At the turn of the 21st
century, the idea of online bank transactions was unheard of. As the years
progressed, so did the banking sector in India. Today, barring a few most of us
carry out our transactions over the internet, making our lives a lot more
simple.
However, this has changed the
role of the bank. From a place where we would individually go to deposit or
withdraw money, banks today focus more on the relationships with their clients
to ensure that bank related work moves in a smooth way.
Smart banking popularity,
particularly in urban India, can be attributed to the socio-economic changes
happening across to smart phones and tablets in all pockets of the country, it
has become easy for customers to carry out online transactions.
The most important and yet
interesting fact about the rise in smart banking has seen an increase in
customers, but banks have not employed new staff members.
The technology has enabled
banks function better and in a more cost-effective way. Technology is also
levelling the playing field allowing community banks to compete and grow in a
world for now dominated by the mega-banks.
Banking round the clock
One of the biggest advantages
of internet banking is that one can carry out transactions throughout the day.
From paying your mobile bills or booking a movie ticket, everything is now a
click away. With no additional cost and easy accessibility, the medium is fast
taking over the traditional mode of banking.
Banks have also used social
media to their advantage, enabling staff to communicate and interact with
clients in ways that were previously not possible. Social media has also been
used to provide services, product information and important feedback from
clients.
Popularity of plastic money
Due to the success of internet
banking and online transactions, the usage of credit and debit cards has also
seen a major increase among the younger segment of customers. According to a
recent study, the average age of credit card holders has come down to 27 years
from 45 in a span of just two to three years. Through this sound like a good
news for the banks, they are making sure that it doesn’t cause a problem in the
future. To ensure proper return of their debt, banks have come out with
customer-friendly education material which helps the customer take sound financial
decisions.
A bank customer can perform
non-transactional tasks through online banking. These include:
·
Viewing account balances
·
Viewing recent transactions
·
Downloading bank statements, for example in PDF
format
·
Viewing images of paid cheques
·
Ordering cheque books
·
Downloading periodic account statements
·
Downloading applications for M-banking,
E-banking etc.
·
Transacting banking tasks through online
banking, including-
·
Transferring funds between the customers linked
accounts
· Paying third parties, including bill payments
and third party fund transfers
·
Investment purchase or sale
·
Loan applications and transactions, such as
repayment of enrollments
·
Applying for credit cards
·
Registering utility billers and make bill
payments
·
Financial institution administration
·
Management of multiple users having varying
levels of authority
·
Transaction approval process
