The M-Banking Revolution In India Is Underway. Are You A Part Of It?

The internet has brought us some nifty time-saving tools. But one of them which truly holds the potential to revolutionize everything from bill payment to shopping is Banking. Furthermore, with the people increasingly going mobile, banks are realizing & re-aligning their strategies to include & give impetus to mobile banking or as its called; M-Banking.

Mobiles today, even many feature-phones, have the capability to access internet. Banks like State Bank Of India (SBI) & Industrial Credit and Investment Corporation of India (ICICI) Bank appear to be at the forefront of banking innovations that incorporate these portable devices & mobile internet to bring almost all of the banking transactions which would earlier demand a visit to the bank or at a later stage an Automated Teller Machine (ATM).

While ICICI & SBI have been pioneers in the field of m-banking, multiple banks & even some service providers are realizing the potential this growing sphere offers. In fact, mobile payment processing companies are increasingly looking towards India as the next stage of their growth. Banks like HDFC have signed agreements with such providers to bring m-banking to even the most basic phones. Apparently HDFC’s payment system will work on menu-driven USSD codes. Though the service is quite similar to IMPS that we saw a few weeks back, it has the potential to work on all phones, no matter what make or type. Even telecom companies like Airtel have tied-up with Axis Bank to bring m-banking to its customers. It’s not just money anymore. Quite recently we even witnessed the ability to purchase precious metals like Gold, Silver thanks to the efforts of Muthoot Group with apps that work on Android as well as iOS.

Why are Banks so keen on developing mobile based applications? Well money matters.

A transaction conducted on a mobile costs 1/10^th to the bank as compared to one done at a branch. Lower operating costs are coupled with the benefit of a much wider spread of the Bank’s operating range. The Bank need not open a branch everywhere. Add to it the automation & lesser need to hire people, coupled with  possibility of outsourcing makes m-banking a very lucrative proposition.

Huge scope for growth: India’s population mainly relies on hard cash for most of its transactions. This is not because of easy access to currency notes, but lack of options. If companies can come up innovative techniques that can be used even by semi-literate people, India’s 900+ Million population could propel banking to never-before reached heights. What do you think is needed to ensure people start using such m-banking processes in their everyday lives?

Image Courtesy |  biztechreport

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