mbanking report final

7/24/2019 Mbanking Report Final

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ContentsExecutiveSummary............................................................................................................................................iii

IntroductionandBackground..........................................................................................................................1

Indian banking and cellular market ............................................................................................................................ 1

Banking and Mobile Phones: A Potentially Happy Indian Marriage ............................................................. 3Mobile Banking in India today....................................................................................................................................... 5

Technological and regulatory factors impacting future growth ..................................................................... 6

MobileBankinginIndia:BarriersandAdoptionTriggers.....................................................................9

Study Objective and Design ............................................................................................................................................ 9

How does the Indian consumer bank? ..................................................................................................................... 10

Issues faced in traditional banking....................................................................................................................... 12

Awareness and adoption patterns for mobile banking ..................................................................................... 14

Sources of awareness ................................................................................................................................................. 14

Triggers for adoption ................................................................................................................................................. 15

Barriers to adoption ................................................................................................................................................... 16

Who is using mobile banking today? ................................................................................................................... 19

Frequency and patterns of use among mobile banking users ........................................................................ 21

Types of tasks by SEC and over tenure of use .................................................................................................. 22

Postadoption changes in traditional branch banking habits ................................................................... 24

Who will be the future users of mobile banking in India? ............................................................................... 24

Likelihood of usage among current nonusers ................................................................................................ 24

Future: Drawing from lower socioeconomic strata ..................................................................................... 25

Conclusion.............................................................................................................................................................27

Appendix1:Somemobilebankingmodelsindevelopingcountries...............................................29

Appendix2:SurveyQuestionnaire..............................................................................................................30

Recruiting Questionnaire .............................................................................................................................................. 30

Screener ................................................................................................................................................................................ 34

Detailed Questionnaire ................................................................................................................................................... 60

Section 1 Overall Banking Information ............................................................................................................ 60

Section 2 Usage of Internet banking .................................................................................................................. 66

Section 3 Usage of Mobile Banking .................................................................................................................... 68

Section 4: Expected Usage among Respondents aware (but nonusers) of Mobile Banking ....... 73

Section 5 Mobile phone usage .............................................................................................................................. 76

Section 6PC/Internet usage ................................................................................................................................... 79

Section 7Demographics ........................................................................................................................................... 82


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ExecutiveSummary

Globally, mobile banking services have become a popular method to conduct financial transactions.

Indias mobile banking sector is in a nascent stage and poised for rapid growth. To better

understand this sector, this report presents findings from a survey conducted in April and May

2012 across five Indian cities. Respondents in socioeconomic classification (SEC) A12 and B12were asked an array of questions on banking habits, adoption and use of mobile banking and

cellular phone usage.

Key findings of the survey include:

Thereisconsiderabledissatisfactionwithtraditionalmodesofbanking

82% of respondents complain that travel time is the top pervasive problem

Mobile banking is more popular than branch banking in several categories: 58% ofcustomers deposit and transfer via mobile vs. 44% at the branch.

Less than 30% of respondents use Internet banking for any task.

Televisionandwordofmoutharethemostpopularsourcesofawarenessformobile

banking

62% of mbanking users and 50% of nonusers heard about mobile banking fromfamily, friends of colleagues.

Less than 10% of respondents heard directly from their banks about mobile bankofferings.

Comfortandconvenienceisatoptriggerforadoptingmobilebanking

88% of mobile banking users cited the comfort and accessibility of their phone as thetop reason for adoption.

Checking and viewing bank balances is first and most common task Experienced users use mbanking 50% more weekly than new users and perform more

sophisticated tasks.

37% of SEC A1/A2 respondents use mbanking compared to 23% of B1/B2respondents.

Technologyproblemsbiggestbarrierstoadoptionanduse

Incompatible cellphone and mobile network problems top hurdle for 70% of nonadopters

SEC A respondents are relatively more concerned about security and customer supportissues, SEC B face more technological and awareness problems

Thirdgenerationcellulartechnologyandsmartphonesboostadoptionanduse

41% of 3G user also use mobile banking vs. 30% of 2G users 49% of smartphone owners do mbanking while 0% of those with basic phone do

Users and nonusers of mobile banking look much more similar once technology isaccounted for.

