Online ticket booking
17:32
Showing posts with label mobile banking. Show all posts
Showing posts with label mobile banking. Show all posts
Tuesday, 18 July 2017
Friday, 14 July 2017
retail business
08:39
Yes Bank to Digitize Loan Business using AI Powered Bots
Yes Bank to Digitize Loan Business using AI Powered Bots
Yes Bank to digitize its retail loan business leveraging technology and AI backed bots
Digitization of retail loan business using AI powered bots will improve process automation and bring down cost for Yes Bank
Mumbai: Yes Bank, India’s fourth largest private sector bank is all set to digitize its retail loan business using technology and eliminate paper usage. This will improve process automation and reduce overall cost to the bank.
Traditionally, availing a loan has being a lengthy process involving loan application, credit bureau’s scrutiny and verification of other documents and then loan disbursement to applicant. The entire process from loan application to its disbursement can take around 7-10 days.
But with the digitization, bank aims to complete the entire process in less than 30 minutes over the next six months. Besides, it also plans to improve customer experience by leveraging AI backed chatbot.
The bot will enable a digitized workflow for retail loans, allowing the customers to get instant conditional approval using their mobile device and popular messenger app. Each customer can get customized solutions on products, pricing and eligibility.
Also, the chatbot will help customers by answering their queries in real-time leveraging integration with bank’s core internal systems. This enables bank’s representative to connect with a prospective customer within the shortest possible turnaround time.
The bank claimed to be the only one to offer virtual demos of cars through a chatbot and expects to service a million customers through this bot in FY 2017-18.
The chatbot is completely device, medium, location and channel agnostic and in the near term, it would have the capability to host pre-filled loan agreements and act as a place holder for enabling e-signatures, thereby creating an ecosystem that would ensure an end-to-end digital journey for customers and channel partners alike.
The retail loan customers will be able to respond to pre-approved offerings from the bank and will get to know their eligibility and EMIs, apply for loans online and get instant in-principle approvals.
The automated retail lending products will be made available in a phased manner over a period of one year and is expected to improve user experience substantially for more than 2.5 lakh customers by this fiscal end.
In addition, Yes Bank informs that it will use an industry first sales productivity tool offering completely digitalized field visit reports with Geo-tagging. This transparent sales monitoring process makes it easier for the frontline workforce to plan their day-to-day activities. Bank’s customer facing sales team members will able to save multiple man hours every day through ‘real time call reporting’ and it will be extended to over 20,000 employees working on the backend side.
“These digital interventions are key milestones in transforming Yes Bank into a truly digital bank. In a world where physical and virtual environments are rapidly converging, we constantly strive to make processes simpler for all our customers and digitizing our retail loans is a definitive step in that direction,” said Pralay Mondal, Senior Group President – Retail and Business Banking, Yes Bank.
Source:ETCIO
Sunday, 2 April 2017
mobile banking
12:16
Trends:Which Practice is Convenient for banking,Mobile? or Computer?
Trends:Which Practice is Convenient for banking,Mobile? or Computer?
Mobile banking has been on the rise for the past few years for many reasons. This practice is convenient, of course, but it is also more secure than traditional banking online. Yes, you are reading that correctly. Accessing your bank's mobile site or using the bank's mobile app is safer than accessing the bank's website on a computer.
Why?
It should be no surprise that computers are big targets for scammers.
Most PCs run on an operating system from Microsoft, and these systems provide enough source code for developers to build software around, including viruses. This means that they are quite vulnerable to viruses which have been created by hackers to scam their victims. The Android OS functions the same way. However, there are millions of viruses targeting Microsoft and 10’s of thousands targeting Androids. Apple iOS provides much less code and is more secure.
Over the past ten years, criminals have learned how to easily exploit online banking sites simply by using a PC. During this time, and even before, these computers have been hacked in almost any way imaginable, which makes it vulnerable to fraudulent acts.
Mobile banking, however, is a relatively new feature of cell phones, and because different phones have different operating systems, viruses and malware are not as prevalent, and the technology available varies widely from one manufacturer to another.
Computers are still low-hanging fruit to hackers, and mobiles are not as attractive due to the vulnerability of computers. Regardless, Androids need antivirus just like PCs do.
Also, the networks that mobile carriers have are harder for hackers to get into than it is to get into the wireless network at your home or a coffee shop.
Mobile carrier services that have 3G, 4G or LTE service have high levels of encryption and are not open to a general Internet connection. This means that you simply cannot jump onto someone else's 3G or 4G connection without a password.
When it comes to mobile banking, there is also the benefit of having additional layers of authenticity, which allows the account holder to authorize transactions via text or voice with a new code, which makes mobile banking highly secure.
Protecting Yourself From Mobile Cyber Attacks
It is possible to protect yourself from cyber criminals by keeping in mind the following guidelines when using your smartphone. These tips will help you to remain safe when banking on the go:
Only Use a Secure Network to Access the Internet -It is safest only to browse the web through a secure Wi-Fi network or through your service provider's 3G or 4G network. Never send any sensitive info, such as banking information, over a wireless network that is not secure, such as in a coffee shop or hotel.
