Creating a less-cash society

India is on the cusp of a digital revolution with a host of digital initiatives across industries, breaking barriers, creating new avenues and marketplace. Disruption is the name of game and no industry seems to be immune. Banking is one such industry which is undergoing a rapid change. Thanks to differentiated licensing by Reserve Bank of India, a disruptive measure opening gates to new players breaking traditions.

Path-breaking initiatives like India Stack, open API policy with the convergence of fintech, banks, government agencies are unleashing new-age banking and citizen services like never seen before. The advent of digital payments such as UPI, Aadhaar Pay by NPCI is witnessing the convergence of diversified customer segment into digital payments driving Digital India and Bharat towards less-cash society. The initiatives are poised to bring in large-scale efficiencies in terms of plugging leakages and optimisation of resources. A case in point being direct benefit transfer and national electronic toll collections which translated into huge cost savings, low pollution, bringing in social, economic and environmental benefits.

While the emergence of new players in banking means more competition, however, collaborative competition seems to be the way forward to achieve quick scale. A collaboration of internet giants and social networking players like Google, Facebook, WhatsApp with banks on digital payments front may well change the payments landscape making payments as simple as sending a message over a WhatsApp. Artificial intelligence and machine learning are the next waves, slated to change the face of banking and its approach towards customer service.

P N Vasudevan
MD, Equitas Bank