Mobilebankingusersarehighlysatisfiedwith experience

94% of mbanking users say physical visits to the bank have been reduced sinceadoption.

90% of users would recommend use to family and friends.


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1

IntroductionandBackgroundMobile banking (mbanking) has emerged as a popular mode of banking in many developed and

developing countries. In India, there are approximately 12 million mobile banking users and this

figure is expected to grow rapidly with mobile transactions exceeding credit card transactions by

the end of the decade. By some measures, there are more mobile phones in India than there are

bank accounts. The combination of two factorsa large unbanked population and the ubiquity of

cell phonesis a catalyst for high mobile banking adoption. To fully understand the current status

and future trends in this market requires some comprehension of the general banking sector the

turf where mobiles compete with physical bank branches and computers. Also, knowledge of

cellular phone penetration is needed to get a sense of who mobile banking services will reach. The

following pages provide a brief background on these topics and some information on the structure

and services in the mobile banking sector.

Indianbankingandcellularmarket

BankingmodesavailabletotheIndiancustomer

There are 80 commercial banks in India, operating around 77,000 branches and with over 1 millionemployees. The sector is mainly composed of public, private and foreign banks. In addition, there

is also a vast network of rural banks and credit institutions. But despite such a sprawling network

of institutions and much push from the government for financial inclusion, more than 70% of

Indias population remains outside the formal banking sector. In recent years, technology has

expanded channels through which consumers can interact with their financial institutions,

providing not only easier access to the existing base, but also facilitating penetration of financial

services among the population. Box 1 depicts the various banking channels available to the Indian

consumer.

Brickandmortarbranchnetwork:Brick and mortar branches are the foundation of Indias

banking system. In India, these branches can range from complex operations with hundreds ofemployees in dense urban locations to oneman, singleroom branches in rural areas. The

nationalization of banks in the late 1960s and early 1980s was accompanied by government effort

towards bringing more and more of the population into the banking net. Tight regulations

governed the expansion of branches, with a view to increase inclusion; banks were required to

open certain number of rural branches for any nonrural branches they wanted to operate. Despite

such regulations and encouragement, branches per capita remain among the lowest in emerging

markets (12000 people/branch). The typical scenario inside a traditional Indian bank involves

waiting in long queues even for the simplest of transactions, such as a passbook update or cash

withdrawal.

Automatic

Teller

Machines

(ATMs):

Innovations in banking delivery channels started with theintroduction of ATMs as a selfservice delivery channel in the late 1990s. ATMs also marked the

entry of anytime banking as customers could now access money from their bank accounts at a time

of their convenience. As of 2012, ATMs remain the most successful delivery channel in India

followed by telephone banking and internet banking. With about 75000 plus offbranch and in

branch ATMs installed, banks are seeking to reach out to a large customer base at a substantially

lower cost, giving them easier access and faster service. The State Bank of India and associate


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2

banks own the largest number of ATMs at 25,060. They are followed by Axis Bank (6,270), ICICI

Bank (6,104), HDFC Bank (5,471) and Punjab National Bank (5,050).1

Typically, a transaction, which costs Rs. 50 at a branch, costs about Rs. 15 if done through an ATM.

Research shows that the number of footfalls at bank branches has fallen drastically after the

installation of ATMs. In order to further reduce the cost of service delivery and revenues throughATMs, banks have started outsourcing and sharing of ATM services and crossselling other

products. Some banks have already started dispensing railway tickets and movie tickets through

their ATMs. In the future, a banks ATM may function like a kiosk delivering many more noncash

transactions, further increasing the profitability of ATMs.

