Tomorrow’s bank will be in one’s phone. With the smartphone and Aadhaar number, one can open a bank account quite easily.
All he/she needs to do is digitally sign the document using Aadhaar as identification; one can even avail of a digital locker to store documents. At present, the finance sector is witnessing the WhatsApp like movement, said Infosys co-founder and former UIDAI chief Nandan Nilekani.
Speaking at an event organised by Unitus Capital, an investment bank, on Monday, Nilekani said 2009 was the year of transition.
“We saw transition from voice to data; feature phones to smartphones; we moved from desktop internet to mobile internet. WhatsApp came in 2009 from nowhere, but changed the rules by making phone numbers as an identity. It began with messaging, and now has added voice,” said Nilekani, explaining the same movement happening in the finance sector.
With eCommerce set to grow 4x by 2020, the transition from CoD (cash-on-delivery) to cashless will further accelerate digital payments, Nilekani further added.
1 bn Aadhaar cards soon
Talking about Aadhaar, Nilekani said 910 million people have the cards and this number will reach one billion by March 2016. “One billion people will have digital identity in the next year. At present, we are doing the two-factor authentication — a combination of card and pin — and in future the phone will replace the card. In future, it will be so easy to do any kind of transaction with just one click,” he said.
Stating that smartphones will replace physical cards and POS/ATMs, the former UIDAI chief said there will be a transition period where digital cash can be made physical and vice versa.
“New technology provides scale and ease of use at low cost. India will go from data poor to data rich in five years as all of a sudden there is tsunami of data,” he said.