In today’s digital age, the India Post Payments Bank (IPPB) and Post Office Savings Bank (POSB) are facing immense pressure to evolve and meet the expectations of the new generation of customers. While both serve crucial roles in India’s financial ecosystem, the digital transformation in banking services is happening at a rapid pace. If the Department of Posts (DOP) fails to keep up with these changes, it risks losing a significant portion of its customer base, especially among the younger and tech-savvy generation. Let’s break down some key issues and suggestions for how DOP can enhance its services.
UPI Integration for POSB: A Must for the Future
The Unified Payments Interface (UPI) has revolutionized payments across India, and its widespread adoption by small private banks has made it a primary service for customers. Yet, POSB customers continue to struggle without UPI integration. This gap is one of the main reasons why POSB accounts are closing rapidly. In fact, many people are reluctant to open accounts with the post office due to the non-availability of UPI services. Smaller private banks have adopted UPI, and the DOP needs to follow suit if it wants to remain competitive.
If DOP does not integrate UPI into its services soon, it risks losing the entire POSB customer base, especially since the younger generation is not accustomed to visiting branches (or post offices) for every small transaction. It’s essential that DOP collaborate with UPI services and bring this feature to its users. Failure to do so would essentially put POSB at a disadvantage compared to other financial institutions that are more digitally advanced.
A User-Friendly Mobile App: The Key to Engaging the Modern Customer
DOP must also consider launching an app similar to YONO (SBI) or iMobile (ICICI Bank). Such an app should allow customers to easily open Term Deposits (TD), Recurring Deposits (RD), transfer money from other banks, and track their expenses. These features are essential for keeping POSB relevant and convenient for its customers, who increasingly prefer to manage their financial services through mobile apps rather than visiting branches. Without this digital convenience, POSB will struggle to retain its customers, particularly the younger, more tech-savvy demographic.
Addressing the Role of IPPB: What’s Its Future?
Many people have questioned the role of IPPB, especially in the context of the changes happening in POSB. Some suggest that IPPB should be discontinued after the above-mentioned changes are implemented. This is because the eKYC system introduced by IPPB, which allows for digital identity verification, is eventually being integrated into DOP Finacle. This integration would make POSB’s counter transactions more seamless and similar to those offered by IPPB, reducing the need for a separate IPPB service.
While IPPB does offer doorstep banking, many customers feel that the service is limited and lacks core features such as cheque facilities, ATMs, and interest-bearing services like FDs and RDs. The upper limits on deposits, withdrawals, and balance maintenance further restrict the usefulness of IPPB as a primary banking solution. Hence, a suggestion arises for IPPB to lend its app to POSB, and IPPB accounts should no longer be used as primary accounts. This would simplify things for customers and improve the overall experience.
Strengthening Mobile and Online Banking
Another important consideration is India Post’s mobile banking app, which does allow customers to open and close RDs and TDs. However, there are frequent complaints about the app crashing, which detracts from its usability. A more stable app with better features could make a huge difference in POSB’s digital banking services. Similarly, while the e-banking site works fairly well, it also suffers from reliability issues. With improvements, these platforms can serve as key tools for retaining customers.
Cheques, ATMs, and Other Banking Features
The lack of basic banking services such as cheques, ATMs, and pre-printed cheque books is another area where POSB falls short compared to commercial banks. Currently, POSB cheque books require customers to manually write their account numbers, which is time-consuming and cumbersome. Introducing pre-printed cheque books and providing services like ATMs, Mastercard, and Visa cards would greatly enhance POSB’s appeal and bring it in line with modern banking expectations.
Further, the current withdrawal methods, such as the use of SB-7 forms, should be streamlined to make the process easier and more efficient. Encouraging customers to use cheque books for withdrawals would help bring POSB up to par with commercial banks in terms of operational efficiency.
Insurance and Employee Benefits
Another aspect that could be improved is the employee benefits offered by IPPB. Many banks provide insurance on salary accounts for Central Government employees, but IPPB has not yet implemented a similar scheme. This gap creates a sense of neglect among employees, who would appreciate such benefits, similar to what other banks provide. By introducing insurance and improving employee-focused services, IPPB can further strengthen its position in the market.
Conclusion: Moving Towards a Digital Future
To summarize, for POSB and IPPB to remain competitive, it is essential for the Department of Posts to modernize its banking services. Integrating UPI, developing a user-friendly mobile app, improving the IPPB platform, and enhancing core banking services such as ATMs, cheques, and card facilities are crucial steps. If DOP fails to take these actions, it risks losing its customer base, particularly among the younger generation that demands convenience and digital services.
For POSB and IPPB, the future is digital, and adapting to technological advancements is key to maintaining their relevance in a rapidly changing banking landscape.