With the digital era taking full flight all over the world, We are embracing digitalization in virtually every aspect of our lives. From shopping to entertainment,we have (almost) made a wholesome transition. But are we secure of our money if it exists as a digital entity?. The fact that paper currency boils down to the plain nuance that it is just a token you promise to pay the bearer for a purchase you make, lays the groundwork for a push to make it all digital. Yet our reserved opinions about handling money virtually continues to exist.
Why did this fear creep in?.
In India, The Cash Crunch during the end of 2015 introduced us to a new mode of payment called Unified Payment Interface or UPI.This was also the period where the whole country was forced to practice digital payments either through their bank accounts or through Mobile Wallets. Terms like PIN,OTP,VPA made the rounds and sent many into a dizzy. Even Today, people are looted of their money thanks to fraudulent calls from pseudo-bank employees and scrum mails.
The fear is also created when you have been part of failed transactions. I was involved in one such failed transaction recently. I had to buy from X which had a offer if I bought it using the Y mobile wallet and so I had to add money from my Z bank account. X allowed Y to be my payment mode and Y instructed me to add the extra money I needed to complete the purchase. My bank Z confirmed the transaction via an SMS but Y said my bank had locked the payment as I had not transferred that big an amount to Y before.My first reaction was to ask X as to whether a failed payment had been recorded and luckily it was. Y sends a text 10 minutes later saying the money was released by Z. Had such a hierarchical setup not been in place, it would have been a simple blame game between X,Y and Z and the money would have ended up in limbo.
Banks in recent times have been blocking hefty transactions for no reason. Because your transactions and frequency of transactions are getting recorded, your bank is able analyze how much you save and spend from time to time. This certainly is a breach of privacy under the pretext of preventing money laundering.
In a Digital Bank, there are just computer scientists developing solutions and applications for you to handle your money and relevant transactions. The Security measures taken to prevent any sort of attack,breach or data leak at digital banks these days are very sophisticated. Yet your bank balance is a mere number getting displayed in your portal. It can be easily changed from a mil to 0 within a snap. A Digital Bank is more time saving than a physical bank. You can easily transact money, track your spendings, manage your savings and revisit your transactions at any time. All these details are protected by a Password:P, which you have to make sure nobody else knows so that they don't fiddle with your bank account.
Yes, Digital Banks are the way forward in the data era. Whilst we back Digitalisation of Banks for their ease of use, extra caution must be taken in protecting our accounts. Because Data, is the new Gold.