When you use these credit cards correctly, you will receive numerous benefits. Here are some unique tips that can help you utilise these cards perfectly:

●    Set Out a Credit Limit

You can easily adjust the credit card limit effectively. You should request the provider of the best credit card in India to set up a limit. That way, you can settle all the payments right before the due date. Higher credit limits can lead to overspending, but low credit limits can hamper all crucial transactions.

That’s why you should set up a correct credit limit, as it will pay the credit card bills on time and will not have a negative impact on your credit score.

●    Regularly Check the Statements of the Credit Card

Once you go to the ‘’credit card apply online’option, it’s guaranteed that you will get your credit card on time. But remember, just like the bank statements, the credit cards, too, have statements, which you have to keep on checking regularly.

You must tally the statement that is billed to you against all those payment receipts that you obtain at the point of sale. Doing so will enable you to prioritise and manage your funds properly. You will also get the chance to avoid and identify all the charges that you might have missed out on before.

At times, you will come across the merchant’s name appearing in a different manner on these statements. Due to such reasons, you have to go through all the transactions effectively.

●    Utilise all the Reward Points

On certain occasions, you will find out that some of the best credit cards come with reward points once you start utilising them. The credit cards from IDFC FIRST Bank provide never-expiring and unlimited reward points, which you can use without much hassle. You can also easily redeem the rewards points when using these credit cards.

●    Carry Your Credit Cards When Travelling

When you’re planning to travel across the nation or want to visit a different country, it’s important to carry your credit card with you. At times, you might not get the chance to exchange currency, so using credit cards to make all purchases will surely help.

The credit cards from IDFC FIRST Bank will give you lounge access at the railway stations and the airports. Apart from that, you will get the opportunity to receive discounts on food in over 280 eateries across India.

Wrapping Up

Having a credit card can help you get cash immediately from any nearby ATM. These cards are ideal for situations when you need money for weddings, medicines or other things. You can also use credit cards when travelling, visiting restaurants, shopping and many more.

The post Tips for Using the Best Credit Card in India to Your Advantage appeared first on WTM - Technology, Business, Finance, Digital Marketing.

This blog will explain a zero-balance bank account, its features, and how it can benefit you as a student.

What Is a Zero-balance Account?

A zero-balance account is a savings account that does not require maintaining a minimum balance. Zero-balance accounts were introduced by the Reserve Bank of India (RBI) to provide banking services to low-income households and individuals who lack the resources to maintain a minimum balance in their bank accounts. These accounts typically have limited features and are designed to offer rudimentary banking services such as deposits, withdrawals, and fund transfers.

Features of Zero-balance Accounts

Before opening a new zero-balance account, you should know its main features.

Benefits of Zero-balance Accounts for Students

Zero-balance accounts offer several advantages for students, including:

Easy Account Opening: Students can easily open zero-balance accounts. You only need to provide identification documents. Some banks even allow online account opening via video-KYC.

No Charges: Zero-balance accounts do not impose maintenance fees or penalties for not maintaining a minimum balance. This makes them ideal for students who do not have a consistent source of income or have limited funds.

Access To Banking Services: Students with zero-balance accounts can avail of various banking services, including debit cards, online banking, mobile banking, and automated bill payments, to better manage their finances.

Build Credit History: Maintaining a zero-balance bank account can assist students in building their credit history, which is essential for future financial transactions such as obtaining a loan or credit card.

Conclusion

Zero-balance accounts offer students an affordable way to manage their finances with the added advantage of no minimum balance requirements or the risk of overdraft fees. Whether you are just starting college or getting ready to graduate, early financial planning and management can result in a lifetime of financial security.

So why wait? Open a zero-balance bank account today and pave the way for a bright financial future!

The post Zero Balance Bank Accounts for Students – What You Need to Know appeared first on WTM - Technology, Business, Finance, Digital Marketing.

So let’s move ahead in this article and look at what a business is and how to secure a business loan.

Understanding Business Loan

A financial instrument that can be used for both unforeseen and planned expenses is defined as a business loan. Business loans are borrowings made by companies to pay for expenses they may not be able to bear on their own within a certain period.