InternetBanking:Increasing interest in selfservice continued and internet usage prompted banks

to introduce the concept of anywhere banking. Customers could now access their bank accounts,

check their account details, get their bank statements, transfer money to other accounts and pay

their bills from the comforts of their home or office. Internet Banking, also offered significant cost

advantage to banks. A netbased transaction costs the bank only around Rs. 4, which is much lowerthan even an ATM, mainly due to savings on prohibitive real estate costs as well as labor costs. 2

However, internet banking has grown slowly in India due to a combination of psychological, legal,

technological and socioeconomic factors. The biggest limitation of internet banking is the

requirement of a computer with an internet connection, which is not a common across Indian

households. A lack of critical mass of early adopters, lack of a strong trust environment, slowness in

adoption of internet, low penetration of PCs and access to internet are some of the impediments in

the adoption of internet banking in India. Security issues also loom large and customers restrict

usage of Internet banking to their home and office computers.

HighpenetrationandrapidgrowthintheIndiancellularmarket:The spread of mobile

phones across India is one of the most remarkable economic and technology success stories of the

last 15 years. It has contributed significantly to the growth and modernization of various sectors

and the overall socioeconomic development of India.

The number of mobile phone subscribers in India reached a whopping 916 million at the end of

March 2012. The Indian mobile phone industry registered a consistent overall growth rate of

around 45% annually in terms of subscribers. The sector, as shown in Figure 1, remains

competitive with several domestic and international players vying for this growing customer base.

Today, a mobile phone has become an essential part of an average Indians existence. This is a

result of positive regulatory changes, intense competition among multiple operators, lowpriced

handsets, prepaid cards, low tariffs and significant investments in telecom infrastructure. The welldistributed network of telecommunication services in India has resulted in widening of markets,

efficient information flows, lower transaction costs and an effective substitute for infeasible

physical transport.

1Banks install 19,000 ATMs in 201011

http://articles.economictimes.indiatimes.com/20110408/news/29396871_1_atmsnpcinationalfinancialswitch2Retail Banking: Challenges Ahead in Distribution Channels in Urban/Rural India, RBI Bulletin, January 2004


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5

technologies costs only $209. The RBI reports that while the government typically incurs a

transaction cost of 1213 per cent, mobile banking brings this cost down to 2 per cent.4Mobile

banking offers the physical proximity that other methods like branch banking and even technology

based channels such as the Internet or ATMs, cannot match. With mobile banking, customers now

essentially carry their bank with them, truly facilitating, anytime, anywhere banking.

Banks have started offering informationbased services like balance enquiry, stop payment

instruction of checks, transactions enquiry and location of the nearest ATM/branch on mobile

funds. Acceptance of transfer of funds instruction for credit to beneficiaries of same/or another

bank in favor of preregistered beneficiaries have also commenced in a few banks. Additionally, this

new channel gives the bank ability to crosssell and upsell their other complex banking products

and services such as vehicle loans or credit cards.

Since only 40 per cent of the adult population has bank accounts, whereas more than 70 per cent of

adults own a mobile connection, linking banking with telecom seems to be the correct choice for

Indias commercial banks. With a large mobile handset penetration, it is the obvious choice to crossthe extremely low credit/debit card penetration barrier (which is below 10 per cent of the

population). The high penetration levels of mobile phones and low transaction costs involved in

mobile banking are likely to be the potential growth drivers for these services.

MobileBankinginIndiatoday

Mobilebankingbusinessmodels5

The predominant model for mobile banking in India is the bankledmodel wherein banks are the

focal point of transactions and it is their brand that dominates. Mobile banking is offered to

customers/depositors of the particular bank and all accounting and transfers are through the bank.

A variant of this model is where telecom operators and banks partner to offer services. Examples of

these are joint ventures between Airtel and Axis bank and Vodafore Essar and ICICI Bank. Often, the

cellular service operator will provide a customized platform or builtin applications to facilitate m

banking transactions.

