SmitApps – Blog

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Designing Fintech Apps for Low-Connectivity and Low-Literacy Users 

Posted on by Admin

We’ve all been there: a slow Wi-Fi signal, a complex app with tiny text, or a frustrating password reset process. For billions of people around the world, these aren’t just minor inconveniences—they’re everyday barriers to accessing essential financial services. 

As we design the next generation of fintech, we have a profound opportunity to make a real difference. It’s about more than just building a flashy app; it’s about creating tools that empower people who have been left behind by the digital revolution. This means stepping into their shoes and understanding what true accessibility looks like. 

Here’s how we can build fintech that works for everyone: 

1. Acknowledge the Reality of Connectivity 

  • Offline First Mode: Apps can store key information locally on the user’s phone. For example, a user can start a money transfer to a saved contact even without a signal. The app would show a “Pending” status and then automatically complete the transaction the moment a connection is re-established. 
  • Data-Saving Features: The app can have a “lite mode” that turns off high-resolution images and videos. You can also compress data transfers so that every megabyte counts. This makes the app faster and cheaper to use for people on expensive data plans. 
  • Minimalist UI: The user interface should be simple and not require lots of information to be loaded. This means fewer images, simpler layouts, and text-based lists that load quickly. 

2. Listen, Don’t Just Look 

  • Voice-Guided Navigation: The app can use audio cues to guide the user. For instance, when the user opens the app, a voice could say, “Welcome back. Your balance is…” and then offer options like, “Say ‘Send Money’ or ‘Pay Bill’ to continue.” This makes the app usable without needing to read anything at all. 
  • Audio Confirmation: After a user makes a selection, a voice can confirm it. “You have selected ‘Send Money.’ Now please enter the amount.” This reduces errors and makes the user feel more confident in their actions. 
  • Simple Icons with Audio Descriptions: When a user taps an icon, a small audio description can play. Tapping a picture of a wallet could trigger the sound, “This is your account balance.” This links the visual to an audio cue, which is great for people learning to use the app. 

3. Simplicity is Our Superpower 

  • One-Tap Actions: Simplify common tasks to a single tap. If a user always sends money to their family on the 1st of the month, the app could have a “Repeat Transfer” button on the home screen that takes care of it with one press. 
  • Limited Screens and Clear Flow: Avoid buried menus and complex paths. The most important actions should be on the main screen. The flow for any task, like sending money, should be a simple, straight line with few steps. 
  • Large, Clear Buttons: Use large buttons with high contrast to make them easy to see and tap. The text on the buttons should be simple and direct, such as “Pay” or “Receive.” 

4. Make Security Personal 

  • Biometric Login: Instead of a password, a user can log in with their fingerprint or a face scan. This is more secure and far easier for a user who may struggle to remember a complex password. 
  • Voice-Based Authentication: For voice-enabled apps, a user’s unique voiceprint can be used to confirm their identity. A simple phrase like, “My voice is my password,” can be used to log in. 
  • Photo or Avatar-Based Security: For people with very low literacy, a picture can be used to identify a saved recipient for a payment. Instead of reading a name, they can tap on a photo of their friend or family member to send them money. 

Designing for these users isn’t just a good thing to do—it’s the smart thing to do. By creating technology that is truly inclusive, we can unlock potential, build trust, and help a new generation of people take control of their financial lives. This is the future of fintech, and it’s a human one. 

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The Financial Risks of Sticking with Outdated Banking Technology 

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In an era where technology continually reshapes how we live and work, the banking industry is no exception. Yet, many banks still rely on outdated systems, hoping to avoid the complexity and cost of change. While it might feel easier to stick with what’s familiar, the financial risks of holding onto old banking technology are growing—and they’re hard to ignore. 

  
One critical example of innovative technology reshaping the sector is the Enterprise Collateral and Limit Management System (ECLMS)—a modern solution designed to streamline and secure collateral management and credit limits across institutions. 
 

Why Outdated Technology Costs More Than You Think 

At first glance, using legacy systems might seem like a cost-saving move because it avoids the upfront expense of an upgrade. But the reality is different. According to Deloitte, banks can end up spending as much as 70% of their IT budgets just to maintain their older systems. That means less money is left for improving services or adopting new technology that customers expect today.  
 
The hidden cost? Inefficiencies, slower processes, and mistakes that can hurt both the bank and its customers. 

