What is Hashtag banking?
Hashtag does it all in this digital world. The social media era has made a wide influence on the banking sector as well.
Banks are realizing that youngsters who are socially active on Twitter and Facebook would anytime prefer a bank account that can be combined with the social media. It is hence called as ‘’Social media banking’’.
If you are active on social media, especially on Twitter, you would be familiar with the hashtag. Hashtag is a word or phrase preceded by a hash sign (#), used on social media sites majorly on Twitter to identify messages on a specific topic. So through these hash tags you can bank.
Indian banks have now started using the hashtag to provide services such as fund transfer, balance inquiry, prepaid mobile recharges etc.
To avail this facility, you have to ‘follow’ your bank on Twitter. This is because you will have to send messages to the bank, which is only possible if you and your bank are following each other.
- Tweet #ibal and you can view your account balance.
- Use #itran to view your recent transaction.
- #topup provides you to recharge your prepaid mobile.
(These hashtags differ for various banks)
How does it work?
If you want to transfer funds to anyone you will have to use #pay followed by the receivers twitter handle along with the amount. The bank will in return send a 4 digit pass code which is to be shared with the recipient. The recipient will get a tweet from the bank on his/ her Twitter page. Once the tweet is received the receiver will have to use the 4 digit pass code to redeem the amount.
Most of the banks are offering this service for free. Also at a later stage if they start charging a fee for transferring money via hashtag banking the fees would range between Rs 2.5 and Rs.5 per transaction.
This is considered to be safe and secured as the transactions are not visible to others However there would be technical uncertainties too. If your Twitter account is hacked de-register your social account to be secured and safe.
Use this facility only if you are comfortable. Otherwise you can always use mobile apps for banking which are quick too.