As Fintech companies have flooded the scene and disrupted the financial industry, traditional banks have had to innovate in order to stay ahead of the pack. We bring to you the latest terms and innovations of the Banking Sector, through this presentation. Hope you find it useful.

1. Innovations in the Banking Sector

2. Source :unicornsystems
What’s next?
Evolution of
Communication
channels in the
banking sector

3. It is the digitization (or moving online) of all the traditional banking activities through which they were only available to customers
when physically inside of a bank branch. This includes activities like: Money Deposits, Withdrawals, and Transfers. Checking/Saving
Account
5. Merchant Payment gateways (MPG)
6. Loyalty program
7. Domestic Remittance
8. Cross Border payments
9. Speed Clearing and cheque
Truncation System (CTS-2010)
This is broadly divided to :
1. Internet Banking
i.IMPS
ii.NEFT
iii.RTGS
2. Electronic Clearing Services –Debit & Credit
3. Automated Teller Machines (ATMs)
4. Point of Sale (POS) and Point of Purchase
terminals
Digital Banking
(in the Payment
sector)

4. 1. Internet banking
It is a method of banking in which transactions are conducted electronically via the Internet. Internet Banking is a convenient way to do banking from the
comfort of your home or office, avoiding long ques and living a hassle free life with easy access.
i. IMPS Immediate Payment Service offers an
instant, 24*7 interbank electronic fund transfer service
capable of processing person to person, person to
account and person to merchant remittances via
mobile, internet and ATMs.
iii. RTGS Real Time Gross Settlement is an electronic form of funds
where transfer of funds is done for high value transactions. The beneficiary
account receives the funds transferred, on a real time basis
ii. NEFT National Electronic Funds Transfer is a nation-wide
payment system where individuals can electronically transfer funds
from any bank branch to any individual having an account with any
other bank branch
Timings
8am –6.30pm
(Working
Days)
Time Taken to
complete the
transaction
Same day
Transaction charges
INR 2.5 to INR 25.
Depending on the
value of transaction
Transaction Limit
INR 10 Lakhs
USP
Real time transfer of
the funds to the
beneficiary account
in a secure manner
USP
Appropriate for
higher valued
transactions
Transaction Limit
INR 2 Lakhs to
INR 10 Lakhs
Transaction charges
INR 25 to INR 50.
Depending on the
value of transaction
Time Taken to
complete the
transaction
Real time
Timings
8am – 4.30pm
(Working days)
Timings
24*7
Time Taken to
complete the
transaction
Instant
Transaction charges
INR 5 to INR 15.
Depending on the
value of transaction
Transaction
Limit
INR 2 Lakhs per
day
USP
Instant transfer
Digital Banking
(in the Payment
sector)

5. 2. Electronic Clearing Services –Debit & Credit
The most common types of cards are Debit cards and Credit cards. These cards are either EMV
chip based or non-chip based cards.
3. Automated Teller Machines (ATMs)
Computerized machine that permits bank customers to gain access to their accounts with a
magnetically encoded plastic card and a pin number. It enables the customers to withdraw cash,
make deposits, pay bills, obtain bank statements, effect cash transfers
4. Point of Sale (POS)
A point of sale (POS) is the place where sales are made. On a macro level, a POS may be a mall, a
market or a city. On a micro level, retailers consider a POS to be the area where a customer
completes a transaction, such as a checkout counter. It is also known as a point of purchase.
5. Merchant Payment Gateways(MPG)
A payment gateway is a merchant service provided by an e-commerce application service provider
that authorizes credit card or direct payments processing for e-businesses, online retailers, bricks
and clicks, or traditional brick and mortar
Digital Banking
(in the Payment
sector)

6. 6. Loyalty Programme
Loyalty programme offers reward points and other incentives that translate into discounts and other freebies
creates loyalty amongst the customers. Loyalty programme helps Banks to shape better relationships with their
customers
7. Domestic Remittance
YES BANK is one of the pioneer banks which started domestic money transfer under its flagship program YES
Money. Customers can remit to any bank account in any areas across the country. Customers only need to tell the
remitting bank the payee's account name, passbook number or debit card number and name of the opening bank.
8. Cross Border Payments
Most innovation for cross-border mass payouts has been at the margin, via repurposed Traditional Banking
system or card-based solutions. Ewallets, , distributed ledgers, crypto currencies , micro payments and inter Bank
transfers are finding its way in cross border payments
9. Speed Clearing and cheque Truncation System
(CTS-2010)
It is a process that is being adopted to reduce the scope of frauds as the new standardized cheques will have
number of security features. The system will also help in speed clearance of cheques and thus customers will be
able to get faster credit to their accounts.
Digital Banking
(in the Payment
sector)

