You've undoubtedly heard that PM Modi's demonetisation move almost caught banks and NBFCs off-guard on November 2016, bringing the vision of a cashless economy to the limelight and causing a nationwide disruption in banking service models. With investments in online financial services soaring and millennials switching over to digitised money management services, it's no wonder that mobile banking has piqued the interest of many over the traditional Indian banking system.
What is Digital Banking?
Online banking is when you pay for a service online whereas digital banking is bringing the services and benefits of the entire bank altogether. Applying for loans, making money transfers, checking balance, and opening brand new accounts from the tip of your fingers - this is what digital banking is, in a nutshell.
According to a study by JPMorgan Chase And Co., 78% of millennials are using online banking services, and Gen-Xers are embracing the rise of mobile banking apps. With the advent of technological innovations like Blockchain technology (BCT), cryptocurrencies like Bitcoin, and modern trends like Artificial Intelligence and Big Data Analytics, the structure of the Indian banking system is rapidly changing which means the time is very ripe for switching over to mobile banking services.
Are you still interested about what's yet to come in the world of digital banking and want to test-run the modern benefits of disruptive technology? If yes, here are seven reasons to consider switching to a futuristic banking ecosystem such as the Kotak 811.
No longer do you have to maintain a minimum balance in your account and spend as you please without any restrictions. A zero-balance account will allow you to keep up to a maximum of Rs 2 lakhs after which you have to convert to a full KYC account and since you have no financial obligations, you can use it according to your whims and fancies, commitment-free.
Did You Know? Kotak’s zero balance bank account provides cashless digital Indian banking and enables you to receive funds even if you don't have any money in your digital bank account!
A digital savings bank account will get you an interest of up to 6% p.a.! This also considers the fact that you can open them up from the tap of a button
Did You Know? The Kotak net banking app offers high-interest rates of up to 5.5% p.a. for savings account balances of Rs 1 crore and above!
Cheque book facility is available with virtual debit cards, and you can even do RTGS/NEFT/IMPS transfers from the tap of your Smartphone. This also applies to booking or opening RD (Recurring Deposit), and TD (Term Deposit) accounts right through the app, and there's more to it than what meets the eye.
Did You Know? Fixed Deposits through Kotak 811 allow you to earn monthly interests on your investments and can be booked through Kotak net banking!
You can grow your wealth and make mutual funds’ investments all through a single app. From tracking funds to generating wealth reports, managing your wealth has never been any easier.
Did You Know? According to an AMFI report, the Mutual Funds industry continues to grow by 9.58 lacs each month based on average estimates between 2018-19, with average SIP sizes of Rs 3,275 per account. Kotak lets you start SIPS as low as Rs 500!
You can buy movie tickets, train tickets, pay your restaurant bill and enjoy the benefits of cashless travelling by availing the features included in the Kotak 811 app. The app combines various merchant services and brings them together on a singular platform. There is a scan and pay feature integrated with the app which lets you transact in real-time within seconds by scanning the QR code at the POS terminal.
Did You Know? The Kotak 811 includes a Scan and Pay feature that does not require any cards and uses QR code scanning for POS transactions instead.
An Activ Money Facility helps you earn more interest on money lying idle in your savings bank account by converting the cash into a lucrative term deposit. In case you want to withdraw funds quickly, the payment is made readily available to your savings account for quick transfers.
Did You Know? The Kotak 811 app lets you recharge mobile, renew DTH subscriptions and pay various other bills with ease.
Another useful aspect of mobile banking is its degree and extent of privacy and security. With the advent of technologies like Blockchain (BCT), biometric authentication, and high-end cryptography, security has tightened in the cyberbanking world, and you have one less thing to worry about. Leading players like Kotak Mahindra includes built-in internal systems encryption and firewalls and adhere to strict security protocols where digital transactions and app authorisations are concerned.
Did You Know? The mPIN is a 2-factor authentication used for preventing security breaches and enabled in the Kotak 811 app.
Mobile Banking's Impact and The Indian Banking Ecosystem
Although internet banking was introduced to the nation a while back, the impact of digital banking services cannot be overlooked. Over 300 million Indian Smartphone users have spiked their data consumption from 5 to 10GB a month since 2016, thus witnessing a rise in digital payments and online banking in India with e-commerce and social media platforms account for over 50% of non-cash transactions.
Government initiatives like the UPI (United Payments Interface) have brought banking accounts under one platform and enabled instant payments plus peer-to-peer transactions digitally. According to a report by Economic Times, the digital payments segment in India is estimated to grow to USD 1 trillion by FY 2023, and recent statistics show that transactions on the UPI have increased eight-fold since the time of its inception. Innovative initiatives like the Kotak 811 net banking tie-up with systems like the UPI make availing services from multiple merchant platforms easy and hassle-free.
Kotak 811 has been disrupting the banking landscape in India by making peer-to-peer and cashless transactions a reality, and the integration of features like the UPI and various merchant platforms makes it more robust. If you've ever wanted to try out the cashless experience first-hand, you can download the app and experience the Kotak 811 benefits by installing it on your Smartphone from the Android Google Play Store.