India is one example of how the landscape of global financial services has changed, due to digitization. With mobile banking coming to India, transactions have been given new meaning while financial inclusion especially through remittances has increased.
In India, there has existed a large proportion of the population that has always been traditionally unbanked. Factors such as geography, lack of proper documentation and illiteracy in finance matters have led to these exclusions. Nevertheless, this divide is being bridged now with mobile banking having become pervasive. Mobile banking and sending money to India offers a whole range of products starting from simple money transfers and ending in complex financial services. Therefore it has become a powerful instrument for enhancing financial inclusion with about 1 billion mobile connections and growing number of smartphones by which about 30% of Indian citizens are reached.
The Rise of Mobile Banking
The Indian government and its regulatory authorities have implemented several schemes that are intended to promote mobile banking as a way of ensuring more inclusive finance. The National Payments Corporation of India (NPCI), has introduced Unified Payments Interface (UPI), this is an innovative technology that allows money transfers via mobile devices across banks instantaneously. Millions of people find this platform revolutionary because it has eased transactions thereby making them friendly to all.
Improving Openness And Ease Of Use
Mobile banking in India has shown increased usage and easy access as its most important effects. This enables the clients to engage in many different financial transactions using their phones while at home, such as sending money, receiving salaries and purchasing airtime.
The Problems And The Possibilities
However, there are some gaps to be plugged for this to happen. One of these is digital literacy and cyber security. A lot of users especially in rural areas lack the skills to use mobile banking applications which makes them prone to fraud and cyber attacks. This is why digital literacy must be improved upon for long term growth of mobile banking while security measures should also be tightened.
Furthermore, innovation on mobile banking platforms by financial institutions for new financial products must continue. The attractiveness and utility of services may therefore increase through customizing them for specific needs associated with diverse user segments.
Conclusion
Mobile banking has indeed changed India’s financial landscape by making money transfers as well as other bank services affordable and all-inclusive. It has made possible what traditional banks could not; connecting the unbanked or underbanked people with formal banking system hence empowering millions of Indians. India’s future for mobile banking however looks bright despite the challenges ahead since there is a lot more it can do to enhance financial inclusion and accelerate economic growth.
