Digital Banking

Digital Banking, FinTech Trends

Neo Banks In India

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Just a few days back we got an interesting query on our website chat – Which new technologies already present in foreign countries can be adopted for Indian banks? My one term answer to that question would have been – Neo Banks! Yes, Neo Banks are the answer to the efforts– cashless banking, automated payments, digitization across sectors, SME Banking, transparency, building trust, preventing corruption across all industries, entities, and individuals. The Neo Bank use cases cover all aspect of verticals and businesses. If you are a B2B, B2C, G2B, G2C, B2B2C,C2C, G2C or even a homemaker Neo bank has a solution just for you. My post of today would talk about Neo Banks in India. If you are looking to understand Neo Bank and its basics, visit my post here or different use cases of Neo Banks, visit my post here. Here are five Neo Banks in India you should know about – NiYO easing life of Salaried People NiYO Solutions, a Bangalore-based “neo-bank” is helping salaried employees and blue-collar workers in accessing company benefits and other financial services. What They Offer Global Card – A global corporate card[INR] that helps employees in international travels canceling the need for employees to buy forex card. Salary Account – A salary account for individuals when their firm signs up with NiYO. Corporate – NiYO corporate is an employee benefits platform that comprises of a card and mobile app. Hylo – Offers SME’s Banking Hylo a unique solution incepted to assist SME’s in automating payment against an invoice in real-time via online transfer, cash payment, and cheque collection. Hylo services assist buyers and sellers in creating and tracking Purchase order and branded invoices with an ability to integrate to third party apps or legacy system via Open API’s. Buyer and suppliers can automate the reconciliation process at the end of the day to save time and effort, easy to use dashboard and data enrich visuals makes it easy for buyer and supplier to be in sync. Our digital system assists SME’s in a manual collection system with real-time notifications and alerts.  Hylo platform assists B2B in maintaining a threshold-based inventory and auto-matching of PO against invoices. What They Offer Automated Payment Against Invoices – The service offers suppliers invoice payment digitization with real-time tracking and alerts. SME Business Assist –An Integrated Banking solution for SME’s that offers, Automated branded Invoices, Purchase Orders and Collections SBI YONO – a bouquet of services YONO Digital bank is an integrated digital banking platform presented by SBI [State Bank of India]to offer its customer a variety of financial services like Credit Cards, Loans, Insurance, Investments and other services such as taxi bookings, online shopping, or medical bill payments. What They Offer Financial Products – With YONO mobile app, customers can benefits of credit card via cashback, rewards, deals. YONO solution also assists in making smart investment decisions and easy access to insurance and loans. Shopping Experience – Targeted for Indian customers, YONO aids to a seamless shopping experience, booking train tickets and easy withdrawal and deposits of cash via mobile Open – Offers Business Banking Open is a neo-banking start-up helping small merchants in automating bulk payments and digitize financial operations. They have a tie-up with major lenders such as ICICI Bank to offer the entire range of business banking solutions to small merchants. What They Offer Business Bank Account/Cards – Offer business bank account powered by ICICI bank, with digitized payments and automatic reconciliation. Payment Gateway – Ability to process online payments or NEFT / RTGS / IMPS payments using virtual accounts. Kotak 811 – Offers Limitless banking for all With 811 banking app, customers can access all banking services at their convenience from anywhere. Their services are on similar lines as SBI YONO. What They Offer Banking Services – With 811 customers can open a bank account with a 6% interest rate, get a fixed deposit, virtual debit card, and access to other banking services. Shopping and Bookings – 811 app has a Kaymall section that allows users to shop on eCommerce websites like Flipkart, subscribe to national/international magazines, book flight/hotels on Goibibo or train tickets^ on  IRCTC  at the best rates. Neobanks with innovative and user-centric features would be a significant player in the coming years in India. And the prime reason is their ability to deliver banking as once Bill Gates said Banking is essential, banks are not. If you a Bank or NBFC looking to use technology and innovation in expanding the business and enable Neo Banking or Challenger Banking, we are here for you. Teknospire, a fintech firm offers Bank-in-a-box solution with omnichannel, agent/digital branches capability. The 360-degree banking solution reduces the CAPEX for a bank to set up a physical branch, but yet opens doors to expand their business. Our Neo Banking, Mobile Banking, and Agent Banking solution could help regional banks and cooperative banks to push Banking beyond physical walls. For details, please contact us here Watch out this space to get more insights on Neo Banking. For my previous posts, please visit our blog.

