Demonetisation: Push towards digital banking
On 8th November 2016, Prime Minister Narendra Modi’s Government announced demonetisation decision. In one stroke it was declared that 86% of the country’s currency (Rs. 500 and Rs. 1000 notes) will no longer be valid legal tender. To banks and other financial services companies who were promoting digital transactions; this decision came as a pleasant surprise. To others for whom cash was a way of life, this decision came as a rude shock. This was India’s boldest step of moving away from a cash based economy to a cashless economy.
Digital banking products
Post demonetisation, to promote a cashless economy and thereby encourage people to adopt digital banking; the Government and banks have come up with various digital banking solutions. Some of these include Unified Payment Interface (UPI), Bharat Interface for Money (BHIM), Aadhar Pay, Micro ATMs, Bharat Bill Payment System (BBPS), e-wallets etc. These digital banking products provide various benefits to the customer like ease of operation, low cost, convenience, round the clock availability without geographical restrictions etc.
Digital banking strategy
Different banks are using various strategies to promote digital banking. Social media has a big role to play in this. Let us take the example of Yes Bank to understand this. Till a few years back, the bank was focussed more on corporate banking. But since then, the bank has started focusing on retail banking also, for which it needs to reach the masses. To reach the masses, the bank is using various social media campaigns to promote its digital products. The bank is one of the most followed banks on social media platforms like Twitter, Instagram and Facebook etc. The bank uses these platforms to engage with its audience regularly.
The bank has introduced Yes Pay, a digital wallet that comes with a free virtual card and Unified Payment Interface (UPI) for seamless digital payments. Smart phone and social media users can register seamlessly. Facebook users can access Yes Pay without separate registration. The virtual card can be used for online shopping at various ecommerce websites. You can use the wallet for mobile / DTH recharge and bill payment. Using the UPI facility you can send and receive money instantly with ease. The icing on the cake is the reward points you earn for every transaction using the wallet. These reward points can be redeemed anytime and can also be used for shopping within the wallet. To use Yes Pay, you don’t have to be a Yes Bank customer.
Apart from Yes Pay, to get a maximum share of the customer’s wallet, the bank has launched a slew of digital banking products like Yes Tag, Yes Money, Digital wallet etc.
Conclusion
Through digital banking, banks are providing various channels to their customers for carrying out transactions with ease resulting in maximum customer satisfaction. Today the customers are spoilt for choice of channels. It is a problem of plenty which is actually a good problem to have. Bank customers couldn’t have asked for more.