When the world decides to Bank on Digital Money we will Go Green and change the way we handle Money!
Will Banks change to Digtial money, in the last five decades I have see the face of Banking change globally and Digital Money will also be the future of Banking.
My first experience with Banks was when I operated a Children's Saving Account with a Bank in Bangalore. I could not see the bank employees face at the teller for many years, I was too short to reach the window. But my father persisted that I learn how to Bank and he taught me to get my bank statement (held in little note book called a passbook) manually updated from huge paper based ledgers. The bank used to give me a nice metal token when I had to withdraw money, the process of getting your money from your Bank those days did take a while, so I always carried a book with me. Most of this remains true even today for traditional brick and mortar banking in India.
My first experience with Banks was when I operated a Children's Saving Account with a Bank in Bangalore. I could not see the bank employees face at the teller for many years, I was too short to reach the window. But my father persisted that I learn how to Bank and he taught me to get my bank statement (held in little note book called a passbook) manually updated from huge paper based ledgers. The bank used to give me a nice metal token when I had to withdraw money, the process of getting your money from your Bank those days did take a while, so I always carried a book with me. Most of this remains true even today for traditional brick and mortar banking in India.
My first tryst with electronic banking was when I joined the local partner of Unisys in India and had to support Unisys Banking Solutions.
My first usage of electronic banking was at Adelaide, Australia (1990) where the Unisys solutions were used for retail and wholesale banking. I opened a bank account at Adelaide and closed my bank account in Sydney before I left Australia; this was not possible in India even in 1990.
Later I learnt how to use ATM's in a Building Society in UK (1991) where you could not only withdraw money from the ATM but also manage the money you had with the Bank. Today I do most of my banking on the Internet and Mobile Banking is already making its entry into India.
The global electronic banking experience motivated me to join the team setting up India's first automated Exchange targeted at SMB companies know as the OTCEI, we used dial up phones to put through stock transactions on an X.25 overlay network known as I-net, and our brokers could trade. We could reach pan India with technology, but unfortunately the Indian Banks were not geared for T+1 settlement cycle, we had to lean on Citibank India for a pan India electronic clearing network in 1992. I cite the OTCEI example for the skeptics who believe that technology cannot be harnessed in developing or under developed countries.
The global electronic banking experience motivated me to join the team setting up India's first automated Exchange targeted at SMB companies know as the OTCEI, we used dial up phones to put through stock transactions on an X.25 overlay network known as I-net, and our brokers could trade. We could reach pan India with technology, but unfortunately the Indian Banks were not geared for T+1 settlement cycle, we had to lean on Citibank India for a pan India electronic clearing network in 1992. I cite the OTCEI example for the skeptics who believe that technology cannot be harnessed in developing or under developed countries.
The photo above captures the sunrise of Banking on Digital Money,Cloud and Mobile,
but we see an eclipse starting at the top of the photo, because of resistance to change by Bankers.
but we see an eclipse starting at the top of the photo, because of resistance to change by Bankers.
With the advent of Digital Money the way we bank will change forever, imagine if Central Banks did not have to print money and the economics of printing and transporting cash changes.
Digital Money is a reality and has been successful in many countries but the cost of technology for transaction still remains an issue for poorer and developing countries.
If we can roll out the Banking applications on the Cloud, Temenos has already shown us how to do this, then banks in poorer countries could harness the cloud and deliver banking on Mobile devices to their customers.
Add a robust wireless network and we have Banking on Digital Money working on the Cloud with the mobile as the end point device!.
This would be the future,where we can discard our credit cards, bulky wallets with travelers cheques and cash and commercially transact from our mobile devices.
Imagine more than half of the population of the world which is un-banked can now handle money and understand finance; imagine the cultural changes this transition will bring about !
Imagine more than half of the population of the world which is un-banked can now handle money and understand finance; imagine the cultural changes this transition will bring about !
Information Security will continue to be a barrier, but Banks have continued Banking even with many security breaches in conventional banking. Security solutions will be found for Secure Banking on Digital Money on the Cloud and Mobile Device.
Many countries have demonstrated the success of Mobile Banking, but Digital Money will change the face of Banking as we know it today.
The potential of Digital Money banked on the Cloud & Mobile in tandem with a robust wireless network is Immense!
Many countries have demonstrated the success of Mobile Banking, but Digital Money will change the face of Banking as we know it today.
The potential of Digital Money banked on the Cloud & Mobile in tandem with a robust wireless network is Immense!
Note this blog is inspired by Mr. Krishna Kumar's article " Mobile Commerce Awaits a Rural Destiny in India."
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