Mobile banking effect: India will be largest cashless economy

With the traditional banking system undergoing a major transformation owing to the advent of innovative technologies, the smart phones would play the role of banks while physical banks and currency would be a thing of the past in coming years, said COO, Clutch Group, Bengaluru, Priti Parekh.

Speaking at the two-day fifth International Conference on ‘Emerging Trends in Finance, Accounting and Banking’ with regard to India as the next economic miracle, organised by the SDMIMD College at its premises on Friday, Priti pointed that mobile banking had already swept through the banking industry with an array of Apps turning mobiles into a fully functional banks.

“India has already leapfrogged from the desktop to the mobile internet market. With already one billion mobile users in India, the JAM trinity – Jan Dhan Yojana, Adhaar and Mobile Number – is expected to increase the number of mobile users significantly by 2020. The number of smart phone users will cross the 600 million-mark and one touch authentication on smart phones will enable all banking activities, replacing debit and credit cards,” Priti pointed, adding, “Even today, 40 percent of eCommerce transactions happen over smart phones.”

The future banking is expected be less time consuming with transaction being carried out with a blink of an eye. “Transactions and purchase would be done within 10 seconds and every bank would strive towards achieving this 10 second phenomenon,” Priti said.

With all the banks focusing on digital banking, Priti said, India will be the largest cashless economy as it was evident by increasing in the digital currency and online transactions. “Unified Payment Interface (UPI) from NPCI will digitise all person-to-merchant (P2M) transactions. UPI’s interoperability between payment wallets makes each phone an ATM,” she said.

Speaking on the ever-growing trend of mobile wallets that had a major share in storing digital currency, Priti said, the volume of transactions through mobile wallets was equal to that of debit and credit card transactions.

The two-day conference has technical sessions on ‘Innovation and Obstacles (including finance obstacles), ‘Shifting Paradigms in Global Trade – Are we gearing up ourselves to the Emerging Challenges?’ Two more technical sessions will be held at the college on ‘Necessity and Challenges in Implementing Basel II/III Solutions to Banking Industry and ‘Rational Market Hypothesis and the Behavioural Challenge, tomorrow.

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