To pay for increasing costs or the cost of starting up, businesses need an adequate amount of cash. As a result, businesses are looking for business loans to finance their needs. Following the terms and conditions of the loan, a business loan is a sum of money that the company must repay. Before approaching a lender for a loan, business owners need to understand their startup financing options, how the loan works, and what the lender would like to know from the owner.

Borrowing money from a financial institution is available to business owners. Companies just getting started or needing funds to upgrade and develop new projects are provided with lines of credit by professional organisations, such as banks or credit unions. The business owner must present an application to be considered for a loan.

Steps To Follow For Securing A Business Loan

The various strategic steps to follow for securing a business loan are explained below;

1. Get Crystal Clear On Your Finances

Before you can take out a loan, lenders want to know everything about your finances. You need to know your revenues, expenses, and cash flow. You must also be ready to supply, for instance, your balance sheet and income statement. It’s the right time to get organised if you don’t understand your current financial situation or have all the necessary documentation. This will not only make the application for a loan easier, but it will also allow you to run your business more effectively.

2. Know your credit rating

Knowledge is power, and one of the most important factors in obtaining a business loan is your credit score. Your credit score is a reference number that banks use to evaluate your creditworthiness. The higher your credit rating, the better your chance of getting a loan with lower business loan interest rates.  Before you apply for a loan, if your credit rating is poor, it’s worth doing some work on its improvement. This can be done by ensuring that your bills are paid on time and that you use credit responsibly, keeping the debt ratio below a certain level.

3. Consider Different Types Of Loans

Several loans are available to businesses, so it’s important to research them and determine what works best for you. The best way to know what type of loan is most appropriate for your business is to discuss it with your accountant or financial advisor.

4. Ensure that the required documentation is provided 

You’ll have to obtain the necessary documentation once you find your lender. A business licence, financial statements, and tax returns can be included. You can ask your accountant for advice on the necessary documents and ensure that everything’s in order.

5. Find the right lender

There are no equal lenders in this world. Look for a lender that offers loans to small and medium-sized businesses in your industry. So you can be confident that they’re familiar with your business and have experience lending to companies like yours. Interest rates and terms should also be compared at the same time. Before making a decision, shopping around and getting multiple quotes is important.

6. Make a marketing case for your loan: 

You must make a strong case for why your company needs financing when you are ready to apply for credit. It will involve the preparation of a detailed business plan and loan proposal. The business objectives, financial situation, and how you intend to use this loan should be laid out in a Business Plan.

Conclusion

You’ll be in much better shape to obtain the business loan if you spend a lot of time preparing and following these steps. The key to taking your business to the next level and achieving your desired growth can be secured with proper funding. For loan amounts up to 30 lakhs, IIFL Securities offers business loans to sole proprietorship companies operating in the manufacturing, trading, and service sectors that have been in operation for at least two years, have a strong financial position, and have a track record of timely repayment.

The post Strategic Steps For Securing Business Loans appeared first on WTM - Technology, Business, Finance, Digital Marketing.

Asia has become the leading continent in the adoption of Central Bank Digital Currencies (CBDCs) today. Its large tech-savvy population and advancements in the use of digital infrastructure have laid the foundation for adopting the CBDC within the region. This article has exposed the different reasons why Asia appears to be obsessed with the use of CBDC today.

Meaning of Central Bank Digital Currency

Central Bank Digital Currency (CBDC) is a digital representation of traditional money, such as the national currency, but in a digital format. CBDC is intended to be used for digital transactions, making it an alternative to physical cash and existing electronic payment systems. It is backed by the central bank and holds the same legal status as physical currency.

The Digital Revolution in Asia today

Asia has been at the forefront of the digital revolution, with countries like China, South Korea, Singapore, and Japan leading the way in adopting and embracing cutting-edge technologies. The region’s tech-savvy population and robust digital infrastructure have laid the foundation for the exploration of CBDCs. Governments in Asia recognize the potential advantages of CBDCs, such as enhanced financial inclusion, reduced transaction costs, and increased financial stability.

Why is Asia obsessed with Central Bank Digital Currencies today?

