The Digital Banking Essentials in the Indian Financial System

The face of banking in India is rapidly changing in the last few years. More and more businesses are going online with the financial aspects of their operation. Revolutions like the Unified Payment Interface are taking reign. So, where do the online banking solutions come into play within this exciting new era of a cashless society?

With a fast-paced revolution taking place within the Indian financial system, a plethora of new online banking software is on the rise. But what makes and breaks digital banking solutions within such a competitive market? There are several digital banking essentials to take into consideration when you’re about to launch your own online banking services. Even if you’re already going online, these few tips may just improve your overall banking operation.

Smooth Operation

Availability of options is key when you’re jumping on the digital banking solutions bandwagon. Essentially, you want to operate everywhere; from the web-based interface to smartphone operation. And you want to integrate services with advertisements on major online platforms such as Google, Facebook, Amazon, and Apple.

It’s all about letting your customers immerse in a wholesome banking experience with your omnipresent digital operation. It’s essential that your online banking software retains compatibility with the bank’s core system.

User-friendliness

A lot of digital banking solutions seem to overlook this important aspect of providing their digital service. Even when your whole system is secure and reliable, there isn’t much for the customers if the new apps they’re using are using are only frustrating them.

Banks want to give extra features that seem interesting to your users, often they can lead to the more sophisticated banking experience you may have on offer. But, an easy-to-understand user interface is essential to give your customers the best experience yet. When online banking solutions become a daily part of life, what you want to do is add value instead of adding to the clutter of everyday life.

Streamlined Banking Technology

Of course, you want your banking solutions to be a widespread use. One major aspect to achieve this is by making sure your online banking software is streamlined across platforms of other financial services. Cooperation with major and minor retail agencies to provide a seamless transaction for your customers is key. You want to provide easy access to payment, such is the case with online purchases, that keeps your users using your solutions.

Fast, Reliable, and Secure Network

Probably the most essential aspect of a digital banking, although it remains hidden from any crowd’s attention. When digital banking becomes all about easy access to making transactions, it’s imperative that methods of security are also increased in order to maintain that ease of use. What the customers want is a secure payment system that won’t drain the energy out of them by worrying, in the quickest way possible. Nobody can go wrong in ensuring maximum data protection when it comes to implementing digital banking.

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Top 5 Trends in India’s Digital Payment Landscape

Under the Digital India Campaign, the government has been pushing the Cashless India initiative in the last decade. With the revolution geared towards India turning into a progressive cashless society, financial software solutions are springing forth like fresh saplings. New financial software systems are being offered every day, and many digital payment solutions are competing to gain as much use as possible.

With not only government support to initiate such a major change, but also the excitement of financial technology developers to get on with welcoming the future, we are seeing trends that are reshaping India’s digital payment landscape. The revolution is predicted to bring India into contributing at least 10% in the digital transaction on a global scale.

We are looking at 5 trends in India’s digital payment landscape that are driving the nation forward into much quicker, more convenient payment systems.

Virtual Wallets

Paytm is arguably India’s most popular mobile wallet right now. With just several clicks or a scan of a QR code, people nowadays are able to quickly and securely make purchases without the hassles that used to come with cash payment. These virtual wallets that are easy to operate just from a smartphone make shopping so much more convenient due to record tracking of payment history. With transactions being digitalized, you can be sure the amount of money you pay is always just the right amount.

QR Code-Based Payment

The QR code system installed for mobile wallets is what makes it easy to quickly and securely make payments at retail stores nowadays. Payment through a QR code is simple and secure. All you have to do is scan the QR code present at the store with the camera on your smartphone, enter the amount of purchase, and submit. We’re seeing more of this payment feature being made available at many stores small and big.

Hassle-Free UPI

Developed by the NCPI itself as a means to facilitate interbank transactions, Unified Payment Interface (UPI) is an online payment system that is gaining momentum each day. The system allows for instant, real-time funds transfer between banks by using virtual IDs registered on a bank. With the virtual IDs that work like unique email addresses, transactions no longer need complicated A/C numbers or IFSC codes. Relevant banking information is registered and stored on the smartphone and ready to go at any time.

