‘Online and mobile access to the banking services’ this is the basic concept behind paperless banking for most of us. But are you sure that Paperless Banking is all about this only? Let’s understand this in a better way.
Paperless Banking is a step taken to make the banking transactions easier for the people by the use of electronic medium and avoiding the use of paper. Paperwork was one of the basic thing involved in the banking services which took much of the customer’s time and effort. Paperless system is eliminating this hassles and made it easier for the customers.
Technology is the major driving factor which is helping banks to achieve the complete paperless banking system. It made the banking process more productive and environment friendly.
Features Which Made Paperless Banking Easier
- Mobile Banking- Availability of e-passbook. Various banks apps are available where you can handle your account with your smart phones.
- Internet Banking – No requirement to go to bank for transferring money. One can do it easily with the help of internet while being anywhere.
- Online Banking- Bill payments through plastic money.
Function Available With Paperless Banking
- E- Payment
- Cash withdrawal
- Cash deposit
- Fund transfer
- Balance Inquiry
But being a consumer, everyone cares about the security and privacy in the paperless financial services. As With the advancement in technology Identity theft, data theft are the common threats. This is making people more worried about their financial transactions in the paperless banking system. When all the transactions happened on papers, customer’s signature wass the thing which is considered as the customers identity and the proof of authentication and secure transaction. But with the access through electronic medium manual signature is not possible.
However for Paperless banking it needed secure standardized tool to validate all the transactions and to make this as a more efficient system. e-Sign and eKYC play the role of those secure tools. It has the equivalence of hand signature for the identity and authentication. e-Sign and e-KYC i.e. electronic know your customer are data in electronic form which provides privacy and security to the customers in the financial online transactions.
Electronic signatures are a legal concept under which a cryptographic mechanism which is used to maintain the authentication. To get an e-sign one need to have an agreement with the bank under their terms and condition. The bank will then provide a pin which will be a user name and password. One can change the password according to them and use it for all the banking services such as- transferring money, checking previous transactions, payments etc. It is accepted by all the banks and there is no issues like fraud or forgery.It provides guaranteed integrity.
Benefits of e-sign
- Reduced Processing Time
- Authenticity of the user
- Minimized the processing Costs
- Security and Confidentiality for Documents and Data
- Increased Efficiency and Optimization
- Enhanced the Decision-making and Approval Process
- Non-repudiation and Integrity in the system
- Made the system secure and trustworthy
- Convenience and independence to the user
Traditionally businesses had to spend countless money and time in terms to maintain the paper business records. Same was the case with the banks. They needed to maintain the documents and records of all customers. But the introduction of e-sign and e-KYC has helped more and more business owners to cut down the cost. This also improved operational efficiency by going paperless. Being paperless not only saves the time but saves our environment too. We all are aware of the fact that paper is made by trees. Increased use of paper is one of the major reason behind reduced number of trees which resulted in global warming. This has become a major threat present time. Reducing the use of paper can’t control it fully but definitely it can be a step to reduce it.
By the use of e-signature or digital signatures the documents you electronically sign are 100% trustworthy and are an authenticated paperless transaction.
Digital signatures are done or you can say inserted into the document and can easily travel electronically to from one computer to another through mails and FTP (file transfer protocol) to the destination. The Digital signature solutions are seamlessly integrated with all the business application and they don’t need to be changed from the existing workflow.
Looking at the financial regulators, with the help of Aadhaar servers, and with the use of OTP for application verification for certain customer segments have made it easier for the financial institutions to make the paperless system work by winning the trust of customers. However, many of us still connected only to the physical or biometric data. But it’s the high time now! Go green, Go paperless!!
To make Indian finance system completely paperless- banks, mutual fund institutions, insurers all will have to take step. OTP-based verification and transaction is the first and the most basic step towards it.
Introduction of Aadhar and connecting all the bank accounts and monetary things with it is the biggest achievement of the government which brought us one step closer to a peerless banking system.
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