Digital Banking, FinTech Trends

The evolution of mobile wallets and digital payments in Jordan

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Digital is just not a word anymore;its your life. Part and parcel of humans, economy, and countries. Each country is trying to regulate, innovate, implement digital solutions, services and lifestyles. Today we are going to discuss about one such beautiful country Jordan and the evolutions of mobile wallets in the stunning landscape. What kind of consumers in Jordan may benefit from mobile money? Is the government in Jordan supportive enough of digital wallets? How do the refugees in Jordan get aid via mobile financial services? All of this and lot more in our post of today on Jordan and its mobile wallets. Understanding Jordan’s Population and Economy Jordan, officially known as The Hashemite Kingdom of Jordan, is an Arab country uniquely situated at the crossroads of three continents: Asia, Africa, and Europe. Connecting East to West, Jordan has been a key trading post in the Middle East for centuries. As Wikipedia says – Jordan is classified as an upper-middle-income country, and in 2010 Jordan was ranked as the most globalized country in the Middle East and North Africa region. Also, as per IMF Jordan’s banking sector is classified as “highly developed.” But what does the number says? The below diagram represents the population and economy of Jordan as per Jan 2019. With ~91% of the urban population and 98% of literacy rate, indeed Jordan could be termed as a literate country. In the late 1990s, the Jordanian government adopted the goal of developing an intellectually competitive IT industry, one that attracts both foreign and local investments, generating high-value jobs, and producing substantial levels of export. In particular, aggressive initiatives have been taken to implement Internet-based technologies to help facilitate the desired social and economic development. So what happened to the efforts applied in the ’90s? The below diagram shows the stats of users in Jordan that have a mobile subscription, use internet, social media and social media via mobile phones. https://datareportal.com/reports/digital-2019-jordan And the below diagram represents the annual digital growth i.e., the year-on-year change in key statistical indicators The interesting point is that although Mobile subscriptions have seen a decline, the increase in population is almost equal to the change in mobile social media users. Could we say that Mobile with an active internet/data connection is on the rise in Jordan? Here is another diagram highlighting the number of internet users; it is worth noting that of the total 87% of internet users, 81% use internet on mobile. Another data set specifically on Mobile Data plan says out of 80% of mobile connections, 79% are using 3G/4G. So, my hypothesis that Mobile with an active internet/data connection is on the rise in Jordan seems true.  But unfortunately, the mobile and data plan is not being used efficiently, and there is a lack of financial inclusion, bill payments and mode of payment for shopping is still cash. The below diagram shows the stats in detail. Its really shocking to know that Jordan, a country that has a literacy rate of almost 98%, where 80% of users can afford a smartphone and a 3G/4G connection, only 42% have a bank account, and only 8% has made an online purchase. Do you think using the mobile + 3G/4G penetration the above numbers could be improved? I certainly believe that the tiny handset connected to the internet has the power to change the dynamics of a nation. Let’s explore the use cases of a mobile wallet in Jordan – Opportunities for Mobile Industry in Jordan Influx of Refugees As of August 2019, Jordan hosts over 660,000 Syrian refugees – around 48% of them children. The vast majority (about 80%) live in urban areas, while the remainder resides mainly in two refugee camps. The influx of refugees leads to high population growth and opens opportunities’ for business growth, given the current mobile penetration rate. The high percentage of youth Almost 70% of the total population in Jordan is under 30 years of age, and people between the age of 15 and 24 years is nearly 22%, making a majority population of youth in the country. Being tech-savvy and early adopters of technology, mobile penetration is at its peak in the nation. Emerging networks and services The fixed broadband network is growing with the national broadband network fiber-based deployment well underway. Firms like Orange Jordan launched 4G+ services in 2018, and there are talks of IoT [Internet of Things] making their way in Jordan homes and businesses. Where Can Banks Pitch In with their Mobile Financial Services in Jordan Robust Infrastructure and Push from Regulatory Authorities Jordan has a sound regulatory environment and working on numerous on-going initiatives – The Central Bank of Jordan released a circular on mobile payments in 2010 and published a regulatory framework in December 2013 for mobile money, which went into effect on March 2014. In 2016 the Central Bank of Jordan issued a Mobile Payment Service Operational Framework that clarifies the structure of processes, techniques, limits, and operational environment of the mobile phone payment service. As shown in the diagram below  the Payment infrastructure of Jordan is robust and highly developed for banks, NBFC’s and PSP’s [Payment Service Provider] to support domestic and international payments. The Mobile Infrastructure offers a reliable and robust broadband network at an affordable price, also equipped with nationwide wireless access. As per data presented in the report Tanmey Ahjo it indicates that internet and mobile phone coverage were above 100% by 2017. Even the # of computers in every household was 55.8%, and internet access at home was 55.8%, and individuals using internet were 66.8%. Driving Innovations via Technology for Rural and remote Customers Although mobile money solutions or e-wallet solutions are available in the Kingdom, they are majorly concentrated in urban regions and dominated by traditional players such as Post Offices, Banks ATM’s or Exchange Houses. Fintech and startups could target the rural and remote areas with their innovative mobile-based solutions to get penetration and visibility. Targeting Refugees Jordan hosts the second-highest ratio

Digital Banking, FinTech Trends

How to offer a best-in-class Mobile Wallet experience for MENA?

