Financial Inclusion

Account reconciliation automation
Reconciliation, Ai In Finance, Financial Inclusion

How does FinRecon’s Automation Slash Your Reconciliation Expenses?

/

For finance, accounts, and collections teams, the daily grind of reconciliation isn’t just about matching numbers – it’s a silent, draining expense. Are you ready to uncover what manual reconciliation is costing your business? Across various business departments, traditional reconciliation often grapples with fragmented data spread across disparate applications, databases, and spreadsheets, leading to predominantly manual and spreadsheet-dependent processes for the actual matching. Endless hours are spent reconciling everything from Accounts receivable/payable, invoices, and tax adjustments, to payments received from multiple channels (cash/cheque/online/cards), including partial or full costs, and even stock in/out against purchase orders. These time-bound and error-prone methods hide significant financial burdens. Why not try FinRecon for your account reconciliation automation to gain control over this heap of expenses? Manual Reconciliation: Hidden Expenses and Challenges Let’s rewind the hidden challenges of traditional reconciliation: Account Reconciliation Automation: Walking along the Smarter Way for Cost Control Adopting a smarter approach with account reconciliation automation, businesses can tailor reconciliation rules to fit specific needs and enhance efficiency and accuracy in their financial operations. Intelligent algorithms automatically match corresponding entries, minimizing errors that lead to costly rework. Embracing automation means gaining full control over your reconciliation process and proactively managing your financial health. Reducing human effort and error translates into significant labour cost savings and reduced financial impact of mistakes. In simple words, reconciliation automation fundamentally shifts the economics of your financial operations. FinRecon: Slashing Reconciliation Expenses FinRecon is a revolutionary reconciliation platform designed to streamline and simplify account reconciliation processes, directly addressing and eliminating often-unseen expenses. Let’s run through the steps by which FinRecon helps cut down expenses: Platform’s Quantifiable Result Derivatives FinRecon’s automation of operational expenses has been demonstrated through tangible customer results: Invest in Clarity: Choose FinRecon over Hidden Costs Traditional reconciliation is a silent, persistent drain on your organization’s resources and potential. The hidden costs of wasted time, persistent errors, delayed insights, and audit complexities accumulate significantly. A smart and simple step to overcome these complexities is to embrace account reconciliation automation. With FinRecon’s state-of-the-art technology, you can standardize, control, and automate your substantiation processes. Stop paying the hidden price of manual processes and elevate your reconciliation from a cost centre to an engine of efficiency and financial integrity. Ready to slash your reconciliation expenses and empower your finance, accounts, and collections teams? Schedule a demo with FinRecon today and see the profound ROI firsthand. Frequently Asked Questions:

a diagram of a company
Digital Banking, Escrow

Escrow Management for Real Estate market – Rewritten for the Real World

/

If you’ve ever been part of a large real estate transaction, either on the banking side or the builder’s, you know it’s rarely as smooth as the brochures suggest. Between milestone payments, documentation chaos, and regulatory friction, the process often feels more like juggling than managing. That’s where escrow steps in: a buffer zone of trust, a safety net for both funds and expectations. But even escrow, in its traditional form, is showing signs of strain. Old systems weren’t built to handle today’s pace, complexity, or the number of hands involved in a single deal.  The Escrow Gap We Don’t Talk About In practice, managing escrow isn’t just about holding money. It’s about coordinating between banks, developers, buyers, government bodies, and sometimes, third-party consultants. And it’s here, in this messy middle, that many transactions slow down or derail. Delays in verifying documents. Confusion around payment triggers. Disputes over whether a milestone was truly met. These issues don’t make headlines, but they quietly stall projects, stress out teams, and tie up capital.  A System That Understands the Workflow  What if escrow management respected the complexity instead of resisting it? That’s the principle behind FinEscrow. It wasn’t built to add another tool to your tech stack. It was built to mirror how real estate transactions actually unfold.  FinEscrow pulls these moving parts into a single narrative. One that’s visible, verifiable, and less prone to costly misunderstandings.  Milestones Aren’t Just Checkpoints – They’re Conversations  One of the more thoughtful features is how FinEscrow handles milestones – not as rigid checkboxes, but as live status updates across stakeholders.   A consultant verifies a phase. A bank gets notified. A buyer sees progress. And only then does the system trigger a fund release. This avoids the classic “he said, she said” bottlenecks that plague escrow flows.  Integration That Actually Makes Life Easier  In real estate finance, tools should make things simpler – not create more work. FinEscrow connects easily with the systems banks and developers already use. It shares updates with government portals like the Ministry of Housing and works smoothly with the bank’s core software, so there’s no need for manual updates or switching between platforms. It also handles agreement creation digitally cutting out paperwork and back-and-forth emails. Because if it still takes a dozen emails to release one payment, something is not working. Not a Product – A Quiet Enabler  Here’s the thing: you shouldn’t notice FinEscrow doing its job. You should just feel like things are…less stuck. Documents flow, alerts ping the right people, approvals line up, and money moves when it’s supposed to. That’s not magic. It’s just design that starts from reality, not aspiration.  Conclusion  Escrow has always been about trust. But in today’s fast-moving world, that trust comes from transparency, timely updates, and clear handshakes between all parties. In real estate, where payments are tied to milestones and multiple stakeholders are involved, FinEscrow brings structure and clarity, thus making the process easier to manage for both developers and banks. Beyond real estate, FinEscrow also helps financial institutions handle other escrow use cases with the same reliability, simplifying approvals, reducing delays, and improving coordination where it matters most.

