Invisible Banking - Banking that you don't have to think about

17 Mar 2022

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Dear Reader, 

By harnessing the vast amounts of data available, technology promises to simplify everything we do by understanding our needs and preferences, and offering insightful recommendations or reducing mundane tasks.

Imagine a day when Banking can become invisible- the banking you don’t have to think about. Remember a decade ago when customers would have to visit branch for nearly any banking activity and cash was the major mode of payment. The emergence of the internet and e[1]commerce platforms steadily broadened customers' horizons, allowing them to imagine scenarios in which most of their requirements can be met with a single touch of their mobile device.

Digital banking will evolve to become invisible banking because it will be embedded in other daily activities with the help of artificial intelligence, analytics, personal financial management software, internet of things, voice banking, banking as a service and fintech innovation.

Let's imagine you drive out of a parking lot and the car pays the parking fee. A customer could sign up for a goal, such as taking a vacation at the end of the year, and the bank would make automatic deductions from their checking account to a vacation account, based on their income and expenses. That change will not be overnight, but the seeds of it are already sprouting in a number of different banking technologies. Instead of presenting people with categorizations and hoping they form better habits because of it, the customer is helped to make changes. The overall idea is to stop customers from making bad decisions that are not in their financial self-interest. Bank of Baroda is already on its roadmap to making customer’s life easier by offering not just banking but beyond with its sub-brand bob World which offers digital banking services under 4 broad pillars, Save, Invest, Borrow and Shop. bob World Wave is another path breaking line of wearable products under the umbrella of bob World which serves as a banking of things payment device which facilitates tap-to-pay along with fitness benefits. To begin with, we have embedded payments on a smart watch and wish to scale-up to touch various other lifestyle products.

The digital banking world is clearly developing, which is why our Bank is responding to new issues by collaborating with partners to incorporate solutions into their business processes, where they will have the greatest impact. And what we're seeing now is merely the beginning for invisible banking. Emerging technologies like holographic and augmented reality interfaces will someday replace desktop, mobile, and tablet banking, making it even more intuitive and simple to use.

Highlights of #Issue 7 of FinTalk are:   

  • Home grown StartUp Stories: UrbanNaps, Need that quick powernap when at work?
  • India's digital economy to see exponential growth to $800bn by 2030:FM
  • UPI123Pay: RBI launches new UPI service for feature phones
  • Unicorn Startup Licious Raises $150 Million Funding lead by Amansa Capital
  • Bloomberg Collaborates with Google Cloud

With Regards,   

Akhil Handa   

Chief Digital Officer

Bank of Baroda   


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    The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

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Web 3.0 - The New Catch Word

The latest buzzword in the techie world has been that of NFT, Metaverse and of course, Web 3.0. So, what is Web 3.0? Is it the new internet revolution or is it a door to the decentralized future? For this, first let’s understand what Web 1.0 and 2.0 has been.

Buy Now, Pay Later – The New Finance Buzzword

Buy Now, Pay Later (BNPL) is a type of short-term financing that lets you pay in instalments by the end of the specified time period. There are quite a few online merchants and fintech companies in India offering BNPL as a convenient payment option and an excellent alternative to credit cards which includes ZestMoney, LazyPay, Simpl, Amazon Pay Later, Ola Money Postpaid, Paytm Postpaid, Flexmoney, EPayLater, Capital Float, etc. By offering no-cost EMIs and being accessible, and transparent, BNPL is all set to revolutionize the lending landscape, especially for young adults.

A new report released by financial technology company FIS says BNPL is India’s fastest-growing online payment method. By 2025, BNPL is expected to contribute 8.6% of e-commerce market value, up from just 3% in 2021.BNPL loans may be dispensed on pre-paid instruments, wallets or bank accounts, powering commerce across a large number of merchants who would have been acquired and enabled by banks and networks. The cost of actual delivery of credit cards into rural towns will be around Rs. 250-300, and also credit activation rate is 20% now, but in the case of BNPL, the cost is negligible.

Taking BNPL beyond the online channel could play an important role in its growth trajectory and opportunities for credit access which are particularly low for young people and new-to-credit customers, who struggle due to a lack of credit histories and track records for lenders to assess and manage risk. The physical card form factor allows customers to use the digital credit line across touch points.

Regulation is also driving collaborations between fintechs, traditional banks and NBFCs. The report of the RBI working group on digital lending, released in November 2021, recommended that BNPL financing should be treated as balance sheet lending. “Since these products do not meet the requirements of traditional credit facilities, a suitable notification may be issued by the Government of India in this regard,” the report said. As a result, new-age lenders are choosing to work with their tightly-regulated counterparts to grow the market.

Banks, NBFCs and card networks play a vital role in enabling fintechs to deliver BNPL solutions. A large number of fintechs have the ability to underwrite credit using AI/ML (artificial intelligence/machine learning) models. However, these loans may be based on capital from NBFC, banks or their own capital in some cases. With UPI credit, Buy Now Pay Later (BNPL), and branchless banking, the roadmap towards inclusion will be significantly accelerated.

With Regards,

Akhil Handa
Chief Digital Officer
Bank of Baroda

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