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Usage of mobile banking & digital payment post Demonetisation

By Finance Advisory, 3rd Eye Advisory®
Usage of mobile banking & digital payment post Demonetisation

A study done by FISTM, the financial services technology leader, indicates a drastic rise in the use of mobile devices and other digital banking channels after demonetisation.

Acc. To FIS' third annual Performance Against Customer Expectations (PACE) report, which surveyed 1,000 banking consumers in India found that -

  • 60% of the respondents used mobile devices this year to check account balance, view current transactions, pay bills, transfer funds or other banking needs.

The figure was 39% in 2016 and 34% in 2015.

KEY FINDINGS OF THE SURVEY WERE -

  • 30% of the payments were done with mobile apps compared to cash, cheque or credit/debit cards
  • 18% of the respondents use their primary bank's credit cards exclusively.

OVER THE LAST 30 DAYS -

  • 64% of banked individuals reported using their bank's mobile app
  • 84% paid a bill from their bank account
  • 79% transferred funds between accounts
  • 73% made a purchase with a mobile app that can be used at many different retailers
  • 64% paid an individual through a bank's app
  • 62% paid an individual through a payment service's app

CONCLUSION OF THE REPORT-

It is clear from the report that demonetisaton has brought a positive impact on country and thus people are gradually shifting from traditional banking method to modern methods which in turn is more appropriate and time saving.

CHALLENGES IN DIGITAL PAYMENT BUSINESS -

  • High volume, low value
  • Overcrowded with increasing competition
  • Building trust and security of transactions is of fundamental importance
  • Platforms need to be interoperable i.e. should be enabled via multiple channels/banks
  • Need to build a compelling proposition for users to change habits from cash to digital.

BENEFITS IN DIGITAL PAYMENT -

  • There is control on expenses as the virtual account has history of all transactions made.
  • Convenience of transferring money at anytime, anywhere.
  • Reduced risk of loss & theft
  • Transfer of money between virtual accounts is much faster as compared to standing in queues at bank thus, it is time saving also.

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Article by: Finance Advisory, 3rd Eye Advisory®