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Category: Cashless Banking Solution

Digital Innovation in Banking: Is it just the beginning?

Innovations in technology are transforming the way banking and financial services are offered to customers. Financial institutions have been successful in innovating almost all areas of banking – wholesale and retail banking, payment systems, loan and fund management, mortgages and securities, compliance, risk management etc.

Computerization, which may be considered as a baby step to the banking revolution, has already been made available to 70% of the branches in banks. Central Vigilance Commission (CVC) has been taking measures to increase this percentage to 100% and has shared directives to banks for achieving this target.


Banking has been witnessing many digital transformations lately, in view of the shift in consumer demands. New technologies to offer credit and non-credit services to customers are being introduced in order to cope up with the cut-throat competition between public and private sector banks. The modern technology has helped speed up operations and add to the degree of sophistication. In other words, innovation has turned banks into financial supermarkets where all banking features are available at a single place.

But, the best of digital banking is yet to come

The digital banking journey so far has been about adding technology-enabled services that provide convenience to customers and gives them a valued banking experience. Some of the most popular examples we encounter everyday are mobile banking apps, digital wallets, debit/credit cards etc.

Here’s a story on how the trend of increased use of banking apps was exploited by one of the institutions in US to drive innovation…

Mobile banking and personal finance management apps are being received by many new consumers as the download rate soars to almost 60% (A.T. Kearney and Efma global retail banking study). Considering the rising stats, USAA (a banking and insurance provider based at USA) launched a feature in their mobile app that acts like a virtual mobile assistant and comprehends voice commands of users to perform actions – similar to Apple’s SIRI. Using this first-ever feature, customers could perform over 200 actions to bank on their smartphones. NOW, that’s true innovation – really!

Inventions like artificial intelligence, social investments and advisory through video/chat are still in a nascent stage, however they come with a promise to offer beyond the ‘thinkable’.

Banks have already started announcing their association with tech giants to explore the disruptive future in banking. Citigroup has joined hands with IBM’s Watson – a robot that got popularized on a quiz show named Jeopardy and is known to defeat humans in extending advisory to customers. Video advisory has commercialised hugely among the US, Benelux and Nordic audiences. Yet, it is far from benefitting Indian audience and the like.

Enhancements to the already existing banking products and services have just begun. The next generation will bring highly complex offerings that are based on insights accumulated from across channels like smartphones, apps, social networks and more.

According to a survey by A.T. Kearney and Efma global retail banking study, most of the banks believed they need improvement in their products and services through innovative value-added services.

innovative value-added services

An example of how Sesame serviced Thenhipalam Co-operative Rural Bank Limited after the announcement of demonetization is worth sharing. Sesame built an innovative banking solution called e-village to serve the rural population in Kerela, which was left unbanked after 500 and 1000 rupee denominations were scrapped overnight in late 2016. E-village served as an alternative to debit/credit cards, cash and m-wallets, which could transfer money to individuals/vendors with or without internet and smartphones, directly from the user’s bank accounts. Thenhipalam used this solution by the name of COOpaisa that propagated within no time and was used by a majority of the bank’s customers.

The Digital Banking readiness index denotes that India is still working on fundamentals. This means, there’s a BIG world yet to be discovered.

So far, the game of innovation in digital banking have been limited to small initiatives – mobile banking, internet banking etc. However, the banking industry will remodel itself within no time and will open larger opportunities to delight the customers. Innovations in omni-channel experience, vertical integration of platforms and processes, big data etc. will revolutionize banking. Of course, the customer expectations and competitive market will remain the driving force to all the developments in the journey of “digital innovation”.

Digital Payments: Here’s everything Banks must know!

2016 – A year that has engraved its name in the history of Indian Economy for note bandi, will be remembered for withdrawing ₹ 500 and ₹ 1000 currency notes. These currencies that constituted 86% of the total value were eliminated overnight on November 8, 2016 when PM Narendra Modi announced the digital and cashless India initiative.

As a result, cashless payments by the end of 2016 increased in tenfold. Indians, particularly from the urban lands, have been adopting various digital payment modes past demonetisation. While online banking and mobile banking have popularised, we also witness non-banking companies offering digital wallets like PayTM, Freecharge, and MobiKwik etc. hitting the opportunity.

Image Source – Trendhunter

With latest technologies available in the market, banks can themselves offer their customers a wide range of cashless banking solutions that are faster and safer. Check out these major reasons why banks need to have their own digital payment methods…

  1. No rural areas should be deprived of the cashless means

In an effort to become a cashless economy, the masses in rural India are often left back. Each day digital India movement is progressing, however, a maximum population still remains far from internet technology and smartphones. While PayTM and the like target urban population who is smartphone-friendly and internet-savvy, banks do bear a larger responsibility to reach-out to those in the not-so-developed areas.

Banks can help both the rural and urban people still go cashless when they don’t have access to internet and smartphones. Cashless banking solutions that work not only through scanning QR codes or online money transfer, but through SMS – this is how banks can empower their valued customers.

Here’s an inspiring video of how Thenhipalam Rural Co-operative Bank of Kerala helped customers and local vendors go cashless after demonetisation through COOPaisa – a one-of-a-kind app to buy, sell and exchange currency with or without smartphones and internet.

  1. No third parties involved

 All digital wallets and payment banks today work on the concept where users load their wallets using their Bank Accounts (i.e. through internet banking, mobile banking and credit/debit cards). This means, the user blocks a certain amount in these wallets and uses this amount only at places where it is eligible. In case the amount is insufficient to carry forward the transaction, the user has to reload his/her wallet. On the other hand if transactions aren’t carried out through the wallet, the amount lies unused, which otherwise could have been availed elsewhere.

Banks, when having their own digital payment modes, can serve their customers better. They eliminate the need to load wallets in third-party applications, saves blocking of money and offers convenience along with security to customers.

Image Source – Outlook India

Many of the Indian Banks are already using Core Banking Solutions in an effort to simplify their processes, maximize efficiency and ultimately delight the customers. Yet, empowering customers with seamless banking solutions in today’s dynamic payments landscape is also crucial. The rising trend in the global payments industry is indicative that the banks must continually provide new innovations to match up with the changing mandates and regulations in banking sector.

E-village – a premium offering by Sesame India, is a comprehensive cashless banking solution that aids banks in extending digital and cashless services to their customers. To explore the complete solution suite and to schedule a FREE demo, get in touch with us today!

The Best Innovation Award 2015 goes to Sesame, for MyBank Mobile App

Malappuram, Dec 31, 2015 – At the Innovation award event for recognizing the Innovations in the Co-operative Banking Sector, Sesame Software,  one of the  leaders  in core banking software solution and services for Co-operative, Service and Urban Banks, won the Innovation Award 2015 for the MyBank Mobile App.

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