Here are some specific reasons why Asia is so interested in CBDCs:

a) Economic and Financial Benefits

CBDCs offer numerous potential benefits for economies in Asia. By adopting digital currencies, governments can streamline financial transactions, reduce the dependence on cash, and create more efficient payment systems.

CBDCs also enable central banks to gain better control over monetary policy and improve the effectiveness of implementing measures to stimulate or restrain economic growth. Additionally, in countries with a large unbanked population, CBDCs can facilitate greater financial inclusion.

b) Competing with Cryptocurrencies

The proliferation of cryptocurrencies, such as Bitcoin and Ethereum, has sparked concerns among central banks regarding their influence on traditional monetary systems. As cryptocurrencies gain popularity in Asia, with people moving to buy Crypto CFDs, governments are considering CBDCs as a response to maintain control over monetary policy and mitigate potential risks posed by unregulated digital currencies.

c) China’s Role

China, in particular, has made significant strides in developing its digital currency known as the Digital Currency Electronic Payment (DCEP), also referred to as the Digital Yuan. The country’s strong push for a CBDC is driven by the desire to internationalize its currency and challenge the dominance of the US dollar in global trade and finance. The Digital Yuan pilot programs and testing phases have garnered considerable attention from other Asian countries, influencing their interest in CBDCs.

c) Technological Advancements

The rise of blockchain technology has played a pivotal role in the exploration of CBDCs in Asia. Blockchain provides a secure and transparent framework for digital transactions, making it an attractive technology for governments seeking to issue their digital currencies. Asian countries have been actively researching and testing various blockchain-based systems to ensure the efficiency and security of CBDC implementations.

d)  Regional Collaboration

Asia’s obsession with CBDCs has led to increased regional collaboration. Countries in the region are engaging in discussions and partnerships to explore interoperability and cross-border usage of CBDCs. Such collaborations have the potential to revolutionize cross-border trade and financial transactions within the region, fostering economic growth and cooperation.

Conclusion

The fascination with Central Bank Digital Currencies in Asia can be attributed to the region’s tech-savvy population, economic benefits, the need to compete with cryptocurrencies, China’s pioneering efforts, technological advancements, and regional collaboration. As Asia continues to explore and experiment with CBDCs, policymakers need to strike a delicate balance between harnessing the advantages of digital currencies and addressing potential risks associated with trading crypto CFDs on various trading platforms like Binance, Coinbase, and eToro trading platforms.

The post Is Asia obsessed with Central Bank Digital Currencies? appeared first on WTM - Technology, Business, Finance, Digital Marketing.

As the Indian banking industry embraces technology innovations, it is positioned to improve efficiency, accessibility, and customer-centricity, eventually contributing to the economy’s growth and development. Some of the common advancements are:

• Digital banking: The broad use of digital banking systems is one of the most significant improvements in the Indian banking sector. Banks today provide internet banking, mobile banking, and other digital platforms that enable consumers to conduct a wide variety of financial transactions from the convenience of their homes or offices.
• Authentication process: the use of biometric authentication and digital identity verification has improved security in the banking industry. Biometric technology such as fingerprints and iris scans are used to authenticate client identities, ensure transaction validity, and prevent unauthorised account access.
• AI and ML: the use of artificial intelligence (AI), machine learning (ML), and data analytics has enabled banks to gather insights, personalise services, and offer tailored financial solutions by leveraging consumer data. Chatbots powered by artificial intelligence have also been implemented to give real-time customer support and assistance.
• Blockchain technology: the use of blockchain technology has increased transparency, immutability, and efficiency in a variety of financial activities, including cross-border payments, trade financing, and identity verification.

