October 4, 2023

Developments in Public Banking Sector

Public banks are banks that are owned and controlled by the government for the benefit of the public. The government hold more than 50% of the share of these banks and are thus very reliable financial institutions. They provide loans and also act as a safe place for the public to deposit their money. The banks use the deposited public funds to create lendable credit that it rotates back to the society in different ways, like infrastructural development and giving loans to small businesses with low interest rates.

The major Public Banks in India are

  1. State Bank of India (SBI)
  2. Punjab National Bank (PNB)
  3. Bank of Baroda (BoB)
  4. Canara Bank
  5. Union Bank of India
  6. Bank of India (BoI)
  7. Indian Bank
  8. Central Bank of India
  9. Indian Overseas Bank (IOB)
  10. Bank of Maharashtra
  11. UCO Bank
  12. Punjab & Sind Bank
  13. Andhra Bank
  14. Corporation Bank

Moreover, Government propaganda like DigiDhan Abhiyaan and PM Modi’s allocation of 75 Digital Banking Units have been catalytic to the usage of digital banking services among Indians. Even with such impetus from the government, although the pace is increasing, Indian banks still spend a lot less on technology compared to banks in other countries globally. Also, they mostly invest in making the front-end look better and easier to use, like the way buttons and menus are designed, instead of focusing on technology that makes the back-end work, like storing data in the cloud and connecting different software together. A recent study found that Indian banks only spend about 2% of their yearly income on technology. This is much less compared to other banks around the world who spend up to 10% of their income on technology. 

Currently the banking sector has adopted certain technologies that has smoothened the way to financial account management. These are as follows

Mobile and Internet Banking

Mobile banking is when you use your smartphone or tablet to check and manage your bank accounts and do financial tasks. Most public banks now have an application that you can use on your phone. It is easy and safe to use, and you can access it wherever you are, you can avail bank services even if you are not near a bank or ATM. For instance, Missed Call Banking, which means that all Bank of India customers can call BOI Balance Check number and find out how much money is in their account. In other words, mobile banking is when you use your mobile phone to do banking activities, like checking your account balance or transferring money. It also includes internet banking, which is when you use the internet to do the same banking activities.

Digital Payment

A digital payment is when you use a digital device or method to move money from one account to another. Digital payment is a wide term that includes many things, like using bank transfers, QR codes, and it also includes payment methods like credit cards, debit cards, and prepaid cards.

There are many ways to make digital payments. Some examples are using debit or credit cards, internet banking, mobile wallets, digital payment apps, a service called Unified Payments Interface (UPI), a service called Unstructured Supplementary Service Data (USSD), bank prepaid cards, and mobile banking.

Using digital payment methods is better because they are quicker, more secure with cyber security, easier to understand, and cost less for businesses. By using electronic payment methods for your business’s bills, your accounts payable department can save money on every invoice.

E-KYC 

E-KYC stands for Electronic Know Your Customer. It is a process that allows businesses or organizations to verify the identity of their customers electronically. Instead of using paper documents, E-KYC uses electronic methods such as online forms and digital signatures to gather and confirm customer information. This helps businesses save time and money, as well as streamline the customer identification process.

E-KYC (Electronic Know Your Customer) processes make it easier for customers to join and get verified. This saves time and reduces the need for lots of paperwork.

Aadhaar Integration

Aadhaar Integration means connecting Aadhaar, a unique identification number, with other systems or processes. The use of Aadhaar, India’s biometric identification system, helps to make opening a bank account, verifying personal information, and confirming the identity of customers, easier and without the need for paperwork.

Artificial Intelligence (AI) and Chatbot.

AI has quietly made its way into every part of society, including the banking industry where it has become very important. Artificial Intelligence, also known as AI, is making important progress in the banking industry in India. It is making significant changes in how predictions and decisions are made to provide the best financial services to customers. AI is also used in chatbot to give customised customer service to clients.

Data Analytics

Banking analytics means using smart computers and machines to make decisions for banks using customer information. Data is examined, patterns are noted, and guesses are made about what might happen.

In other words, banks can use financial analysis to understand and control different types of risks like credit risk, market risk, and operational risk. By looking at past information, banks can create models to predict risks and take action to lower them.

So, to summarise it, public sector banks in India are using banking technology to make their services better and more accessible while also improving how technology interact with customers. Missed call banking is a cool new simple example that lets existing customers easily check their bank account info without human interaction or intervention. While some banks call it balance enquiry (SBI balance Enquiry Number) others call it Balance check number (PNB Balance check number).

Notably, public banks have made it simpler for customers to do banking activities by giving them a special number to give a missed call on. Customers can use this number to check their account balance, get mini-statements, and carry out secure transactions. Missed call banking shows that public banks are using technology to make banking services easier for everyone, even in remote places. It means that customers can access important banking services without any trouble. This technology has helped improve the ability for people to access and use money, made customers happier, and made public banks in India work better

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