Mobile Banking Witnesses Unprecedented Jump; Rs 49k Cr Worth Of Mobile Transactions Happened In Dec 2015
India’s financial world is abuzz with the news of giant leap of mobile banking, which has actually surprised everyone. As per latest data from RBI, the value of mobile banking transactions increased by 46% in December, 2015 to reach Rs 49,029 crore compared to November, 2015.
If we compare year on year growth, then in December 2014, only Rs 11,323 crore of mobile banking transactions happened in India.
And the most encouraging part: The number of mobile banking transactions are infact increasing at a greater pace. Compared to 16.8 million transactions in December 2014, there were total of 39.5 million mobile banking transactions in December, 2015; which is an increase of 135% year on year.
As per the experts, increased penetration of smartphones in Tier 2-3cities, along with increased interest of corporate banking customer in transacting on mobile has resulted this extraordinary surge which is unprecedented anywhere in the world.
Not surprisingly, way back in 2012, we had already stated that India’s mobile banking adoption is highest in the world.
Banks Which Are Leading This Transformation
Without doubt, the role of banks is paramount in encouraging and promoting mobile banking transactions, and in India, this surge is being led by SBI.
SBI’s major push for mobile banking happened last year, when they launched State Bank Anywhere-Saral for the SME customers and State Bank Anywhere -Corporate for corporate customers. This resulted in 5-fold increase of average transaction done via SBI’s mobile banking platform.
Interestingly, 25% of all SBI’s web banking customers also transact on mobile and by end of 2017, SBI plans to increase this number to 50%.
Manju Agarwal, deputy managing director for corporate strategy and new business at SBI said, “We have about half-a-million corporate banking customers on our web banking platforms, and we want to bring most of them on mobile by September,”
Around 24 lakh AXIS Bank’s customers are actively using mobile banking, and an average SME client transacts Rs 11,000 worth of mobile banking transactions at a given time. In December last year, AXIS Bank successfully processed Rs 6,268 crore worth of mobile banking business, from six million mobile banking transactions.
Similarly, HDFC Bank conducted Rs 8717 crore worth of transactions on mobile banking platform as 39 lakh transactions were conducted by their customers.
Note here, that this increase push is mainly coming from B2B transactions, whereas retail customers are adding to the momentum.
ICICI Bank too reported an increase of 18-20% for mobile based transactions with an average transaction size of Rs 15,000. Comparably, HDFC Bank claimed to have an average transaction size of Rs 34-35,000. HDFC Bank was among the first to launch a Hindi based platform for conducting mobile banking way back in 2012.
Introduction of technology like mobile banking on basic handsets without using Internet is actually pushing the boundaries and encouraging more mobile banking transactions.
However, concerns pertaining to security and safety of such mobile banking remains as 70% of all mobile banking apps/tools are vulnerable to hacking.
Do you use mobile banking? What changes you wish to implement? Do share your comments right here!