Advancement in public banking sector

The Indian public banking sector has seen tremendous technology improvements, which have revolutionised the delivery of financial services. Here are some highlights of technological breakthroughs in the Indian public banking sector:

1. Core Banking Solutions (CBS): Public banks have deployed CBS, a centralised software platform that facilitates the smooth integration of numerous banking services across many branches, such as account management, deposits, loans, and transactions.
2. Online banking: Public banks have created user-friendly online banking portals that allow clients to access their accounts, transfer payments, pay bills, and use other financial services from the comfort of their own homes or offices.
3. Mobile banking: Public banks have created mobile banking software, allowing users to make financial operations on their cell phones, enabling quick accessibility and comfort. Like UCO Bank balance check number allows the customer to access the information without internet or physical visit.
4. Automated Teller Machines (ATMs): Public banks have installed a widespread network of cash machines, allowing users to withdraw cash, check balances and conduct basic banking tasks 24 hours a day, seven days a week.
5. Electronic fund transfer systems: Public banks have embraced electronic fund transfer systems like as NEFT (National Electronic Funds Transfer) and RTGS (Real-Time Gross Settlement), which allow for speedy, secure, and efficient financial transfers between accounts.
6. Aadhaar integration: Public banks have incorporated Aadhaar, India’s unique identity system, with their banking services, making it easier for clients to link their accounts, verify their identities, and take advantage of government subsidy programmes.
7. Online account opening: Public banks have begun to offer online account opening services, allowing consumers to create savings accounts, fixed deposits, and recurring deposits via digital platforms.
8. Data analytics: Public banks are using data analytics to obtain insights into client behaviour, creditworthiness, and risk profiles, allowing them to provide personalised financial solutions while mitigating risks.
9. Cybersecurity measures: To secure client data and prevent cyber threats, public banks have enhanced their cybersecurity systems, assuring the safety and secrecy of financial transactions.
10. Digital financial inclusion: Public banks are aggressively supporting the government’s Digital India plan by providing basic banking services via low-cost mobile phones and banking correspondents.

Advancement in private banking sector

Similarly, the private banking sector saw its own share of improvement, technically. Some of them are as follows:

1. Robotic Process Automation (RPA): Robotic Process Automation (RPA) is being utilised to automate repetitive operations and simplify processes, resulting in enhanced operational efficiency and reduced processing time.
2. Measures for Cybersecurity: Private banks are constantly investing in sophisticated cybersecurity systems and technology to secure consumer data and combat cyber-attacks.
3. Open Banking: Private banks are adopting open banking initiatives, which enable clients to securely exchange their financial data with third-party service providers, supporting innovation and the development of new financial products and services.
4. Data Analytics: Private banks are using data analytics to obtain insights into their customers’ behaviour, interests, and risk profiles, allowing them to provide personalised financial solutions and focused marketing efforts.
5. Mobile Banking: Mobile banking programmes have grown in popularity, allowing clients to access banking services on their cell phones, remotely.

Limitations of technology in the Indian banking system

While technology has made major advances in the Indian banking system, it still has certain limits. Here are some of the major technological restrictions in Indian banking:

• Digital divide: Despite increased technological adoption, India still has a huge digital gap, with a big percentage of the population lacking access to smartphones, internet connectivity, or digital literacy. This makes it difficult for them to completely utilise digital banking services.
• Security risks: As technology becomes more prevalent, there is an increased danger of cybersecurity risks such as hacking, phishing, and identity theft. To secure consumer data and maintain the integrity of digital transactions, banks must invest in comprehensive security measures.
• Technological literacy: Many banking clients, particularly the elderly and those from remote regions, may have little technology literacy. Navigating sophisticated digital banking platforms or comprehending the complexities of online transactions might be difficult for them.
• Cost of technology: For banks, implementing and maintaining sophisticated banking technology can be costly, which may result in higher service charges or fees for clients.
• Regulatory challenges: Rapid technological improvements frequently exceed regulatory frameworks, making it difficult for banks to comply with shifting rules while also ensuring data privacy and security.
• Limited human interaction: While digital banking offers convenience, it lacks the personal touch and human interaction that traditional banking methods provide. Some customers may prefer face-to-face interactions for complex financial transactions or personalized advice. Like Standard Chartered Bank customer care being online negates the need of human intervention.

Conclusion

In conclusion, technology has transformed the Indian banking business, providing several advantages and developments. It has improved the efficiency, convenience, and accessibility of financial services by allowing clients to do transactions at any time and from any location. Technology has expedited operations, eliminated paperwork, and hastened financial transactions, from online banking to smartphone applications and digital wallets.