Banks with mobile banking options offer services in the general categories of account information

provision, payments and transfers, investments, support and content services. Table 2 provides

more details on these segments. Most mbanking/mpayments systems in India enable users to do

i) Store value (currency) in an account accessible via the handset. If the user already has a bank

account, this is generally a question of linking to a bank account. If the user does not have an

account, then the process creates a bank account for her or creates a pseudo bank account, held

by a third party or the users mobile operator.ii) Convert cash in and out of the stored value account. If the account is linked to a bank account,

then users can visit banks to cashin and cashout. In many cases, users can visit a corner kiosk

4Mobile Banking: Opportunities and challenges in the Indian market

http://www.tele.net.in/discussionboard/item/7732mobilebankingopportunitiesandchallengesintheindianmarket5Morawczynski, O. & Miscione, G. (2008). Exploring Trust in Mobile Banking Transactions: The Case Of MPesa InKenya,, SocialDimensionsofInformationandCommunicationTechnologyPolicy, pp. 287298


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or grocery store and transact with an independent retailer working as an agent for the

transaction system.

iii) Transfer stored value between accounts. Users can generally transfer funds between accounts

linked to two mobile phones, by using a set of SMS messages (or menu commands) and PIN

numbers.

Technologicalandregulatoryfactorsimpactingfuturegrowth

Information technology holds a promise to change the face of consumer banking in the next few

years through the convergence of banking and telecom players.Technology will become imperative

in banking for providing convenience in product delivery, increasing productivity and performance.

As mobile networks in India are upgraded with WAP, GPRS and UMTS to deliver nextgeneration

multimedia services, banks can provide a host of services on mobile phones and will have

immediate and full control over their finances. Customers will be able to view their account

statement, transfer funds between accounts, get instant notifications whenever they transact. Next

generation mobile banking services will deliver significant improvements with userfriendly icon

driven instructions, instant access, security and immediate transaction processing all at a lower

cost. Banks can also attain higher levels of customer satisfaction and increased loyalty by providing

anywhere, anytime banking. They will also benefit further from lower administrative costs, fewer

branches, reduced headcount, streamlined call centers and lower handling charges savings that,

hopefully, will be passed onto customers. Considering the farreaching impact of certain

technologies, we should expect to see major shifts in the banking industry unlike any we have seen

before

Box2:Mobilebankingservice

AccountInformation Ministatements and checking of account history

Alerts on account activity or passing of set thresholds Monitoring of term deposits

Access to loan statements

Access to card statements

Mutual funds / equity statements

Insurance policy management

Pension plan management

Payments&

Transfers

Domestic and international fund transfers

Micropayment handling

Mobile recharging

Commercial payment processing

Bill payment processing

Investments Portfolio management services

Realtime stock quotes

Personalized alerts and notifications on security prices


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7

Impactoflaunchof3Gonmobilebankingservices

In India, the current 3G footprint is limited to the metros and urban/ semiurban areas. In the short

run, 3G will only have an indirect impact as mobile banking services are not bandwidth intensive

and, thus, do not need highspeed connectivity. However, soon enough, 3G will be a key factor in

mobile banking gaining traction. This is because it offers increased security protocols and morebandwidth for secure mobilebased transactions. Third generation technology will also drive the

uptake of smartphones which will enable more secure and userfriendly interfaces for mobile

banking applications.

Managingthenetworkserviceproviderrelationship

By virtue of its very nature of operation, mobile banking brings a certain clash of interest with

respect to ownership of end customers and revenue sharing between network service providers

and financial institutions. Network service providers offer mobile services for users and often they

also provide heavily subsidized handsets. Financial institutions share a relationship with the

customer in terms of holding the account and credit card, owning the expertise to process

transactions, and so on. Given this scenario, it is obvious that the financial institution must clearly

establish the dynamics of the partnership, for business viability. Mobile banking solution providers

would do well to optimize the deployment mechanism to reduce dependency on network service

providers, to a viable minimum.

Prudentregulation:Akeyfactorinfuturegrowth

A number of regulatory policies stymie mobile banking in India. Fullscale commercial

implementation of rural mbanking is complex, as it requires a multitude of players, such as

telecom operators, mbanking product developers, regulators and financial institutions to envisage

and coordinate delivery. In 2008, the Reserve Bank of India (RBI) laid out operating guidelines for

mobile banking transactions, which include methods for banks to collaborate with telecom

providers, strengthening the security framework and laying down common standards for

completing transactions. The Reserve Bank of India permitted only licensed banks with a physical

bank presence in India and bars nonbank finance companies and microfinance institutions to

launch mobile banking. This disqualifies mobile network operators from offering their own service.

