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WhatsApp Banking – How to Use, Features & Benefits

What is WhatsApp banking

WhatsApp is not only a software application to chat and share pictures and videos but not it has also updated its services in alliance with banks to resolve queries on real-time basis. Recently WhatsApp has launched its banking and transactional services in India by entering into a partnership with the Government of Delhi and NBCI – National Payments Corporation of India. Several banks have linked their services with WhatsApp e-banking services to provide better customer service and to enhance their banking services. Not only on WhatsApp but banking has raised its arena through many platforms using social media.

Why WhatsApp?

WhatsApp is Numero Uno is the chat app forum with over 2 billion users worldwide. Its end to end encryption, expansive network and worldwide accessibility gives banking and financing regions a chance to interact better and direct with their customers. Retail Banking, with digital user-friendly interface is embracing the mobile-centric customer satisfaction ratio swiftly.

Let us look at the advantage that WhatsApp has over other social media platforms in India:

Competition Applications/Interface and their user base

PayTM

310 million users

PhonePe

75 million users

Google Tez

13 million users

Truecaller

150 million users

Bhim

25 million users

Hike

25 million users

Whastapp

250 million users

It is imperative for banks and financial institutes to automate their existing systems, provide real time basis services, offer value added and self-service, encourage personalised engagement with their series and simplifying the customer experience.

Features of using WhatsApp as a banking platform

Compliance on GDPR

General Data Protection Regulation enable the WhatsApp users to use the application with utmost security and privacy features. Through GDPR, there is no archiving of messages, encryption and pseudonymization is used effectively thus providing a secure framework for data processing:

Encryption

Data of WhatsApp is secured through https ad are encrypted which means confidential information like ban payments, balances, receipts can be shared across this interface.

Opt-in and Opt-out for the user

This communication occurs only through a consent by the end user to use this as a channel to share banking related queries by sing the opt in methodology similarly opt out would eb for users who feel threatened and would like to work on the original banking websites.

IT Security

It is mandatory for any technology used for banking to safeguard the vital information provided by the customer an to secure his data. To ensure security, the technology used runs multiple transmissions to ensure security, runs penetrations tests and enables the vulnerability scans as and when required.

How does WhatsApp Banking work?

A virtual chat
box banker has been initiated to perform many functions like opening a new
account, getting an existing account details, confirm payments, make changes
and much more. 

All one must do it to save he relevant contact detail of their bank on their phone and start using WhatsApp banking after initiating a chat on that number and following the prompts like they would using their online or mobile banking system.

Banks enable their customers to receive updates and avail relevant series through the messaging platform

Steps to
Follow:

  1. To save and call the number provided by their bank using their registered phone number which is updated on their bank records.
  2. By calling or giving them a missed call, this is taken as a concern by the customer to be ready to use the WhatsApp online banking services using the messenger.
  3. Shortly, they will receive a welcome message from their respective bank and the number they receive the message from should be saved as their WhatsApp banking contact number
  4. To initiate a conversation the user needs to type a hi or a hell and the service will prompt him with several options regarding what he would like to do next
  5. Carefully scrutinising the on-screen options, the user needs to punch in the correct number adjacent to the series that is required and solve his query.

Services available via WhatsApp

  • To receive alerts, messages, notifications, updates directly from the bank
  • To chat with the bank and get information on the following:
    • Pre-approved loans
    • Mini statements
    • Card details
    • Fixed deposits
    • Credit Card balance and reward points
    • Funds transfer
    • Bill payments
    • To be notified about recent updates
    • Cheque Book requests
    • Payment feature which is already underway and will be functional soon.

A Banking WhatsApp Window would look like the following:

Get started by typing the number
of the query you would like to get the desired result for

1

Account Balance

2

Mini Statement

3

Apply for Products

4

Interest Rates and Eligibility

5

Cheque Book Request

6

Debit Card EMI Eligibility

7

Pre-approved offers

8

Notifications

9

More Services

Payments through WhatsApp:

Now including other banking related services and financial
transactions, a very significant feature of WhatsApp is not that an individual
can send and receive payments through a single chat window.

With an industrious tie-up with some of the best banks in India, and the transfer of payment from one account to another takes place without even entering the account number if IFSC code.

This works on the Unified Payments Interface popularly knows as the UPI or even VPA – Virtual Payment Address. With this facility funds transfer can be conveniently processes 24 by 7 throughout the year.

Integration with UPI

WhatsApp with billions of users in the whole world is one of the largest messaging platforms. It plans to integrate UPI in their application especially for Indian users who currently are at the rate of 250 million users who are actively using WhatsApp. Some other features are to edit a sent message, increase the number of participants in a group voice and video call just like it recently launched the “delete for everyone” feature which allows the user to delete a message within 7 minutes of sending it to any group.

So, integration of UPI within WhatsApp to work on both Android and iOS will give it an edge to make banking even stronger while involving payments into their structure.

Procedure to make a payment through WhatsApp application

Android users –

  • Step 1 – Open the chat window of the person, the money is supposed to be sent to.
  • Step 2 – Click on the “Payment” Option and accept the given terms and conditions
  • Step 3 – Now the user needs to enter three main details – the amount to be sent, UPI PIN and just send the money.

For iPhone users, the user needs to click on the plus sign on the receiver’s chat window and proceed from step 2 to complete the payment transaction.

