Digital Revolution: One of the User Story

 Date: 20-Jan-2021

Digital Revolution: One of the User Story

From past few years, Financial system is going towards digital platform. Now most of the things are available on digital platform and with lot of security. One can open the bank account instantly in 5 - 10 min, in any bank in India, one can have instant education loan (Early salary platform), opening Demat and Trading account with Dealer and / or broker (Upstox, Zarodha, IIFL etc.) etc. 

The Financial Institutions have invested lot of funds and time to develop this platform, so that they can reach to the target audience with minimal human effort. The Client Onboarding Process has become very easy and cost effective as well. 

Recently I came across some sort of issues, which I believe the most of you have also faced and need remedies on the same. Client Onboarding Process taking very less time (From 1- 5 days to now 5- 10 min), but what about Client De-boarding Process, still it require lot of effort to make them easy and less cumbersome process. I would like to share you few of them, so that the readers get some idea on that and ask Financial Institution such question before having any relationship.

One of the User Story:

“Loan Disbursement take few min, whereas Pre-closure of Loan takes more that a day or two.”

One of my friend was in urgent need of funds and he used Bank Credit card to take out the loan on the Credit Card Limit. To take out the loan from the Limit assigned to the credit card, it was very simple process and do have robust security features. RM called the friend and ask for the Loan amount, duration and based on that, RM informed the EMI amount, process etc.

My friend told RM, please go ahead. Based on his confirmation, he has processed the Loan disbursement, within a 20 minutes. He was happy with the instant fund transfer facility under the Loan account. Usually it take 5 to 10 days for such kind of loan. 

After few month of loan repayment, My friend wanted to close the Loan account and approached the RM for the same. Here is the twist. 

RM said, "Sir you need to visit near by branch with the pre-closure of the Loan application and plus the pre-closure charges amount". My friend was bit confused and asked to RM "Is there any facility from where I can close the account online without visiting the branch". 

RM said "No sir, there is not such option available, you need to visit the Loan servicing branch near by your location in Mumbai". My friend has not accepted this process and told RM to connect with the higher management. The higher management told the same thing. My friend told them, I can do the fund transfer to the Loan account using NEFT/RTGS via net banking option, you do the rest processing and close the account. But Bank employee refused the option and said there is no such option available sir. This has more than one month to get only the information and did not got any solution to this.

Also one more point I came to know here is that, they do not provide the loan agreement copy to the customer, which contains the terms and condition of the Loan, which is the biggest drawback of this facility.

With the above incident, I believe you got the IDEA, where is the loop hole. In the above scenario, the FI or Bank should know that, this is not going to work out if you want in the market and serve the customer.

The Organization needs to come-up with the solution where they should handle such situation, so that client should not face any challenges and last minute surprises, while de-boarding. This is one example, and I am sure, you can get more such use cases in your life, while dealing in this Digital ear.

Few more points I would like to mention, they are,

World is the Market: Previously companies was struggling to tap certain market for selling or servicing the particular market, due to restriction and less understanding of the other market. Due to Digital Technology, things have been changed. Now World has become the market where company can have access to the required market based on their capabilities.

Acquiring customer: Because of this Digital Technologies, companies can acquire customer very quickly. Customer can also get influenced with such fast track fulfilment of the requirement and easily get attracted to this.

Exposure: Another point is the Exposure to the larger segment of the market, from both front. From Financial Institution side as well as from Customer side. FI can use this to build huge customer base, have good market share, built world class infrastructure to support the expansion etc. Whereas Customer have choices, opportunity cost benefits, easy availability of the required things, less cumbersome process and documents etc.

Human Touch: Also due to this Digital banking revolution, one thing is for sure, we are going to lose the personal touch and relationship building process, which as a Indian I believe is important.