Services were restricted to customers of banks and holders of debit/credit cards issued as per RBI

guidelines.

Support Status of requests for credit, including mortgage approval, and insurance

coverage

Check book and card requests

Exchange of data messages and email, including complaint submission and

tracking

Content

Services

General information such as weather updates, news Loyaltyrelated offers

Locationbased services


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8

The RBI has taken a step forward by removing the Rs 50,000 transaction limit through mobile

phones with a view to allow customers to transfer bigger amounts. However lenders may place per

transaction limits based on their own risk perception with the approval of their boards. RBI has

also allowed banks to appoint forprofit banking correspondents (BC), including telecom operators

and limits relating to having the BC within a fixed distance of the bank have also been relaxed.

The regulation on mobile banking is moving in the right direction but the RBI should look atlowering the entry cost. For example, the KnowYourCustomer (KYC) norms6applicable to telecom

companies rather than banking KYC rules should be adequate for opening an account. It is

expensive for operators to comply with these regulations especially when customer volumes have

not stabilized. A few more enabling regulations largely centered on unifying account opening and

controls between operators and bank will lower cost and increase viability. Increased viability will

ensure faster scaleup and proliferation of services. The regulator should define the extent to which

mobile operators can substitute or replicate services that banks traditionally offer. The RBI has

been reluctant to allow nonbanking players like telecom operators to carry out banking operations

and requires such services to be offered in partnership with the existing national banks.. These

issues need to be addressed on the policy and regulation front. Financial inclusion reforms shouldalso provide norms for mobile banking for the rural population. Stringent security norms and a

framework for preventing fraud are needed to change the perceived insecurity of mobile banking

transactions. The RBI has in the last few years, taken positive steps towards facilitating inter

operability among banks for mobile payment through the interbank mobile payment. However, a

more integrated approach and framework for mobile banking is the need of the hour. The RBI still

has some way to go in terms of facilitating the mobile ecosystem for growth with an integrated

framework. Policymakers and regulators face twofold challenges regarding Mbanking: first, to

encourage banks and mobile operators to develop solutions that are not proprietary and second, to

allow access to potential new entrants who may disrupt the lucrative business models of the banks

and mobile operators. The key challenge is to do this while at the same time ensuring high levels of

security and trust. It is important that mobile banking is not seen as a turf war between the

financial and telecommunication sectors but as something, that complements existing financial

services.

6KYC rules require that banks require a system of documentbased registration and the mandatory physical presence ofthe customer to open accounts


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9

MobileBankinginIndia:BarriersandAdoptionTriggersMobile banking has grown at a blistering pace in across many developing and developed countries

around the world. In India relative to a very high mobile penetration rate, the use of mobile banking

(mbanking) services remains low. However, with new cellular technology as a catalyst, mbanking

looks wellpoised to draw in millions of new users, who tired with the lumbering brick and mortar

banking facilities, seek timesaving and easily accessible alternative banking modes.

StudyObjectiveandDesign

This report presents facts and analysis on the banking habits, awareness, adoption and usage

patterns among mbanking users and nonusers. It identifies factors that will drive ontheground

success of mobile banking in India. To do so, we collect data on the barriers limiting adoption of

mobile banking amongst nonusers and also the triggers that led to adoption among current users.

We surveyed 1614 respondents during April and May 2012 across five different geographically

dispersed cities of India Delhi, Mumbai, Lucknow, Indore and Kochi.7 The initial screening only

selected respondents who were aware of mobile banking but may or may not have actually adopted

the service.8 Classified on the basis of socioeconomic class (SEC), the respondents were drawnfrom classes A1, A2, B1 and B2 on this 12grade scale which is based on education and number of

consumer durables owned. In India, these four SEC represent 11.8% of the general population and

25% of the urban population. 9 32% of the respondents were users of mobile banking. Detailed

information was collected on a variety of subjectsbanks patronized and banking habits, types of

financial transactions conducted, advantages and disadvantage of mobile banking, cellular usage

and demographic features.

