Mobile banking users and transactions are growing by leaps and bounds in India. Increasing smartphone adoption and initiatives such as media promotions and customer education programs for mobile banking have led to this uptrend. The major share of this market belongs to Public Sector Banks (PSB’s) and Private Sector Banks like ICICI Bank, SBI, IDBI, HDFC, AXIs Bank etc.
The major factors for this trend are:-
- Changing Mind set and Mobile Banking acceptance The younger generation is more open to using the latest technologies. Even the middle aged groups have not started using mobile banking for utility payments and fund transfers.
- Huge savings in transaction costs for the bank
- Availability of devices Smartphones are easily available today in the price range of Rs 5000. This kind of availability of devices has increased the user base of mobile banking applications.
- Security Banks have introduced very secure mobile banking platforms which have added to the confidence of the users.
- NPCI initiatives.
Co-Operative Banks and Mobile banking
Today though some of the prominent co-operative banks have gone live with their mobile banking applications, much requires to be done with most of the other banks. Co-operative banks will have fast track their go to market (GTM) strategies regarding mobile banking. PSB’s and private banks who till now had no inroads to the customers segments loyal to co-operative banks have suddenly found a great channel in mobile banking. The huge spurge in their mobile banking transactions is partly due to these customers who were earlier banking only with co-op banks. Since RBI has a stringent policy for allowing co-op banks for mobile banking, they may first start with application which gives users credit facility. NPCI already incentives banks by providing them with a small incentive for transactions both for debit and credit transactions. The banks should take immediate initiatives to make their banking websites smartphone compatible and friendly. Nice to have things like ATM, branch locaters, service charges, EMI calculators, product information, bank events information should be made available to customer. Bank should try innovative solutions like providing a friendly electronic pass book, which can enhance user experience as also obviate the need for providing costly equipment like passbook writers in the branches. They should also examine technology to enhance ease of use like local language interface and bio-metric and voice based security and functionality. Mobile Banking initiatives should be adopted as the central point of the banks strategy to reduce costs and enhance user experience. Incentives for users can include lower service charges for using facilities. There is also a danger that if this facility is not provided, customers in the age group of 18 – 30 may not prefer opening accounts or migrate their existing accounts to more mobile savvy banks. More importantly this will inculcate mobile banking habits in users which will help the banks get ready subscriber base after launching full scale mobile banking applications. Using its 20 years of experience of working in this segment, Nelito has introduced an attractive technological and right priced solution for cooperative, small and payment banks. All transactions supported by IMPS are available off the shelf. Different customization requirements for enhanced user experience can be undertaken and deployed quickly. Nelito provides Mobile Device Management (MDM), which is critical to manage security, scalability, device management, upgrades of solutions and a platform to rapidly build applications. The banks have therefore a choice to start off with a lower investment and scale to a mobile banking platform as and when they achieve scale and see the real potential of adopting a mobile banking strategy.