Mobile banking in India to overtake internet banking over the next five years?
Increased internet usage on the mobile platform and availability of smartphones across various price points expected to spur mobile banking in the country. December 17, 2013 | ResearchIndia’s retail financial services industry is betting big on mobile banking. Most domestic banks currently offer some variety of mobile banking services as they try to capitalise on the ballooning number of Internet registrations on mobile devices since 2011. Currently, 70% of the local population has a mobile phone; growth in smartphone usage has been rapid, though relatively small when compared to countries such as Thailand or even Indonesia. Despite more than 55 banks offering mobile banking services with varying depth and sophistication today, the large number of internet registrations does not seem to correspond with the number of mobile financial transactions, with urban immigrant workers currently the only ones making use mobile payments/banking currently. The situation in India is daunting – 54% of all mobile users continue to live in rural areas, posing a challenge for banks to effectively design their respective mobile banking applications. Huge disparity between mobile internet and banking usage However, general consensus is that mobile banking has a bigger chance to succeed where internet banking failed. Currently, desktop Internet penetration is limited in India, with growth expected to be driven by mobile internet use and availability of smartphones across various price points. With India projected to have 300 million mobile Internet users by 2015/16, Rajiv Anand, president of retail banking at Axis Bank, India’s third largest private bank, believes that mobile-based banking will overtake PC-based internet banking over the next five years. Axis Bank currently boasts approximately one million mobile banking users which it aims to grow to 4.5 million by end of 2015. The bank claims an active mobile banking user rate of 70%. Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
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