Only Download Trustworthy Applications - When downloading apps on your mobile phone, make sure only to download them from marketplaces or other trusted sources. You should also check the feedback and reviews from others.
If possible, connect to your bank's app or site only when on a secure network. You should also only download a bank's mobile application from the bank's real website. Otherwise, Google Play or iTunes should be fine.
Remain Vigilant About Your Online Security - Make sure to keep all of your malware and anti-virus software up to date, and then back up the data. Use different passwords for all of your accounts, and never offer personal or financial information to anyone other than official employees of your bank.
Set Your Phone to Auto-Lock - Most mobile phone have a setting that will allow you to lock the phone after a set period of time.
Do Not Store Data You Need - If you cannot afford to lose something, do not store it on a mobile phone that is not secure.
Consider Using Security Software - Mobile security software allows you to lock your mobile device remotely, and it lets you delete all of your personal information in the event of loss or theft. You can also locate the device by using GPS.
Be Suspicious of Links - It is in your best interest to be suspicious of any link that comes to you on your mobile device, even if the sender appears legitimate.
Do Not Jailbreak Any iPhone - Most people who have a jailbroken iPhone or “rooted” Android could easily have an infected iPhone. Jailbreaking is when the limitations are removed, which allows users to gain full use of the operating system. When a phone is jailbroken, users can download extensions, applications, and themes that are not available at the App Store. However, this is dangerous as it opens up the phone to dangerous viruses.
Mobile banking is becoming more popular among smartphone users, and you should try it for yourself if you haven't yet. It is extremely convenient, and if you keep the above in mind, it is also very safe.
Source:The Balance
Friday, 13 January 2017
volume of transactions
08:06
Paytm becomes a bank: 5 features to handle your money better
Paytm becomes a bank: 5 features to handle your money better
As Paytm turns its focus on payments bank, it launches new features to make transactions easier for consumers and merchants.
What happens to your mobile wallet?
The wallet balance will become the account balance, if users choose to open an account. The same balance will be used to pay for an Uber ride, pay bills, make recharges and even shop online. Paytm will also push a whole bunch of micro financial service to the account holders, such as micro finance, loans, mutual funds, debit cards, and insurance. Most of these tie-ups are under works, founder Vijay Shekhar Sharma has said.
Self-declared merchants can now accept up to Rs 50,000 directly in their bank accounts
The amount is settled at midnight every day and the settlement charges remain 0%. The bank settlement charges will stay at 0% when amount would be settled to merchants’ Paytm Payments Bank account. In other banks, Paytm might start levying some charges in the months to come.
Adding money faster through a single-screen
This will allow quicker load times and a faster user experience.
Fingerprints can be set as Paytm password
Like many other apps, Paytm has introduced fingerprint passwords. It’s quick, easy and the company claims its 100% secure.
Pay by scanning the recipient’s Paytm QR Codes from their phone’s image gallery
You can scan the recipients QR codes that they may have received via e-mail or WhatsApp. To be able to do this, users have to tap on the upper-right corner of the screen and tap on ‘Scan Paytm QR from Gallery’.
Queries can be addressed on the Paytm Community Forums
Paytm users can now access the ‘Paytm Community Forums’ option in their Paytm app and get their queries addressed by the 10 million active users on the platform. This huge base of active Paytm users is an active community that encourages conversations around Paytm’s diverse use-cases.
Source:HT
Wednesday, 21 December 2016
Sunday, 11 December 2016
volume of transactions
08:14
Digital payments and internet shutdowns cannot go hand in hand
Digital payments and internet shutdowns cannot go hand in hand
India will need to rethink its stance on internet shutdowns if the digital payments push is to continue. Over the last few years, suspending internet services partially or otherwise has emerged as a favoured tactic of the government to counter potential security threats. But one look at the current digital payments trends and it is clear that the shutdown approach will now be as useful as the old Rs 500 and Rs 1000 notes.
In August this year, an internet shutdown in Gujarat following the Patidar agitation resulted in a loss of Rs 1,500 crore in one day, according to the Maha Gujarat Bank Employees Association. In September 2016 on the eve of Eid-ul-Zuha, Kashmir saw a 72-hour suspension of internet services and mobile internet (barring BSNL) as a “precautionary measure” to contain a security threat. In Haryana, Sonipat had internet and mobile services suspended ahead of the June 2016 protests by the Jat community.
Think tank The Brookings Institution calculated the financial loss suffered by India as a result of its 22 temporary internet shutdowns between July 2015 and June 2016 (pdf). It arrived at a figure of $968 million. This figure accounts for the percentage of the GDP “derived from the internet economy”, online ad services, and of course, digital payments.
This was then.
Within a week of the demonetisation announcement of 8 November 2016, Indian digital wallet companies like PayTM, Freecharge, and MobiKwik claimed an increase of up to 200% in mobile downloads. And now, Prime Minister Narendra Modi himself is advocating an uptake of digital payments and pushing the Unified Payments Interface cause.
In part due to this push, and in large part due to lack of options, adoption of digital payments has gone up by nearly 300% in one month alone.
