Future Banking – Taking a Peek

Future Banking – Taking a Peek

The future of banking will be so much more than just banking. It will go beyond digital offerings such as real time payments, checking balances, paying bills and making mobile check deposits. The future banks will be data houses that will utilize a customer’s data to weave a financial and personal information avatar of each customer. This will enable banks to work beyond their traditional roles as financial advisors and keepers and become value providers rendering tailor-made solutions for all needs.  Let us explore a few key trends in the changing digital transaction banking landscape:

Future Banking – Taking a Peek

  • Financial suggestions & warnings using artificial intelligence: AI & ML will be able to deliver advanced warnings, recommendations, and advice to change course to avoid a difficult situation instead of providing post facto notifications. In many ways, the future of banks will be about providing solutions instead of selling.
  • Workplace developments at Banks & Institutes: As financial institutes embrace the various advantages of AI &ML over human limitations, they are discovering the competitive edge provided by automation urging them to rethink their talent-scape. An efficient future should probably see a successful integration of digital human workforce with the benefits of both. 
  • Integration of data & use of automation to combat CyFi: Newer Banks are always at risk of cyber risk and financial crime (CyFi) resulting from automation & digitization and massive growth in digital payment volumes within countries and internationally. With time, fraudsters have become more electronically sophisticated and impersonal too. Meanwhile, regulators continually revise rules to account for illegal trafficking and money laundering. A traditional siloed approach to these interconnected risks is becoming increasingly obsolete lending the need to rethink the operating model. As such, banks should utilize and integrate data from different functions to intensify customer identification and verification. This can be achieved using data, automation and analytics along with the power of Artificial intelligence and machine learning. 
  • Collaboration of banks with multiple sectors: In order to sink deeper into the customer’s lives, banks should partner with government, doctors, hospitals, merchants, retailers, telecom & other businesses, to deliver the best and most accurate transaction banking solutions with enhanced customer experience. 
  • Tapping the untapped segments: Banks can serve various segments such as the currently banked, underbanked, unbanked or unhappily-banked populations. 
  • Power to consumers: Increasing digitization will also lead to greater transparency, enabling the consumers to compare and choose from among several products & services in real-time. 
  • A single ecosystem to manage all government agencies: Today, governments of developed and developing economies are promoting financial inclusion and seeking for themselves a centralised database for citizens, including payments, transfers, personal data and more. The Public financial management system(PFMS) is one such platform by Mindgate – a leading online payment solutions provider in India – integrates with the banking ecosystem for fund management as well as enables a DBT (Direct Beneficiary Transfer) mechanism for faster and efficient disbursement of benefits. 

In this era of digital disruption, banks should speed up now to not only expand but retain their market share. They must embrace this revolution with the alliance of an efficient software provider such as Mindgate, which is more than equipped to handle the ongoing digital challenges.  It is now up to the banks to determine whether they want to be industry pioneers, swift followers, or just reactors to whatever the future holds!

 

Mobile Wallets – The New Way to Transact

Mobile Wallets – The New Way to Transact

Gone are the days when the core purpose of a wallet was to hold your cash and cards apart from stuff like a license or a random bill paper. With the advent of digital wallets, the physical wallet is now boiling down to being mainly a fashion accessory.

In case you are still wondering what a mobile wallet exactly is, a mobile wallet is a digital wallet on your mobile phone.  It simulates the regular wallet replacing the cash with digital money and physical cards with the card details. A Payment gateway is integrated with a mobile wallet to help a user load and send money to and from their wallet with the help of their credit or debit card or your digital bank account. To start using a digital wallet, you just have to register your account details in your e-wallet application which are securely stored and used for all transactions. So the next time you are at the grocery store or at the mall, instead of using your physical card to make purchases, you can simply scan a QR code at the counter with your phone camera, enter the amount and voila – your digital payment is done!

Mobile Wallets – The New Way to Transact

The Evolution of Mobile Wallets

Mobile wallets entered the market with basic offerings such as mobile recharge and bill payments and as a payment option on a few e-commerce portals. Today, mobile wallet solutions have evolved and can be used for various transactions such as to recharge mobile phone, pay utility bills, book a hotel, secure loans, buy movie tickets, travel on the metro or by a flight, and even buy & sell gold. Cheaper handsets and increasingly economical data plans have fuelled the growth of smartphone users in India leading to further usage of mobile wallets. To top it, digital wallets provide a simplified transaction experience while offering a host of other value-added services to the users. It is estimated that in the next 5 years, the Indian mobile wallet market is set to grow by 150% with transactions recording at some $4.4 billion.

