Why Indian Millennials Deserve Better Banking Experience

The rate of transformation in our world is unparalleled, and it leads to a multitude of outcomes. Additionally, people’s expectations are continuously evolving. One area that has been greatly affected by these changes is the banking industry. In India, the largest group of people, known as millennials, are looking for a banking experience that aligns with their tech-savvy and fast-paced lifestyles. As a generation that has grown up witnessing technological advancements, globalization, and rapid societal shifts, Indian millennials truly deserve a banking experience that caters to their specific needs and goals. Discoveries like ATMs, mobile banking, Internet banking, and social banking have introduced us to anytime, anywhere banking”. However, with the evolving needs of the country’s millennials, there is a lot more work that needs to be done to make it a truly world-class and more customer-centric experience.

In the coming years, customer behavior will shape India’s banking sector. Banks have to learn to cope with the new expenditures that come along with this while maintaining profitability via cost optimization. We have listed a few reasons why Indian millennials deserve a better banking experience:

Time-Consuming Procedures

The time-consuming nature of banking processes in India can be attributed to various factors. One of them is the bureaucratic documentation requirements that often involve a lot of paperwork and multiple proofs, leading to lengthy verification procedures. The reliance on manual procedures worsens the situation as they lack the efficiency of automation, resulting in unnecessary delays in data processing and transaction handling. Additionally, strict regulatory compliance, although crucial for financial transparency and security, can add extra layers of scrutiny, further prolonging transaction processing times. The limited integration and automation among banks also contribute to delays in interbank transfers and settlements. Moreover, certain transactions still require physical presence at branches, which, combined with inadequate staffing levels, can result in longer wait times for customers. While efforts are underway to transition to digital platforms, bridge the financial literacy gap, and improve infrastructure, all these factors collectively contribute to the extended timelines experienced by customers within the Indian banking system.

Banks are no longer institutions that are only meant to protect money. It has evolved into a fluid system that gives one complete control of their finances. These services could become more efficient by making better use of technology and providing them at your fingertips.

Non-Transparent Fees

New-age banking has made life a lot more convenient, but this convenience comes with a lot of costs in terms of hidden fees. Regular savings accounts require customers to maintain a minimum balance, and banks charge a penalty for non-maintenance of this amount. Major Indian banks charge their users for cash withdrawals over certain limits. Most Indian millennials have moved to electronic payments, but many of us are unaware of the costs that are attached to them. If you use NEFT or RTGS for transferring funds from one bank to another, Banks have established fees that they apply based on the amount being sent, and these charges can vary between different financial institutions.

There are usually two types of charges on cards.

• The banks charge a yearly fee for issuing the card.
• There are additional fees for the convenience of using certain services.
• If a cheque bounces, both the person receiving the payment and the person who wrote the cheque will be charged by their respective banks.
• Indian banks might have some extra charges that are not openly disclosed.
• It is expected that charges will increase gradually as banks focus more on generating income from sources other than interest.

Credit

Bank loan ads bombard borrowers with information on how effortless and fast their loan processes are, but the scenario isn’t as rosy as they present. Getting loans from banks remains a long-drawn-out procedure, and the sector hasn’t evolved enough to serve its borrower the way it should. Most loan applications don’t even pass the first test. They are rejected on criteria like income, poor bank verifications, proof documents, or age that do not satisfy the lender’s requirements. This can be avoided by ensuring the eligibility requirements are carefully read out before starting the loan procedure. Getting personal loans is very difficult because banks are unwilling to provide unsecured loans. When borrowers do get close to getting personal loans, high interest rates get in the way.

Traditional banking channels are notorious for their obsession with credit scores. If you have a lower score or no credit history, you’re in for a hard time. It’s a vicious cycle of building a credit score for a loan and needing a loan to build a good credit score. The worst issue with the credit system is the voluminous amount of documentation involved in the process. This is a tedious task for most borrowers, as it is a comprehensive process that requires a cautious assessment of several documents.

Save big on your every international money transfer!

Send money at the lowest exchange rates & ZERO convenience fees with moneyHOP.

Transfer Now

Digitization

A dramatic change has been seen in the banking industry over the years. A few years ago, customers had to walk into a branch to transfer funds, withdraw money, or seek information about products. Today, the majority of customers conduct basic financial transactions online, leading to the admiration of digital banking. Banks have started to realize how digital technology investments can benefit both customer acquisition and customer satisfaction while reducing overall costs for both the customers and the banks. Digitization has made onboarding easier for customers and employees, thus simplifying the onboarding process. It allows customers to access their accounts 24/7 without having to stand in queues. It has also decreased costs and streamlined the operational processes to deliver more value to customers. 

These advantages are just the tip of the iceberg. The infusion of emerging technologies like Artificial Intelligence (AI), Blockchain, immersive technologies, and Big Data holds the key to the future of banking. Increased Personalization through data collection and analysis with predictive intelligence and other learning algorithms that point to future consumer behavior. Automation in one-third of banking through smart technology implementation can reduce costs and eliminate errors to a large extent. Blockchain in banking systems spells the future of safe digital banking. Banks have started testing various use cases for blockchain to make digital banking more convenient and secure. Also. immersive technologies like augmented reality (AR) are the future of banks. It will help them provide personalized experiences for their customers. The Indian banking system has yet to adapt to these modern innovations. But once they do, there is no looking back to the traditional methods, which are inconvenient and less secure.

