Technology in Banking-Insight and Foresight for BTA_2011 ... - IDRBT

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Technology in Banking – Insight & Foresight 24 Exhibit 11: Average daily value of mobile to mobile fund transfers (INR’000) Exhibit 12: Average daily value of mobile to others fund transfers (INR’000) Institute for Development & Research in Banking Technology
Technology in Banking – Insight & Foresight 25 Exhibit 13: Average value per transaction (INR) 3.2.10. The Road ahead Mobile phones are as much a part of our pockets as are our wallets and vehicle/home keys. This not only suggests the importance, but the level of dependence on phones. To tie the loose end, banking through a mobile channel is very intuitive and is the logical idea for banks and consumers alike. However, it is daunting and confusing to implement. In today’s world of electronic-based accounts, money is “information” passing through communications networks. The customer experience at the ATM — punching in a PIN, selecting among various options, being instantly gratified, evokes our mobile phone experience. Mobile banking is a very lucrative vertical for growth-oriented banks. The alliances with mobile operators will play a key role in this growth strategy: Leverage operator’s key assets Use mobile operator’s widespread wireless coverage and extensive use of wireless devices as part of a branchless expansion program. Branch economics, with heavy capital and labor costs, favor an environment for branches that is densely populated and where the customer transacts at higher values. Take advantage of the large and tiered distribution networks of mobile operators to roll out their banking agents Telecommunications companies have substantial leverage in mobile banking. Banks need to work with mobile operators if they want to create mobile banking services that are highly customerfriendly, fast and secure. Mobile operators’ control of the SIM, plus the attraction of leveraging their distribution networks, puts them in a strong negotiating position. While this is conducive for a bank with an already large base (customer or asset), this may create a challenge for smaller banks, who may find it more difficult to strike the right deal with stronger operators, or who might simply struggle to get them at the negotiating table. It also may create a tension with the principle of interoperability across networks, because tighter relationships may not be achievable with all networks. Institute for Development & Research in Banking Technology
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Technology in Banking-Insight and Foresight for BTA_2011 ... - IDRBT

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