Thursday, 24 November 2016

As India bids good bye to notes, let’s welcome Fintech

As Narendra Modi embraces cashless India with the recent ban on 500 and 1000 rupee notes, the payment banks and fintech startups are surely having a great Indian festival with the wallet deposits soaring high. This is surely one of the best times to promote cashless transactions and the perfect moment for the payment banks to grab the limelight yet again.

Time to bring back the attention to payment banks:

The payment bank dream went a bit haywire since these banks needed to invest 75 percent in Government securities and some were just not ready to accept this evolution of technology. With plastic money becoming one of the main sources of transaction, this concepts needs to buck up again. Moreover, with the license to issue ATM cards the payment banks fill in the gaps of liquidating the wallet balance any time for these mobile wallet companies.  When the main source of income for these payment banks come in the form of commission fees during third party transactions, the only way to sustain in this business model is by ensuring that the customers are doing enough cashless transactions. A customer will be convinced to use a payment bank or use a digital wallet to pay his regular cab fares, shopping bills, electricity bills and so on only if the process is smoother, easier and quicker than cash transactions. And, when we say an easier transaction process, we mean a smart user interface design.

How to ensure a better user experience for payment banks?

The core objective of payment banks is to push the concept of financial inclusion. When traditional banks can’t tap in the rural interiors, the payment banks can easily fill in these gaps with a deposit limit of 1 lakh rupees. So payment banks or mobile wallets need to be designed in a way such that it caters to the common Indian crowd. Let’s check out a few ways to make it work.

         Easy experience:
A farmer, who has no clue about online shopping sites and has just heard the name of whatsapp, needs to be introduced to this technology. The experience should be such that the functional elements are right in front of his eyes with an easy and simple navigation. The lesser the steps to complete a particular task, the easier it will be.

Content or Messaging:
The substance or the messaging has to be direct and pretty short. The key is to stick to a very simple language which is easily understandable and highlighted.

Quick navigation:
Internet connection is always an issue in India. The wallets need to be designed in a way such that it can work even when the internet connection is not that strong.  The user flow needs to be very quick and seamless to ensure the tasks are completed quickly.

         Local language:
When the app or wallet is targeted towards a large section of Indian crowd, local language is the trump card to win your users’ hearts. The apps should be in a way such that the users’ can relate with it in one go.

         Look and Feel:
The look and feel should be created in a manner such that it speaks the language of the local people.

Video and Images:
Text messaging can never be as eye-catching as videos or images. In fact, videos and images explain the concept in an easier way than text. After all pictures speak better than words.

Though it’s true it will take a long time for the payment banks to sip in the daily habits of the Indian citizens, we are not very far to this evolution with the government pushing it through various reforms and policies.

RBI has already granted license to 11 players. Among them four are in the telecom sectors. These telecom giants can easily tap in to a large number of users and when the target group includes every Indian citizen, the user experience has to very simple and direct.

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