Security Risks: A Growing Threat to Banks 

Security isn’t just a buzzword; it’s a lifeline. Old software and aging infrastructure often have gaps in protection that hackers love to exploit. IBM Security’s 2023 report showed that banks using outdated technology are facing data breaches costing roughly $6.5 million per incident—almost double the cost for those with modern security setups. And it’s not just money at stake. A data breach can absolutely wreck a bank’s reputation and shake customer confidence, making recovery tough and expensive. 

Trouble Meeting Regulations 

The financial world is heavily regulated for good reasons. Banks have to follow strict rules about how they handle data, prevent fraud, and report suspicious activity. But older systems aren’t always designed to keep up with changing laws, like the European Union’s GDPR. Banks that can’t update their systems quickly risk big fines and legal headaches. The EU has already handed out fines totaling over €1 billion related in part to outdated compliance systems. 

Losing Customers to More Agile Competitors 

Today’s bank customers are more digitally savvy than ever. They want fast, easy access to their money and personalized services on their phones. According to McKinsey, more than half (56%) of banking customers globally prefer digital-only banks—which tend to have the newest technology. Banks stuck on old platforms run the risk of watching their customers go elsewhere for a better experience. 

But It’s Not Always Easy to Change 

Of course, shifting away from legacy technology isn’t simple. Smaller banks may not have the resources or expertise to make big tech investments quickly. Migration projects can be complex and sometimes disruptive. Still, many technology experts agree that the long-term cost of doing nothing usually outweighs the short-term challenges of upgrading. 

The Bottom Line 

The truth is, outdated banking technology isn’t just an inconvenience; it’s a financial liability. Between high maintenance costs, growing cybersecurity threats, regulatory risks, and the expectations of today’s customers, clinging to old systems could put a bank’s survival at risk. For banks looking to stay competitive and secure, embracing modern technology like ECLMS isn’t just smart—it’s essential. ECLMS offers a comprehensive, agile platform for managing collateral and credit limits efficiently, ensuring compliance, reducing risk, and enhancing customer trust in a digital-first world. 

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How Mobile Apps Are Helping Rural India with Banking 

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Mobile apps in Banking

In India, more than 65% of people live in rural areas where banking is hard to access. There are few banks, low knowledge about money matters, and long distances to travel. But mobile apps are changing this. They’re bringing banking to rural India in an easy way. As a fintech app development company, we’re excited to share how mobile apps are making a big difference. 

Why Banking Is Tough in Rural India 

Rural areas face many problems with banking: 

  • Few Banks: Many villages don’t have bank branches or ATMs. 
  • Low Money Knowledge: People often don’t know how banking works. 
  • Far Locations: Traveling to a bank takes time and money. 
  • Paperwork Issues: Many lack ID papers needed to open accounts. 

These issues keep people away from banking. Mobile apps are solving this problem. 

How Mobile Apps Are Helping 

Mobile apps make banking simple for rural people. With cheap smartphones and internet (over 900 million users in India by 2024), apps are reaching everyone.

Here’s how they help: 

1. Banking on Your Phone 

Apps let people bank from home. No need to visit a bank. You can open accounts, send money, or get loans using apps like Google Pay, PhonePe, or new banking apps. 

2. Easy Account Opening 

Apps use Aadhaar and digital KYC to make account opening simple. People can use their fingerprint or a quick video call to start banking, even without many documents. 

3. Apps in Local Languages 

Apps are made for rural users. They use local languages and voice instructions. This helps people who can’t read or write well. Apps like Paytm and BHIM work in many Indian languages. 

4. Small Loans for Everyone 

Apps help rural people get small loans. They check data like phone usage or small payments to decide if someone can borrow money. This helps farmers, shopkeepers, and women start businesses. 

5. Learning About Money 

Apps teach users about saving, investing, and avoiding scams. They have simple guides and chatbots to explain things. For example, apps like Zerodha’s Coin teach about mutual funds. 

6. Cashless Payments with UPI 

UPI apps like BHIM and Paytm let people pay or receive money instantly. Rural shops and farmers now use digital payments, which helps them join the modern economy. 

Apps Making a Difference 

Some popular apps are changing rural banking: 

  • BHIM: A government app for fast UPI payments. 
  • Paytm Payments Bank: Offers accounts with no minimum balance. 
  • Fino Payments Bank: Works with local agents to bring banking to villages. 
  • YONO by SBI: Combines banking, loans, and insurance in one app. 

These apps have helped millions of rural people start banking. 

How Our Fintech Company Helps 

At SmitApps technologies, we build software’s to make banking easy for rural India. 
 
Our software’s are: 

  • Safe: Strong security to protect your money. 
  • Big Reach: Made for millions of users. 
  • Easy to Use: Designed for people with little education. 
  • Smart: Use AI and biometrics for better service. 