Aadhaar-Enabled Payment Systems (AEPS)

AEPS allow for basic banking transactions to be carried at a tad higher level of security. Any transactions such as funds transfer, cash withdrawal/deposit, or balance inquiry can be accessed without giving out your banking information. All that is needed is your pre-registered Aadhaar number and you just activate the transaction using a fingerprint/iris scan.

Internet Banking

With the digitalization of financial activities taking place all over India, banks are now required to jump on the same wagon by providing a more seamless internet banking experience. There is a lot for banks to innovate and automate on right now and we’re seeing this trend to completely change India’s payment landscape in the years to come.

Mobile Banking Apps gain market reach owing to its feasibility

As mobile banking services are becoming more popular, financial organizations are now aiming to hire service providers to have their own apps developed. There are plenty of reasons behind such high popularity of these apps:

Reaching more people every day

The growth of mobile apps can’t be neglected. As the data costs are getting lower and the number of smartphones is increasing, mobile apps are becoming more popular. People rely on their mobile for a large number of tasks. From fixing a schedule to ordering groceries, there is a mobile app for every task. That’s why the need for mobile banking apps was felt.

When an institution releases a mobile banking app of itself, it connects with more customers without putting in much effort. Numerous banks have released their mobile banking apps, through mobile banking app providers in the past few years and the results have been extremely positive. Mobile banking services enable your business to reach more customers. Moreover, downloading and using these apps are easy.

This makes it easier for people to become your customers. They don’t have to undergo any hassle in order to avail your services when you are providing them with digital banking solutions. These apps enable people to find their accounts’ balance, handle transactions and make transfers with ease.

Increasing brand awareness

Mobile banking apps help the respective organizations in boosting their brand awareness. Banks that are entering the digital banking market right now, are able to capitalize on the huge demand for high-quality digital banking solutions.

People want good banking apps so they can make transactions on the go, without facing any difficulties or wasting any time. Providing a mobile app advertises itself on the digital platforms easily. Online advertising helps the institution in reaching new customers and enhancing the popularity of the brand name. It has a broader reach in comparison to offline advertising and so it can help in elevating the number of available customers.

Future growth prospects

The number of mobile banking apps has risen significantly in the past few years. Moreover, the growth prospects of mobile banking apps look quite positive. The users of these apps are increasing rapidly and experts say that the users are only going to increase in the future.

Therefore, institutions are now focusing on taking the help of mobile banking solution providers. These solution providers handle all the technical tasks and ensure that the organization has a high-quality and powerful mobile banking app for its brand.

Conclusion

With the increasing number of users, it is clear that mobile banking apps are going to dominate the banking industry. It is necessary for current organizations to seize this opportunity to grow.

Key things to avoid with financial software solutions

The popularity of financial software systems has risen significantly because of their large number of benefits and advantages. A great solution can help your organization get ahead in the market and increase your customers without putting much effort.

Still, there are some precautions you should follow with these solutions. The following points will help you in this regard:

The experience of the provider

The most important to keep in mind is the experience of the software provider. A common mistake among major organizations is overlooking the experience of the service provider due to the running costs. While a small difference in experience might not influence the results, a more experienced service provider would have better knowledge of the market and the solutions you would require.

You will not have to worry about the occurrence of any mistakes when you will be availing the services of an experienced service provider. Finding such a service provider is not a hard task as well because you can find a number of great options online without any hassle.

Ignoring arising issues

It is necessary for your organization to stay in touch with the technical team of the service provider. Ignoring an arising issue within the software solution could lead to some serious losses in data or performance. That’s why businesses spend heavily on the security and updates of the financial software solutions they utilize. One would want to avoid any risks associated with such a crucial part of the organization.

Moreover, staying in touch with the technical team will help you find out about the latest updates. Consulting with them and taking their help to overcome these issues will make sure that your organization does not have to compromise with the productivity and performance. With a good service provider, you will be able to contact the technical team with ease as well.

