Telecom in Banking - A Revolution in 21st Century

Ajay Kumar

Risk Manager (New Delhi) HDFC Bank

Telecom will play big role in Banking. Question is what kind of medium will be winner and play pioneer role to create revolution in Banking in 21st century.it can be any telecom company, Facebook, Twitter or Whatsapp. if we compare medium whatsapp is playing big role comparative to any telecom Co. In 2009 whatsapp started and hit to telecom co. like airtel and vodaphone. SMS was contributing 10 to 15%  of Revenue but whatsapp enter in market and  hit to telecom co. revenue. whatsapp means free sms or free message, 30 billion message a day in whatsapp as comparative to all telecom co 20 billion meaasge a day. So, we can imagine future role of whatsapp in Banking. Nowadays seems smartphone operator will be 140 million in next 3 to 4 years. Cost of Smart phone is Approx $50 to $60.  we can imagine 600 million smartphone operator in 2020.

10% of E-Commerce Txn done by Mobile. we can see E-Payment segment will take splendid feature. Electronic Clearing of Cheques  is on par of paper clearing. RBI is also enhancing role of RTGS & NEFT. National Payment Corporation of India introduced IMPS it is 24x7 service to movement of digital cash. IMPS exceed the role and overcome to any other mode of txn. Micro ATM will play big role in Rural Area.  

we can see digital branches in future where all activity will be digitized. we can see digital KYC,digital signature, all things will be digital. Therefore RBI announced payment banks and small banks. Bank will move physical to digital and Cash to Cashless.

Challenges-  

• Can Govt ensure 24x7 facility of internet in across the India?
• what would be about Cyber Crime and Frauds?
• what about Telecom Infrastructure in Rural Areas?
• will People accept physical to digital?
• How many people have Internet Banking?
• what about cuts of jobs in Banking particularly in Retail Branches?