Last Modified: Wed, Apr 27 2016. 07 10 PM IST
Product crack: DBS Bank’s Digibank
Any bank’s customer can use this app, but if you don’t have any bank account, then this app is not for you
Vivina Viswanathan
On Tuesday, 26 April, DBS Bank Ltd launched Digibank, a mobile app that allows you to open an e-wallet and a savings bank account without visiting a bank branch. It allows various options to complete the know your customer (KYC) process, including going to select Cafe Coffee Day outlets, to do this.
HOW DOES IT WORK?
The app can be downloaded from an app store. Any bank’s customer can use this app, but if you don’t have any bank account, then this app is not for you. Though the app offers to open a bank account, you need to have an existing banking relationship to load money. Hence, the unbanked population can’t use it. Once installed, open the app to enter details such as name, date of birth, mobile phone number and email ID. To verify these details, you will get a one-time password (OTP) on your phone, which you have to enter to start using the app.
To start using the app, you have to login with your user name and password. When you shut the app, it automatically logs you out.
You can load the e-wallet using Net banking, credit card or debit card.
There is also a virtual assistant facility that you can use to get answers to queries. For instance, we asked ‘how to load money in the wallet?’. The response: Your account can be funded using your debit card, Internet banking or by transferring funds from another bank. The bank has partnered with US-based fintech firm Kasisto for this service.
You have options such as recharge, fund your account, deals, Visa debit card, statements and certificates. Since it is a mobile banking app, to convert the e-wallet into a bank account, you need Aadhaar. For KYC compliance, you need Permanent Account Number (PAN), Aadhaar and biometric authentication. Certain Café Coffee Day outlets (in eight cities as of now) offer biometric verification service. You can also request for an agent to collect your documents. The app offers additional services such as tracking expenses and analysing purchasing trends. It also uses tokenisation, where the verification happens automatically without human interference, for verification instead of OTPs via SMS.
Once you open a savings account, you will get 7% interest rate for amounts up to Rs.1 lakh. For amounts between Rs.1 lakh and Rs.1 crore, the interest rate will be 6%, and 4% for even higher amounts. There is a Visa-enabled debit card, with which unlimited ATM cash withdrawals are allowed. This service is only for the bank account you create with DBS Bank. Also, there are no minimum balance requirements for the account. The savings account can be used to open fixed and recurring deposits as well. For fixed deposits, the interest rates are in the range of 6.25-7.2% for durations ranging from 90 days to 5 years. The same goes for recurring deposits. While the e-wallet takes about 2 minutes to open, the savings account takes about three days.
MINT MONEY TAKE
The app is in many ways similar to what other banks offer. Unlimited free ATM cash withdrawals and 7% interest on savings account is a plus, though three days to open the account is on the higher side.