Mobile has changed the way we bank. There are multiple banking apps for different customer segments and their varying needs. For example, primary banking apps are feature-rich, and after downloading the app, the user can key in some basic information to initiate the account opening process. Once the account has been opened, customers can use the app for over 100 banking transactions like booking term deposits, recurring deposits or initiate fund transfer. One can also buy insurance and investment products like mutual funds, travel, health and motor insurance by simply tapping on banking app. Recently, Kotak Mahindra Bank launched a feature whereby a customer can activate and deactivate the debit card through the app. This feature gives customer the flexibility to secure the card by deactivating it when not being used, and activating it whenever required. Whether you need to place a request for cheque book or change your mailing address, your banking app can do it all. Customers can also apply for a loan and credit card from the banking app.

In recent times, banks have taken customer engagement and convenience a step ahead by converging shopping and payment experience in the banking app. Customers of select banks can book movie tickets, buy flight tickets, book a hotel or shop at their favorite online stores from the banking app. This reduces transaction failure and offers ease of checkout. Combined with bill payment, mobile and DTH recharge, one can pretty much buy and pay for anything online through the banking app.

Banks have launched several new initiatives to support payment transaction in physical stores where payments can be made through mobile. To support this, several banks have launched apps that support Unified Payment Interface (UPI), where one need not know bank account details while making or asking for payments. One can also pay for auto and car ride or make payment in a retail store or to the neighborhood merchant by scanning QR code from mobile and make the payment. Rapid adoption of such mobile-led cashless initiatives can transform lives of consumers and merchants. Bank customers can also see offers from nearby stores in their banking app.

In last few months, we have embarked on the most exciting phase of rapid change in this space, where government is pushing for digital adoption, smartphones are becoming affordable and data connectivity is improving. This, combined with Aadhar linked biometric identity, e-signature and digital locker will ensure that you are always connected with your bank 24x7 on your mobile.

Tap and pay

• Banks offering USSD and SMS-based banking and payment services.
• USSD-based payment interface can support any mobile user without the need of smartphone and data connectivity.

Deepak Sharma is Chief Digital Officer, Kotak Mahindra Bank

olmdesk@outlookindia.com