One can do the math to see where this will eventually go looking at the latest numbers. According to a recent Medianama and Akamai report, the number of debit card transactions stood at 129.07 million between July 2015 and July 2016. These accounted for transactions of Rs 17,091 crore. Number of mobile banking transactions for the period March 2015 to March 2016 stood at 49.47 crore. The amount transacted in this period grew at a jaw dropping rate of 239%. The absolute value of the transactions stood at Rs 57, 280 crore at the end of this time period.
By March 2017, these figures are sure to swing higher up with the ongoing cash crunch. If an internet shutdown were to happen now, the financial losses would be colossal. In going for a digital payment push with a reliance on internet shutdowns for law and order, the Modi government has planted both its feet in two boats headed in different directions. Neither of them seems built to float.
In the course of implementing the demonetisation project, we have seen the government bumble through several obvious snags that anyone with a plan would have foreseen. Lack of circulating cash, ATM machines that were not calibrated for the new currency bills, and accounting for those not covered by the formal banking system were just some of these. Now as a clean-up is cobbled together at the last minute, one can only hope policy makers account for the consequences before the government approves another suspension of internet services.
DISCLAIMER : Views expressed above are the author's own.
Source:Times Of India
Sunday, 6 November 2016
whatsApp
08:47
Android malware targets bank and social media apps
Android malware targets bank and social media apps
Cybersecurity experts are warning about new Android malware that can steal the login credentials from 94 different mobile banking apps around the world. The malware masquerades as a Flash Player app that, once installed, appears in a phone launcher, says Fortinet. If a phone owner launches the app they see a fake Google Play screen asking for permissions that grant the malware administrator rights.
Then, when a banking app is opened, the malware creates a fake overlay, tricking victims into entering their login credentials. Among the bank apps being targeted are those of NAB, ING Direct and Citi, as well as PayPal.
In addition, the malware is also taking aim at social media apps. When users launch Facebook, Whatsapp, Snapchat, Twitter, Instagram and more, they are faced with a screen overlay asking for payment card details.
Meanwhile, due to its ability to intercept SMS communications, the malware is also able to bypass SMS-based two-factor authentication.
Fortinet says users can disable the device administrator rights through their phone settings and then uninstall the fake Flash Player.
Source:finextra.com
Tuesday, 11 October 2016
smartbuy
08:06
Change the way you pay
Change the way you pay
Mohaiman Mostafa, a young entrepreneur has come up with pay365, a newest addition in the mobile wallet market of Bangladesh. He recently sat with Dhaka Tribune and talked about pay365 and his plan with it
Blending technology with innovative financial services is something that drags us from the time of barter to the time of bitcoin. In today’s world, over 95% money is virtual one and billions of transactions have been made through wire in every minute.
In a country like Bangladesh, people still rely on paper money but the idea of plastic money has started to find its footing, especially in the urban areas in the last one decade. People have also gotten accustomed with other payment options like bKash, Payza and other mobile wallet platforms. Banking on that, Mohaiman Mostafa, a young entrepreneur has come up with pay365, a newest addition in the mobile wallet market of Bangladesh. He recently sat with Dhaka Tribune and talked about pay365 and his plan with it.
Q: You had been working in successful US Company, what drove you back to Bangladesh?
Right after completing my graduation in Finance in 2013 from The Ohio State University, USA, I wanted to come back to Bangladesh and contribute something valuable for the country. Although it was a hard decision for me to come back because I was working for a fortune 100 company called Nationwide Insurance, I didn’t stop to reconsider. All I did was try to find ways to motivate myself to come back. I did not also want to do something that will benefit me only monetarily. Representing Bangladesh to the world and take Bangladesh to the next level was my primary goal.
Q: How did you come up with the idea of pay365?
While I was in Ohio, I started a fund raising campaign with Bangladesh Student Association at OSU and with that money, we built a school for underprivileged kids with Jaago foundation. These activities helped me network and find a mentoring partner Tanzim Shams with whom the idea of Pay 365 came up. The idea was simple: mobile wallet and payment by a QR code or NFC, an idea new to Bangladesh. But implementation seemed almost impossible. I even opened the company FyneTech in Columbus, Ohio to associate and educate myself on the IT industry. Finally after we had worked out a business plan and software architecture, I decided to come back in 2014 and build Pay 365 leaving behind a lot of opportunity, IT outsourcing projects, green card and all that.
Q: Can you give us a brief about your journey in implementing pay365?
During the planning stage I was aware that my childhood friend’s father Mahboob Zaman (former president of BASIS) owns an IT company. I called him once and he invited me for discussions. The whole journey started with DataSoft. The security aspect of Pay 365 was almost unknown to us. DataSoft is one of the leading IT companies in Bangladesh and has provided IT solutions to most of the banks in Bangladesh. We contacted Dutch Bangla Bank Limited (DBBL) and our project started end of 2014. There were a lot of struggles from then on. We had to work a lot on the tokenisation platform created by DBBL, build security portals by complying with VISA, mastercard and Bangladesh Bank which were major security requirement for a mobile wallet like Pay 365. In short we had to make it as it is in USA and similar to what Apple pay and Google Wallet is in USA.