Single Account Treasury Management
Financial Inclusion, Treasury Management

Single Account Treasury Management System Empowering Conglomerates

/

Is your treasury team having trouble managing your enterprise’s finances and constantly checking countless individual bank accounts? The sheer volume of transactions, disparate balances, and endless reconciliations is a recipe for inefficiency and potential chaos. For many large organizations, this multi-account maze is a daily reality. But what if there was a way to bring order to this complexity, to gain a clear, unified view of your financial landscape? Single Account Treasury Management (SATM) offers that very solution. Here, we will learn about FinStream, a leading SATM system engineered to conquer the challenges of treasury management and decentralized finance and how it empowers businesses to operate with newfound efficiency and strategic clarity. The Multi-Account Maze: Challenges Faced by Conglomerates A network of numerous bank accounts distributed across various subsidiaries, geographical regions, and banking partners poses challenges for CFOs, Finance Directors, and treasury teams. All of these challenges demand an all-in-one solution: a Single Account Treasury Management system. Switch to a Platform for Streamlined Finance: FinStream Just like every problem has a solution, large corporates don’t have to worry anymore about managing cash and liquidity across various entities. With FinStream, they can experience: Organizations Transformed: Real-World Benefits with Single Account Treasury Management Conglomerates stay at an advantage by drawing numerous benefits from SATM systems. Target audiences that can be a perfect fit to make the most out of FinStream are: Meet the Central Hub for Conglomerate Treasury Excellence FinStream is a powerful and comprehensive Single Account Treasury Management system that empowers organizations to overcome the several challenges of decentralized finance.Are you ready to transform your organization’s treasury operations and embrace the power of centralized control?Contact Teknospire today for a consultation and discover how FinStream can help your finance team navigate the complexities of the modern financial world. Frequently Asked Questions

Digital Escrow Services
Escrow, FinNews

Digital Escrow: Revolutionizing Trust and Security in Fintech Transactions

/

Digital Escrow services play a pivotal role in modern financial transactions, offering a secure and trustworthy method for managing payments between parties.  In the fintech sector, digital escrow solutions have become essential, ensuring the safety and efficiency of online transactions. Understanding Escrow An escrow arrangement involves a neutral third party holding funds or assets on behalf of transacting parties until predetermined conditions are met.  This mechanism safeguards both buyers and sellers, ensuring that funds are only released when all contractual obligations are fulfilled. The Evolution of Digital Escrow in Fintech With the rapid advancement of technology, traditional escrow services have evolved into digital platforms, seamlessly integrating into the fintech ecosystem. These digital escrow services offer enhanced security, transparency, and efficiency, making them indispensable in today’s digital economy. Benefits of Digital Escrow Services Applications in Fintech Digital escrow services are particularly beneficial in sectors such as e-commerce, real estate, and online marketplaces, where large sums of money are exchanged, and trust between parties is paramount. For instance, in online auctions involving high-value goods, escrow services ensure that buyers receive the goods as described before funds are released to the seller. Technological Advancements in Digital Escrow Digital escrow services are becoming smarter with the help of advanced technologies: These technologies remove the need for middlemen, speed up the process, and reduce human errors, making digital escrow services faster, safer, and more reliable for everyone. Conclusion Digital escrow services are revolutionizing the way financial transactions are conducted in the fintech industry. By providing a secure, transparent, and efficient means of managing payments, they build trust between parties and facilitate smoother transactions. As technology continues to advance, the role of digital escrow in fintech is set to become even more significant, offering innovative solutions to meet the evolving needs of the digital economy.

