Banks ready to hit Wireless highway

Mobile Banking attractive for banks as well as customer

DNA Money
September 22, 2006

Mobile Banking is expected to replace debit and credit cards as the most popular mode of conductions financial transaction in the next few years as the number of mobile users increases and customers become more comfortable with the idea.

Mobile banking will be attractive for banks as well as their customers, said experts at Banknet India’s second international Bank Tech summit . Together with giving customers the liberty of transacting their account ‘anytime anywhere’, mobile banking will help banks increase contact with customers which could mean increased revenue and direct marketing opportunities , said Mathew Talbot, managing director of Mobile 365 , a company that provides wireless application services to banks.

Customers using mobile phones for financial transactions are likely to more than double to 256 million from 100 million in 2005.

Mobile banking is already ahead of internet banking; with 11% customers using phones for financial transactions as against 3-4% using the net for the same, analyst said This is essentially because of the lack of familiarity with computers and lower broadband penetration.

“The lack of a broadband network in Indian means that the requirement for mobile banking is stronger than anywhere,” said Chris Buckham , director of marketing with Talgentra, a software and service company for billing and revenue collection, “A strong recollection. ‘A strong requirement will create a need for innovation which will help for innovation which will help India take the lead,” Buckham said.

Mobile phones are currently used mainly for balance inquiries, check book requests and mini statements. Banks like Statements. Banks like State Bank of India, ICICI Bank and HDFC provide mobile services likes SMS alerts.

However, experts said there is more to be done. “There is something missing (even in mobile banking). For example we cannot buy a meal or shop through our mobiles,” said Sharad Agarwal, chief technology officer, Atom Technologies.

Panelists also said that more was needed for people to get used to new technologies. There was also wide agreement that there are still concerns over security in new technologies. “It took 20 years before ATMs were really used but once mobile banking picks up it will transform India. People will stop using roads, they will use wireless highways,” said Anuj Bhargava chief information officer, HSBC Bank.

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