Digitalization is transforming every business in the world, banking – this traditional sector – is of course not excluded.
Federal Bank Ltd is a major Indian private sector commercial bank and has more than 1,000 branches and ATMs spread across different states in India. The bank has long been a technological pioneer among traditional banks in India, it was among the first to computerize all its branches.
Recently, Federal Bank announced a strategic collaboration with the wallet service provider the Mobile Wallet (TMW) to offer a NFC 'tap & go'-enabled MasterCard prepaid card.
Being in an interview of Khaleej Times, Jose K Mathew, the executive vice president and head retail business of Federal Bank, said: “Digital payment revolution is still unfolding. It has been impacting the customer spending patterns. Fintech is another area that has remarkably impacted the credit appraisal and disbursement of loans through banking and financing companies.”
From what Mathew shared to us, the digitalization of payment may only be the bank’s first step. The Federal Bank mobile wallet service might develop more financial services other than payment, such as credit and loan, ect.