We work with banks and finance companies to create apps that help rural users. 

What’s Next? 

The future of rural banking is bright with mobile apps. As 5G and smartphones grow, more people will use these apps. New tech like AI chatbots and blockchain will make banking even better. 

At SmitApps Technologies, we’re ready to help. We build apps that make banking simple, safe, and open to all. 

Conclusion 

Mobile apps are changing lives in rural India. They make banking easy, help people save, and grow their businesses. As a fintech app development company, we’re proud to build apps that bring banking to everyone. 

Want to create an app that changes lives?  
 
Contact SmitApps Technologies today! 

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Collateral Management -An Approach to Automation – Part-1

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Friends, we are starting this multi-part series to cover collateral management from a lender’s perspective and scenarios important for automating Collateral Life Cycle Management. We trust that the contents of this series will ignite thought process in the community which is predominantly manual as on date

Collaterals are the first and most important credit risk mitigate available to a lender, however, collateral management is predominantly a manual process. Considering the proliferation of digitization and automation in the financial industry, collateral management automation is still not a priority area. Our objective of this series is to bring forth the critical aspects of the collateral management process and considerations for automation of life cycle management of collaterals from a lender’s perspective.

While sanctioning a secured loan, the lenders secure collaterals under their charge using different methodologies depending on the type of collateral being created out of the lender’s funds or offered by the customer. Accordingly, the collaterals may be broadly categorized into two categories: Primary Collaterals: The asset which is created out of the funds is considered as primary collateral. Say loans given to purchase vehicles, plant and machinery etc will create assets as vehicle/ plant & machinery that will be hypothecated to the bank but will remain under the procession of the borrower. In this case, the asset created out of funds of the lender will used for use by the borrower.

Secondary Collaterals: many times lenders resort to securing their funds by taking additional collaterals which are in most cases Immovable Property. Such additional collateral is termed Secondary collaterals. Secondary collaterals serve as additional collateral coverage to the exposure of the lender and primarily the title and/ or the asset will remain in possession of the lender.

However, such categorization may become blurred in many cases like loans against customer’s FDR, Shares, NSC, KVP, Gold etc. are often considered as primary collaterals in banking parlance whereas in actual sense these are secondary collateral, since the funds given by the lender are going to be utilized by the customer for either creation of other assets or purely for expanses.

For creating a charge on the collateral offered/created needs to undergo different perfection events depending on the type of collateral, once the collateral is perfected it is available for onboarding and tagging at various levels of the limit hierarchy of the customer. Based on the tagging of the collateral at the respective limit hierarchy level, the value of the collateral is distributed among various facilities of the customer.

Post onboarding of the collateral, two important aspects need to be performed, firstly, if there is any deviation in the pre-onboarding perfection process that should be complied with at the earliest and post onboarding activities like post disbursement inspection and registration of charge with competent authority also need to be performed. The charge on the collateral is registered with the respective authority depending on the type of collateral.

Subsequently, regular maintenance like insurance, re-valuation and re-inspection are the activities that need to be carried out by the lender for upkeeping of the collateral good and realizable till the existence of the tagged exposure so that delinquency risk is mitigated.

Finally, once the loan is repaid by the customer, the collateral needs to be released (release of title documents on which the charge was created) to the customer upon due acknowledgement.

In the Next Part – Various Types of Collaterals

Author: VC Sharma

Disclaimer: The views expressed in the blog are entirely personal to the author. There is no direct/ indirect responsibility of the publisher whatsoever.

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Technology and Digital Transformation in Collateral and Limit Management 

Posted on by Admin

Ever thought about what goes on behind the scenes when banks give out loans? Especially when they ask for something as security – you know, collateral? For the longest time, this whole process in Indian banks was, well, a bit of a manual marathon. Think mountains of spreadsheets and rooms full of physical documents.  
 
But guess what? Things are finally changing, and it’s all thanks to digital transformation! 
 
The Good Old Days (and Their Headaches!) 

Let’s be real, managing collateral used to be a proper headache. If you pictured a bank’s back office, you might’ve seen: 

  • Spreadsheet Mania: Imagine giant, sprawling spreadsheets trying to keep tabs on everything from your granddad’s property deeds to that gold you pledged. One wrong click, and poof! Data chaos. Keeping everything accurate was a nightmare. 
     
  • Paper, Paper Everywhere: Bank vaults weren’t just for cash; they were bursting with original property papers, share certificates, and all sorts of important documents. Getting them out, checking them, and moving them around for every transaction was a slow, security-heavy dance. 
     
