Paperless transactions: Bankers welcome move By Lalin Fernandopulle | Sunday Observer

Paperless transactions: Bankers welcome move By Lalin Fernandopulle

4 December, 2016

The move by the country to go for on-line or direct banking has been welcomed by banking and industry people as a step in the right direction to boost efficiency and transparency in financial transactions.

Citi Country Officer, Managing Director Ravin Basnayake said any effort by the government to discourage cash and paper-based transactions is a step in the right direction.

He said digitization and on-line payments are an inevitable trend and offers a host of benefits to the consumer, banking industry and the economy.

“The mobile device penetration in Sri Lanka is expected grow to 60 percent by 2020. Given the high level of penetration, consumers are increasingly carrying out day-to-day activities on line,” he said.

The government aims at moving the country towards a digital payment era eliminating traditional paper-based transactions.

Basanayake said, “As and when local language enabled applications become prevalent, usage would further increase and I believe medium term competency would not be an issue”.

He said, “Consumers would benefit from wider transaction choice, lower cost due to business to customer direct connectivity and convenience. The Banking industry would benefit from lower transaction costs, increase in client access channels and increased security. “The economy as a whole will improve with better efficiency and transparency in financial transactions. Cyber security threats have to be considered in the equation. However, with proper investment in cyber security and with the implementation of organization, industry and country- wide cyber security programs this threat can be managed,” Basanayake said.

Globally on-line banking has become the norm for many simple bank transactions. It makes it easier for consumers to check their accounts, pay bills and move money from one account to another.

Banking experts said, “The more people use efficient transaction modes the more organized financial life would be”.

However, according to banking and financial analysts steps should be taken to make more people tech savvy and minimise cyber security threats to ensure the safety of money during transactions.

Former Hatton National Bank Chairman Rienzie Wijetilleke said we need to fall in line with technology which is moving on rapidly. There is no two ways about it we have to adopt to the technological changes and be abreast of its advancements.

“However, having said, that with an economy where over 70 percent of the population is in rural areas which lacks infrastructure for technological growth, whether the masses in the outstations can take on this change immediately is a major question the banking industry has to ask,” Wijetilleke said. He said technological changes need time to penetrate the outstations. Banks need to have on-line and traditional banking methods going hand-in-hand simultaneously at least for some time before fully venturing into direct banking.

“There are people who prefer personal banking where they interact directly with the banking staff. The personal touch is not there in on-line banking,” Wijetilleke said.

Direct or on-line banking has benefits such as convenience where transactions could be done any time of the day, makes banking faster, easier and efficient, better interest rates and robust websites which offer a comprehensive set of features.

The Security First Network Bank was the first fully-functional direct bank based in Atlanta. It began operations in October, 1995.

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