 Transaction Limit on Saving account:

Purpose of Saving account: 

The purpose of the SA is to save the funds in the account which attract some interest rate and it will be given by the respective bank on the balance available on quarterly basis. So there will be Minimum balance requirement by most of the bank to mitigate the reserve requirement of Bank. If account holder does not follow the condition and breached any one of them, then Bank may apply service charges + TDS (mostly no bank will charge, but it is required) as and when required.

Bank also keep the cap on the followings,

·       Withdrawal and Deposits in the account,

·       Home branch,

·       Any other branch,

·       Own ATM,

·       Other ATM

·       Online Banking

Bank can associate some service charges based on these transaction, if limit is breached. Limit can be breached in the following terms,

1)      Transaction Limit for Day, Month etc.

2)      Transaction Amount for the Day, Month etc.

The transaction limit on the saving account has been capped to INR 200,000.00 by most banks in India. The transaction Limit (count) and Transaction amount (Cash) is depends on bank to bank and bank. Also note that, different methods of payments are available like NEFT, RTGS, IMPS, UPI etc. which again have different limit altogether.

Payment type transaction limit,

1)      NEFT- as low as INR 1 to max any amount

2)      RTGS- More than INR 2,00,000.00

3)      IMPS- Not more than INR 50,000.00

4)      UPI- Differ from bank to bank

Please contact the customer care of the branch and they inform on the withdrawal limit on your saving account.

Subh Dussehra

Subh Dussehra 

Situation 1:

Today is the very auspicious day for Hindus. We Hindu are celebrating VIJAYA Dashmi, a day on which Ravana was killed by Shree Ram. Since morning I have received lot of messages which goes like the followings,

1)      Happy Dussehra

      2)      Happy Dussehra with family name

      3)      Happy Dussehra with self photo etc

 

Here I feel instead of saying Happy, we can use our regional languages like,

1)      SUBH Dussehra

      2)      Dussehra ki subhkamnaye

      3)      Dussehra ki hardik SUBHEKSHA

As I feel HAPPY word do not convey the feeling of the event and one should use regional language to express the situations/ event. As using our regional language, seems to convey the feeling associated with the things and one can co-relate our self more easily.

Also why to put you snap and family name while sending the wishes to your friends. I don’t find this attitude a good approach to celebrate and inform your family or friends.

Situation 2:

Yesterday was birthday of my friend and he celebrated his birthday. He invited us on virtual celebration using videoconferencing. He lit the candle, we sung birthday song and then he un-lit the candle and cut the cake.

He born and bought up in a village in India. His mom is house wife and Dad is a farmer. In a village we used to go for playing cricket and other sports. During night, there were no light in the village and her mother used to burn the Diyas and Lamp to make sure, things are visible and can do the required work.

There are 2 situation over here, we Lit the candle during the cake cutting and Lit/ burn the Diya to create visibility during night or in Temple etc.. 

Lighting Diyas, Candle or Lamp is good and auspicious event in Hindu. We as Hindu, never un-lit the Diyas, candle, Lamp etc. as this will be treated as not good. We believe that, lightening the Diyas makes our surrounding visible and sign of creating LIFE.

We have also seen Bollywood movies, if a Diya got disturbed by the wind, the mother try to control the same using both the hands and make sure Diya should be lighten always. Also we have seen in the Temples, across the world, where Diyas were burn and after that we take AARTI and touch the flam. They never un-lit or extinguish the Diyas. Best scene was DEVDAS movie of SRK, where her lover was trying to save the Diya Flame from the wind.

We have adapted the western culture, which we can see during the cake cutting. I have adopted the fact and now not using the candle itself during the cake cutting and also advised my family and friend to not do this. Rest is your choice and belief.

We are living in educated society and we are capable to thinking and applying our knowledge to the situation.

Jai Shree Ram..

The Beggar- Stranger Theory (A life's learning theory)

 Disclaimer: The blog is not meant to hurt someone’s sentiment and its only for knowledge purpose.

