21 July 2024, Kathmandu
Even though digital banking has ruled the world, in Nepal it is still in a growing phase. With the rise in internet usage and every company turning to digitalization, Nepal is becoming more familiar with digital banking.
The Development of Online Banking in Nepal
After COVID-19, online banking has increased in such a way that it has almost become a part of our lives. Digital Banking has also expanded significantly in Nepal due to the rise in internet facilities, smartphones, and the government’s decision to turn everything digital.
With the expanding use of technology, banks have also used innovations to provide better service to their customers. These services include digital wallets, ATMs, QR code payments, and internet and mobile banking systems.
1. Mobile banking:
Today mobile banking is an integral part of online banking in Nepal. Due to this service, customers can perform baking transactions with a single click from smartphones and other gadgets.
Banks like NMB, Global IME, Prabhu Bank, NIC Asia Bank, and many other banks have been providing services that make transactions easier and more efficient.
Similarly, customers can also scan the QR code to make payments easily from mobile banking while shopping for groceries, paying restaurant bills, school and college fees and many more.
2. Internet Banking:
Internet banking users use web browsers in banking transactions. Mobile banking also gets linked to it while doing larger transactions, as a compliment. These transaction methods are similar to mobile banking, which can be run through laptops or PCs. Individuals who prefer large interfaces and businesses mostly use them.
3. ATMs and Cash Deposit Machines (CDM):
Automated Teller Machine (ATM) is beneficial for withdrawing cash anytime we need it because the ATM here is open 24/7. Likewise, CDM has been introduced to make it easier for customers to withdraw cash without visiting the banks.
Banks like Nabil Bank, NIC Asia, Global IME Bank, and others have introduced them. You can even deposit the money by feeding it to the machine.
4. Digital Wallets
With the rise of demand for digital banking systems, apps like eSewa, Khalti, Namaste Pay and others have been introduced to provide better facilities for customers.
Through these apps, you can pay your school or college fees, book hospital appointments, clear insurance policy fees, renew your driving license, or pay utility bills. Every payment and transaction can be made anywhere at any time without visiting specific places.
5. Impact of Digital System
Even though the life of an individual has become smarter and easier with the rise of digital banking, access is limited to top-tier cities only. Similarly, many people still lack awareness of the usage of digital banking and cyber security measures that should be followed. As such, it is important to clear the knowledge gap among the users.
With mobile and internet banking, digital wallets, and ATM services, the payment and transaction processes have become easier.
Challenges and Opportunities
Along with the rise of digital banking also come the threats and consequences. Cybersecurity, lesser digital literacy, and internet issues in rural areas are the major problems. For this, the public should be given knowledge and information on safe browsing, not sharing passwords or OTPs with others, and so on.
However, due to the rise in ISPs and improved internet services, the challenges are being diminished. Access to mobile phones and internet facilities around Nepal has increased, giving rise to the successful growth of digital banking.
In addition, the government’s dedication to developing a digital economy creates an atmosphere that is favorable for investment and innovation in digital financial services.
Future of Digital payment
With the advancement in technology, rise in ISPs, and rising customer demands, the future of digital banking seems to be brighter. For this, banks and digital wallets should focus on innovations and how to provide better service to their customers.
In the future, they can use artificial intelligence (AI), machine learning, improved cyber security measures, and data analytics to offer more advanced options.
The collaboration and cooperation of fintech firms, corporations, and regulatory bodies is a must to create safe and positive transactions. By addressing the challenges and optimizing the opportunities in this sector, Nepal has a better future in this sector.
Conclusion
Hence, the digital banking system in Nepal has improved over the past decade and provides better services to customers. With additional technological changes, fighting the challenges, and optimizing the opportunities, the digital sector will rise massively in the future, making transactions more convenient and easier.
Have a safe and secure payment.