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Wednesday, April 27, 2016

A major breakthrough in the banking industry - Introducing "DBS DigiBank"

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16yrs ago when I opened my first bank account to receive my educational scholarship amount that I could use for my educational expenses, I had to walk into the branch with my mom who will deposit the initial amount in my new account and with my Uncle who could introduce me to the bank. The entire process took me about 2-3hrs and the paperwork that I had to go through was not a great pleasure. Then, we have to visit the bank branch and take the queue to deposit and withdraw money.

Ever since the introduction of internet banking, many of us would not have visited a bank. This is because the need for us to visit a bank has come down a lot and we can do all banking transactions at the click of our mouse. Banks have to spend a huge amount of money and resources to run a branch and there are security concerns as always. So, banks are now thinking of ideas that will reduce their capital to run the Bank.

DBS DigiBank Offering

On this outset, DBS Bank (headquartered in Singapore) has entered the Indian market with a bang by announcing its new digital bank offering "DigiBank". This is a paperless, signatureless and "branchless" offering from DBS. You can open your DigiBank account at any of the internet cafes. As there is no paperwork, the authentication is done using Aadhaar ID. This is a brave step and a major breakthrough in Indian banking industry as a player like DBS enters the Indian market with such offering.

India is a potential market for banking industry due to the size of the population and the banking services has not yet reached all households even in this era. The scene at supermarkets and small vendors in India will easily explain to you that people still carry a lot of cash than a ATM or a Credit Card. The unorganised workers sector in India still transacts in cash.

It is to be noted that the earlier, one of a major Indian private bank started offering this kind of service long back in 2008. We have to wait and see the reaction of the market for this digital offering.

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