The payment industry is evolving every day. First it was cards then mobile banking now payments have become easier on your smartphone.
Q: How do you rate Datasoft and Mahbub Zaman’s contribution in implementing pay365?
I have to say that throughout the whole journey the only motivating factor was the trust and belief that Mahboob Zaman had on me and our team at DataSoft. We faced no obstacles regarding budget or contacts but as we were building this for the first time in Bangladesh, we spent a lot of time on research. Of course I initiated the idea and was in charge of the whole project, but it’s because of Mahboob Zaman that we have built successfully the first mobile wallet in Bangladesh. This is because Mahboob Zaman believes in changing lifestyles and has contributed a lot for the IT industry of Bangladesh. He believes that Pay 365 will have a transformative effect on people’s lives in a developing country like Bangladesh by bringing easier, faster and safer payment method. Of course I had the support from my friends and family but his support for a start-up company and encouragement towards young entrepreneurship is indeed rare in Bangladesh.
Q: How does the app work?
Pay 365 has 3 parts Easy pay, more secure than your physical wallet, and Rewards. User will have to only tag their bank’s information during sign up ONCE. They can also save multiple bank accounts. They don’t have to carry their cards to cash with them anymore. DBBL securely saves the bank information and every time some pays they will need to have their money in their bank and they will go to their favorite store and pay. The payment process is simple you just have to go to the app; tap on pay, a QR Code will generate and just scan the phone. Not only that, we also have reward program where users will be getting rewards every time they use the pay system. The higher they go up in the membership level the more the rewards they will get.
Q: Do you think pay365 will find its footing in Bangladesh?
It should because this is a concept that is successful in most developed countries in the world. Even in India they have Repay and Pay TM. We have more features and surprises coming up. The payment industry is evolving every day. First it was cards then mobile banking now payments have become easier on your smartphone. Smartphone penetrations are also growing in Bangladesh because of cheaper phones. Hence we have to go digital now. We have Dutch Bangla Bank as an acquiring bank now and we are planning to bring other banks on board soon. We are going live in the month of September and user can then use this app in most retail outlets in Dhanmondi , Gulshan and Banani.
Q: What are the obstacles that you think pay355 will face?
Changing people’s spending behaviours and habits can be an obstacle because people first need to understand that smartphones are much safer than your physical wallet. It’s even safer than your card and cash. It’s also important to teach people how to use the app. The challenge will be in conversion marketing and I hope we succeed on that. I also think country’s economic stability is also an important factor because we depend on businesses like e- commerce, retail outlets like coffee shops and restaurants, universities, departmental stores where people will actually go and spend. It’s important that businesses grow and the merchants can use this app as a tool to increase their business growth. Bringing all merchants under one platform can also be an obstacle because pay 365 also facilities merchants to make their retail marketing strategy more efficient, find the best fit and track the demographics and lifestyle, and make the best use of data analytics. Not all merchants are ready to understand and accept this concept in Bangladesh yet.
Source:DhakaTribune
Tuesday, 2 August 2016
volume of transactions
18:52
Master Circular – Mobile Banking transactions in India – Operative Guidelines for Banks
Master Circular – Mobile Banking transactions in India – Operative Guidelines for Banks
RBI/2016-17/17
DPSS.CO.PD.Mobile Banking.No./2/02.23.001/2016-2017
July 1, 2016
The Chairman and Managing Director / Chief Executive Officers
All Scheduled Commercial Banks including RRBs /
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks
Madam /Dear Sir,
Master Circular – Mobile Banking transactions in India – Operative Guidelines for Banks
As you are aware, the Reserve Bank of India has, from time to time, issued a number of circulars containing guidelines on Mobile Banking. This Master Circular has been prepared to facilitate the banks and other stakeholders to have all the extant instructions on the subject at one place.
2. The Master Circular has been updated by incorporating all the instructions/guidelines issued on Mobile Banking up to December 17, 2015 and has been placed on the RBI web-site (http://www.rbi.org.in). A list of circulars finding reference in this master circular is enclosed as Appendix.
Yours faithfully,
(Nanda Dave)
Chief General Manager
7. Registration of customers for mobile service
7.1 Banks shall put in place a system of registration of customers for mobile banking. Banks should strive to provide options for easy registration for mobile banking services to their customers, through multiple channels, thus minimizing the need for the customer to visit the branch for such services. The time taken between registration of customers for mobile banking services and activation of the service should also be minimal.