Table1:Sampledistributionacrosscities

Delhi Indore Kochi Lucknow Mumbai TotalNonUserofM banking,Accountwitha

PrivateSectorBank102 101 100 102 102 507

NonUserofM banking,Accountwitha

PublicSectorBank119 122 105 113 139 598

UserofM banking,Accountwitha

PrivateSectorBank52 50 57 50 52 261

UserofM banking,AccountwithaPublic

SectorBank48 50 50 50 50 248

Total 321 323 312 315 343 1614

7Delhi and Mumbai are classified as Tier 1 cities and Kochi, Lucknow and Indore are classified as Tier 2 cities. Tier 1cities have a population of over 4 million while Tier 2 cities population is 1 million to 4 million.8Consumerswereinitiallysurveyedonthestreetbriefly.Outoftheserespondents,onlythoseconsumerswhowereawareof

MBanking were later interviewed facetoface in the CAPI (Computerassisted personal interviewing) center. The interview

workwasfullycontrolledandanypossibilityofleavingoutquestionswaseliminated.9This system is developed by the Media Research Users Council (MRUC) and the Market Research Society of India (MRSI).


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10

HowdoestheIndianconsumerbank?

As in the case of any consumer decision, the adoption and use of mobile banking depends heavily

on how attractive the alternative product is. For Indians with access to formal banking (the

segment of the population represented in this survey) brick and mortar branches are the

traditional mode of conducting banking transactions. We asked respondents, who all have

accounts in either public (49%) or private banks (51%), about their use and satisfaction with theseservices.

Most consumers physically visited a branch bank once a month or less. The most widely performed

branch banking activities revolve around viewing balances and transfer/depositing money. In the

preceding three months, 86% of users had transferred and deposited money and 82% had checked

their balance. A distant third was tasks paying insurance premiums (20%). There is much less

activity in more sophisticated tasks such as investing in shares (10%), credit card transaction (6%)

or mutual fund activity (4%).

Table2:Bankingactivities

Activitiesdoneinlast3months AllUsers M BankingusersMBankingnon

users

Base: 1614 509 1105

Payment of Bills 53% 38%

Transfer/deposit money 86% 86% 85%

Check/ View account balance 82% 90% 78%

Pay insurance premium 20% 26% 17%

Monitoring Deposits/ Fixed/ RDs 7% 7% 7%

Invest in share market 6% 7% 5%

Request cheque book 15% 17% 13%

View Mini Statements 15% 18% 13%

View Loan statements 8% 10% 6%

View Credit Card Statements 10% 10% 10%

Invest in MFs 4% 6% 3%

Stop payment on cheques 8% 11% 7%

Functionality to stop, change and delete payments /ECS Linking account for Auto Debit

4% 6% 3%

PIN provision 7% 11% 5%

Updating passbook 17% 12% 19%

There is some heterogeneity by SEC in the types of banking activities done at the physical branch,

more welloff and educated classes (SEC A) with presumably more advanced financial knowledge,

more resources and higher potential returns tend to do more complex financial transactions like

investing in share or mutual funds and credit card activity. However, the biggest difference across


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11

classes emerges on the dimension of howthese transactions take place. As Figure 2 shows, the

majority individuals in upper classes deposit or transfer money by some other medium rather than

physically visiting a branch. This proportion decreases as we go down the SEC scale.

Figure2: Physicalbranchastopmodefordeposits/transfers

This picture, which could be replicated for a variety of other bank services, shows that more

educated and welloff individuals are finding convenience in nontraditional banking modes like

ATM, internet, mobile or phone banking. Although not explicitly defined in the survey, many of the

higher classes reported using Other modes which most likely means they are using domestic help

or assistants to conduct banking activity. Even though bank branches are located moreconveniently for affluent households, their opportunity cost of time is also incentivizing them to

avoid crowded and timeconsuming bank branches.

