Digital Banking and Mobile Payments

We are in an era where technology is evolving and as part of this, we are getting the benefits to explore and experience some of the services that have made our life easy. Although we have a bunch of services and a few industries that have got significant advancements in technology I believe banking and payment is one of the segments that have got better technological advancement. Making a payment is a very easy process now and we can do it just by using the application you know what a smartphone. This process has also gone completely online so we are not dependent on the traditional process of banks where we are supposed to visit the branch and get the transaction done. With traditional banking, we also had limitations for working hours but with digital banking, this is not a problem anymore.

Digital Banking

Banking has gone digital and now most of the services are available online which also includes account opening and much other stuff which really helps to save a lot of time. There are some banks that provide the complete online process through their application or website to get the account opened and experience the next level of banking backed by technology. It is helping consumers as well as the bank to save time and money because the user does need not to visit the branch which saves time even if there is less manpower needed to provide the services. Since the services are available digitally so anyone can access them anytime and only an IT infrastructure setup is required which is not a bigger thing.

Banking Round the Clock

There were limitations with traditional banking as we were supposed to visit the branch during working hours for any banking transaction but now that is not the case because with digital banking we can access our bank around the clock. This is not just convenient for us but also we get more power to deal with our money find literally there is no restriction on the transactions because we can pay anyone any amount and anytime. Now it is also good for the country because having digital transactions is easier than carrying cash for buying goods and services and I believe now most countries are planning to go fully digital to create a digital economy.

Mobile Payments

When we talk about digital banking then we cannot exclude mobile payments because now paying anyone through mobile is one of the best features that we have got. In India, we have got a bunch of wallets through which we can make the payment by scanning the QR code or we can also pay through the mobile number which does not take long. Making a payment by scanning the QR code is hardly one minute process and mostly it takes about 20 to 30 seconds depending upon the connectivity speed. If we go with the other option when we need to enter the mobile number then also it is quite convenient and works fast. Most of the shops and merchants have caught their QR scanners with them so one can just go to their shop buy the goods and pay by using their mobile phone is how the payments are done mostly these days.

CBDC is another revolution

While making payments through mobile is easy and convenient but it also reduces the need for physical cash. I do not withdraw cash from the bank because I know that I can use my mobile phone for most of the payments then it is not required for me to carry cash all the time. This is convenient for me and I believe cost-effective for the government because they do need not to do so much logistics management for the currency distribution I believe for this region also they have introduced central bank digital currency. Currently, it is in the testing phase where the government trying to figure out how it will work and fix any issues before it goes public and I believe this is also going to be a great revolution in mobile payments. This is going to be backed by Fiat currency and will carry the same value that will not deviate from the physical currency. With this new innovation, the government is trying to encourage people to use more digital money instead of physical currency because this way the government will be able to save a lot on logistic expenses, and also it will lead to a digital economy.

Payment Banks

India is one of the countries that have done a lot of good work in terms of payments as we also have payments banks in India. These are completely digital and they provide all the banking services within their mobile application. They cannot provide lending services which is the core business of any bank but other than these they can provide all banking services digitally. This initiative is helping more people to join the banking space because this is needed in the 21st century for everyone to be part of banking.

UPI Payment services

India has got its own payment service which is called UPI and it is one of the best payment options we have as of now. This is also appreciated by multiple countries and even some of them are adopting it because it is so good and works flawlessly on any smartphone. The transactions are settled in real-time and no need to wait for a long time since everything happens instantly currently it is not chargeable in India however maybe the later government might make it chargeable.

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Now we have multiple options available around us through which we can make the payment and avail banking services but it was not the same for long. I still remember that there was a time when availing the banking services means visiting the branch and spending a few hours over there to get it done and it was not convenient at all however now with digital banking it is very easy and convenient for us. I don't remember when I visited any bank's branch last because I haven't done it in the past many years as I have the option to get it done online and I don't find any reason to visit the branch and spend few hours no reason.

Thank you

Posted Using LeoFinance Alpha