  • Playing Catch-Up: How much is that collateral really worth today? With manual updates, valuations were often outdated. This meant banks were often a step behind when managing risks or figuring out real values. Reconciling everything was like solving a giant, never-ending puzzle. 
     
  • Blind Spots: Want a quick overview of all the collateral a bank holds? Good luck! It took ages to pull all that info together. This made it tough to get a clear picture of risks or assets in real-time. 
     
  • Regulation Riddles: India has some pretty strict rules from the RBI. Trying to follow all those guidelines with manual processes was a constant tightrope walk, often leading to mistakes and inefficiencies. 

Honestly, this old way of doing things just couldn’t keep up with how fast Indian banking is growing. It wasted time, piled on risks, and frankly, slowed down the whole lending process. 

Hello, Digital Age! 

But here’s the exciting part: Indian banks are now fully embracing digital transformation for their collateral management. It’s not just about fancy software; it’s about fundamentally changing how they view, track, value, and use collateral. 

So, what’s cooking? 

  1. Everything in One Place: Banks are moving to smart, integrated collateral management systems (CMS). Think of it as a central hub where all collateral data lives digitally – no more hunting through separate spreadsheets! 
     
  1. Real-Time Values, No More Guesswork: These new systems can connect to live market data. So, whether it’s property prices or share values, banks get near real-time updates. This helps them stay on top of things, make quicker decisions, and manage potential risks way better. 
     
  1. Bye-Bye Paper, Hello Digital Workflow: Those physical documents? Many are getting digitized and stored securely, directly linked to your loan accounts. And the processes for creating, releasing, or swapping collateral are now automated. Less human error, more speed! 
     
  1. Smart Insights and Reports: With all that clean, digital data, banks can now use powerful analytics. They can quickly spot potential risks, understand where their collateral is concentrated, and generate all sorts of compliance reports with just a few clicks. It’s like having a superpower for decision-making! 
     
  1. Talking to Each Other: These modern CMS solutions aren’t islands. They seamlessly connect with a bank’s other systems – like the ones that handle your main bank account or process new loan applications. This means information flows smoothly, making everything more accurate and efficient from start to finish. 
     
  1. Techy Tricks Up Their Sleeves: 
  1. AI and Machine Learning: Think smart computers predicting collateral value changes or flagging anything unusual. 
  1. Blockchain: This is still a bit new, but imagine completely transparent and secure records of who owns what collateral – super cool for reducing fraud! 
  1. Digital Public Infrastructure (DPI): Concepts like the Account Aggregator are letting banks get digital consent to view your financial data, making it even easier and faster to assess collateral. 

Why This is Great News for Everyone 

Going digital with collateral management isn’t just a win for banks; it’s a win for all of us! 

  • Faster, Smoother Loans: Banks can process loans quicker, which means you get your funds faster. 
  • Better Risk Management: Less risk for banks means a more stable financial system overall. 
  • Happier Customers: Efficient processes lead to a smoother, less frustrating experience for borrowers. 
  • Smarter Decisions: Banks can make more informed choices about lending, benefiting both them and the economy. 
  • Less Paperwork (Yay!): Good for the environment, good for bank offices! 

 
 
Ready to Modernize Your Collateral Management? 

As you can see, the shift from traditional to digital collateral management isn’t just a trend; it’s a necessity for Indian banks aiming to stay competitive and secure. 

If your bank is looking to shed those old spreadsheets and embrace a truly efficient, risk-smart, and future-ready approach, then it’s time to explore ECLMS: Enterprise Collateral and Limit Management System. 

ECLMS isn’t just software; it’s a comprehensive solution designed specifically to tackle the complexities of collateral and limit management in the Indian banking landscape. It helps banks: 

  • Automate the entire collateral lifecycle: From initial onboarding and valuation to monitoring, release, and disposal. 
     
  • Get a 360-degree view: Consolidate all collateral and limit data for a holistic picture across your entire enterprise. 
  • Proactively manage risk: With real-time exposure tracking and automated alerts for limit breaches and collateral value changes. 
     
  • Ensure seamless compliance: Stay effortlessly aligned with RBI regulations and internal policies. 
     
  • Optimize capital and resources: By efficiently allocating collateral and preventing over or under-utilization. 

ECLMS empowers banks to transform their credit risk management, enhance operational efficiency, and accelerate their lending processes. It’s the strategic advantage you need to thrive in today’s dynamic financial environment. 

Curious to learn more about how ECLMS can revolutionize your bank’s collateral and limit management?  
 
Reach out to us today for a demo!