7.2 The system put in place by banks for registration of customers for mobile banking for new as well as existing account holders (where mobile number is either registered with the bank or is not available) , is varied across banks. Thus, there is a need for greater degree of standardization in procedures relating to the above particularly when customers are using inter-operable mobile banking platforms. Few best practices that can be adopted by banks for registering / on-boarding customers for mobile banking, under the scenarios indicated above, are given in the Annex-I
7.3 - With a view to simplify the procedure of registration for Mobile Banking, Reserve Bank of India has advised National Payment Corporation of India (NPCI) to develop the mobile banking registration service / option on National Financial Switch (NFS). Accordingly all banks shall carry out necessary changes in their respective ATM switches to enable customer registration for mobile banking at all their ATMs. (Circular DPSS.CO.PD. No./1265/02.23.001/2015-2016 dated December 17, 2015)
7.4 In order to address the challenges in extending the facility of MPIN generation to the customers registered for mobile banking, banks have to explore various options. In order to quicken the process of MPIN generation and also widen the accessibility to their mobile banking registered customers, banks can consider adopting various channels / methods such as
Through the ATM channels (similar to option available for change of PIN on their own ATMs as well as in inter-operable ATM networks)
Through an option provided in the USSD menu for mobile banking (both their own USSD platform, if any, as well as under the inter-operable USSD Platform for mobile banking)
Banks’ own internet banking website, with necessary safeguards
Use of MPIN mailers (like PIN mailers for cards)
Common website can also be designed as an industry initiative
7.5. Banks may also undertake customer education and awareness programme in multiple languages through different channels of communication to popularise their process of mobile banking registration/activation and its usage etc.
7.6 On registration of the customer, the full details of the Terms and Conditions of the service offered by the bank shall be communicated to the customer.
Friday, 15 July 2016
Reserve Bank of India
22:59
Master Circular – Mobile Banking
Master Circular – Mobile Banking
1. Purpose
To provide a consolidated document containing all rules / regulations / procedures prescribed to be followed by banks for operationalising Mobile Banking in India.
2. Classification
Statutory Guidelines issued by Reserve Bank of India under section 18 of Payment & Settlement Systems Act, 2007, (ACT 51 of 2007).
3. Previous Guidelines consolidated
The Master Circular compiles the instructions contained in the circulars issued on Mobile Banking as listed in Appendix.
4. Scope
The guidelines are applicable to all commercial banks (including Regional Rural Banks), Urban Cooperative Banks, State Cooperative Banks and District Central Cooperative Banks.
5. Introduction
5.1 Mobile phones, as a medium for extending banking services, have attained greater significance because of their ubiquitous nature. The rapid growth of mobile users in India, through wider coverage of mobile phone networks, have made this medium an important platform for extending banking services to every segment of banking clientele in general and the unbanked segment in particular.
5.2 In order to ensure a level playing field, Reserve Bank brought out a set of operating guidelines for adoption by banks. The guidelines, finalised following a wide consultative process with the stakeholders, were first issued in October 2008 and since then have been updated keeping in view the developments taking place.
5.3 For the purpose of the instructions contained in this Master Circular, ‘Mobile Banking transaction’ means undertaking banking transactions using mobile phones by bank customers that involve accessing / credit / debit to their accounts
5.4 Banks are permitted to offer mobile banking services (through SMS, USSD or mobile banking application) after obtaining necessary permission from the Department of Payment & Settlement Systems, Reserve Bank of India. Mobile Banking services are to be made available to bank customers irrespective of the mobile network.
Sunday, 3 July 2016
Wednesday, 15 June 2016
mobile banking
11:46
Next Generation Banking - Accenture
Next Generation Banking - Accenture
Enhanced multichannel experiences, social media interactions and mobile technology can enable banks to achieve success—today and in the future.
OVERVIEW
Enhanced multichannel experiences, social media interactions and mobile technology can enable banks to achieve success—today and in the future.
The “Intelligent Multichannel” bank.
The “Socially Engaging” bank.
The “Financial/Non-Financial Digital Ecosystem” bank.
Banks face three critical battles: restoring customer trust, defending their payments business from new entrants and avoiding commoditization. Accenture’s Banking 2016 report highlights the steps that banks must take to win these battles and achieve next-generation banking.
The first step is getting the basics right. By reinforcing core business operations, banks can improve efficiency, customer relevance and profitability. Next, banks can focus on the path ahead.
ANALYSIS
Accenture’s Banking 2016 report focuses on three business models that can enable banks to achieve a competitive advantage:
The “Intelligent Multichannel” bank offers enhanced multichannel experiences to engage customers.
The “Financial/Non-Financial Digital Ecosystem” bank uses mobile technology to place the bank at the center of an ecosystem that sells financial and non-financial services.
The “Socially Engaging” bank creates customer intimacy through social media interactions.
These business models are not mutually exclusive. In fact, Accenture estimates that by working aggressively to implement all three models, a bank can double its annual revenue growth rate—in developed markets, an increase from 4 percent to 8-plus percent—while reducing its cost to serve by 20 percent.
RECOMMENDATIONS
To achieve competitive differentiation, banks must define a clear strategy and customer proposition, and then develop the capabilities to reach these goals. Accenture recommends that banks:
Define a vision for future scenarios and opportunities.
Ensure a dedicated focus to getting the basics right.
Create a digital lab to test and learn social, mobile and digital innovations.
Establish an overall strategy that includes the appropriate capability mix and investment choices.
Develop an appropriate sourcing strategy to enable scale and deliver required capabilities at speed.
By following this next-generation approach, banks can position for growth, improve performance and achieve a competitive advantage—in the near- and long-term.
