology advancements, and enhanced security levels have helped increase the adoption of mobile banking services. As a result, banks have seen reduction in operational costs and improved efficiency in banking facilities
Below are some of the facilities provided by Mobile-Banking:-
• Complete Financial status information like account balance, transaction history, stock quotes, etc. and processes requests like ‘stop cheque’, etc.
• Small denomination transactions can be executed instantly
Banks globally are investing in enterprise mobile financial service solutions to deliver more mobile based banking services. And one of the results we can see as below:
Newcomer to the global financial scene is mobile wallet (m-pesa introduced by Vodafone or payTM or Airtel Money etc are examples of mobile wallet). It’s a mobile based virtual wallet where you can preload a certain amount of money in your account created with the mobile wallet service provider. Mobile apps allow holders of these wallets to perform transactions with real-world merchants and send payments back and forth between individuals. These systems, while perhaps poorly understood by the public now, may prove to be the true future of mobile banking.
There are also applications like m-passbook (provided by central bank of India) which not only provides the passbook for all the accounts but also gives the facility to maintain personal ledger. Personal ledger is a feature where the user can make note of the transactions done for specific purpose.
Going further banks collaborating with big franchises for researching on the features like if you are going in any shop or moving around any shop, with the help of GPS and mobile banking it will show the offers for that store and for that particular banks debit card payment.
ATM’s are banking terminals where customers can access their bank accounts. Kiosk is a latest development in banking where self service banking is provided
Banking Transactions in ATM
• Balance Enquiry
• Cash Withdrawal
• Fund transfers
• Mini statements
Future generation ATM will have eye scanners or face recognition systems and Mobile apps to work as remote control for ATM machine which will make the card swipe to History. Eye scanner machines eliminate the need of ATM PIN (Personal identification number). To withdraw cash, users simply approach the machine, which will connect to their Smartphone via NFC or similar secure wireless technology (To achieve this, bank systems are working in collaboration with Mobile apps). An iris scan is then used to confirm the identity of the person making the withdrawal. Once a user’s identity is verified, the machine then can dispense cash in a transaction within 10 seconds. The system now is being tested by Citigroup at the bank’s innovation lab in New York.
Latest upcoming development for ATM is the enhancement to banking app with the help of which one can locate the nearest ATM. An app is being developed with the help of GPS n which one can locate the nearest ATM machines available in the area. With the help of this facility valuable time of the user can be saved who is in search of ATM machines for his requirements
• Cheque Deposit
• ATM facilities
• Cash deposit
• Utility bill payment
• Internet banking
Along with these facilities offered by Kiosk, a retailer can open a no-frills bank account for a customer by recording fingerprint details and taking a photograph of the customer. The details along with other documents are forwarded to the affiliated SBI branch to carry out the know-your-customer (KYC) process. Once the account is up, a customer can withdraw, deposit or remit a maximum of Rs 10,000 per day through the internet-enabled kiosk branch.
Banking for everyone is the keyword which describes Doorstep banking. Today’s banks know that urban area customers are important but banks also should not neglect the huge rural area which is having large potential customers. Door step banking will avail the banking facility to them. The facilities which are provided by Doorstep banking are as shown below
• Cash delivery
• Cash pickup
• Cheque pickup
• Demand draft delivery
Doorstep banking uses technology gadget like Micro ATM. Micro ATM is the combination of Mobile or tablet with low powered Bluetooth printer and some of them can swipe the cards too. In short it is a POS device. Recognizing that technology has the potential to address the issues of outreach and credit delivery in rural and remote areas in a viable manner, banks have been advised to make effective use of information and communications technology (ICT), to provide doorstep banking services through the BC (Business Correspondent) model where the accounts can be operated by even illiterate customers by using biometrics, thus ensuring the security of transactions and enhancing confidence in the banking system.
Future of banking is very bright and advanced; looking towards the work in terms of technology is going on for banking. The day will come, when customers will not be needed to rely on specific channel to reach bank. And, anytime any where banking will be possible 24*7 not only for private sector banks but for all types of banks including public sector and co-operative banks too.