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The Middle East and North Africa are witnessing a change in consumer preferences, evolving Fintech start-ups, and supporting regulation are testing banks and FI’s digital capabilities.  The consumers are going digital, creating new opportunities for financial market to disrupt and embrace fully integrated mobile wallets via smartphones, wearables, and tablets.  A recent GSMA research outline that in 2017 MENA region had 375m unique mobile subscribers that could reach to 459m by 2025, where smartphone connections can increase from 49% to 74% by 2025. In fact in countries like UAE the mobile phone usage is nearly 100%. To such a rapidly growing market, how can banks and financial institutions offer the best-in-class mobile payment experience? Our post of today will help you with that. The Mobile Wallet Use Cases in MENA While you may find a digital wallet as a technology buzzword, let us understand what customers are willing to use their mobile money for? Avail Banking Consumers in the MENA region are willing to use Mobile wallet to avail services like – Opening a Bank account Apply for Loan Apply for Credit Card Get product advice Apply for savings/Fixed deposit Balance Enquiry Funds Transfer Where can Banks and FI’s improve? While adoption to less complicated services like balance inquiry and funds transfer could be achieved, opening a bank account, getting a loan and credit card is where the customer finds absence of “end-to-end digital workflow” with a sense of trust and security. Avail Loyalty Programs and Discounts E-Wallets attract a lot of consumers for the loyalty programs, cashbacks, and discounts offered. For a bank or FI digitization of banking services like debts, personal finances and investment make more sense, but customer looks for their banks to provide more than banking in shopping, paying bills and book tickets. Some of the features that a mobile wallet user may be interested in – Attractive loyalty programs Discount coupons Mobile payment for cabs and neighborhood shops Virtual prepaid card for secure payments Customized bill payments A personal advisor or relationship manager Message-based payments Apply Personal loan, credit card, and mortgage via mobile Where can Banks and FI’s improve? Major gap for consumers is in understanding the products and services, the UI is not friendly, and in case they face any glitch they are again asked to contact customer support, making it a partial digital experience. If banks and FI’s could improve on availability, Security and awareness of digital solutions to its consumers offering them easy-to-use, seamless and end to end digital solutions it would help them in gaining trust of consumers. E-commerce is the future In 2017, e-commerce in MENA touched  $8.3 billion, i.e., with an annual growth rate of 25%. As forecasted, this figure is expected to reach $28.5bn by 2022. UAE, the most tech-savvy country in MENA region has a penetration rate of 4.2%, while Saudi Arabia is close to UAE with 3.8% penetration, combining both sector accounts for 60% of e-commerce market. Where can Banks and FI’s improve? Consumers are looking for convenienceand security aspects while making an e-commerce transaction. Banks and FI need to work on their integration with channel partners.  Offering a mobile wallet as one of the payment options to consumers of their favorite brand can help in winning the race for long term. Target Cross Border Remittance As per a report of 2015 latest data on international migration stocks, 34.5 million international migrants, that includes registered refugees are residing in the MENA region.  Another report of March 2017 stats – 4.9 million Syrian refugees in the MENA region. Also, the conflicts in Iraq and the Republic of Yemen have led to internal displacements. According to the United Nations High Commissioner Lebanon and Jordan hosted the highest number of refugees worldwide in relation to their population size in 2015. Also, what is worth noting is the cost of remittance of sending $200 in the MENA region is 7.4 percent in 2017. If we could simplify remittance cost clubbed with making it simple and hassle-free, many migrants in MENA could be thankful to Banks and FI’s. Where can Banks and FI’s improve? Banks and FI need to bridge the gap of offering the remittance solution with help from regulation. What Banks needs to understand is that “the untapped population” in the form of migrants could be their customers and if they are onboard with a simple Account opening service followed by a mobile remittance solution you not only have earned a customer but also enabled financial inclusion. Target Electronics, Fashion, Beauty in Ecommerce If we have to rate consumer choice of shopping category on an e-commerce platform, the top-rated one is electronics, followed by Fashion and Beauty and least [or a very smaller section] prefers shopping grocery online. As quoted in one of the articles on thinkwithgoogle. Pushing Mobile wallets to these brand lovers’ shoppers could help you in generating revenues. While consumers would enjoy benefits of anywhere anytime shopping, they could also reap benefits of discounts and cashback. Where can Banks and FI’s improve? Tap into the in-house data, analyze customer’s preferred choice of category, credit behavior, and offer a personalized product. As a consumer one of the pain point they face regularly is looking for best payment option while going shopping on an eCommerce platform. Pitching them with personalized shopping advice could help banks in cross-selling and drive revenues. Banking has to evolve The consumer no longer needs just a bank; they need a solution that could help them in solving their education loan issue, help them in shopping, book tickets for the vacation. Hence even Banks need to evolve and come out of the silo of offering just banking. Customers in the MENA region are tech-savvy who visit an eCommerce platform via search and video. As per stats on an average 70% of people in UAE and Saudi Arabia engage in shopping-related search queries on their smartphone. Another research on women in KSA suggests that Youtube has introduced 50% of shoppers to a new

Digital Banking, FinTech Trends

Digital Wallets in Israel – Use Cases, Consumers, and Economy

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In the year 2006, when I was in Pune, many Israelis were staying within our locality. Apart from the country name and a possibility of locating it on the world map, I hardly knew anything about Israel. So when I was offered this post, I never thought it would be an eye-opener to me, on Israel that is also known as startup-nation and ranks within the top 20 nations in the world. In fact as Wikipedia says – it is regarded as a Highly Developed country and has a high standard of living when compared to other western nations. But a contrasting fact is that digital payments in Israel have slower adoption, as people prefer to go for cash but situation is improving gradually. Our post of today would focus on mobile wallets in Israel, the key players of e-wallets in Israel, the regulation and customer who could be one of the ideals, leads for digital wallets. The Israel Economy and Consumers Israel economy has struggled a lot, in the 1980’s they were on the brink of financial collapse. In 1975 when they had to push 30% of GDP on defense spending’s for the Yom Kippur war, 1984 public debt and hyperinflation peaking at 450% a year. But in the past decade as The Economist reports- The economy has grown at about 4% a year The unemployment rate is 4.3%, a record low Abour-force participation rate has risen Public debt has come down to 62% of GDP Israel has not had a recession (defined as two consecutive quarters of falling output) since the height of the second intifada Also, as Israel is dubbed as a start-up nation, here are some facts supporting it, reported by the World Economic Forum, Between 1999 and 2014, Israelis started 10,185 companies, 2.6% with annual revenues of more than $100 million All sounds good, and you might get dazzled up with high-tech firms and advanced technology equipment’s making noise in Israel. But the flip side is Israel has two economies – Globalized Start-up Nation Accounting for about a tenth of employment Left Behind nation Where nine in ten Israeli’s work on something similar but in inefficient and protected from competition. Another interesting fact about Israel economy is – Poverty rates in Israel are among the highest in the rich world owing two main reasons Utilizing public subsidies, the ultra-Orthodox pursue a life of Talmudic studies Arab citizens struggle to achieve equality. What a contrasting economy with extremes at both ends. Do you think a Mobile Money solution in Israel could help both the economies? My answer to this is YES, and I feel e-wallets are the best solution that could fit the orthodox and tech-savvy individuals in Israel. Use Cases of Mobile Wallets in Israel As per statista the mobile phone penetration in Israel would reach 72% by 2019, and is predicted to grow to 74% by 2023. But just because mobile phone adoption is increasing, it does not justify the use of mobile wallets. There should be a “NEED” for people to avail it. Like just yesterday, when I was booking a cab and my reliable cab Meru was not available for the time, I had the NEED to switch to another cab provider. That’s the prime reason of business, the need and upcoming lines would narrate how the mobile phone that has penetrated Israelis lives could assist them in using a digital wallet because of the NEED balancing the economies, the cultural and religious sentiments and still making their lives more convenient. The need for Money/transactions on Shabbat In Israel ATM’s are not stocked on Shabbat [ i.e., from sunset on Friday to sundown on Saturday] so most of the people withdraw money on Friday that can lead to ATM’s running out of cash. For such scenarios Mobile wallet comes in handy – if you are a traveler and was not aware of this rule. Or if you are an immigrant working in the country. Even as on Shabbat banks are closed, the businesses and shops are open. Hence an e-wallet could be a quick solution to assist Israeli’s with cashless shopping and digitization of payments. Black Money and Money Laundering Guide to reduce Cash in Israel In the year 2000, an article on Telegraph reported – Israel Seen as Paradise for Money Laundering. Also, in year 2003 the country was in the blacklist of the Financial Action Task Force, an international body that sets standards in the fight against money laundering and terror financing. However, this year [in 2019] Israel had been accepted as full member of FATF, but there are some unanswered questions. The whole Black Money and Money Laundering business could be stopped once digital payments are enforced enforcing a transparent economy driven by trust. Mobile wallets are a simple and straightforward solution to eliminate tax evaders and making Israel and better place. Collaborating with government to offer easy and affordable mobile wallet solutions is a way to make Israel a cashless haven. Government Initiatives to Boost Cashless Economy In March 2018 Israeli government made a law to limit the use of cash to 11,000 shekels [i.e. $3,197] that would be reduced further to 6,000 shekels by year 2020, in an aim to crack down Israel’s black market. Some of the other pointers to the law are – A ceiling on checks of 10,000 shekels Tourists will be limited to paying no more than 55,000 shekels in cash to buy services or assets, although they can do so up to five times Government is trying to push the cashless drive, but what is needed is affordable and convenient solutions with understanding from consumers on its benefits. Mobile wallet serves all the features of affordability [ as no extra dime need to be paid by customer], convenience [ no need to carry additional card or wallet] and benefit of any time banking from anywhere. Exporters and Importers supporting Businesses Israel is ranked as the 37th largest export economy in the