Financial Digitalization
Financial Inclusion

Future of Finance – Embracing Digital Transformation

/

Today, with just a few taps, funds can be transferred, bills can be paid, and purchases can be made. All without needing to touch cash. As technology advances, with financial digitalization the future of finance looks brighter, promising even more innovative and secure ways to the government and corporate entities, and financial intermediaries. To add to this, digital transformation has been a crucial factor in reducing operational costs, improving efficiency, and rendering enhanced services to customers. Hence, the significance of digital transformation in modern-day finances cannot be overstated. In this rapidly evolving landscape, companies like Teknospire are at the forefront, offering innovative Fintech solutions tailored for emerging markets. As we explore the digital transformation trends in the Middle East and African (MEA) region, we’ll see how such platforms are shaping the future of finance. While the financial systems all around the world are the beneficiaries of this change, a wave of rapid adoption can be seen in the economies of the Middle East and African (MEA) region. As per a recent report, there has been a 70% boost in digital banking in the region. The implementation of novel digital transformation strategies has led to the rise in the adoption of fintech solutions and related mobile banking services. Steered by the increasing penetration of smartphones, the growing trend of digital adoption in the MEA region looks promising. This blog aims to unravel this very trend, exploring the key drives, the challengers, the impact, and a handful of inspiring case studies. The Global Surge of Digital Transformation in the Finance Sector We all are well aware of the massive digital transformation that the finance sector is undergoing on a global level. As we speak, somewhere, a financial institution is transforming its service to serve its customers better and to stay ahead in the game.  Today, a large proportion of banks around the world are heavily invested in Machine Learning (ML) and Artificial Intelligence (AI) fostering quick transactions, proactive fraud detection, and satisfactory customer virtual assistance. When it comes to the MEA region, the digital transformation has been earmarked with several key statistics and ebullient case studies. For instance, the United Arab Emirates (UAE) has witnessed a whopping 200% rise in the use of e-banking services over five years. Based in South Africa, the First National Bank or FNB is successfully offering AI assistance to its customers for the very first time. Other initiatives include the launch of Vision 2030 by the government of Saudi Arabia to increase the digital transaction rate up to 70%,  the Dubai Blockchain Strategy of UAE and to name a few. While these account for a handful of instances, the governments in the MEA region are playing a major role in transforming the finance sector to bring in more transparency and better efficiency. But the road taken hasn’t been an easy one to tread on, it is full of challenging bumps. Challenges Before Financial Digital Transformation A couple of challenges stand in the way of the financial sector and the concerned stakeholders to digital upgradation. In this section, we will be discussing the major ones: Financial Digitalization Drivers in the MEA Region In overcoming the aforementioned challenges and fostering the digitalization of the financial sector has been catalyzed by several key factors. One of the most significant of these are Smart Dubai initiative by UAE and other government policies of the MEA region such as incentivization of the adoption of digital technologies have managed to create a conducive environment paving the way to digital transformation.  Another crucial driver of digital transformation in the finance sector has been the technological advancements that have been taking place. As far as the MEA region is concerned, there has been significant progress in the adoption of distributor ledger technology or blockchain technology, AI integration, and the development of cloud computing infrastructure. This has been in sync with the rising consumer demand. Today, the consumers of the MEA region are demanding more convenient, quicker, and efficient financial services. This is pushing the government, corporate entities, and financial intermediaries to accelerate their efforts of digital transformation. Case Studies: Financial Digitalization Success Stories Let’s delve into the latest case studies related to the financial digitalization: Case Study #1: Super-fast and Secure SARIE system of Saudi Arabia.The SARIE system is a subsidiary of the Saudi Central Bank and has driven the digital payment ecosystem of the country by leaps and bounds. It has enabled the transaction of instant fund transfers between banks. This has boosted digital payment transfers by manifolds. It also supports the Vision 2030 launched by the country. Case Study #2: The Success of the First National Bank (FNB) of South Africa. The First National Bank (FNB) has been a great success in the South African soil. This bank had heavily invested in AI and data analytics to serve the customers better. With instant loan approval, it has become one of the most successful financial ventures in the MEA region. Case Study #3: The Digital Transformation of Emirates NBD. Based in the sands of Dubai, Emirates NBD has been successfully digitalized by launching Liv. A digital-only bank that targets unserved sections of the country’s economy. It offers a range of features such as personalized financial insights, instant account opening, and to name a few. This initiative has managed to increase customer engagement and satisfaction by 62%. Case Study #4: The Mobile Money Service of Kenya’s M-Pesa.Safaricom had rolled out the mobile money service on the Kenyan landscape in the form of ‘M-Pesa’. It allows users to digitally transfer funds, pay for goods and services, and deposit money in their banks digitally. By providing financial access to millions, it has increased the financial inclusion percentage of the country from a meager 26% to a whopping 84%.  Case Study #5: The Novel Mobile Banking Initiative by Saudi’s National Commercial Bank (NCB).The sands of Saudi Arabia have witnessed a tremendous transformation in the services rendered by its largest bank – the National Commercial Bank (NCB). With

