The explosion in use smart phones and digital transactions right from purchasing groceries to buying electronic goods online has heralded the beginnings of a cashless economy in India. With 220mn smart phones, India is the second biggest smart phone market, in terms of active, unique smart phone users, surpassing the U.S. market.
The click, swipe, and order syndrome has drastically changed the way businesses are done and the result is that ‘digital’ is within everyone’s means today.
From digital wallets to Demat accounts, the results of this ubiquitous digitalization are for the whole world to see. Besides making transactions less cumbersome and saving on time by as much as 70% in certain cases, banks and companies are also saving on transaction costs. The conversion rates, too, are almost three times higher – a huge plus for the financial companies. It’s a win-win situation for consumers too. Quit the long queues to pay bills; online is the new way forward.
What’s beautiful about paperless processes is its ability to deliver and empower people at the same time. The best example of this is the JAM trinity – or the Jan Dhan Yojana, Aadhaar, and mobile connectivity, in the wheel of economic policies that are meant to drive the financial inclusion measures to bring about an overall empowerment. For the first time, we are seeing market forces and social goals come together because of paperless finance.
With a view to further paving the roads to strengthening the digital drives, BankBazaar.com, in association with CNBC-TV18, held a digital banking summit. This event saw some of the biggest names in the BFSI industry come together on one platform and give their view on the way forward and the enormity of decisions based on digital disruptions in the near future. There were speakers like Amit Agarwal, VP & Country Manager, Amazon India and Nandan Nilekani, Former Chairman of the UIDAI who dwelled on the future of #Paperless economy. In addition, there were two panel discussions to discuss this at length. The first one was on the Impact of Regulatory Decision Making on Digitalization of BFSI Sector.
The buzzwords here were online transactions, mobile banking, banking apps, and making financial transactions a paperless process as a part of moving towards a digital future of paperless banking. Digital banking is the need of the hour, and the regulators’ stance to focus on cashless transactions has led to new technologies being adopted in the BFSI space. Many banks are now collaborating with these firms to introduce products for payments, loans, and remittances. Regulators are encouraging paperless and technology is enabling a seamless experience. The ability to take advantage of the regulatory encouragement and technology advancement will be a game-changer in the coming days.
The second panel discussion was on making financial product purchases 100% paperless and secure especially in the non-banking and insurance sector. The panelists discussed the role of Aadhaar-based eKYC for KYC verification and its implementation keeping in mind the regulatory and other additional requirements to take the first step towards a completely paperless financial product.
The BFSI sector on the whole is focusing on strategies to make services available on the online platform. Banking apps, SMS banking, and digital wallets are gaining popularity and make way for safe and secure banking. The catch here is in enabling consumers to believe in the digital experience – read digital banking and at the same time tackling valid concerns of online fraudulent transactions. It’s a tightrope walk, and one that most banks have mastered.
Yet, these are just the first set of digital footprints collectively taken and a lot more needs to be done to strengthen processes and make them more robust and transparent. Though baby steps in the larger scheme of things, enabling online digital banking and Aadhaar-based eKYC for verification are, nevertheless, steps in the right direction in making India more digitally viable and sustainable.
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