Banking reimagined: The Digibank way

Digibank by DBS is a radical innovation that has technology and the best banking practices at its core.

Imagine living in a world where there are no smartphones, no Internet connectivity on your laptop and no way to FaceTime with your friends. Sounds pretty bleak, doesn’t it? But this was the way people lived about two decades ago – and it seems just like yesterday that processes like banking and insurance involved filling out realms of paperwork and making endless trips to the main offices.

Not anymore. The best banks today realise that Internet-savvy millennials are not about to accept laxity or time lag in services. DBS Bank, for one, was amongst the first to realise the dangers of super-fast connectivity – that customers loved – with the threat of staying a few steps behind ever changing tech expertise. The challenge for banks today lies in developing products and services that sync well with social media, mobile phone screens and the latest in connectivity (4G, 4G LTE, etc) and in the bargain, still remain distinct banking products that customers can use at any time.

Thus, DBS Bank developed India’s first mobile-only banking platform, Digibank, a revolutionary banking app that is the last word in digital banking. The digital medium is at the heart of its services, and Digibank is testament to the innovative spirit behind this line of thought. The app strives to bring Indian digital banking on par with other markets like the US or Singapore, where a majority of daily banking transactions are digital in nature. DBS bank realises that merely offering a snazzy digital platform for banking is not enough, it must provide innovation in its products and services as well.

Digibank was conceptualised with this viewpoint – and so, it offers a multitude of benefits to customers. Being India’s first mobile-only platform for banking is not is only distinction – it has such features as:

• A high 7% savings account interest rate on the first Rupee deposited
  
  
• Functionality to convert the usual savings account to a zero balance account within minutes
  
  
• Functionality to convert e-wallet to savings account within 90 seconds
  
  
• Online account opening using only Aadhaar biometrics
  
  
• Complete security while transacting – OTP authentication is bypassed in favour of automated authentication
  
  
• 24/7 virtual assistant that understands voice commands and responds to thousands of banking queries in real time
  
  
• Instant cash transfer by waving the Visa debit card at payWave terminals
  
  
• Withdraw cash unlimited times per month from any bank’s ATM free of charge
  
  
• Get at least 10% cashback on online shopping at partner merchants

…and many more.

Since Digibank uses the customer’s Aadhaar biometric credentials to open the account, there is no need for the customer to approach the bank branch; or indeed, to have many bank branches at all. This is DBS Bank’s most important step towards end-to-end digital banking.

Are We Heading into a Year of Digital Economy?

In last few years, India has seen a tsunami in terms of payment services, led by eCommerce websites, wallet services, digital payments and FinTech start-ups. According to a report by The Economic Times, India accounted for 14% of the total online transactions in FY2015. The major reason for this spike was the growth of e-commerce websites in the country, with retail electronic clearing accounting for 71% of the overall cashless transactions.

The already rising sector witnessed a major boost in the form of demonetisation. As the government withdrew the Rs. 500 and Rs. 1000 notes as legal tender, which had accounted for 86.7% of the currency in circulation, people had no other option but to turn to digital banking and mobile wallets. 

There are many factors that indicate that 2017 might be the year when India finally becomes ready to adopt technology completely.

Better Adaptation after Demonetisation

It won’t be wrong to say that 2015 was the year of awareness for digital banking in India, 2016 witnessed better use of technology and application of innovative methods, and in 2017, since people have seen it all, they might be ready to use these services for extra convenience.

According to the data released by the Reserve Bank of India, mobile banking transactions jumped to Rs. 49,029 crores in December 2016, as compared to the previous month. An improvement of 82% was seen from the September to December period. This should clear any doubts regarding the adaptability of the Indian public to technology.

Higher Penetration of Smartphones

Smartphones are a very important tool in making mobile banking popular. The number of smartphone users is expected to reach 340.2 million by 2017 and India is expected to leave the United States behind in this regard. Better penetration means more people will have access to technology and knowledge. This will eventually increase cashless activities in the country.

Full Government Support

The dream of a cashless economy cannot be achieved without full government support and Prime Minister Narendra Modi has already made his intentions clear by urging people to use the digital mode of payment.

According to the National Federation of Urban Cooperative Banks and Credit Societies, about 2,13,000 farmers had activated mobile banking accounts by the last week of 2016 and about 81,000 farmers had started using e-wallets. This is a major milestone towards achieving the goal of cashless economy. As the word spreads, more of the rural population will begin to move to digital banking and 2017 looks like the year in which the digital platform will really take off.