Digital Banking, Financial Inclusion, FinTech Trends, Mobile Wallet

Financial Inclusion and Union Budget 2020

/

Financial inclusion is increasingly being recognized as a key driver of economic growth and poverty alleviation across the globe. Studies have found that access to formal finance can boost job creation, reduce vulnerability to economic shocks and increase investments in human capital. Seven of the United Nations Sustainable Development Goals (SDG) of 2030 view financial inclusion as a key enabler for achieving sustainable development worldwide. Union Budget 2020 and Enabling Financial Inclusion  While presenting Union Budget 2020, Hon’ble Finance minister Mrs. Nirmala Sitharaman said Technological tools like Artificial Intelligence, Internet of Things, 3D printing, drones, data storage, Quantum Computing are helping change the way the country functions, these emerging technologies need to be focussed to drive financial inclusion in the country.” How Artificial Intelligence Can boost Digital Financial Inclusion? Most of the rural population looks for a “credit” facility with a financial institution but in the absence of “credit score or history” the loans are not granted or provided at a very high-interest rate. AI can be used to build a rural credit score for individuals based on their crop turnover, business profit or sales. Data collected from SMS logs, contact details could assist in identifying the user who can be trusted in repaying the loan. Based on this a score could be assigned to him and FI can impart credit for individual’s needs. How the Internet of Things Can boost Digital Financial Inclusion? Internet of Things [IoT] of wearable technologies bridges the gap and open access to formal finance to rural/immigrants of a country.  A live example has been seen in Africa where people struggle to get a continuous supply of electricity. Hence Solar powered chargers and lanterns evolved, but they cost a lot and with people having limited income, putting a lump sum amount at the start is difficult. Hence they came up with Pay-as-you-go model that connects the solar-powered device to their SIM card for remote management and integration to payment network offering customers to pay installments easily and ability to service providers to manage device remotely in case of issues. How Drones Can boost Digital Financial Inclusion? Last-mile delivery in rural and remote areas is still a struggle and startups, brands are looking for a feasible solution. Drones could offer assistance here.   While delivering cash to the last mile may have its risk, but delivering couriers [containing clothes, books, grains, etc] with a digital-based interface that enables payment could assist in social inclusion.  Drones could also aid to insurtech in investigating, inspecting the home/vehicle/shop under an insurance claim and send the report for faster processing. This would help in getting rural people under insurance assuring a good quality of life. How Quantum Computing Can boost Digital Financial Inclusion? Quantum Computing may not directly impact the unbanked individuals, but it can help  Investors in evaluating the business cases for Banks and FI with the innovative products  In Localizing banking to regional flavor with the use of data  Supply Chain in scanning and quickly coming up with the best route to meet the logistics timelines. Our Hon’ble Finance Minister not just made sure to include these emerging technologies growth plans in the budget but she confirmed that all the public institutions at a Gram Panchayat levels will be given digital connectivity, and Fibre-to-home through BharatNet will link 100,000 Gram Panchayats in the financial year 2020-21 itself. Sitharaman said, “Anganwadi centers, health and wellness centers, post offices, police stations, and other rural welfare centers to get 100 percent digital access. The government’s vision is that all public institutions be provided with digital connectivity.” For last four years Teknospire, a technology provider to Banks and NBFC’s is doing its bit in enabling Financial and Social Inclusion. If you are looking for a Digital Banking, API Banking or Mobile Wallet solution, we are just a call away. References RBI, Finextra, Nextbillion, finovate, bobsguide