Another way of sending payment through WhatsApp is using the QR Code feature.

  • User needs to go to the settings tab and click
    on “Payments”.
  • Select the “New Payments option and scan the QR
    Code button.
  • Again, fill in the amount and punch in the UPI
    PIN for verification
  • Payment will be complete
  • Benefit of the Payment tab:
  • It allows the user to view all the transactions processed
    under the payments tab

It also allows the user to view all the bank accounts that are linked with the WhatsApp account.

Benefits of WhatsApp chat Payments:

  • A payment can be made by anyone to anyone around the world
  • The payment feature has a user-friendly pay feature which makes transferring funds as easy as sending a picture or a video.
  • The receiver will receive a notification confirming about the transaction being made towards him by the sender
  • Only a Virtual address to process the payment is required, the user does not need to get into the hassle of attaining the account number of IF SC code from the receiver.
  • It is a great innovation and one of the best and simplest payment features that have bene introduced.

Challenges in using WhatsApp for Banking and Financial Transactions

  • Paytm has raised a concern over the safety and security of financial transactions through WhatsApp also stating that it is quite lenient towards the payments experience of user.
  • Normally any software infrastructure would allow transactions of finances only after eKYC, Aadhar authentication, eSign, UPI and Digilocker. Many entrepreneurs have complained WhatsApp has spooked incumbents and has given concessions taking advantage of its huge user base.
  • Many competing companies have called it anti-national and have even degraded it by comparing it to low brands available in the market.
  • Unlike Google which initiated Tez as its payment application, WhatsApp is using only its chat window to process all transactions which could be a challenge considering it being the busiest app of the world.
  • Because of the dame user base, UPCI has not allowed a complete launch regarding payments on to WhatsApp. Instead it is waiting for the response and reactions and will decide only after reviewing the status
  • WhatsApp needs to have better and faster coalition with all the banks and must adhere to all NPCI laid guidelines diligently especially regarding payments to avoid faltering anywhere.

How to Use WhatsApp Banking – ICICI Bank, HDFC Bank, Kotak Bank

ICICI Bank:

  1. ICICI Bank’s Whatsapp profile number: 9324953001 add in the contact list.
  2. Send <Hi> message on this number via registered mobile number.
  3. E.g If you write <stmt> or <bal> you will get a statement or account balance.

HDFC Bank

  1. HDFC Bank’s Whatsapp profile number: 70659 70659 add in the contact list.
  2. Send <Hi> message on this number via registered mobile number.
  3. E.g If you write “what’s my balance” you will get a balanced amount, same like ifsc code, home loan, car loan and personal loan documents.

Kotak Mahindra Bank

  1. Kotak Bank’s Whatsapp profile number: 022 6600 6022 in the contact list.
  2. Once you add contact list send “help” message on this number via registered mobile number to know the list of services available.

WhatsApp Banking FAQs:

1. What if the user loses his phone?

In case of a lost phone situation, the user must immediately deactivate his WhatsApp account first by emailing using lost/stolen as the subject line to support@whatsapp.com He needs to include his phone number along with the country code. For any other method the procedure is lengthy, and the user may have to purchase another sim, reactivate his WhatsApp so that the old one gets deactivated.

2. What is the cost of using WhatsApp banking facility?

3. How do I access information regarding my Fixed Deposits using WhatsApp banking?

You can simply choose the “Show my FD summary” option from the ore services tab available on your WhatsApp banking ad get relevant details.

4. As of now which banks are using WhatsApp Banking?

Many banks have started using this application like ICICI, HDFC, Kotak Mahindra, IndusInd, FinServ and many others too.

5. Is it safe and secure to use banking details using WhatsApp?

Yes, all financial messages are secured with an end to end encryption without using any confidential PIN or Password.

6. What are the other services which can be availed using WhatsApp banking?

other services are to block/unblock the card, ATM information, deliverables, history-balance and limit of credit card, instant loans, dining/shopping offers etc.

7. What is the current status of using WhatsApp payments in India?

WhatsApp payments are still in the beta process and is not officially declared also forayed to compete against giants like Google Tez, Paytm, MobiKwik. As of now, Facebook officially caters to more than 200 million monthly users of the app.

8. What are the other services which can be availed using WhatsApp banking?

other services are to block/unblock the card, ATM information, deliverables, history-balance and limit of credit card, instant loans, dining/shopping offers etc.

9. How can we set the WhatsApp UPI Code?

To set the UPI code, follow the below mentioned instructions:
Step 1 – Open the “settings” tab in WhatsApp
Step 2 – Select Payments and lick on “Add new Account”
Step 3 – From the drop-down menu, the user needs to choose the name of his bank.
Step 4 – The user needs to punch in his mobile number for further verification through an OTP.
Step 5 – After the verification, the user will need to enter his UPI PIN to verify his bank account details
Finally, the UPI Code is set on WhatsApp

10. What is the maximum limit of payment one can make through WhatsApp banking?

As of now, the Government has set the limit to Rs. 1 lakh in one day and money can be transferred 20 times to a single VPA or many VPAs.

11. Is there any option to opt out of the notifications or alerts that we get from banks on our WhatsApp?

Yes, it is possible, either through writing to the banking using email service or visit the website and opting out of the alerts service. There is also a toll-free number assigned to every bank. The user can call and opt out of the service as well.


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