Friday, 13 May 2016
rural banking
08:04
Revised code for bank customers to include mobile payments
Revised code for bank customers to include mobile payments
The Code of Bank's Commitment to Customers could also include some advice regarding capping of charges
Given the rising popularity of mobile payments and wallets, the Banking Code and Standards Board of India (BCSBI) will include them in the revised code for individual customers to be released this year. The Code of Bank’s Commitment to Customers could also include some advice regarding capping of charges because maximum complaints received were in this regard, said A C Mahajan, chairman, BSCBI.
Currently, the BSCBI has 136 members, which includes 71 scheduled commercial banks (SCBs), 47 regional rural banks (RRBs) and 18 urban cooperative banks (UCBs).
The BCSBI releases a Banking Code Compliance Rating after carrying out a survey of select branches of member banks to verify implementation of the codes by the banks. In 2015, the level of compliance was 78 per cent and this year the aim is to increase the rating to 85-90 per cent, Mahajan said.
Banks are also given ratings based on parameters like information dissemination, transparency, customer-centricity, grievance redressal and customer feedback. The four categories of ratings are “high”, “above average”, “average” and “below average”. In 2015, public sector banks performed badly with 10 of them getting a rating of “average” and only one getting a rating of “high”.
Against this, 10 private banks and three foreign banks got a “high” rating. “There is a provision to suspend the bank from BSCBI membership if the rating is consistently average. But, that will take more time,’’ Mahajan said. One of the directives prescribed by BCSBI which now has to be followed by all banks is to give customers a copy of the terms and conditions while opening a savings bank account.
By following BCSBI’s code and getting a high ranking, banks would be able to attract customers. “Beyond a point, high interest rates lose their importance. Banks will be able to attract customers only by offering good service.
Code compliance does not cost anything,’’ he said.
The code also empowers customers to deal with sub-standard service. If banks which have adopted the code do not comply with it, customers must lodge complaints. Deficiency in service is a cognisable offence and banks can be pulled up by the Reserve Bank of India (RBI) for it. In fact, of the complaints received against banks, 29 per cent are related to non-compliance of the code. The BCSBI also releases a Code for Banks Commitment to Micro and Small Entrepreneurs. One of the recommendations was with regard to the treatment of “sick” micro and small entrepreneurs (MSEs). Following the BCSBI’s code, RBI had issued guidelines to banks saying that viable accounts of MSEs should be revived.
The code for customers was last revised in 2014. They included rules with regard to ATMs, credit cards, senior citizens, electronic banking and internet banking. One of the recommendations was that in case of a fraud where the customer had not contributed in any way, such as hacking or card-cloning, the liability should be capped at Rs 10,000. Another recommendation asked banks to provide a ramp at branches to make it easier for senior citizens or the physically challenged to access the branch.
Source:Business Standard
Sunday, 8 May 2016
volume of transactions
17:29
UPI will make Paytm, ICICI Bank’s Pockets, HDFC Bank’s Chillr redundant: Centrum
UPI will make Paytm, ICICI Bank’s Pockets, HDFC Bank’s Chillr redundant: Centrum
The ongoing push by the Reserve Bank of India (RBI) to revolutionise banking through the Unified Payments Interface (UPI) will leave mobile wallets redundant, as mobile banking has jumped over threefold in February from the year-ago period, according to a report.
The ongoing push by the Reserve Bank of India (RBI) to revolutionise banking through the Unified Payments Interface (UPI) will leave mobile wallets redundant, as mobile banking has jumped over threefold in February from the year-ago period, according to a report.
The report, by city-based Centrum Broking, stated that mobile wallet services like SBI’s Buddy, ICICI Bank’s Pockets, HDFC Bank’s Chillr and standalone operator Paytm will be redundant with the massive adoption of the UPI.
“Mobile banking has taken the country by storm, growing by 212 per cent growth in value terms in February 2016 over the same period in 2015 and by 131 per cent in volume.
“If the UPI adoption continues mobile wallets like SBI’s Buddy, ICICI Bank’s Pockets, HDFC Bank’s Chillr and Paytm will be redundant,” a Centrum Broking said in a report titled- ‘Banking Transactions – Technological Disruption’.
The report attributed the RBI push to adopt UPI as an effort to lower the cash economy. Quoting RBI data, the report said the cash floating in the system is about 18 per cent of the GDP, making the country one of the most cash-dependent economies in the world.
“The RBI wants to cut down on cash dependence and the UPI has been brought in to do just that. It will reduce the effort, time and cost incurred on simple transactions, below Rs 1 lakh. Through UPI, two or three bank accounts can be linked and therefore any payment/withdrawal can then be done by just sending a message on this app,” the report said.
UPI does not require a specific bank account unlike existing players which offer the product to only those who have an account with them, thus significantly increasing the pool of customers UPI could tap into, compared to banks which have a limited universe of customers.
Of the 29 banks that have already tied up with the RBI-promoted National Payments Corporation that launched the UPI, 10 banks — Federal Bank, Axis Bank, Ratnakar Bank, Yes Bank, Oriental Bank of Commerce, Union Bank, ICICI Bank, HDFC Bank, PNB and Canara Bank — are ready with their apps.
