The mobile banking market in India is comprised of a rural market and an urban market. The urban market has grown steadily and continued growth is expected in the payment-transactions field.
Urban citizens in India use mobile online banking services to verify bank account information, while rural users are aware of mobile banking capabilities but have not yet adopted them at a high rate. The market is expected to continue to grow, according to eprobe Research Private Limited.
Growth in the mobile banking sector in India is attributed to the need for increased user freedom to complete transactions whenever and wherever they like, 24-hours per day and seven days a week, at a low cost. Mobile banking is also being used as a marketing tool to promote other financial services that banks offer.
Key Statistics – Banking Sector in India
- Banking in India has expanded at a compounded annual rate of more than 51% since April 2001. (source: eprobe Research Private Limited)
- Based on today’s growing market, it is estimated that growth in the Indian banking industry will increase by 20% before 2015. (source: eprobe Research Private Limited)
- Although the payment processing and other systems will experience the highest growth, the retail banking technology market in India will rise at a CAGR of over 9% between 2008 and 2013. (source Datamonitor)
- While more than 50% of consumers in emerging companies believe that mobile phone banking is essential to banking, just over 27% of the consumers in developed countries share that sentiment. (source: Datamonitor)
- Only about 0.5% of people use mobile banking regularly, and 5% are registered to use mobile banking services.
- The Reserve Bank of India allowed people to pay 10 times the amount that they were allowed to previously pay using their phone: the limit is now raised to $1,100 or 50,000 rupees.
- About $13 million or 610 million rupees in mobile transactions occur every month. (source: AFP)
Key Players - Mobile banking market in India
- ICICI Bank, HDFC Bank, SBI Bank, Axis Bank, Canara Bank, Syndicate Bank, Bank of Baroda
Latest Business News – Mobile Banking In India
- The mobile banking industry may offer poor people in India who otherwise do not have access to financial services through mobile phones.
- Vodafone Group Plc and Bharti Airtel Ltd. announced during the first quarter of 2011 plans to partner with banks and offer mobile banking services to help increase revenue.
Upcoming Events – Mobile Banking
- Banking, Finance and Technology Forum, June 15, 2011 in Mumbai India