7. It is a service that has emerged in the banking industry and can provide customers with a great deal of convenience. There are many different types of
video banking systems that are currently being used by banks across the world they are :
1. At the Branch : Banks sets up video monitors at drive-through
locations so that the tellers can speak to the customers, Then
customers will be able to drive up to a station and perform various bank
services.
2. At alternate locations: This allows bank customers to gain access to
bank services without actually having to visit a physical bank.
Customers can then utilize the video system to talk to a live bank
employee over the video feed.
3. Extra Hours: Individuals can gain access to banking services at hours
that a bank would not normally be open. Where,a bank could have one or
two employees available 24 hours a day
4. Services: One can scan an image of a cheque and have it deposited
into the account, make cash withdrawals at most video banking
centers. Many video banking centers also allow you to make transfers
from one account to another
Video Banking

8. The application of typical elements of game playing (e.g. point scoring, competition with others, rules of play) to other areas of activity, typically as an
online marketing technique to encourage engagement with a product or service.
1. ICICI Bank: ICICI bank into the field of social gamification was
through ‘iWish’ which was a flexi RD product with no mandate to deposit
fixed amounts at regular intervals and interest rates comparable to fixed
deposits.
Examples of Enhanced Engagement:
2. Axis Bank: One needs to download the app called Ping Pay, to
send money one has to select a contact and mention the amount to be
transferred. The receiver will get a link, after which she/he has to download
the app and enter the bank account details. (It is not mandatory for a
receiver to be an Axis Bank customer )
Enhanced
Engagement

9. A marketing concept, where a bank and its customer involve in designing /creating products that is best suited/adds value to the latter and enhances
customer experience
Few examples are:
1. DBS - DigiBank: Digibank is India’s first paperless, signature less & branchless bank. One can open a digibank e-wallet in 90 seconds flat
to make bill payments
•IDFC - Unlimited FREE Cash withdrawals at any Bank ATM: IDFC does not charge any withdrawal charges while
withdrawing cash from any ATMs
1.ICICI -Touch Banking: These branches of ICICI Banks are open 365 days a year and operates 24*7. The Touch Banking branch offers
customers to do real time cash deposit into a bank account, withdraw cash, deposit cheque, transfer funds, open fixed deposit, generate bank
statement and many more transactions. Customers can also transact and also seek account related information through Internet banking and Video
conference facility round-the-clock
2.DCB- Biometric authentication: The Bank noticed that on several occasions customers either forgot to carry their cards or they
do not remember their identification numbers or had damaged cards, or many of them failed to receive their cards or PIN details due to the locations
that they were in. All this led to customer inconvenience. That’s when the Bank decided to use Aadhaar card to access the ATM to make transactions
card less and PIN less with customers biometric
New age Digital
Banking

10. 5. Selfie Banking: Today Banking is one of the emerging industry in India, where today account opening happens within few minutes
and few clicks. One of the feature is Selfie Banking where one can open a savings account downloading an app with a selfie.
i. Union Bank Selfie Account
One needs to install the Union Selfie & M passbook app from the
play store or appstore, and enter the mobile number. The app
prompts one to select their nearest branch, Income Range and their
e-mail address and submit. One will receive an One Time Password
(OTP) on the mobile for verification. Now, One can take a ’Selfie’,
take a snap of the front side of the Aadhaar card and the quick
response code (Black Rectangular box) available on the Aadhaar
card. Account is created successfully.
ii. Federal Bank Selfie Account
Federal Bank introduces Selfie, ‘Selfie’, is a mobile based
account opening facility through its app called ‘Fedbook ‘, This
app facilitates customers to open accounts on their own by
using their Aadhaar and PAN Card. At present it is offered to
resident individuals using an Android or Apple smart phone.
New age Digital
Banking

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