According to a World Bank report, only 53 per cent of the Indian population or 636 million people have bank accounts, while close over 1,000 million have mobile phones. If used to its full potential, UPI can penetrate far more homes than all the mobile wallets put together, the report said.
It is quite likely that to stay relevant in the market and operate on a low-cost model, banks and other financial service providers will have to go through a drastic digital makeover. Those who are left behind in this race might struggle to survive, it added.
Quoting the Reserve Bank data, the report noted that the value of mobile banking transactions rose 46 per cent in December 2015 from a month ago. But this is more than 300 per cent growth compared to December 2014 level, it said.
Source:Financial Express
Source:Financial Express
Wednesday, 27 April 2016
SME
08:03
DBS aims to woo retail customers by launching mobile-only bank
DBS aims to woo retail customers by launching mobile-only bank
Singapore-based DBS Bank, hitherto focusing on the affluent segment, has decided to shed that tag and instead go for mass-market retail (individual) customers.
To woo this segment, it has launched a mobile-only bank. It says this will be completely paperless and branchless, allowing customers to open accounts by using their Aadhaar card, the biometric authentication, at various companies it makes arrangements with. At present, it has tied up with 500 Café Coffee Day outlets.
To expand the customer base, the bank will be offering seven per cent annual interest (no minimum balance required) on a savings account, higher than the five per cent it was offering till now, and free cash withdrawal across all ATMs.
Piyush Gupta, chief executive officer, says the reduced cost in investments with this mobile-only bank will allow them to offer a high savings interest rate and other benefits. At present, the bank’s cost to income is 55 per cent in India. It aims at bringing this down to its global average of 45 per cent.
“We want to build a liability book of Rs 50,000 crore and an asset book of Rs 10,000 crore in the next two to three years on this platform. We are also aiming to have about five million savings accounts in the next five years,” said Gupta.
Over the past three-odd years, he said, the bank had invested about $500 million globally for a digital transformation. Investments made specifically into India weren't disclosed. India is the first country where they've launched the mobile-only bank and the lender will be taking it to other markets, too.
This comes as the bank awaits clearance from the Reserve Bank of India to convert into a wholly-owned subsidiary (WOS) in the country. The application was in April last year.
“We want to become a subsidiary in India so that we can grow and focus on the small and medium enterprise (SME) business, a very small portion (for it) in India till now. Globally, 17-18 per cent is SME banking, 20 per cent is corporate and the rest is retail,” said Surojit Shome, chief executive, DBS India.
Once the bank gets approval for WoS, they are looking at scaling up the branch network to 60-70 in the next four years. At present, the bank has 12 branches. Gupta said the Indian operations account for about five per cent of the total book. So far, the lender has invested Rs 6,500 crore into India. It infused Rs 1,700 crore of tier-2 capital in the past two years and Rs 670 crore of tier-1 capital in FY16.
The need for tier-i capital infusion, said Shome, was was at an elevated level to compensate for the erosion due to a rise in bad loans in the past couple of years.
“We had some portfolio challenges, which have been cleared, and are looking at returning to marginal profitability in FY16,” said Gupta. In FY15, the bank's loss was Rs 275 crore, on the back of higher provisioning.
Source:BankingUpdates
Monday, 4 April 2016
State Bank of India
07:35
ICICI, SBI and other banks take the battle to mobile wallet players
ICICI, SBI and other banks take the battle to mobile wallet players
Banks are taking the battle to mobile wallet companies, armed with their readymade payment systems, wide merchant network and an on tap customer base, attempting to reclaim a turf which just a couple of years ago was their fiefdom.
In the past year, large lenders like ICICI Bank, State Bank of India, Axis Bank and HDFC Bank, which together control around 40 per cent of local banking assets, have launched new payment instruments as they seek to prevent customers from moving money to newly emerging non-bank companies.
SBI's Buddy, ICICI's Pockets, HDFC Bank's PayZapp and Axis' Lime are the new kids on the block, challenging the likes of Paytm, MobiKwik and Citrus Pay.
"It is an evolving space and the shift is towards digital transactions. None of us know the pace of the shift. Everyone is trying to experiment with the space," said Axis Bank Chief Executive Shikha Sharma.
While wallets have had to spend millions to get their branding done, banks are leveraging their existing brand value to lure customers away from wallet players. Tie-ups with new tech innovators are also keeping bank costs low.
"Investments in this business for us is in terms of deployment of resources as platform has been provided by our technology partner," said Manju Agarwal, deputy managing director, corporate strategy and new businesses, at SBI. Ease in small-value payments attracted the bank to this space, Agarwal added.
Parag Rao, head of cards and merchant acquiring at HDFC Bank, said he has been leveraging the bank's merchant and customer base to offer attractive discounts for PayZapp users.
"We want to facilitate all forms of transactions that the customer uses. In the physical world, the user can use the credit card and the debit card while in the mobile world he can use wallets," Rao said.'