Why use Mobile Payments?

Mobile payments can be used in a peer-to-peer transfer or for paying at a brick-and-mortar business. Mobile transfers are quick and allow you to forgo the hassle of dealing in cash and checks. The other reasons can be cited such as:

  • Saves Time: Contactless Mobile payments are by far the fastest way to pay, consuming only a few seconds. To compare, they’re slightly faster than swipe payments and much more so than the sluggish EMV chip payments. For businesses such as retailers that have checkout lines, such contactless payments enable the queue to move faster resulting in shorter pay time.
  • Provides Convenience: Urban Indians prefer carrying lesser cash, and with the ubiquity of mobile phones instant payments happen to be the most viable medium.
  • Secure: Mobile payments have multiple layers of dynamic encryption, making them an extremely secure way to pay. They’re far more secure than magstripe payments and just as secure as EMV chip card payments. In fact, if you’re using a mobile payments app with fingerprint ID, it’s arguably more secure than an EMV chip card payment.

Types of Mobile Wallets

Depending on the services offered, wallets are of different types:

  • Closed Wallet: Companies such as Bookmyshow, Ola and Amazon have frequent online purchases. As such, it is convenient and more intuitive for the users to pay if the payment wallet is present on the application itself. Such wallets are called Closed Wallets. The money stored in these wallets can only be used to transact with the companies who issue them.
  • Semi-Closed Wallet: Wallets like Paytm Wallet, Freecharge Wallet, Citrus, Oxygen, etc. are labelled as semi-closed wallets. These wallets, which require an RBI approval, can be used for both online and offline transactions which include buying goods and services, financial services, payment of fees, premiums, etc.
  • Open Wallet: These wallets can be used to perform all the transactions of semi-closed wallets plus withdraw cash at ATMs or banks and transfer funds. M-Pesa by Vodafone and ICICI bank, Pay Zapp by HDFC Bank, etc. are few open wallets in India.

Mindgate Mobile Payments Solutions – The Way Forward

Mobile payments have revolutionized the way businesses think about payments processing. We are moving toward a more secure, authenticated and faster way to process payment. Mindgate mobile wallet solutions help banks fulfil this need with the ability to engage even the unbanked customers to leverage the facility for financial transactions. The Mindgate prepaid solutions platform is built on open source technology framework and is optimized for high scale and volume. The platform enables to open up their service offerings for all participants across channels with incredibly quick TAT!

Digitalization of Payments in The Insurance Sector – What It Means for You

Digitalization of Payments in The Insurance Sector

The ripples of technology have touched every other industry or rather human lives on a whole. For those insurers ready to seize the moment, digitalization offers an enormous opportunity. The companies that stand to benefit the most are those who are eager to explore the facets of digital payment to reorganize all their operations, from underwriting to customer service and claims management. The impact on both revenues and costs can be huge, enough to gain an edge over your rivals by becoming more effective and efficient.

Digitalization of Payments in The Insurance Sector

The Changing Landscape

With ‘on-the-go insurance’ concepts such as travel insurance for buses & flights and property insurance for rental holiday homes becoming the norm, the insurance sector is being recognised more than just a ‘planned annual payment’. Paying by check is dating out fast and the average citizen today is more comfortable digitally transferring funds using apps like GooglePay, PayTm and other mobile banking solutions. An increasing number of urban users now expect their insurers to offer simple, transparent and flexible online payment solutions. An online website saves on the commission of an agent and balances that money into reducing the premium amount. For insurers, digitization helps in expanding its footprint and leveraging low-cost digital distribution channels for sales and service, which eventually deepens their market penetration.

Insurance – being one of the oldest industries, many companies are still holding on to their legacy systems. While some may be contemplating the benefits they could accrue out of digital transaction banking, they are not in a position to do so. The finance industry suffered from a similar set back a few years ago. Their indifference towards the fast-changing customer needs, resulted in them losing out to their competitors who were quick to ride the digital wave. The history could soon be rewritten for insurance providers who aren’t ready for change and are still using payment providers that can’t keep up with the changing landscape of insurance.

