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Changes in banking system with increasing use of digital banking

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NEPSE trading

Changes in banking system with increasing use of digital banking

With the rise in digital banking, the banking system is undergoing significant changes. Due to the growing usage of mobile banking, cash flow has decreased, and even during the festive season of Dashain, there is noticeably less crowd at banks. The convenience of digital transactions has led to a decline in the number of customers visiting banks for cash transactions.

Key Points:

Increase in Mobile Banking Users:

  • According to the data from Nepal Rastra Bank, the number of mobile banking users reached 24.96 million by mid-July.

  • Users of ConnectIPS have reached 1.299 million.

  • Transactions via QR codes and the use of internet banking are steadily increasing.

Decrease in Cash Flow:

  • In August of the current fiscal year, cash circulation dropped by NPR 14.71 billion.

  • By the end of June, cash circulation was at NPR 680 billion, which has now reduced to NPR 665 billion.

Decline in Demand for Fresh Banknotes:

  • Despite Nepal Rastra Bank offering new banknotes for Dashain, the first-day demand was lower than expected.

  • Banks and financial institutions are also exchanging fresh banknotes.

Decrease in Bank Crowds:

  • Due to the increase in digital banking, banks that used to be crowded during this time are now quieter.

  • The convenience of digital banking has allowed customers to access various services from home.

Benefits of Digital Banking:

  • Customers can make payments online, apply for checkbooks and ATM cards, and monitor their account transactions from home.

  • Merchants can receive payments from customers via QR codes.

Security in Digital Banking:

  • While digital banking is secure, carelessness in its usage can lead to losses.

  • It is advised not to share personal details such as debit card numbers or passwords.

Popularity of Mobile Banking:

  • Mobile banking allows customers to access all banking services without physically visiting the bank.

  • It is expected that mobile banking will become even more convenient and accessible in the future.

Making Digital Banking More Popular:

  • Financial literacy needs to be increased, especially in rural areas, with the support of banks to expand the reach of digital banking.

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