HDFC Bank dominates card spending with a 3 lakh strong network of point of sale terminals. It is this offline success that it wants to replicate online.
However, wallet companies say banks cannot ensure enough attention to this business to make a difference. They point out to the fact that spending through debit and credit cards is still nascent despite an exponential increase in cards issued.
Reserve Bank of India data show that the number of outstanding debt and credit cards has increased more than three times in six years to 669.61 million in January 2016. However, people still prefer to pay in cash after withdrawing it from ATMs.
"Banks are excellent settlement engines, but when it comes to user experience, we have been able to train 123 million people over the last five years to make digital transactions without glitches. People trust us with their money," said Nitin Mishra, head of products at Paytm, India's largest wallet company.
Source:BankingUpdates
Source:BankingUpdates
Sunday, 28 February 2016
smart phones
06:41
how safe are we when doing online or mobile banking?
how safe are we when doing online or mobile banking?
E-banking tip: Mom's maiden name? Say 'grapefruit'
Millions of people do their banking online through their computers, laptops or tablets and find their experience to be quick, easy and convenient. In addition, according to a study last year by the Federal Reserve, 52% of smartphone owners use their smartphones for mobile banking, which is not surprising since so many of us, particularly younger Americans, do much of our financial transactions of all kinds on our smartphones.
But how safe are we when doing online or mobile banking?
The bad news is that we can be quite susceptible to having our identities stolen and our bank accounts emptied when doing online or mobile banking. The good news is, however, that how susceptible we are to this danger is largely within our control.
Most banks require a person to enter a user name and a password when banking online or by using a smartphone. Scam artists, the only criminals we refer to as artists, can be quite adept at getting you to provide your user name and password to them.
Using a knowledge of psychology that would have made Sigmund Freud envious, they use phishing techniques, most commonly through emails or text messages that trick you into either providing this information directly in response to the email or text message or luring you into clicking on links containing keystroke logging malware that can steal your user name and password from your electronic device along with all of the other information stored on your device.
These phishing emails are often designed to make you think that there is an emergency, such as a security breach of your bank account requiring you to provide confirming information. Many times the emails are quite poorly designed, for instance carrying a salutation of “Dear Customer,” and coming from an address with no relationship to your bank and containing poor grammar.
However, other times, through a technique called “spear phishing,” the scammer uses personal information about you that may have been gathered through hacking of the computers of companies with which you do business to make the email or text message look more legitimate. It will be directed to you by name, the email address from which it is sent may appear to legitimately be that of the bank with which you do business, the grammar is good and it may even carry the logo of your bank, which is easy to forge, on the email.
Spear phishing can be hard to recognize which is why it has been at the heart of many of the major cyberattacks we have seen in recent years ranging from the data breach at the OPM to the recent ransomware attack at the Hollywood Presbyterian Medical Center. Once the criminal has your user name and your password, he or she can access your account at many banks and steal your money.
So what can you do to protect yourself from this danger? Remember my motto, “trust me, you can’t trust anyone.” Never provide personal information in response to a phone call, text message or email you receive until you have independently confirmed that the request for information is legitimate. In addition, it is a good idea to have anti-phishing security software installed on all of your devices.
As an additional security measure, some banks require that you provide answers to security questions in addition to merely providing your user name and password in order to access your bank account online or through your smartphone. This provides an additional measure of protection, however, in many instances, the security questions are little more than your mother’s maiden name, which is simple for an identity thief to find online.
Even what would appear to be more difficult security questions such as the name of your pet or your favorite sports team, can be easy for an identity thief to determine merely by looking at what you post online through social media. The first way to make security questions more secure is to limit the amount of personal information you provide online through social media.
However, perhaps the best way to dramatically improve the strength of your security question is to use a nonsensical answer when you set up the account. For instance, if the security question is what is your mother’s maiden name, make your answer something ludicrous, such as “grapefruit.” This is an answer that no identity thief will ever find and it is silly enough to make it easy to remember.
For increased security, some banks, such as Bank of America and Chase even offer dual factor authentication by which when you enter your user name and password to access your account, a random password is sent to your smartphone that must be used to gain access your account. This seems like it would be foolproof, but never underestimate the power of a fool.
Scammers are now calling their victim’s mobile service providers posing as their victim and telling the provider that their victim’s phone has been damaged, lost or replaced and that they need to reactivate their mobile number to a new SIM card in a phone controlled by the criminal.
A SIM card is an integrated circuit that stores information used to authenticate subscribers on smartphones. Once the SIM cards have been swapped, when the criminal uses the already stolen user name and password to begin the access to the victim’s account, when the bank sends the one time password to access the account, it is sent to the new SIM card in the phone of the criminal. Better use of security questions before service providers will change SIM cards can help to reduce this risk.
Online banking on your computer or smartphone can be safe if you take the right precautions. As with so many things, the best place to find a helping hand is at the end of your own arm.
Steve Weisman is a lawyer, a professor at Bentley University and one of the country's leading experts in scams and identity theft. He writes the blog scamicide.com, where he provides daily update information about the latest scams. His new book is Identity Theft Alert.