The Need to Embrace Digital Payment

Insurers need to stay with the times and embrace new technology. To begin your payment revolution, you must first acknowledge that there is a digital wave that can help you sail through the current times. Insurance companies with an eye for the future are therefore aiming at modernizing payments and collections process and improving the customer experience while enhancing customer engagement and the quality of the overall relationship with the company. The manual payment process can often be influenced by human error such as entering incorrect reference numbers or trying to find the relevant details of the customer who’s making the claim. Insurers who have adopted the digital method of instant payments cut down heavily from the labour and time of manual processing. Being able to just pay a claim out into a customer’s account is much easier and cost-effective.

Mindgate – Your Native Technology Partner

A corporate internet banking payment solution provider can develop this for you. Working with a payments solution provider such as Mindgate can make your payment systems digitally native and allow you to combine offerings while being more flexible. Mindgate can ensure the system will be processed via a range of different methods.

Innovating for A Fast and Secure Future of Payments

Fast and Secure Future of Payments

The payments industry has been one of the most active areas of innovation in the banking industry. Fintech Firms and payment solutions company are fast transforming the P2P(person to person) and B2B(business to business) payments sector. Cash & cheques, which were the norms back in the day, are now giving way to contactless and chip-based payments. There was a time when consumers were starved of options. Consumer expectations are drastically different now with the need for easy and instant payments. Today, the permeation of smart devices in the daily lives of people, coupled with the wave of innovation has created a vacuity to be filled by newer payment methods. With the noose being loosened on regulations, several new entrants in the payment sector are working towards providing faster and cheaper transactions, both within the country and across borders. The age-old firms providing cross-border payment services, such as Swift, Visa and MasterCard, are also under threat from new entrants and are working to improve the speed, transparency and predictability of cross-border payments to stave off further encroachments by Fintech.

Cheques and wire transfer have long been the preferred mode for domestic business-to-business(B2B) payments. However, over the last several years, credit card network giants  – Visa, MasterCard, American Express – have come up with solutions that let firms issue invoices using a digital payment platform where their creditors can pay electronically. Even though this has sped up the payments process, there are a few glitches that result in a delay. Swift and Interbank – the most commonly used cross border payment transfers – are still following the traditional technology which makes the whole process slow and rather expensive with inadequate tracking capabilities. These obstacles have been overcome by Fintech companies with the use of blockchain and virtual currencies which are faster. The use of distributed ledger technology allows companies to transfer funds faster, cheaper, and in a trackable manner. What takes 4-5 days for SWIFT could be accomplished within 2 days with the use of new payment platforms. These innovative payment products all offer faster speeds and enhanced user experience by reducing friction in the payment process.

Fast and Secure Future of Payments

Some Payment Innovations to Watch Out For

The Disappearance of Credit and Debit Cards: Even though cards seem to have a bleak existence in the future of payments, they will only apparently shun their plastic bodies to possess mobile phones and wearables and further inherit bodily implants. Further freeing customers from the burden of tangible payment are non-cash options like mobile payments, payment wallet, and even cryptocurrency. So in all, even though the physical experience of the card perishes, the network is here to stay.

  • Blockchain for Cross Border Payments: Blockchain is one of the major payment technologies having the potential to redefine and disrupt areas of international payments. For domestic payments though, blockchain lacks the speed and availability as compared to the existing networks.
  • Boom in Facial Recognition: With all of the advancements happening in the payments industry, there’s going to be a return to identification awareness. Associating facial recognition with payments methods or consumer IDs will allow safer and more secure payment transactions.
  • Impetus to Open Banking: Open banking APIs stimulate innovation and collaboration, leading to expanded banking ecosystems that could include more than just financial services to make a consumer’s lifestyle better.
  • AI-Based Predictive Banking: Digitalization has led to an accumulation of data enough to enhance customer experience while increasing accuracy. With such rich consumer data, financial institutions can perfectly know their clients and accordingly provide tailored advice as opposed to blind selling.

To grow and compete amid stiff competition, changing regulations and advancing technology, financial institutes must put innovation to the fore. Mindgate Payment solution has been at the forefront of the payments innovation right from its inception, an outlook which has made it a key global player in payments technology and transaction processing. From providing new generation payment gateway solutions to mobile-based collections and payments platforms like RTP & UPI payment. At Mindgate ideation labs, we conceptualize and co-create solutions leveraging technologies like Blockchain, Machine Learning (ML), Artificial Intelligence (AI), IoT, etc. application to the digital payment space. By following innovations with offerings, We are in a constant strive to address customer requirements through innovative solutions, to drive enhanced value and experience for our customers.