The proceeding digitisation of financial services and money prompt opportunities to assemble more financial comprehensive and productive services and ennoble economic development. Our country should assimilate this juncture and effectuate policies that habilitate and embolden sound financial innovation and adoption. Technological advances are obfuscate the boundaries of both banks/FIs and financial sector. New infrastructures, providers, products, business models and market structures are shaping market outcomes in profound ways. Some fintech adaptation can ensure the banks’ profits:
A unique card:
The only one unique card should be introduced instead of Debit and Credit Card. This unique card works as Debit Card and Credit Card. At present banks print two types of cards i. e Debit and Credit. It reduces our card production cost. Cost reduction means revenue increase. Firstly, it can be provided to the banks’ employees and best investment clients on trial basis. This unique card works as overdraft where the own fund of the card holder is finished, then the fund limit set by bank will start like Credit Card. A reduced fee should be imposed instead of existing fees to widespread in this regard. A unique name can be provided like- Independence 2.0 unique card or Independence Card-2024.
Enabling SMS alter for both sender and receiver:
An SMS service for the both senders and receivers should be introduced. Both the sender and receiver get notification through SMS. A lump sum fee for this SMS service can be imposed. Here, both sender and receiver will be aware their money control which means both parties will be tension free whether the remitted amount deposited to respective into receiver accounts or sent from the desired clients not. It can reduce the money laundering and Hundi. No one can repudiate that they do not know where the amount is deposited into their account from.
Proper utilisation and easiness of local facilities:
All banks should launch Rapid Transit Pass (card) train ticket, air ticket, bus ticket, launch ticket and elevated express way ticket for the easiness of life style of the people. Banks should ordain these services their internet banking and apps so that the customers can easily operate. The bank who can launch it quickly can surely windfall. It attracts more customers. More account holder means more service taker, more service taker means more cost free deposit and ancillary income.
Inclusion for all:
All small amount of loan/investment/microfinance/SME upto Tk 1,00,000.00 to be disbursed through Mobile Financial Services by a minimal cost of fees. It can bolster the captivation of financial inclusion.
Modern tools for loan disbursement analysing:
Banks can simplify the investment procedures using apps. For example- Tala Mobile Loan Apps of Kenya which is capable to analyse at least one hundred characteristics of human within short time. It works as an analyser of neuro characteristics of human. Banks can develop such an apps in this regard. This innovation reduces cost and tardiness of the disbursement of investment.
This century will be very difficult for humanity due to many reasons especially for climate change. Climate change will create a big hamper for ecology and humanity. All banks along with environmentalists can pay more attention to food, seed production, green and carbon reduction investment. Banks can take technical know-how from, WB, ADB and IDsB in this regard.
Virtual barcode image or virtual face recognition or finger censoring on every ATM/CRM/Superstore screen so that the account holder can withdraw money scanning image through respective banks’ apps or eye contact or facial expression or finger touching.
Only small teller machine to be introduced for counting and detecting fake note instead of present counting machine.
Easily access to international payment systems:
PayPal , Payoneer, Google Pay, Venmo, Skrill, Amazon Pay and Ali Pay to be included into our existing Banks Apps and iBanking for the smooth payment and receipt for money.
CBDCS: A paradigm shift in banking ecosystem
The rise of Central Bank Digital Currencies (CBDCs) is poised to reshape the traditional banking structure. As credit and debit cards have largely replaced cash, CBDCs, essentially digital versions of national currencies, could relinquish physical cash obsolete. This transition would see individuals interacting directly with the central bank, bypassing commercial banks. While this shift offers greater control over monetary policy, concerns about privacy arise as digital currencies are easily traceable. It can be one of the alternatives of Crypto currency as there is no controlling body of crypto.
As of Q2 2022, 11 countries have already launched CBDCs, and major economies such as China, Sweden, South Africa, and Russia are actively piloting their programmes.
Payment supporting wearables: Wearables as the future payment tools
The convenience of payments is set to skyrocket with the integration of smart wearable devices. Approximately 60 per cent of financial organisations are expected to standardise wearables as a payment method by 2030. Smartwatches, smart glasses, bracelets, and rings are emerging as potential payment tools. With companies like Google embedding payment capabilities in smartwatches and startups developing rings with contactless payment options, physical cards and cash may see a drastic reduction in utilisation.
Introduction of self KYC:
Banks can introduce a unique KYC systems midst anyone can open an account from home sans going banks’ premises through banks’ App. This self KYC will be different from normal KYC and e- KYC. Person who provides accurate information which is independently and reliably checked will be rewarded for more and sufficient banking services for future. This process battens the financial inclusion and can downsize the operating cost.
Three ways authentication factor for high security:
At present banks cannibalise one and two way authentication factors for payment security. From now bank wield three ways authentication shield to protect more for security. During payment finalisation from internet banking or banks’ apps of the customers, banks can dispatch two different decipher code. One will be transmitted to the registered mobile number another will be shipped to registered email/WhatsApp/X/fb/telegram. When two codes will be rendered congruously, then final payment will be consummated. Although it takes time a little bit but it provide an altitudinous security to the both banks and customers.
The author is an Associate (ASA) CPA Australia and Certified Financial Consultant (CFC), IFC Inc Canada, currently working at Islami Bank Bangladesh PLC. He can be reached over email at [email protected]