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

/

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 in US
Digital Banking, Financial Inclusion, FinTech, FinTech Europe, Industry Observation, Open Banking

Digital Banking – Initiatives, Use Cases, Examples, Opportunities in the US

/

The year 2012 was a bit frustrating for Olympic tourist in London as VISA was the only card to be accepted. Banks in the US who have offered Mastercard to their customer were under pressure to issue new VISA cards to engage their loyal customer and earn revenue from international payments. For a developed nation like the USA that excels in technology adoption issuing new card may not be a significant task and that reflects in their growth and economy with flexible products, services, underbanked population dropping to 6.5%[ in 2017]. Indeed, U.S. is far ahead in innovation in the banking sector when compared to other countries. Our post of today would talk about these initiatives, opportunities, and examples of Digital Banking in the U.S. Examples of Fintech-Bank Collaboration to enable Digital Banking in the US   Legence Bank integrating their CBS Legence Bank in Eldorado, Illinois was looking for a tool that guides their customer on solid banking practices. They needed a tool that could integrate all customers’ accounts at one place and help them analyze their spending decisions. Collaborating with CSI, a fintech offering banking solutions that got integrated with their legacy banking system helped in educating young customers about making smart budgeting plans.   Live Oak Bank integrating with Plaid Another interesting collaboration happened when Live Oak Bank in the US collaborated with Plaid to serve the small businesses and personal customers with security and speed. Live Oak Bank was looking for speedy on boarding process so that the customer could use the online banking platform within hours if possible and should be secured validating and following all legal processes. Plaid offered their secured solutions that helped Live Oak Bank in expanding their services to different verticals, and they also started offering personal banking platform to other regions. Implementations / Examples of Digital Banking in the US Banks need to draft a “Digital Strategy” to move and align with the digital wave. Each Banking services be it in Corporate Banking or Cards and Payments now has a Digital Solution available. What Banks need to work on is analyzing all aspects of Digitization and evolving truly as Digital Institution. Let’s take a closer look at some of the banks in the US who followed banking trends and emerged victorious in serving tech-savvy millennials.   American Express AmEx or American Express is a brand that doesn’t need an introduction in the US. Popularly known as “premium brand” it has been one of the banks that understand “How customer and relationship need to be nurtured while offering comfort and convenience.” An article covered by The Financial Brand dictates some of the “good things” that make AmEx a top choice in customers, sample these –   Onboarding Simple and QuickAmEx bid goodbye to long paper forms, quick and easy onboarding process helps in saving customer’s valuable time. In fact the application for an American Express card is so simple that it takes ~30 seconds. Digitization Rocks! Compatible With All DevicesIs your Banking form only compatible with Desktop? How about opening it on Tab? AmEx made sure that all the screen sizes and device compatibility is applicable for the application form to avoid any inconvenience to the customer Integration of Third Party PluginsAmEx always shows its value to its customers by displaying the comparison chart and dictating the actual value customer would derive. Does your banking software allow the customer to integrate with other third-party plugins to compare and make informed decisions? Using Data effectivelyAmEx uses data points not only to mitigate risks but also to detect fraud. Are you using your data effectively? Above features may not be “newer innovations” but are making customer life more straightforward and that’s what distinguish you from your competitor. Wells Fargo Wells Fargo another leading bank in the US who led the Digital Banking initiative implemented Balance Scorecard [BSC] to track and measure the online financial services [OFS]. The case study that studies the implementation in the year 1997 and 1998 came up with the following conclusions – It’s worth to highlight the fact that even in those days when digitization was not end to end Wells Fargo was able to reduce its cost by 22%, imagine with modern technologies and innovation how much operational cost could be reduced for a bank leading to an increase in profit margins. History of Banking and adoption of Digital Channel in the US October 8 that is celebrated as National Online Bank Day triggers nostalgic feelings of banking to be a brick-and-mortar business. The simplefund’s transfer used to take 2-3 days and depositing a cheque on bank holiday was utterly forbidden. We have indeed come a long way of Banking …. Initiatives in the U.S to adapt to Digital Banking Stanford Federal Credit Union (or Stanford FCU) was one of the first to offer banking by telephone and conducting its first four internet transactions, introducing Online Banking to US residents. Wells Fargo was the first bank to provide secure credit card transactions on the internet. As they celebrated 20 years of internet banking on their website in 2015, they mentioned – people being reluctant to avail banking services online. An exciting story shared by early adopter is worth sharing – One of the major hurdles faced by Banks in the past while adopting digital channels is “assuring security” to the customers. With lack of regulation, Banks themselves managed compliance to assure best services to the customers. But with innovation in technology speeding up, there was a rise in adopting the Digital banking initiatives by the US residents. We now see tech-savvy millennials demanding IoT based banking services, easy acceptance to contactless payments and use of VR/AR in banking institutions. Opportunities for Digital Banking in the U.S Different modules of Banking have been digitized with Fintech and Bank collaboration, but as Banking is like the veins of any country’s economy, it has the potential to evolve further. Some of the innovative use cases being explored by enterprises in