Less accommodation of funds

Some financial organizations do not recognize the importance of the financial software systems they use. Due to this reason, they cut the expenses and spend less on the software solution. However, this leads to the development of a number of issues because of the lack of funds, the provider becomes unable to offer proper services.

While a great software solution can help the organization in optimizing its productivity, the opposite is also true. A bad quality software solution can hurt the growth prospects of the organization and that’s why it is essential to choose the software provider carefully.

A poor quality solution might not have the latest tools and services which your organization may require to operate properly. This could lead to the development of a considerable number of problems due to which, you should try to avoid low-quality solutions present in the market.

Conclusion

As you can see there are not many things to keep in mind while using these software solutions. Moreover, the service provider will help you in every way possible and you will not have to handle many technical tasks.

UPI: From a few lakhs to over a crore transactions a month

The full form of UPI is Unified Payment Interface and it is controlled by the Reserve Bank of India. The developer of UPI is the National Payments Corporation of India. It is a real-time payment system which enables people to transfer funds from one bank account to another through a mobile app.

It is a part of the Government of India’s ambitious program named Digital India, which focuses on promoting digital tools and digitalization of numerous processes. In the past few years, the popularity of UPI has increased considerably. Numerous payment apps are based on the UPI payment system and the daily transactions taking place through these apps are over 100 million per day. With such high popularity, it has changed the banking sector in India considerably.

Why UPI grew this large

UPI became considerably popular after demonetization. The focus of the Government of India was on promoting the use of digital payments to enhance transparency and improve the banking eco-system. Due to the scarcity of cash, UPI-based apps and e-wallets became the primary tools for making transactions.

Although the growth of these apps slowed down a little after a considerable amount of cash entered the economy, until then, UPI-based apps had become an essential part of a common man’s life.

Another major factor which boosted the popularity of such apps was the rise in the number of smartphone users. As the number of smartphones grew, more people became able to use these apps for making transactions. UPI has improved the process of transferring funds faster and easier. There are many benefits of using UPI-based apps, some of them are as follows:

  •    Faster payments

UPI has enabled people to make payments faster as it utilizes the Immediate Payment Service, also known as IMPS.

  •    24/7 availability

It is a digital platform so the users can make payments 24/7 without any kind of difficulty.

  •    Multiple accounts sync-in

One can access multiple bank accounts with a single mobile app. This helps in easing the process of managing different accounts.

  •    A secure platform

UPI offers a secure method to make transactions. One gets a Mobile Banking Personal Identification number only through which, one can make payments on UPI.

  •    Use for paying bills

UPI enables people to pay bills from any location at any time, which reduced the day to day hassles for many people.

Conclusion

As you can see, the climb of the UPI payment system is quite steep. It has risen as one of the most influential developments in the banking sector in India. With its high popularity and rising importance, it is necessary for current financial organizations to utilize this platform and seize this opportunity.

You can choose to hire a good UPI service provider to develop an easy to use and attractive digital banking solution for your customers. You will not have to face any difficulties in this regard. Moreover, if you have any queries regarding this matter, feel free to communicate.

What Are the Benefits of a Cloud-Based Core Banking Solution?

How many of us have ever thought of what buttresses the banks’ operations? Well, not so many. We all walk in the bank, do our transactions or whatever has brought us and leave. No question and not even a clue on how banks do manage to handle millions of people’s money, help us with their services and maintain financial records. A core banking solution is the center of all banking processes. It processes daily transactions while updating the accounts on the financial transactions of the day. Basically, the core system acts as the back-end for all banking activities. The cloud-based core banking solution is becoming the preferred option for many new start-up banks and old ones as well.

The benefits of core banking solutions in India by Finacus include:

  1. Cost-effectiveness

Cloud-based makes it easy for the bank to concentrate on what really matters. No more additional expenses on hardware and software. Instead, the banks can concentrate on the required resources needed.

