When we mention digital banking today, what comes to mind are mobile apps and internet banking facility provided by our bankers. DBS, a bank from Singapore, changed that by launching Digibank. It applies the term to banking from end to end.
I read about digibank first on Twitter via ads while a tweet from @sengupta made me want to try it out:
Finally 1 bank that’s nailed the entire app only banking experience- Digibank by DBS. An MVP that makes sense with an experience that works.
— Aditya Sengupta (@Sengupta) May 10, 2016
It kept the whole concept vague when it launched. When you download their app, you realise the badassity of the idea. When you first download their app, you get to use it as a wallet, like you would use Paytm’s offering. It then offers you a steep incentive to upgrade this into an account by paying a steep 7% interest when you convert the wallet into an account. Then you can walk in to any Café Coffee Day coffee shop and confirm your identity via a biometric authentication process through the Aadhar database.
The first hindrance it removes is the tedious task of visiting a bank with a form filled up online and KYC documents. Here you just walk in to a Café Coffee Day outlet that is open from 11 AM to 11 PM with your mobile phone that has a code on it! The bank also saves tremendously on manpower costs. For the customer, visiting a less formal atmosphere like a coffee shop is less of a hassle than visiting a bank branch during business hours. He/she also probably saves a holiday.
The second hindrance it removes is all the paperwork. eAadhar enables authentication of a customer without him having to take any documents at all. With the data that the customer fed into the app and by taking required permissions, the bank can probably just download the information from the eAadhar platform and the Income Tax website. Imagine the paper that can be saved by saving the paper used for the accounting opening form and the photocopies you had to get for a traditional bank.
The third hindrance it removes is the use of a smart assistance to remove waiting for banks to open to get your problems resolved. If the inbuilt smart assistant does not resolve your problem, it gets transferred to a real person. Technology and AI can actually handle most issues that customers approach a bank with.
That said, being a new thing, there will be teething issues and problems that need to be resolved. My authentication did not work. I don’t know what was the problem. But I was happy that when I wanted to close my account, they did it quite quickly and then sent me an email once that was done.
However, this is how I hope banking will be done in the future. From your device and from your homes.