It will not be surprising if new branches of banks do not open in the coming time. Because the government has moved in this direction. In the coming time, all the functioning of the bank can be done on the app and website. The Reserve Bank of India (RBI) can issue virtual licenses for this type of banking.
A similar recommendation has been made by the Inter-Ministerial Financial Technology Committee (Fin-tech). The FinTech Steering Committee was established in March 2018 under the chairmanship of the Department of Economic Affairs Secretary, according to the Ministry of Finance.The committee recommended that legal frameworks should be established at the earliest to protect consumers, keeping in mind the expansion of fintech and digital services. The committee is also in favor of implementing the virtual banking system.
There will be no need to open new branches of banks The committee's recommendation states that the Financial Services Department and RBI are examining costs and benefits related to the suitability of virtual banking systems in the Indian context, allowing for virtual banking, and are prepared for a possible future scenario in which banks do not need to set up branches. Through these apps or websites that provide every type of retail banking service ranging from extending loan savings accounts, issuing cards and providing payment services. Banking experts say that if this recommendation of the committee is implemented, there will be no need to open new branches of banks. If India does not adopt fintech in time, the cost of banking services will increase.
Currently 400 fintech companies in India According to the Reserve Bank of India (RBI) report, the fintech industry grew by 282 % between 2013-14 and by 2015 the fintech business had grown to $ 450 million. Currently there are 400 fintech companies operating in India. By the year 2020, their business is projected to grow by 170 %. NASSCOM estimates India's fintech software market year Will be $ 2.4 billion by 2020.
Robotic assistants will help customers in banking transactions According to the RBI report, the banking system will mainly use three things under fintech. Artificial Intelligence, Block Chains and Internet of Things. In the coming times under AI, banks will have robotic assistants for customer service and support. Robotic assistants will be used mainly in large branches of banks which attract a large number of customers.
Such robotic assistants in banking transactions can support the customers. The use of AI would make it much easier for the bank to handle its clients, according to ministry sources, and this will reduce costs. Banking will not be the only saving or utility activity in the coming years, according to sources in the Ministry of Finance.
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