Diigtal Wallets in UAE
Digital Banking, FinTech Trends

Mobile Money wallets in UAE

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Mastercard, in their recent report “The Cashless Journey,” stated that UAE economy is among the most rapidly growing as a cashless based society. VISA another leader in digital payments surveyed retailers found that 63% of the retailers claimed foot traffic increasing and 68% increase in revenue with the acceptance of digital payments. The survey also highlighted the fact that 70% of the retailers are interested in investing in new payment technology in near future. Do the above facts ring a bell on how “digital payments” are evolving in UAE? While digital payments could be in the form of Credit/Debit Card, Contactless payments, voice-assisted payments, our today’s post is all about offering your customer ease of convenience and anytime cash with Mobile Money or better known as Digital Wallets/Mobile wallets. Let’s get started – Who are the customers of Mobile Money Wallet in UAE? The global economy shows how consumers are converting their payment mode from cash to digital wallets. However, there is still a segment of people who find it difficult to move to digital wallets, owing to many reasons like security, usage difficulty, or interoperability issues. Hence for you to succeed and offer a Mobile money payment proposition, you need to understand your customer’s need and how they perceive payments, shopping or handle money. Here are some facts about UAE consumers – 30% of the UAE population belongs to Millennials category. Smartphone penetration level in UAE is 79% 70% of the respondents are keen to try new payment solutions such as mobile wallet in UAE. UAE consumers are big spenders, and 34% would buy brands at any price. An essential share of income is spent on housing (41%), followed by food and beverage (13.9%) and transport (9.3%) Alternative payments are all gaining prominence in the region as a report in 2017. Can Digital Wallet Serve UAE Customers? | Mobile Wallet Features for UAE customers A digital wallet is also known as Mobile wallet or e-wallet is a software application running on mobile phone with following functionality – Secure enrolment of the user like an app download or identity-check Secure provisioning of credentials Ability to store customer identity and payment information Facility to preselect a payment method to execute transactions. Capability to load amount via net banking, debit/credit card, bank account, prepaid cards, virtual money, or any other wallet. We just learned the customer behavior in UAE, we kind of know their inclination to spend and try new payment option. So how about offering a payment mode via their smartphones. It’s a simple download that removes the burden of carrying another card or remember passwords. Swipe your phone and you are done. So apart from the basic features as listed above, what you could do to attract customers in using your mobile wallet? Here are some of the cool features for your digital wallet to stand out from the crowd – Social Media Integration As per stats available, 99.06% of the UAE population remain active on social media, that’s like close to 100%. If the user is already using a social media platform like Facebook, Whatsapp, Hike or Twitter, ability to enable payment from the same would not only help him but also remove an extra layer of registering on another platform. So for a bank keen to launch their mobile wallets in UAE can offer a link to register via using social media platform and there you are, a happy onboarding of customer. QR Code Access Another simple form of e-wallets, where users need to scan the QR code/bar code available with the merchant and debit happens for shopping or bill payments. User does not need to remember any passwords or code; a simple scan can make their life easier. Example – Wechat wallet, Starbucks Mobile Payment Text-Based Wallets For customers who are not inclined to download an app or use their phone memory for the app, the SMS based payments work like a charm. Text-based payments help in P2P funds transfer, consumer to business purchases and maintain a mobile current account. Example – M-Pesa, Tigo All Digital This is the best feature to serve the tech-savvy customers as it exists only on digital space. The digital-only wallet can be used in online payments, in-app purchases, and also with merchants offering the wallet for payments Example – paytm, Amazon Pay Merchant based Wallets Starbucks were the early adopters of mobile wallets to offer their customers rewards[who uses their wallet] and also convenience from carrying cash. They were able to pull out themselves as a brand in delivering quality coffee and also to reward loyal customers. However, quite recently they have started accepting payments from other wallets as well offering interoperability, putting customers ease of use as first priority. A recent report on the retail banking sector in theMiddle East by the European Financial Management Association (EFMA) observes that UAE possess all the advantages, drivers to be a digital place. While the country’s population is young at heart, tech-savvy the regulatory framework for pushing electronic payments and cashless transactions are some of the critical elements in driving innovation. The launch of Mobile wallets is thus a continuation of the ongoing process of banking innovation and can make a cashless society. Mobile wallets can provide a substantial boost to the UAE’s effort of an inclusive digital payments ecosystem, benefitting stakeholders, i.e. consumers, banks, businesses and set the path of the country’s transitions to cashless future. If you are a bank, Financial institution, or a merchant willing to launch a mobile wallet, Teknospire can assist to your requirement. We are proud to be associated with some of the leading banks and FI across globe in launching their digital wallets. If you are looking for any other banking solution like – digital banking or Reconciliation or Business intelligence, we would be happy to help you with that as well. We are just a call away.