Interestingly, the data also shows that internet or net banking has not caught on. Less than 25%

of customers use online services for banking. In many service categories, there is evidence of a

leapfrogging effect. Consumers are skipping over an intermediate banking mode such as internet

or phone banking and adopting the latest technology i.e. mobile banking. For example, amongst

those with access to mobile banking, 47% use branch banking for paying bills, 25% use internet

banking and 40% use mbanking.

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

SEC A1 SEC A2 SEC B1 SEC B2

%

respondents


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12

Figure3Modesofbankingfordifferenttasks

Branch ATM Net Mobile PhoneOther

Payment of Bills 47% 16% 28% 40% 1% 6%

Transfer/deposit money 44% 29% 27% 58% 1% 4%

Check/ View a/c balance 25% 60% 22% 66% 1% 3%

Pay insurance premium 32% 13% 31% 40% 3% 10%

Monitoring Deposits/ Fixed/ RDs 30% 22% 16% 16% 0 22%

Invest in share market 8% 8% 17% 36% 6% 31%

Request cheque book 44% 30% 3% 34% 2% 14%

View Mini Statements 24% 50% 21% 47% 3% 10%

View Loan statements 30% 23% 2% 25% 2% 30%

View Credit Card Statements 49% 24% 14% 16% 4% 16%

Invest in MFs 22% 22% 13% 34% 0% 22%

Stop payment on cheques 37% 7% 17% 54% 6% 15%

Functionality to stop, change anddelete payments / ECS

23% 19% 10% 35% 3% 29%

PIN provision 18% 45% 20% 45% 4% 13%

Passbook Update 93% 0 0 0 0 7

Issuesfacedintraditionalbanking

The movement away from brick and mortar banking is not surprising as there is considerable

dissatisfaction with traditional banking along several dimensions. Respondents complained about

the amount of time and energy they had to expend to merely commute to their bank. Most

consumers also complained about inordinate delays and harassment faced inside the bank. Usually

this physical branch banking involves waiting in serpentine queues and moving from one counter

to another to get even basic tasks accomplished.


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13

Figure3: Problemswithtraditionalbanking

Visiting a bank physically is timeconsuming and consumers said they are forced to defer

other important work to travel to a bank. In fact, more than 50% of the consumers ranked it as one

of their top three problems. Almost one of every three banking users needs to travel more than 2

kilometers to reach out to its nearest bank branch, with an average time of 1718 minutes. This

problem is marginally better in Tier 1 cities where average distances and travel times to bank

branches are shorter, but it remains daunting. Moreover, since lower SECs tend to live farther on

average from bank branches on average these problems are magnified for them. The opportunity

cost of time may be lower for lower SECs so that waiting in a queue is relatively less expensive for a

small shopkeeper than a high powered executive. But on net, the sluggish Indian banking

infrastructure inordinately burdens even lower middle class (SEC B) banking customers.

Respondents with account in private banks (both domestic and foreign) tend to be less displeased

with their banking experience in terms of customer service and delays that those with accounts inpublic sector institutions. Also, note that the differences may be higher that the numbers show

because customers of the respective types of banks are not similar i.e. private bank customers tend

to be more demanding as well. But the latter do better on the locational front, which is not

surprising as public sector banks often have the pick of choice locations available at subsidized

rates. Overall, however, the figures suggest that banks in India have not lived up the expectations of

their customers.

82

73

73

75

71

72

64

63

63

63

61

66

56

54

50

Time wasted travelling

Move from one counter to another one

Long queues

Unable to locate a bank branch while traveling

Inconvenient branch locations

Not accessible 24*7

Poor service

Unhelpful bank employees

Inadequate knowledge of the staff

Errors in recording transactions

No customised services

Cheque clearance not reflected on the same day

Poor bank infrastructure

Better services at other banks

Unreliable in past


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14

Figure3:%respondentsinstrongagreement

Holdaccountin

publicsector

bank

Holdaccount

inprivate

sectorbank

I end up wasting a lot oftime travelling to bank 82% 86%

I have to move from onecounter to another to getwork done

69% 65%

Bank employees/frontdesk executives at thebank are not willing tohelp me

56% 54%

It is important to keep in mind that problems of access and service exist on an even larger scale for

lower SECs (classifications CE) who are not included in the survey. Branches per capita in Indiastill remain among the lowest in the world and basic access remains a pervasive problem. In spite

of a big push by the government towards financial inclusion, less than 80% of the population has

access to formal sector lending representing fertile grounds for mobile banking to make inroads.

