Getting touchy with banking

It’s a tough task to find space on a smartphone screen, especially for apps, considering the choices available. Yet, banking apps are fast finding takers, who swear by the value these apps provide. Says Ludhiana based Sudeept Agarwal: “You are no longer tied to a computer, a nearby ATM, or a local branch for basic banking needs. You can practically do everything that a bank does through the app.” Unlike a plain vanilla message-based banking facility, app-based banking is a completely different experience. It is for this reason that nearly all Indian banks are working towards developing an app that offers a bouquet of services.

Says Deepak Sharma, executive vice-president and head-digital initiatives, Kotak Mahindra Bank: “Our app is designed to enable customers to make the most of their life on-the-go with unique features that integrate location service to show the nearest branch and ATM.” Banking apps ride on efficiency, effectiveness and contextual features that make personalised insights into one’s banking behaviour. The transactional benefit of apps is fast fading and other features are finding acceptance; a reason for enhanced features on Kotak Bank’s app.

Unique play

Distinctive features are important, for instance, HDFC Bank is the only bank at the moment that offers a mobile banking app in Hindi for Android phones. Similarly, Kotak Bank has ‘Message Money’ feature, through which you can send money to your friend or family by just entering their mobile number. You don’t have to register a beneficiary or their bank account number. Then there are users who are habituated to using such banklates ing features and swear by them. Rahul Yadav, a 28-year-old Ghaziabad-based lawyer, says: “Banking through one’s phone has done away with the need for net banking and features on a banking app offer facilities one cannot use through other remote channels.”

There is ‘Pockets’ from ICICI Bank and video banking available for IndusInd bank, which has taken the degree of customisation to a different level. What these apps are doing is effectively killing the need to visit a bank branch, by offering almost all banking facilities on hand-held devices. The result is a true 24x7 banking facility available right from making transactions to customer servicing via apps.

But security concerns loom when it comes to app-based banking, with several customers voicing their concerns over trust issues when using app-based banking over net banking. According to Sophos’ Security Threat Trends 2015 report, cybercriminals have increased their focus on mobile payment systems. However, bankers have been quick to put systems in place to ensure safety and security, especially for banking data on smartphone.

Says Nitin Chugh, head, digital banking, HDFC Bank: “Mobile banking apps offer the same level of security as net banking and login is possible only with customer ID and confidential PIN. All account information is 128-bit SSL protected. Plus, app users can call the customer service centre throughout the day for any query or information.”

What’s next?

Future banking services are going beyond simply enabling purchases, working on the basis of context— informing a customer of their balance, how well they are managing their cash and whether they can afford a desired purchase.

More than a transaction account, this new account platform stimulates engagement. For instance, app-based banking will help you analyse your transactions, which, in turn, will start suggesting what you should do with your money. So, be prepared to get alerts on investing or repaying debt every time you have more money in your account.

A preview of what’s to come is evident with banks offering reward points on virtual banking to increase engagement. This has benefits for the bank to cross-sell and, at the same time, provides customers with valuable insights. The real benefit of app-banking is in getting all your finances under one head, which effectively gives you more control over your money, and helps you save well, invest wisely and borrow smartly.

khushboo@outlookindia.com