Why-should-banks-go-digital
Data Banking, Digital Banking, FinTech, Mobile Banking, Neo Banking

Why Should Banks Go Digital?

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First, it was customers pushing banks to adapt to the digital wave, and now non-bank enterprises growing as competitors are pushing traditional banks to become digital enterprises. And why not – when data shows retail banks that digitize could achieve a 20% increase in revenues and a decline in expenditures by 30%. On the other hand, for wholesale-banking digitization plans can reduce the cost-to-income ratios by 12%. The data seems intriguing? Isn’t it? Let’s take a closer look at some of the other reasons of Why should a bank go digital? Banking Has Evolved The customer of the modern era is not satisfied with a withdrawal and deposit services; he is looking for customized banking like daily interest on saving bank account, 5-min loan approval, or trip-based insurance. All these features cannot be provided via a physical-only branch. And so to meet customer’s expectation, you need to go digital. Banks aka business Well, a hard known fact that irrespective of you calling yourself as Bank, NBFC or anything, you are running a business and business means revenue. Revenue could be generated either by getting more clients or board or cutting the operational cost. And adapting to a digital strategy provides you an advantage of doing both. With digital branch you don’t need to setup a physical branch, recruit new employees, buy office furniture, etc. but still can board a new client on customer’s devices [more like BYOD(Bring your Device)] like a smartphone or desktop. In fact, globally, many banks are shutting down their bank branches with digital channel initiative. Banking needs to speed up to 5G The traditional banking is not at all fast, flexible, and scalable. They need to integrate with 5G speed, or they die. In fact, one of survey 80% of the technology effort in the bank’s digital program was spent on integration, and this was because the current systems are not able to cope up with high-speed digital applications. So better to adapt now. Banking is a fundamental right I often repeat this, but banking is not legally but humanely a fundamental right to every person living on this earth. I mean you think about a person in some other country, but he has a bank account, wouldn’t things be so easy for him/her to shop, travel, pay bills, get a loan, invest and exposure to hundred such services. Setting up a branch, getting each person on board physically is a challenge only banks via digital means could make it happen. Banking is Fun Think about it, a guy every 1st day of the month with his passbook goes to the bank, waits patiently, meets the cashier, withdraws cash and returns. You need to provide some options to your customer. Isn’t it? I wouldn’t be surprised if riding on a national highway in India or any other developing nation I stop by at a tea point and the owner asks me to pay via a card or digital wallet. Let your customer connect you via a video call? Or how about offering your customer a customized credit card. It’s all possible if you decide to sail on digital wave. After reading our post, if you feel you have made up your mind and looking for a technology provider, we are just a call away. Teknospire, a technology provider, is helping banks, NBFC’s, and other financial institutions across the globe to ride the digital transformation wave smoothly. Our Digital Banking, Mobile Banking, Data Analytics, Reconciliation, and Neo Banking are just a call away.

Sahamati
Data Banking, Digital Banking, FinTech, Mobile Banking, Neo Banking

Sahamati and Data say – I Do! A match made on earth for fintech, banks, and customers

