Even though e-banking is flexible, secure, and saves time and money; its espousal by the general population has been stymied by a few myths that need to be debunked.

Nepal is still lagging behind when it comes to early adoption of digital technology, resulting in delayed digital transformation of many sectors, including banking. The delayed uptake of e-banking in Nepal for various reasons is resulting in the loss of significant opportunities for the entire financial services industry.

 

  • Some people here hesitate when it comes to e-banking as they feel that the system can be easily hacked, or is inconvenient and hard to use. Customers, especially the ones who are not literate enough to find out the pros and cons of technology fall into this category.
  • The shift from the paper currency paradigm to the e-banking or digitization paradigm certainly comes with some security threats. It is difficult to convince people, who have been taught from childhood that the only truly authentic form of ID is their finger thumb print on a legal document, that the four-digit security pin code can be equally authentic. Bank and financial institutions need to communicate with these customers that even for their staff it is near impossible to break the security code.
  • Banks are now making sure that new technologies they use can address the perceived security threats and can lower the cost of transaction, so as to encourage more and more customers to use e-banking. 
  • A large number of people in Nepal still live in the rural areas where banks and other financial institutions have not been able to reach. These rural people often still conduct financial transactions through informal sectors. It is these people whose trusts need to be won over by the BFIs if they to truly debunk the myths of e-banking.

 

“E-banking is not just good, but the best option. It is a medium that pulls us closer to the cashless future that we are going to have”-Sanat Poudel