The Beggar- Stranger Theory (A life's learning theory)

Last evening, when I was coming from office to Home in office car, I stopped at near by restaurant which is located at my home. After 3 hours of long drive, My-self and the Driver was very hungry. We need something to feed our self. There was Farsaan Shop who provide variety of snacks. We park the car and went there. We ordered Samosa and waiting for the delivery of the same.

 

When we are waiting for the delivery, I observed that, there was woman and child standing just near to the shop. Woman is forcing child to go and ask for some help (Money or food)- to the strangers. They are begging to the strangers for support. Woman was carrying one plastic box which she holds, so that strange helpers can put the money or food on that.

I saw boy approaching to me and I realized that the woman forced this boy to come this side. Boy approached me and asked for help with both hand open. I told woman to come nearby to the boy. She came with the same plastic box, which is Empty.

My though was, did anyone helped her or not through out the day? Why her box is empty?

I took my purse and kept some change in the plastic box. Now both Woman and Child, going to see the other strangers and asking for help. I observed that, when woman is approaching to the next stranger, she took all the money from the plastic box and kept the same in her shoulder carry bag. I did not realize, what happened. My driver told me she wants to portray the other stranger, that she does not have anything as of day, so that other side have some courtesy and support the Woman and child, its an emotional thing.

Suddenly one phrase comes in my mind, “The Beggar- Stranger Theory”, which given me thought to write this blog.

                                      

           So here is the idea. When someone wants to learn something from somewhere, keep your ego down, have an empty box (Mind) and keep collecting the knowledge from the stranger whenever possible. Do not stop learning and keep bagging for the same throughout your life, as this is the only area where you can have things like,

1)      Meeting multiple strangers

2)      Learning new things

3)      Keeping you Ego and attitude down

4)      Knowledge upgrade

                                 

           When you show your ego and attitude, people and friends tend to leave you and they do not come back with the same mind and thought. Also, when you think your knowledge is more than the other side, they stop discussing the things. Let the other party tell you what they have with open mind, then its your choice to keep it with you and destroy the same.

          Other side is also important, the Stranger side. They also support the individual who require knowledge upgrade and enhance their learning. 

Like her box become empty every time when she reaches to the new stranger, same way, when u want to learn  something from stranger, keep you mind empty which have non productive things, which blocks the learning possibility of individuals. So, let’s have good relation between Beggar and Stranger.

                                  

Noise Thinking- Don't be victim of Noise

Noise Thinking:

I came to this phrase today and though to write something about this. to narrate this will tell u a story, so that one can connect and appreciate the thought.

There was a village and in that no single doctor was there. One family sent his child city, to learn the join doctor program and become the doctor. The child become the doctor and came to the village. Their parents were very happy and fellow friends and villagers were feeling un-comfortable. As he is the only doctor in the village, his earning is good as compared to other people in the village.

Based on this situation, most of the villagers started encouraging and convincing their child to become the Doctor. Even their children are interested to become something else and not doctor. So most of the children went to city and started taking doctor program. They came back to the village and started practicing. As previously there was only one doctor in the village and his earning was good, not the doctor count has been increased and earning has been reduced for all the doctors in the village. There was no diversity in the village people as most of them are doctors and no other professions.

As the number of doctors has been increased in the village, which resulted in reduction of the earning. Villagers has used the NOISE Thinking and did not listen to their children. Now these doctors have to come out of the village and look for new places to do the practice.

Based on the above story I can drive that ”Follow your dream and not the Noise Thinking. People will tell different things and tell you to join this course or that course, that will benefits you, this will benefit you.. Listen to them as they are well wishers of you, but think multiple times before applying Noise thinking on you.”

Now a days we are getting lot of free education and from various resources. One need to find the course and program which suits your personality, thinking, future development etc. Do not directly jump into the course, because your friend has joined the same. Think, Think, Think, apply.

Don’t be victim of the “Noise Thinking”.

Attitude matters: A small story

Attitude matters, at least to me..

