The banking sector has undergone major transformation over the past few decades with the advent of new technologies. The Covid-19 pandemic has further accelerated the adoption of digital technologies to enable contactless, remote banking. Even senior citizens, who were earlier hesitant, have embraced digital banking for ease and practicality. Consequently, it helped reduce the long queues at the cash counters, save time and made the banking processes more efficient. For instance, paying bills, transferring money, merchant payments, etc. can be done instantly.

According to the study ‘Factors Impacting Senior Citizens’ Adoption of E-Banking Post COVID-19 Pandemic: An Empirical Study from India’ published in MDPI journal in 2023, technology in financial sectors has given rise to digital methods like real-time payments, mobile wallets, e-banking, etc. The banking industry, it said, has evolved and “seniors have had to adopt new channels and technology instead of traditional cash and traditional channels”.

The following five technologies have significantly changed people’s banking habits in India.

Automated Teller Machine (ATM):

Before the introduction of the Automated Teller Machines (ATMs), customers would stand in queues in the banks for cash withdrawal and deposits. These long queues for cash have been reducing increasingly due to the ATMs. ATMs have replaced the tellers by offering much-needed convenience to customers. Earlier, people would not trust the machine, but after over almost two decades of ATMs’ existence and their 24×7 access, the trust has built up. According to the “Indian Banking: Digital Transformation Of Automated Teller Machine Channel Over A Decade,” study published in the International Journal of Future Generation Communication and Networking, in 2021, most small value withdrawals today migrated to ATMs due to ease of use.

Also Read: 5 Health Gadgets For Senior Citizens To Help Improve Their Life Quality

Cash Deposit Machine (CDM): 

CDM is used for depositing money. Customers now prefer CDMs to deposit money instead of visiting their bank branches. Regular customers prefer using CDMs to save their time and because of CDMs’ availability even on holidays. Overall, these two devices, ATMs and CDMs, have changed customers’ habits, and the technology has proved beneficial for both customers and the banks. It saves time and cost, and promotes convenience.

Unified Payments Interface (UPI):

UPI was introduced in India in 2016. Since then, the number of users has increased manifold. As of March 2023, there were over 33 crore users. UPI has proved to be a catalyst in keeping the economy running smoothly during the Rs 500 note withdrawal and pandemic. It is the reason that the RBI governor proposed to use UPI for cash deposits in CDM in the April 2024 monetary policy committee meeting. UPI is used for cash transfers from peer-to-peer (P2P) and peer-to-merchant (P2M) and cash withdrawals from UPI-enabled ATMs until now. But, it may gradually replace cards. Like cardless cash withdrawals from ATMs through UPI, cash deposits are also ready to become cardless. Regarding UPI-enabled cash deposits, RBI is soon to issue operational instructions, it announced after the MPC meeting. Now wonder that today, vegetable sellers, street food vendors, and salespersons at big shops also accept UPI mode of payments.

Biometric Technology:

Biometric verification includes iris scan, fingerprint scan, facial recognition, and voice recognition in some cases. For example, Jeevan Pramaan is one of the apps that use biometrics to accept life certificates from pensioners. Pensioners who used to go to their bank branches every year to submit life certificates can submit their life certificate from the comfort of their homes using the biometric-enabled mobile app and Aadhaar details.

Also Read: 5 Apps Best Suited For Senior Citizens: Learn What These Apps Are and How To Use Them

ChatBot And Central Bank Digital Currency (CBDC):

While aforementioned technologies have already had a large imprint on the banking habits of Indians, there are more which are in the initial phase of implementation but have the potential to change customers’ banking habits. Banks and financial institutions are using ChatBots, but these are not very effective yet in response. There are standard responses from the Bots, and they are not able to solve an atypical query. CBDC is in the pilot mode and RBI is exploring different use cases for it. But for the same reason (convenience and time-saving) the aforementioned technologies and devices found their firm ground in India’s banking sector; the chatbots and proposed offline transaction facilities in CBDC would further change people’s banking habits.