  1. Flexibility and mobility

Smartphones, tablets, laptops, and other electronic devices have occupied our day to day activities. We want to get all our information on these technologies. Be it news or banking information. Cloud brings the banks right to us. We are able to get all the information we want regarding our transactions while on the move.

  1. Efficiency

When it comes to clients, they are the controlling hand of any business. And when you have services that clients find efficient, you are on the safer side. With this core banking system, the client’s transactions are smoother and easier.

  1. Business continuity/Disaster recovery

Cloud has the capability to store information even when disaster, fire or cyber attack occurs. Banks can recover their data and recover faster with the disaster recovery solution and a risk-tolerant system from this core solution.

  1. Green computing

Environmental sustainability is an important aspect to all. Cloud-based is virtual and so there is a reduction in carbon footprints, minimization of operational costs, and energy efficiency.

  1. Security

Banks hold all of our important aspects, and sometimes we worry that they might get lost or stolen. Cloud, however, assures the safety of your cash and documents. Some years back, information stored on hardware could get infected by malware causing all the data to disappear. But with Cloud, banks can store all their data with no worries of such issues as it offers great security backups advantage and malware protection.

  1. Scalability

Cloud has the potential to handle more data and information added. We all know how banks can get messy if they processed all their information on hardware. The cashier could take time before finding the information needed. But luckily, Cloud has simplified things. Banks can store any amount of information without fear of lack of space.

Yes, the cloud-based core is the perfect banking solution because of its many benefits. But even with its convenient features, it might have its cons, but benefits will always exceed the challenges. Cloud computing is still growing and is becoming preferable to many banks all over the world.

 

 

The Disruption Of The Banking Sector Has Already Begun

Banking has seen two distinct life cycles in the last 50 years. Till the earlier part of the 20th-century bankers were staid individuals wearing pin-striped suits who rarely budged from the straight and narrow. The phrase ‘As safe as a bank’ was not just indicative of the cautious nature of bankers but also their orthodox way of thinking. It was all in a day’s work for them to turn away prospective clients if they did not fit into the narrow qualifying criteria. Then banking jumped over to the other extreme of canvassing crazily for business. It wasn’t uncommon to find senior bankers wait hours outside the office of a prospect, just to see if some new deposits could be collected. And now we are ready for the next wave of banking.

The Next Wave

We are already starting to see a paradigm shift in how all banking solutions are being brought to the customer’s doorstep. Or to be precise, to the customer’s mobile phone. We are hurtling towards a new world of banking at breakneck speed. A world which doesn’t need bank branches, salesmen, or even call centers. The bank is with the customer 24×7, at his beck and call. The bank is not bound by any constraints of location or time. Let us examine a few examples of the disruptions that we have already begun to see in the banking and financial services industry (BFSI).

Stock Trading with Robinhood

Just like one goes to Google Store to download a game to play, one can download the stock trading app Robinhood. You don’t pay any fees and you can use Robinhood to trade in stocks or funds or options. The days of applying for trading accounts is well and truly over.

Loans from Lending Club

Loans are the most popular ones out of all banking solutions. But banks have been known to sit on applications for ages and reject applications arbitrarily. Lending Club is a peer to peer loan marketplace that does away with the need for a bank. It matches the needs of borrowers who need money and investors who wish to make profits from interest earned on loans.

Payments Systems from UPI

The Unified Payments Interface is a real-time payment system that does not rely on clearinghouses, cheques, and banks for transferring of payments. It uses a mobile platform to help transfer funds from one bank to the other. It was launched by NPCI (National Payments Corporation of India) and it facilitates digital payments in this digital world. Several companies like www.finacus.co.in are partners in this initiative.

Investment Advisory from Betterment

This is an automated online investment advisor which seeks to replace the services of human investment managers by the use of algorithms and analytics. As long as the client can keep his account funded, Betterment would continue to fine tune the portfolio to meet the stated investment goals.

Conclusion

These were just four randomly chosen examples from around the world. But there are thousands of disruptive ideas just beginning to take shape out there, which promise to change the banking industry beyond recognition.