During my previous endeavors, there were few employee with whom I was working on daily basis. There was an incident happened which given me a good lesson of life.

The incident was the employee has put down his papers and serving notice period. Suddenly the employee has stopped working and not contributing/ completing his daily provided task.

I went to him and I ask, "What is the reason, you are so reluctant and not working now a days. This Behavior was seen after you put down the papers (Resignation)."

He promptly replied, "I have put down the papers and I do not have my liability towards the company".

I said, "As you are serving the notice period, you do have a liability towards the company and you need to focus on completing the provided task, rather enjoying the notice period. Will you be happy if company stop paying you for the notice period you are serving??".

He did not turn back.

Usually I found such kind of people who think that, after the resignation and serving the notice period, they should stop working and contributing. In this process they lose the professionalism and organization level thinking. They also loose the greater insights, that is they are serving the notice period and organization is paying the salary for that period.

Refusing to work is not the correct steps which he has taken. 

Instead I suggest the followings,

1)   Complete the provided task, as ask for more work or help your colleagues.

2)    Give proper training to your backups.

3)    Prepare the document, which tell your supervisor, what are your workings and deliverable, this help the other member to create proper backups.

4)    Don’t change the attitude and meaning at work place. Do remember, why you wanted this job and you joined the organization.

5)    Maintain good repo and bond with everyone, you may not know, who will help you in future.

6)    Share your knowledge with the team and don’t let team to know, you did not belongs to them, after resignation.

 

While hiring the candidate, I mostly look for the Attitude and less on the knowledge.

Attitude matters most to me when it comes to Personal life and professional life.

Keep and develop good attitude and lead the rat race in the life.

The Book "You can win" by Shiv Khera is great book to change the attitude and focus on productivity.

Who came first: Saver of Borrower (Version 0.2)

Version 0.2:

I was watching one show TMKUC and in that, they were talking about the investment. One statement I discovered during the show was “If you want to do business and want to take risk, use Bank's Money, do not use personal money”. 

I came across such situations where this statement looks true in nature. The FI market have lot of examples which proof the above statement.

If someone is taking money from Bank for his expenses/ investments, Business expansion, working capital loan etc they are using ultimately Investor’s money (Saver’s money). In traditional way, the Saver can save money using the Time deposits (Saving account, Fixed deposits, Recurring deposits etc.). this instrument is very much attractive and considered Safer in nature. As Saver’s believes that keeping money with Financial Institutions like BANK. The banking system have different players like the followings,

1.    Patpedhi (Local FI who provide the Deposit and Lending services)

2.    Co-operative Bank

3.    Public Sector Bank

4.    Private sector Bank

5.    Foreign Bank

6.    Central Bank

All these institutions accept the Deposits and provide Lending services. Some of the FI are regulated and governed by the central bank of the country. These institutions provide interest rates from as low as 4% to as high as 9%. These institutions operated based on the trust they have created in the Minds of the consumers and in the market they belong.

In recent times, it was observed that, Banks are getting failed to their regular business. Means they are unable to give back the Depositor’s money when demanded by the Saver’s. This happens because Bank are not able to recover the money from its borrowers. Also, it was found that the Saver’s are losing his or her corpus due to this as Banks can not able to fulfill the liquidity requirements.

My biggest worry is who’s interest should be first taken into consideration, Saver’s or Borrowers’ by all these FI. Who Comes First.

Can we have mechanism where the Saver’s can be able to identify where is his money and with whom it is going to be.

Can we have mechanism where Saver’s can able to approve or give consent to the FI, whom to loan the money which is deposited by the Saver’s in the FI.

Retail customer can not able to know where his funds/ money is getting utilized. HNI or Big institutions do have such option to choose where to loan money or not using FI platform or system. Maybe they don't know as well sometimes.

Risk is involved in all part of the Investments and borrowings. Only possible way with the investor is to minimize the risk using DIVERSIFICATION.

catch you in next volume..