1. Advantages of NEFT
  2. Advantage of Mobile Banking 
  3. Advantages of automated teller machine Machines (ATMs) 
  4. Key Drivers for Financial Innovations
  5. Distinguished features & Challenges of Financial Innovations

Advantages of NEFT

The advantages offered by NEFT over different modes of funds transfer are: 

  • There’s no would like of physical cheque or Demand Draft whereas transferring cash. 
  • Since the transfer of the fund is electronic, there ought not to visit the bank for depositing the paper instruments as within the case of Cheque and Demand Draft.
  • The probabilities of fraud just in the case of NEFT are low as compared to ancient lodes of cash transfer like Cheque and Demand drafts that may be lost or purloined simply.
  • NEFT is incredibly priced effective and prevents the time conjointly. 
  • Credit confirmation of the cash transferred may also be received via SMS or email. 
  • The person transferring the cash will simply transfer the funds from the comfort of their homes exploitation web banking. 
  • NEFT makes the doable real-time transfer of funds doable in a very secure manner

Advantages of automated teller machine Machines (ATMs) 

  • ATM provides twenty-four hours of service and convenience to bank customers as you’ll be able to withdraw money at any time of day and night. 
  • ATM reduces the employment of bank’s employees and supplies service to bank’s client with no error. 
  • ATM is incredibly helpful for travellers because it makes it doable to hold cash in plastic-type that’s safer and safer. The travellers will withdraw money at ATMs in foreign countries. 
  • ATM could provide customers new currency notes and maintain privacy in banking transactions because the ATM card is protected by a PIN. 
  • ATMs supply the convenience of multiple locations as they’re scattered everywhere in the country. you’ll be able to withdraw money at any bank that’s the system to that your ATM card is joined while not being part of any long queues

Advantage of Mobile Banking 

  • Mobile Banking uses the network of service suppliers and it does not would like web association that makes it a convenient & price-effective possibility in developing countries like India wherever there is less web association. 
    • Mobile Banking is used 24*7 and it’s a convenient mode for several users and it’s a lot of secured and meaningless compared to online or web Banking.
    • With the assistance of Mobile Banking you’ll be able to avail yourself of several services like paying bills, funds, checking account balance, reviewing your recent dealings, ATM card, etc.

Key Drivers for Financial Innovations

Financial innovations once enforced don’t seem to be positive of being thriving in the long haul. There ought to make certain key drivers create it change the long haul in addition. 5 factors ought to be taken into a concern to create a money innovation thriving in long run: 

  • Firstly, there ought to be high consummate manpower or human capital as expert information of the actual money innovation to cope with day-to-day technical issues. 
  • Secondly, investments which will be done currently however don’t seem to be created can have negative effects within the future because the pool of opportunities is reduced thanks to restricted investments. Therefore, implicit information ought to be possessed by the investors to avoid such losses and negative effects, and correct analysis & Development ought to be done keeping in sight the longer-term prospects. 
  • Third, technological leadership ought to be preserved as key businesses that are situated abroad could reply to the low demand of native markets and conjointly difficulties in funding could occur. Partial relocations of firms ought to be avoided to hinder the unequal distribution of demand coenzyme industrial growth. 
  • Fourth, several firms’ are littered with the money crisis within the recent past, and they could still pay their debts within the close to future conjointly. to avoid this they must have a self-supporting economic system and risk management plans to beat such a crisis. 
  • Fifth is that the businesses ought to be versatile enough to face any quite dynamism showed by public support systems which can stop or slow down their growth by imposing numerous rules

Distinguished features & Challenges of Financial Innovations

Financial innovations dissent from other forms of product developments. As per Ross and Allen and air current money innovations are expedited by the demand of the investors with a specific set of money flows. By segregating the money flows of already existing securities the intermediaries will build profits in brief last themselves and helps in increasing welfare. Financial innovations method is distinguished in a very higher manner from different product developments like the innovation of Apple of as well as portable computer options and decision phone in a very single pill solely and conjointly Tropicana’s innovation of fruit juice with Ca. during this section we are going to project different problems that build money innovations challenging:

  • The economic system in India and is interconnected in a very complicated manner which may produce positive in addition to a negative impact on the system. Consequently, it’ll affect the welfare of the economy. 
  • Financial innovations are extremely dynamic. Changes within the structure of the money innovations depend on however the innovations are diffuse from early adopters to general users by exploiting numerous selling and promotional methods. 
  • Similar to rules on numerous varieties of innovations like prescribed drugs, liquor business money innovations also are being obligatory by government rules and rules. These sorts of economic reforms the impact on the direction and speed of financial innovation is incredibly unsure.