However, along with its benefits, technology also has drawbacks and restrictions. Some of the issues that must be addressed are the digital divide, security threats, infrastructural limitations, and minimal human engagement. Banks must overcome the gap by increasing digital literacy, investing in effective cybersecurity measures, and upgrading infrastructure throughout the country.

The post Technological advancement in the Indian banking system appeared first on WTM - Technology, Business, Finance, Digital Marketing.

Understanding penalties for falling below average balance 

After completing the offline or online saving account opening process and formalities, you are typically required to maintain a Minimum Average Balance (MAB) each month. MABs can range from Rs 5,000 to Rs 100,000 per month, depending on the policies of the bank with whom you have opened the account. 

If your savings account balance falls below the minimum average balance set by the bank, you may be charged a penalty fee. Note that not all banks impose the same penalties for non-maintenance of MAB since they can have different monthly average requirements depending on their policies, where you live, and your account balance.

For example, urban areas usually have higher MABs than rural areas. Additionally, some banks may offer waivers on MABs for senior citizens or women.  

How is your monthly average balance determined?

To calculate the MAB, banks use the end-of-the-day closing balances of savings accounts on a given month and sum them together. This process requires adding each day’s closing balance and dividing it by the number of days in that month. 

Here is how MAB is calculated by banks: 

MAB = (Sum of all the end-of-day closing balances) / (Number of days in a month) 

Tips to manage your minimum average balance and avoid penalties 

• Ensure that your monthly deposits exceed any withdrawals from your account – this should help ensure your average balance remains above the required level. 

• Having multiple bank accounts makes it difficult to maintain the monthly average balance for each one. To simplify things, keep only one or two savings accounts so that you can manage the requirements easily.

• Additionally, review all statements regularly and communicate with your bank about any changes in circumstances that could affect your ability to meet minimum requirements.   

• Different banks have different policies regarding minimum balance requirements and associated fees/penalties. So be careful to understand what those specific details are before you create a bank account online or offline with them.

• Use automatic transfers, which allows you to transfer funds from one account to another on a regular basis without having to transfer them each time manually.  

• Open a bank account online with zero balance requirements so that you don’t have to worry about any additional fees or charges from the bank. Simply check for the documents required for opening a bank account and apply for one online. 

Closing thoughts

Now that you know what happens if your savings account balance falls below the monthly average requirement, be sure to act accordingly. Open a bank account online or offline only after checking the monthly average requirement details of the lender and evaluating your suitability. Also, to simplify the calculations, you can use a monthly average balance calculator online for free to ensure that you always meet the minimum required amount. 

The post What happens if your savings account balance falls below the monthly average requirement? appeared first on WTM - Technology, Business, Finance, Digital Marketing.

So, overall, credit score and CIR shows your credit rating in the potential eyes of a bank or financial institution. To elaborate more, your credit score and CIR report provide financial lenders and banks with a quick idea about how reliable you are in meeting your debt liabilities. Depending on your score, many institutions determine whether to accept your credit card or loan application. Financial institutions have a standard credit score need of 750 when assessing your credit application because it means that you have stayed a low-risk consumer who has demonstrated an excellent track record of repaying the loans timely. You stand the chance of getting credit approval with a score equaling 750 and above. In contrast, if you hold a low credit score, financial institutions are reluctant to endow you with any credit option and mostly turn down your credit card or loan application. 

Financial institutions already hold this info as they report each credit-linked transaction to the CIBIL bureau on a monthly basis. This info involves your past repayment record in reference to your credit cards and loans, overall available credit balance, prevailing loans, etc. All these are factored in when computing your credit score for the CIBIL bureau. The major parameter that makes your score is your past repayment record and your current repayment habit. Even a single delayed or missed repayment can negatively affect your score. So, ensure to maintain a good credit score, which you can do so by conducting credit score check on a periodic basis. For this, you just need to fetch your credit report from the concerned credit bureau on a periodic basis. Alternatively, you may also consider fetching your credit report from online lending platforms. 

What happens when you place an application for any loan?