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Data the new Oil has been under scrutiny these days. When Microsoft bought LinkedIn or when Facebook acquired Whatsapp, the speculation was that they were eyeing the data these acquired company have gained in recent years. Then recently I saw a video floating on WhatsApp [authentic or not no clue], but it claimed that every time you get a copy of your identity proof from Xerox shop they keep a copy of it that is sold in the market at some x rate. Even the boarding pass that we simply dump in the dustbin can be scanned, and the credit/debit card information could be extracted. And lastly, if you have seen “The Great Hack” documentary trending these days on Netflix, you would know the story of how Data helped in targeting individuals during US elections. Scary isn’t? But with all this floating around, we still provide consent to third-party apps to read ourdata, would regulation help? Would a legal entity manage our data? How could customers trust any service provider withtheir data? To all of this Nandan Nilekani, came with a solution named as Sahamati – the financial account aggregator. Our post of today would help you understand Sahamati in detail and how it is a helping hand to customers,banks, and fintech. What is Sahamati? | Define Sahamati? | Financial Account Aggregator in India Image src – sahamati.org.in As mentioned on their website – Sahamati is a Collective of Account Aggregator[AA] ecosystem being set up as anon-Government, private limited company (With the new Companies Act of India, not for profit companies are governed under Section 8). It’s an initiative to collate and share data digitally and legally with no strings attached or no conditions apply, i.e. assuring the safety, security, and privacy of the data for the user. Ideally, the AA[account aggregators a new class of NBFCs approved by RBI] would provide a digital platform for easy sharing and consumption of data from various entities with user consent. So what’s new in this? Aren’t we already providing consent to any third party apps/products? Yes, we are doing it, but users do not have a control on How is privacy handled? Is data reaching out to third parties or spammers? Is data only seen by whom it is intended to? What’s the duration for which data is accessible once the user provides the consent? What about the data sharing transactions? Are they traceable and auditable in the future? All of these questions would now be answered via Sahamati, as the concept of data sharing and collating would be human-centric rather than organization-centric and is backed up by RBI and Financial Services Regulators (FSRs). To adopt a human-centric approach, data management is targeted via a new consent framework called as DEPA [ Data Empowerment and Protection Architecture ]. DEPA open the doors to trusted sharing of data by giving them control of their data, thus enabling them to become economically rich. DEPA opens up whole new models for privacy protection, and auditing data flow while keeping the user in the center. For more details on DEPA, click here. So, Sahamati would store my data? And could be prone to hacks? The AA are “Data-blinds” and while processing a request made by Financial Information User[FIU]to Financial Information Provider [FIP] with user’s consents, the data would be encrypted and can only be processed by the FIU for whom the data is intended. As AA would not be storing any data, probability of misuse or leakage may not be seen. Again, as the whole model is designed keeping the user in mind, the timing, access rights, and feature to audit the data transactions would also be available. How would Sahamati help Customers? With Account aggregators in place, users could Open a bank account in the paperless mode as relevant KYC can be processed digitally reducing turnaround time. Access multiple third-party apps for investment, Spending, Mutual Funds, Taxor GST and make an informed decision without the fear of data leakage/theft. Control on “what to share” with whom and in case of violations could take action against them. Empower themselves with AA expansion to other domain like healthcare and telecom that open access to better financial, healthcare, and other socio-economically essential services in real-time while preserving the safety, security, and privacy of the user. How would Sahamati help Fintech? Regulation of any form brings “discipline” to a process. The financial industry that is now moving on digital channels was in dire need of this initiative. It would not only streamline banking processes but also would open ways for banks to access quality and authentic data. Banks and fintech can design and innovate more data-rich products to help consumers in wealth management. As Teknospire and Hylo Founder, Vishal Gupta says – AA (account aggregator) licensing is another step forward by RBI, building a highway for aggregated financial data access. Today the FinTech’s like us have to work with tens of different financial institutions to get limited access of user information, with massive spends on integrations and ensuring data security. With an initiative like Sahamati, and through the user consent driven model AAs will be great avenue to get secured access to the data while we focus on solving the use cases for consumers! With Sahamati, we are a step closer to data democracy.The new wave would not be about banks, fintech, or NBFC’; it’s about using the data effectively to provide an enriching banking experience to your customer. And we all should work towards it. If you are a Bank or Fintech firm and looking to explore more about Sahamati, they are conducting workshops, and you can enrol here

Neo Banking - Banking beyond physical walls
Digital Banking, FinTech, Neo Banking

Neo Banking – An exclusive Digital Bank

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Image Credits – cryptohead.io The post first appeared on linkedin. To get more such insights, please connect with me here. Could a bank without the physical walls exist? If you had asked me this, a few years back, I would have said – may be, but in 2019 I feel proud to be associated with many of these initiatives by Financial Institutions, across the developed and developing markets, who are extending  Banking beyond physical walls, trending with the name Neo Banking or Challenger Banking or Digital Banking. Welcome to the new age Banking – Neo Banking What is Neo Banking?| What is Neo Bank? Neo Banks is a type of bank that does not have any physical branch but offers all its banking services through digital/mobile channels like a smartphone or via web interface. As Wikipedia stats – The term neo banking was first coined in 2017 to describe fintech based financial services providers that were challenging traditional banks. So, Neo Banking is – Banking beyond physical walls Neo banks are the digital extension of traditional financial institutions via web / mobile interfaces in the hands of the users. Neo Banks / Challenger Banks identify their customer / target market very closely and solve their day to day needs / transactions with integrated banking and payments. Examples could be diaspora / immigrant banking or student banking or MSME/SMB banking. If you look at daily use cases of these customer segments they would need different kind of products and services from their banking partners. A student is looking for ease of receiving money, using it in/around college/university, loans etc, while an immigrant expects banking to delivery easy remittance, lighter KYC / on boarding etc. This is where Neo Banks deliver a great value to the end user as well as the financial institution. Banking Digitally Neo banks are 100% digital; that brings down the costs packed with great customer experience. At the same time given its all-digital, there is a lot better transactional data details with trails allowing the banks to think of more innovative products and services. Banking at your convenience Neo banks are all about customer choices, accessibility, and any time services.  Banking @reduced cost With a reduction in CAPEX, customers enjoy competitive pricing with more significant savings. Banking that is technology driven Neo Banks open doors to seamless integrations into open APIs provided by other platforms as well as offering APIs from their Neo Banking platforms for other institutions, making them a complete solution to all banking needs. Are Neo Banks Licensed?| Different Types of Neo Banks  Well, certainly yes. Any firm which wishes to provide Neo Banking could align their legalities in one of the following way – One with Banking License If your start-up willing to offer banking services, you can secure the banking license and start offering your services. Some of the examples could be Paytm in India ,Atom bank and Revolut Ltd in the United Kingdom and N26 in Europe. One in collaboration with a licensed bank If your start-up/firm wishes not to get into owning of a banking license, collaborate with an incumbent / regulated financial institution, and start offering banking services. A quick example would be Monese, a bank from UK who do not have a banking license but works with banks across Europe who hold customers’ money, and holds an e-money license, issued by the UK’s Financial Conduct Authority. As Monese stats – keeping an e-money license helps them in showcasing them as bank’s partners rather than their competitors. Another flavour that exists in this collaboration is where a bank has a subsidiary or a joint venture, and the subsidiary gets an opportunity to launch neo banking services while existing banks being the central owner. An example of this would be Simple a startup from Portland, Oregon, which was acquired by BBVA and now Simple is offering 100% digital banking services across the US. A Traditional Bank expanding its services under Neo Banking umbrella Lastly, the traditional banks to keep up with the pace of modern technology and innovation launch their services as a new product/offering – Neo Banking. Kotak Mahindra Bank in India launched their neo banking services as 811 [ a digital bank], even SBI has its neo banking offerings pinned under YONO. And in Australia ING Bank has a digital bank named as ING. What are the Advantages of Neo Banks?  While experts may argue that in-branch services offer reliability and a “human touch,” there are certain benefits neo banking or digital banking offers like – Real-time Tracking from anywhere anytime Gone are the days when a credit or debit to reflect into your account would take days, with instant fund transfer you can track your financial portfolio and bank accounts in real time from anywhere at any time. Reduced Costs Agree to the fact that with no expense on a physical branch, the CAPEX can be significantly reduced that means competitive prices and better savings for the customers. Integration with innovative technology for a better experience With a bank in your hand, you can integrate with fascinating apps like Artificial intelligence or a Virtual reality to make spending and saving a fun experience.  Banking may have transformed from Cheques to Demand drafts to Mobile banking to invisible banking to connected banking to Digital banking, but the underlying statement remains intact and, i.e., – Customer need to be valued. And Neo Banking is just the right offer to its tech-savvy customer who attracts savings in time and money.  If you a Bank or NBFC looking to use technology and innovation in expanding the business and enable Neo Banking or Challenger Banking, we are here for you. Teknospire a fintech firm offers Bank-in-a-box solution with omnichannel, agent/digital branches capability. The 360-degree banking solution reduces the CAPEX for a bank to set up a physical branch, but yet opens doors to expand their business. Our Neo Banking, Mobile Banking, and Agent Banking solution could help regional banks and cooperative banks to push Banking beyond physical walls. For details, please contact us here 