Financial Inclusion, FinTech, Open Banking

Different Ways to Bank – Digital Banking, Online Banking, Internet banking, Mobile Banking

/

“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. 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 Pros of Online Banking Almost every financial institution nowadays gives this facility to its customer to reduce the hassle of visiting their physical branch. Some banks even allow you to deposit cheque by simply taking a picture of it. No 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. With the advent of online banking, a person can virtually monitor and transact money 24/7 without having to wait for the banking hours. Also, the alert messages and emails allow you tomonitor your account anytime and detect any fraudulence well in advance. Cons of Online Banking The biggest drawback of this mode of banking is that it can’t be used to deposit and withdraw money. Also, your online banking experience is dependent on your internet connectivity. 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. Pros of Digital Banking When 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. It 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. Digital banking also means attractive cash-backs, discounts, and vouchers while transacting digitally. Cons of Digital Banking While the advantages outweigh the disadvantages, there are a few drawbacks involved in digital banking as well. You may not be very comfortable making large payments digitally. Also, 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? Internet 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? Pros of Internet Banking It allows you to initiate and make payments directly from your account as a bank transfer. It also enable you to keep a check on your finances in a better way. Through open banking, you are not only transacting, but you are also streamlining your finances andmanaging it more effectively. With this, you can also get more customized services as per your spending behavior, leading to a more responsible and systematic lending process. Cons of Internet Banking This concept is relatively new, and that literally translates to many trial-and-error instances and a general mistrust related to its security and authenticity. People who are not adept at digital technology might not be able to reap its full benefits. Mobile Banking You all have used this at some time or the other. Every financial transaction you undertake using your Smartphone applications is termed as mobile banking. Apart from the commercial apps, your financial service provider would also have a mobile app with which you can transfer cash and make bill payments conveniently on your mobile. This is by far the most trending among all the banking types, and the onus is that you would only need your Smartphone and an internet connection for this kind of banking! Pros of Mobile Banking Mobile banking has a lot of scope in the virtual banking space and encompasses transactions through mobile wallets, digital payment modes, UPI transfers (like the BHIM app), etc. There are many mobile apps which offer you safe and secure transactions and much more, ‘anywhere – anytime’ with just a click. For example, SBI has SBI Yono, SBI Anywhere; ICICI Bank has iMobile. HDFC has HDFC Mobile and Pay Zapp. Kotak Mahindra’s Banking app is Kotak 811, while Axis Mobile provides Axis Mobile. We also have Payment Banks committed to the inclusion and service to the last

Scroll to Top