As mentioned previously, a credit score check is conducted by financial institutions before providing you with the loan. Read on to know the stepwise process followed to place a credit application. 

∙       Firstly, you require filling out your loan application form. You must fetch the form online from your respective financial institution’s site or you can even physically approach the nearest bank branch. 

∙       After you have filled out the details, you require submitting the form to your bank’s loan department. 

∙       Now, the financial institution will connect with the CIBIL and check out your past financial records via CIR and CIBIL credit score. 

∙       A low score and poor past repayment record will instantly result in loan rejection. 

∙       A high credit score rating may qualify you for the credit application depending on the documents that you have submitted. 

∙       Non-eligibility results in application rejection.

∙       Post-eligibility is met, the financial institution, then decides to disburse the loan proceeds in your name. Note that in the case of a gold loan, lenders tend to go by the “gold rate today” approach to determine the proceeds that they can provide you as loan. For a personal loan, the proceeds approved depend on your credit score, repayment potential and income earned in a month. 

What do the financial institutions check while providing the loan?

To start with, a financial institution or bank would look through your credit report to determine the below-listed information. 

∙       Financial institution scans your account section present on your report to review if there are any written-off cases mentioned in the CIR. 

∙       Next, the financial institution will look to figure out any defaults in the past repayment. This info is present in the previous due field of the CIR (credit information report). 

∙       Every financial institution tends to have a tie-up with a specific corporate for extending the credit line to salary account holders. Thus, they study the company’s respective profiles too. The financial institution generally holds an approved list mentioning whom they could extend the credit. 

∙       The last review is linked with your existing EMIs. In the case your present loan EMI surpasses 50 per cent of your income, the chance of availing a loan is usually low. 

Maximum and minimum credit score required for personal loan approval – 

A personal loan is a credit availed for the purpose of personal usage. This is an unsecured credit option. A personal loan has a high-interest rate and can be utilised to fund personal interests like vacations, weddings, or home renovation. Unlike other kinds of loans, you can thoroughly use the funds in every aspect. There are zero restrictions on the consumption of the loan proceeds available on this loan as it provides total flexibility. 

Being an unsecured credit, there’s zero such security required to assure the credit risk with any asset. Credit lender or bank bears the whole risk in the scenario of personal loan. There’s zero fixed minimum credit score required to apply for the loan. The higher your credit score, the better your chances of getting loan application approval as the financial institution lends you the amount totally based on your high score. Typically, credit institutions and banks look for a credit score of 750 and above to further process your credit application. 

While it is possible to avail a credit with a credit score of below 750, you may witness harsher loan terms such as smaller loan amounts, higher rate of interest, shorter repayment periods and a greater number of documents. If you place an application with a low credit score, there’s a high chance that your application would be turned down. Always note that if you hold a lower score, you will pay a higher rate of interest and having a higher score would get you a lower rate of interest. So, below are some important things, you must note. 

∙       Loan amount is based on the agreed upon loan repayment tenure and your current income. 

∙       Credit profile is decided through your credit report.

∙       Mandatory documents are a must for gold loan and personal loan approval. These documents include – 

Latest credit information report and credit score

Income statement and bank statement

Past three years’ income tax return 

KYC documents like signature, identity, and address proof

The post ​How Does Credit Score Help with Loan Approval? appeared first on WTM - Technology, Business, Finance, Digital Marketing.

One of the most preferred mode of Digital banking is Internet banking through a  computer/ laptop/mobile phone or Mobile Banking applications. It is not limited to payments but extends to multiple banking operations. Digital Banking gives you the privilege of performing all traditional banking activities 24*7. This makes digital banking one of the important developments in Banking Industry. Few benefits that customers have benefited through Digital banking are summarized below:

• Quick Fund transfers

One of the most significant benefits of Digital Banking is the facility of quick funds transfer without the hassles of issuing a cheque or Demand Draft. Users can transfer funds to anyone, anytime through various options like IMPS, RTGS, NEFT, etc available in digital banking. 

