SBI has introduced a new facility in mobile banking

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Even the public sector behemoth SBI is not far behind when it comes to offer mobile banking. Lately, SBI has introduced a new facility in mobile banking wherein central government employees receiving payments through SBI will receive the details of their transactions through mobile phones.

So, while HDFC and SBI are banking on Eko, banks like Dena Bank, Andhra Pradesh Grameena Vikas Bank, Punjab National Bank, Axis Bank, Punjab and Sind Bank, Oriental Bank of Commerce, United Bank of India, et al are banking on A Little World’s (another technology provider) “ZERO” platform to reach to the customers.

Increasing competition has even prompted telecom service providers to move ahead of telecommunication services. In fact, now they are aiming at partnering with banks to provide mobile banking services to bank customers. Bharti Airtel, for instance, has entered into agreements with ICICI, HDFC, SBI, and VISA to offer mobile money transfer (MMT), postpaid bill payment, and prepaid recharge services in addition to ticketing services for air, rail, and movies. Likewise, Reliance allows ICICI Bank account holders with Reliance handsets (even on low-end handsets of Rs.1,000, with or without Internet connectivity) to make intrabank money transfers. Apart from this, it has also tied up with HDFC to offer Reliance mPay, a virtual credit card.

No doubt, mobile banking happens to be the buzz word with every single banker in India at present, but whether it will emerge as a clear successor of e-banking will depend on how customers across the country accept and acclimatise to this new banking channel. “Increasing mobile penetration cannot be the only indicator that mobile banking will slowly and steadily increase acceptance. However, factors like technological advancement in terms of software applications and service offerings, user-friendly products and services, security concerns, and last but not least, regulatory norms will play a pivotal role in the growth of mobile banking in any country,” states Rajan.

But who knows, with banks looking adamant on developing a more user friendly interface for their customers, mobile might soon become a popular tool for conducting financial transactions. And Pathak, who is today furiously clicking the keyboard of his laptop for transferring funds from his one account to another, might tomorrow be happily doing it through his cell phone!

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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