Digital Banking, Finance, Financial Inclusion, FinTech, Internet Banking, Mobile Banking, Online Banking, Open Banking, Rural Banking

DIFFERENT WAYS TO BANKING – DIGITAL, ONLINE, INTERNET, MOBILE BANKING, NEO, E-BANKING

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Editor’s Note : This post was originally published in [January, 2019] and has been updated for freshness, accuracy and comprehensiveness. What is Online Banking Accessing Banking services via internet Also Called Internet Banking or Web Banking Conducting financial and non-financial transactions via web interface or a smartphone Ability to access all financial information of your bank on your computer or mobile What is Digital Banking Banking services delivered over internet Digitization of traditional banking activities and programs In technical terms, full digital transformation of front-end, back-end , data collection and everything What is Internet Banking Facility to a customer to transact/access financial data via a net banking account Internet banking is same as Online banking Manage your money online via internet. What is Mobile Banking Accessing banking services via Mobile phone Using of online banking from smartphone or cellphone What is Neo Banking Digital Only Digital Offers on the go Banking beyond walls “Financial Institutions must be able to deliver and easy to navigate, a seamless digital platform that goes beyond a miniaturized online banking platform.” -Jim Marous, Publisher –  Digital Banking Report How many of you have actually visited a bank in recent times? Do you remember the last time you visited a bank to transact money? Not sure, right? The reason for this can be understood better if you acknowledge the fact that you live in an era of digital banking. Your buying behavior and modes of payment have changed drastically over the last decade. Cheque and cash are old schools now, and it is more about online banking, mobile banking, and Internet banking. This cashless economy has not only made things easier for you but has also made it all instant and quick. You no longer have to carry wads of cash or wait for banking hours to receive and transact money.  While you do have quite an options when it comes to virtual banking, here, we would focus majorly on digital banking, mobile banking, open banking, and online banking. So here is the primer on different ways to bank. What is ONLINE BANKING | Define Online Banking You are using online banking service every time you log in to your online bank account. In other words, transactions conducted electronically using the internet as a gateway are called online banking.  “Online banking refers to banking services where depositors can manage more aspects of their accounts over the Internet, rather than visiting a branch or using the telephone. Online banking typically is comprised of a secure connection to banking information through the depositor’s home computer or another device.” – Techopedia. So Online Banking is – Accessing Banking services via internet Also Called Internet Banking or Web Banking Conducting financial and non-financial transactions via web interface or a smartphone Ability to access all financial information of your bank on your computer or mobile What are the Pros of Online Banking | Advantages of Online Banking HASSLE FREE BANKINGAlmost every financial institution nowadays gives this facility to its customer to reduce the hassle of visiting their physical branch. EASY AND CONVENIENT FEATURESSome banks even allow you to deposit cheque by simply taking a picture of it. BANKING ANYWHERENo more tedious process of banking with the long queue with restricted working hours and unpredictable weather conditions with equally unpredictable mood swings in hot, sweaty and humid conditions. BANKING ANYTIMEWith the advent of online banking, a person can virtually monitor and transact money 24/7 without having to wait for the banking hours. REAL-TIME ALERTS/NOTIFICATIONSAlso, the alert messages and emails allow you tomonitor your account anytime and detect any fraudulence well in advance. What are the Cons of Online Banking| Disadvantages of Online Banking COMPUTER/MOBILE CANNOT DISPENSE/DEPOSIT MONEYThe biggest drawback of this mode of banking is that it can’t be used to deposit and withdraw money. NO OFFLINE MODEAlso, your online banking experience is dependent on your internet connectivity. What is DIGITAL BANKING? | Define Digital Banking While there is a tendency among people to confuse this term with online banking, digital banking is definitely not the same as the former. While online banking literally limits you to the services provided by your banks like NEFT transfers, automatic payment reminders, and the likes, digital banking goes beyond this. Online banking focuses on digitizing the “core” aspects of banking, but digital banking encompasses digitizing every program and activity undertaken by financial institutions and their customers. Digital Banking is – Banking services delivered over internet Digitization of traditional banking activities and programs In technical terms, full digital transformation of front-end, back-end , data collection and everything What are the Pros of Digital Banking? | Advantages of Digital Banking ACCESS HIGH-END FEATURES VIA INTEGRATION WITH THIRD PARTY API’SWhen you talk about digital transactions, you think of mobility, feature-laden transactions, predictive and profile-oriented banking with functions like booking tickets online and purchasing a product/service online. SHOP FROM OFFICE, HOME, BUS OR ANYWHEREIt is also about using e-commerce businesses for doing your day-to-day transactions and your regular online banking without any hassle on-the-go. AVAIL INSTANT DISCOUNTS AND CASHBACKSDigital banking also means attractive cash-backs, discounts, and vouchers while transacting digitally. What are the Cons of Digital Banking? | Disadvantages of Digital Banking While the advantages outweigh the disadvantages, there are a few drawbacks involved in digital banking as well. RELUCTANCE TO CHANGEYou may not be very comfortable making large payments digitally. EXCESS SPENDING’SAlso, you may tend to get lured into unnecessary online shopping just to use the cash back and vouchers that you get whiletransacting digitally.  But who considers shopping a drawback ever, right? What is INTERNET BANKING? Define Internet Banking | What is e-banking? You may say that online banking and internet banking are the same.  Yes, agreed!  However, there is a new facet of online banking that goes over and beyond the understanding and scope of online banking.  Open Banking!  Ever wonder what that means to you?  Through this concept, people can share their transaction data with third parties to boost competition in the financial market. Sounds interesting, right? So, Internet Banking or e-banking is – Facility to a customer to transact/access financial data via a net banking account Internet banking is same as Online banking Manage