• Convenience 

The speed and convenience at which the customers can perform financial transactions in the current scenario was unimaginable a decade or two ago. Users can save lot of time and energy by performing a banking transaction with few clicks anytime at the place of their convenience and comfort. This has reduced the burden of scheduling the branch visits/offices amidst the busy lifestyle.

• Instant Updates

Earlier, the customers had to rely on branch visits for status update of any financial or non  finaancial transaction. Through digital banking, one receives instant alerts through SMS and e-mail. 

• Automatic Payments

Paying bills can be a hectic task attimes. Failure to pay bills on due date can lead to suspension/termination of the services being availed. Earlier, people used to stand in long queues, carry bills and cash for bill payments. Digital banking has enabled the users to set automatic payments for utility bills like electricity, water, internet, etc so that they never have to worry about missing the due date and enjoy the uninterrupted services. Many banks facilitate the payments of bills through their mobile banking applications. For Instance, Karnataka Bank offers payment of utility bills/recharge their mobile phones etc through their “KBL- Mobile Plus” application.

• Additional Offers

While making an offline purchase, users have an opportunity to bargain with the merchants. However while shopping online, bargaining is not possible or at least, it cannot happen instantly like in the case of offline shopping. However, the brands have found an innovative way to provide discounts to the users. A lot of digital stores have flourished and encourage digital payments through secure gateways. Although the users cannot bargain, they can leverage various offers provided by banks to make online payment with their credit/debit card or UPI/ Internet banking payments. 

Apart from the obvious benefits of digital banking, here are some interesting facts too:

• Users can do digital banking without the internet, They can avail missed call banking facilities. This is done so that even people without Smartphones or Computer/laptop can also benefit from digital banking. 
• Secure transactions: In order to prevent unauthorized access, banks adopt multiple security measures to ensure the security of transactions and the user data. However, users must always be vigilant to not click on any suspicious links that may lead to fraudulent websites.
• As per a survey, In 2021, India accounted for the largest number of worldwide real-time transactions at 48B which is almost three times that of China which is at 18 billion and is next in line for the same.

Digital banking has made life comfortable for customers and Bank. Users can open an account online, deposit money, transfer funds and pay bills/recharge online. It is specifically helpful for those having a busy and dynamic lifestyle. Digital Banking gives users the privilege to perform major financial  activities without worrying of scheduling a branch visit. They can do it at their place of comfort either through a laptop, mobile phone etc. Users can perform Online transactions with caution, and by following the banks’ guidelines and avoid risk of theft, burglary/robbery etc that might occur while carrying physical cash. Therefore, users can switch to digital banking and enhance their banking experience from the place of their comfort.

The post Know The Importance Of Digital banking In Today’s World appeared first on WTM - Technology, Business, Finance, Digital Marketing.

BNPL is Changing

Many existing financial players, such as Paypal, have entered the PNBL market and PNBL doesn’t just concern retail anymore. New and emerging fintech companies are looking to apply the lending model of BNPL to other sectors, such as health care, travel, and rent (Nguyen, 2021). BNPL is entering into essential services and markets with the aim to alleviate financial burdens for people who are facing emergency healthcare payments or are unable to pay rent (The Financial Technology Report, 2021).

What is Open Banking?

Open banking is a banking practice that securely shares financial information, such as consumer banking transactions and other financial data, to third-party financial service providers (Estevez, 2020). Sharing data is done through the use of application programming interfaces (APIs) and only with the consent of customers (The Balance, 2020). Open banking is the driver behind both innovation and competition in the financial industry (Cahill, n.d.).

Why Does BNPL Use Open Banking?

BNPL is all about ensuring high purchase conversion rates, while also reducing the number of steps that customers need to take to get what they want. 

Open banking helps keep high conversion rates while gaining information about loan applicants – enabling lending decisions to be both fast and accurate. Additionally, open banking allows for quick credit checks to be performed by avoiding the need to connect to traditional credit bureaus.

Some BNPL Companies You Should Know About

Klarna is a Swedish fintech company that provides e-commerce payment solutions and was an early user of open banking. Their app allows people to shop online and pay later in four interest-free installments, or within 30 days. Klarna uses open banking to perform soft credit checks that inform lending decisions. 

