Voluntary Insurance for Rapid Growth Bank-led Digital-bankingTransactions: Seeking Attentions for Policy-Design in Bhutanese-economy

It is well recognized that digital banking is an important product in today’s financial sector country-wise. However, perceived risk-factors particularly, psychological risk-factor of customers and probable customers has been undermining the growth-trends of bank-led digital-banking country-wise where Bhutan is no exception. Even though provisions of financial services cover transactions of traditional banking services, it does not cover digital transactions. Attaching a new product - Voluntary Insurance - with a bank-led digital-banking service market can help to overcome the challenges, which can encourage probable customers too to use it. This new and increasing value is what will keep banking-business be growing, which can ensure risk-free digital-banking in Bhutanese-economy. It can ensure speedy growth trends of digital transactions. Once the VI as a product is in place, it will spread from bankers to customers and its growth trend (S-curve) will capture the growth of revenue or productivity against time. This growth trend will be slow as the new product sets itself up but at some point, it will be fast. So, the growth-trend of transactions will increase rapidly in Bhutanese digital-banking service-market. Over time, it will ensure Bhutanese to be cashless society. The goal of this study is to bring these VI policy recommendations to policymakers and bank-management’s attention in Bhutanese financial-sector.