Digital Banking
Digital Banking, FinTech

What is Digital Banking and How Digital Banking Works?

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I wonder if “Right to go digital” should be included as the seventh fundamental right in India. What do you say? Be it a shop, a salon,or cobbler everyone is aspiring to register its digital presence. And why not when “money” can move digitally,even individuals, organizations,and most importantly banks need to sail via a digital ship. While newer trends suggest Neo Banking making a mark, we discuss a bit about the basics of Digital Banking – what and How. Let’s get started – Define Digital Banking Digital Banking is availing of banking services like balance inquiry, funds transfer,etc. via smart devices over the internet like smartphones, laptop, desktop,etc. The services could be expanded via Open API’s,and individuals could even manage their financial portfolio, check credit score, get a preapproved loan,etc. What is Digital Banking? Digital Banking is – AVAILING OF BANKING SERVICES VIA SMART DEVICES OVER THE INTERNETNow your customer need not queue up in front of the bank branch to deposit a cheque or discuss aboutloan facility. With Digital banking, you are offering all these services via phone or computers.  Even the facility of video call/voice call when integrated can help your customer in enjoying customer support at their convenience. OFFERING BANKING SERVICES ANYTIME ANYWHEREBanking needs expansion, as a need for money could arise anytime, it cannot be turned off when there is a bank holiday or at night. You might not want your customer visiting Paris to wait for funds transfer, he/she can do it from there. That’s the power of digital banking -anytime and anywhere banking. ENABLING DIY BANKING SERVICES FOR THE CUSTOMERAre your employees bored to stating the same procedure of opening a bank account to every probable customer that lands onto your branch? Automating and enabling DIY services helps is engaging your customer quickly and conveniently. MORE PERSONALIZED SERVICES AT CUSTOMER’S CONVENIENCETime is crucial for your customers, and so are the services, the digitally savvy customer looks for organizations that offer seamless digital services at their “time.” Lay down the offerings that attract thedigital nomads and propagate via digital channels when they wish. POWERING SERVICES WITH OPEN BANKING – OPEN API, OPEN DATAHarness the power of Open Banking, integrate, expand, and let your customer experience the power of banking. Open your API’s for other third parties to hook up with you and offer best in class banking experience ANY MEDIUM EXCEPT THE “PHYSICAL BRANCH.”Digital Banking is all except a physical branch, move beyond four walls, and explore the potential of the bank with virtual walls. ALL ABOUT INNOVATION AND AGILITYGet feedback, conduct surveys, and market research, understand your customer, adopt newer technologies and innovate to offer banking as an experience. SECURED BANKINGDigital Banking is absolutely secured if you and your bank keep their software updated, fix loopholes install security measures, and as a customer you own your password and OTP’s, never sharing with anyone or writing it down. How Digital Banking Works? The working of the digital bank is simple enough – Imagine a cloud [ yes the blue colour one], now on that cloud draw a bank with your account details and money, secured with a big lock. How do you access that? For that, you would be provided secured credentials from your bank to login via mobile banking or internet banking. As soon as you punch your valid credentials that big lock on bank opens up and what next? It also opens up a bouquet of banking services for you to avail. However, technically it’s bit complicated, but let’s make it simple – So you as a customer have requested “Digital Banking services” what happens – BANKS/SMB’S /PAYMENT BANK’S INITIATE’S A REQUEST OR CUSTOMER SIGNS UPA request is initiated to enable digital banking facility in the banking software via a mobile app or through the bank’s website THE REQUEST ONCE ACKNOWLEDGED IN THE BANKING SYSTEM PRODUCES VALID CREDENTIALSOnce the KYC [if needed] are validated the request is acknowledged and processed to provide successful user signup or valid credentials are sent to him via email/post/SMS. The credentials need to be memorized and never be shared with anyone ENJOY A BOUQUET OF BANKING SERVICESOnce signup or credentials are received, the user could avail banking services via a mobile app or through the bank’s website. If you are willing to craft “banking as an experience” for your customer, we would be glad to assist you with our banking solutions of Digital Banking, Mobile Banking, Data Analytics, Reconciliation and Neo Banking. Give us a shout; we are just a call away!

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