In 2013, Klarna acquired a German open banking platform, Sofort, and expanded its network to 14 countries and 43,000 merchants (Cutler, 2013). Currently, they are working on their own open banking platform that currently supports 24 countries in Europe and offers account insights (Klarna, 2021). 

ViaBill is a Danish company that offers payment solutions and operates in Denmark, Norway, the USA, and Spain. Their app allows people to shop online and pay later in four interest-free installments. ViaBill uses open banking to conduct credit assessments in accordance with applicable rules and uses these assessments to make lending decisions. 

Butter is a British company that offers not just “buy now, pay later” for retail purchases but also “fly now, pay later” for airline payments. Their app allows customers to buy online and pay later over two, three, or four monthly payments. Butter uses open banking to perform soft credit checks that inform credit decisions.

What’s to Come?

Worldwide, local payment authorities are raising concerns about the current regulations regarding the BNPL industry. The practice tends not to fit the definition of traditional loans that require interest rate payments, resulting in special regulatory requirements (Research and Markets, 2021). Also, there have been concerns regarding consumer defaults and overspend as well as lack of transparency about the BNPL service conditions (Research and Markets, 2021). In Europe, the Commission has tackled this problem by updating the current consumer credit agreement to include BNPL and, in the UK, the financial conduct authority is to introduce new regulations this year (Research and Markets, 2021). The regulatory changes may affect how BNPL operates, but they are essential to ensure the safety of consumers and ethics practices of the companies.  

The post How “Buy, Now Pay Later” Uses Open Banking appeared first on WTM - Technology, Business, Finance, Digital Marketing.

What is Video KYC?

Video-KYC is an option to complete a full-in-person KYC process that requires banking customers to complete services like account openings and loan applications. Earlier, customers were required to provide documents in physical form to continue uninterrupted service. The newly authorized video-KYC promises to completely replace the old KYC system, with customers no longer being required to follow up with physical document verification.

How to do Video KYC?

Let us say a customer applies directly through a bank’s website for a savings account. Here is how they must go about it.

1. Start with filling the necessary contact details on the available online form.
2. Provide consent to the bank to retrieve Aadhaar details and enter the PAN number or conduct an e-PAN verification.
3. Officially valid documents such as PAN, driving license, proof of address/residence and bank statements can be uploaded on the bank site through PDF files or photos from their smartphone. Documents stored on Digi Locker facility of the Ministry of Electronics and Information Technology may also be shared.
4. Provide bank access to the geo-tagged location of the mobile phone.
5. After these steps are completed and submit the application. You will receive an SMS containing a link to a web page hosted by the bank. Some banks, therefore, automatically send you to the video call from the application webpage.
6. A bank officer or employee will then begin a conversation with you to verify your details based on the uploaded documents. They will put different randomized questions as per the internal policies of the banks.
7. The bank’s personnel will verify your photograph on documents submitted with a live picture taken during the video exercise. Banks also use facial recognition technology to video-check the customer with the photo on the papers.
8. The software will also take information from the documents that the agent may ask you to display physically over the video call.
9. When all the questions have been answered, the bank shall decide to approve or disapprove the proposal.

Benefits of Video-KYC

• Speed and convenience – The verification can be done with video KYC if you have time for a video call, as opposed to setting an appointment with the bank’s representative for a home visit.
• No additional cost – Video-KYC requires that you only have a smartphone and high-speed internet connection.
• Easy access to financial services – The bank’s representative can reach you with Video KYC even if you are in a remote location, as long as internet connectivity is ensured. It will ensure there is no disruption to your access to financial services.

Digital accounts used to be half-KYCs, which meant you had to visit the branch at least once to upgrade your savings account to a full-fledged one. However, the video KYC is complete with the new V-CIP process during account opening, allowing you to access the full suite of features right from the start. Reputable banks like Axis Bank provide you with the support of video KYC, a seamless way to open an account. They also offer cashback on all online purchases, Complimentary Times Prime membership & Air, Accident and Baggage Insurance, among other benefits.

The post Here’s How to Use Video KYC for Digital Savings Account appeared first on WTM - Technology, Business, Finance, Digital Marketing.