Poor Customer Service

Banks need to find innovative ways to attract customers and, most importantly, improve their customer service. Banks have already started using buzzwords such as ‘customer experience’ and‘ customer delight’, to attract customers; it’s time they do the same. Customers expect banking to be as seamless as booking a cab or ordering food. So, banks are trying hard to build attractive and innovative UI and UX for their mobile apps, but there is still a long way to go.

Social media offers a new way to build and maintain customer relationships, and Indian banks are quickly embracing this opportunity. At the same time, it’s crucial to improve the experience for customers who visit branches, as long lines and unaddressed needs can be frustrating. To achieve this, it’s important to find a balance between technological advancements and creating welcoming in-person interactions. Ultimately, the goal is to combine innovation, personalized service, and efficient operations in order to establish strong customer relationships that redefine banking as we know it.

Lack of Innovation In Back-End Systems

The lifeblood of a bank is its back-end operations. It determines how efficiently they function. The quantity of information generated and dealt with within the back-end systems is extensive and extremely sensitive. Therefore, it is crucial to enforce a more integrated back-end infrastructure to facilitate seamless banking. Moreover, the RBI has imposed stringent financial regulations that have further triggered an urgency among the banks to streamline their operations. While India’s RegTech and FinTech start-ups are excited about the opening of new opportunities, many banks find it extremely challenging to move away from their old legacy systems. These legacy systems have existed for several decades and are the core foundation upon which a bank’s operations rely. Indian banks have generated growth by adding new layers of features and launching new products. This unflinching focus on pushing new features to attract customers has caused banks to lose their grip on procedural rigor. Redesigning the back-end systems will shake up the very foundations of banking operations; therefore, most banks just avoid it by adding new layers of complexity to their existing complicated IT structure.

The reoriented focus on improving the old back-end systems will enable banks to integrate with RegTech and FinTech. The benefits of this will pass down to its customers, who want their bank to be robust, well-functioning, and safe, as well as their ability to send and receive money through an app.

Cyber Security

One of the major worries for any bank is cybersecurity. As per a report from “The Economic Times” for the first quarter of 2023, an average of 1,248 cyberattacks take place in India every week. In comparison to the previous year, there has been a notable 18% rise in cyberattacks during this year’s first quarter.

The proliferation of mobile banking and the Internet is posing new security challenges for banks in India and across the globe. Security measures exist in the form of 2 step authentication, EMV chip cards, and KYC. However, the security game needs to be upped with looming threats like app misuse, phishing fraud, magnetic strip duplication of cards, cyber intrusion, and so on. Hackers use the most innovative means to attract customers. So, the biggest challenge for banks is protecting themselves and their users from cyber fraud. There is a need for an enhanced cyber risk assessment framework to continuously protect against and detect evolving cyber threats.

In a world where we often hear about bank hacks and cybersecurity breaches, moneyHOP takes a firm stance on prioritizing the safety of your funds and personal information. We have implemented a range of strict security measures to protect your trust, backed by strong and resilient systems. At moneyHOP, we place great importance on your financial security and take meticulous steps to ensure it is safeguarded.

To keep sensitive customer information secure, such as passwords, KYC documents, and credit or debit card details, we use comprehensive end-to-end encryption. Our technical systems are designed to withstand potential threats, and we have a dedicated team in-house that rigorously verifies user details during the onboarding process. They conduct thorough checks and promptly address any suspicious activities or incomplete KYC verifications in collaboration with our trusted banking partners.

We go above and beyond by conducting extensive background screenings that include criminal records checks, assessments of politically exposed person (PEP) associations, and scrutiny of adverse media profiles. These measures help us prevent fraudulent activities. Additionally, we maintain tight control through vigilant due diligence practices, careful screening procedures for transactions, regular audits, and continuous system updates to meet the latest industry standards. All data at rest and communication between servers at moneyHOP are fully encrypted for added protection.

To ensure we meet the highest standards of compliance, we regularly undergo thorough audits known as “Periodic Information Security Audits.” These audits are conducted by respected and trusted firms that specialize in providing services related to information security compliance.

Conclusion

With HOPRemit by moneyHOP, you have the convenience of sending money worldwide with just a few simple steps, catering to various needs. With two-factor authentication and compliance with all KYC and anti-AML regulations, moneyHOP provides you with the best security solution for your international transactions. Whether it’s paying international university fees, covering living expenses, or fulfilling other purposes like supporting family, giving gifts, funding travel and accommodation, covering medical expenses, or even emigrating, we’ve got you covered. Leveraging our extensive expertise in foreign exchange, moneyHOP offers reliable transfers from India at the most competitive rates for seamless cross-border transactions. And with our efficient international transfers through moneyHOP and digital documentation support, we ensure a smooth start-to-finish experience in the digital realm.