Banking Sector & Changes in its landscape
In the growth trajectory of the financial services there is a vast changing in the landscape of the banking sector, change in banking trends and the digital revolution promises extraordinary gains in the productivity of the banking industry, unprecedented improvements in the quality of customer experience and a fundamental shift in the nature and intensity of the competition. If we make an excursion into the post-demonetization arena of the Indian economy, we feel that financial services are more digitally advanced than many industries. Most retail banks have taken important steps in channelize and other digital capabilities. There is a vast change in the landscape of the banking sector. However, in such a competitive climate, success may well be determined by the one “Who wins the race to fully integrate analytics, video, personalized anywhere-anytime advice, and other digital proficiency”.
Realizing the potential of digital banking is easier said than done with legacy challenges because of the incumbency and conventional mental models, existing technology and operating platforms. Still, digitization is imperative and needs to be meticulously implemented as banks around the globe have reaped rewards of the same.
Digital Banking or Electronic Banking term refers to Internet Banking. Now, it can be done without any time and geographic remoteness. Consumers all over the world can access their account 24*7. This provides many opportunities to banks as well as customers. Digital banking includes all kinds of online/internet transactions done for various purposes.
Digital Revolution comes in India on 6th July 2016 when the government launched its UPI(Unified Payment Interface). A digital banking system allows people to easily transfer money to and from a bank account or to via Smart Phone. Digital banking is the incorporation of new and developing technologies throughout a financial services entity, in concert with associated changes in internal and external corporate and personal relationships.
As the landscape of banking sector has been changing tremendously – Various digital payment technologies which include Electronic Payment System has also changes as given:-
* Electronic Fund Transfer (EFT) is the electronic transfer of money from one bank account to another, either within a single financial institution or across multiple institutions, via computer-based systems, without the direct intervention of bank staff.
*Methods of Online Payment such as Credit Card, Debit Card, Net Banking, PayPal, Google Wallet.
*Mobile Marketing includes SMS Marketing, MMS, Push Notifications, App-based Marketing, In-game Mobile Marketing, Mobile Web Marketing, QR (Quick Response) Codes, Bluetooth, Mobile E-Commerce etc.
*Social Media Marketing indulges Twitter, Facebook, Google+, LinkedIn, Yelp, Foursquare, Instagram, Youtube and so on.
* If your business accepts credit, debit or checks as payment for goods or services, you need a Payment Gateway. A gateway enables merchants to have payments authorized, processed and deposited into their banking account. Gateway quickly and securely verify card accounts form payment approval, then connects financial institutions together to transfer funds from customer to merchant.
The ultimate goal of digital or e-banking is to make banking cheaper, more effective and easier to access for all. But as the adoption and acceptance of more and more payment methods increases, necessary measures to prevent and detect fraud and risk should be in place with every new method. India is at a crucial stage where the government, banks, service providers and consumers themselves are working towards a less-cash economy. It is important that consumers place their faith in the payments system and are not deceived. Preempting security threats and ensuring consumer financial safety should be an important part of this new payment and banking trends.
& Senior Faculty IPB, Jalandhar