Awarenessandadoptionpatternsformobilebanking

Sourcesofawareness

By survey design, all respondents in the survey were aware of mobile banking. Television and

wordofmouth and internet are the top sources for awareness overall. Wordofmouth is

particularly effective for users.

Figure4:

Sources

of

awareness

for

mobile

banking

62

60

55

53

41

28

13

9

50

62

33

48

39

22

11

4

Friends/ family/ Colleagues using the service

Television

Internet

At the Bank branch

Newspapers/ Magazines /Other Print ads

Through the Mobile Service provider

Direct mailers

Call from a bank MBanking User MBanking NonUser


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15

More and more consumers rely on advice from friends, family and even strangers to make purchase

decisions in technology enabled banking services category especially Mbanking. The survey

reinforced what almost every businessperson knows, the best lead or referral is often the one that

comes straight from the moutha satisfied customers mouth, that is. A surprising fact given that

India has a bankled model for mobile banking, banks are not a more prominent source of

awareness. Only 5% of people heard about mbanking services through their bank. Additionally,mobile providers are not prominent source of information (23%). As we will see below when

discussing barriers to adoption, even though everyone in the survey is aware that banking through

a mobile device is possible, underawareness is the pressing problem. Potential users often do not

realize the extent to which mbanking can make banking more efficient and low cost. In these

embryonic stages of growth, banks and mobile providers must drive awareness about their

products. The finding that wordofmouth and peer use is so important to awareness implies that

reaching a critical mass of users will be vital to propelling mbanking forward. This fact also points

to low SEC groups, where adoption may be much below the critical threshold, as an important

target for marketers.

Triggersfor

adoption

When asked what attracted them to the service, the comfort and convenience of using their cell

phone emerged as the top reason for most users. As discussed earlier, cell phones have made deep

inroads among the Indian population. All segments of individuals and households have one and

are adept at using it. The idea of doing basic banking on such a familiar device is the immediate

attraction of mobile banking. The figure below shows these various triggers for adoption.


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16

Figure5: Triggersforadoption

As we see above, most respondents familiarity and comfort with their cellular device is impetus for

venturing into new applications such as mbanking. Top ranking given to several bankingcategories such as Usingamobileforbankingmakesbankinghasslefreeandeffortless, Icando

bankinganytime/anywhere(24/7banking), and Bankingthroughthemobilesavesalotoftime

also underscore the time and energy saving advantages that mbanking presents over traditional

banking. On the other the low ranking of certain categories like mobilebankinghasauserfriendly

interface and abilitytoconductfinancialtransactions highlight certain areas, specifically

improving usertechnologies and catering to smaller customers, that mbanking providers must

better to get more traction in the Indian context. The idea that having the right cell phone is a key

factor behind adoption is reinforced if we look at the barriers rather than triggers to adoption.

Barrierstoadoption

Overall, we can classify the hurdles that respondents stated as reasons for not using mobile phonesto four major categories lack of awareness, technology problems, security concerns and support

issues. Box 3 categorizes the specific statements evaluated in the survey under these four broad

areas.

88

88

85

84

84

84

83

83

83

80

I can do banking anytime/ anywhere

Banking through the mobile saves a lot of time

Using a mobile for banking makes banking hassle freeand effortless

Mobile banking has a user friendly interface

Ability to conduct financial transactions of evensmaller denominations

Consistent service experience, as human interventionis less

I started using Mobile Banking as most of my friendsand colleagues were also using it

I take keen interest in newer technologies

It involves lower cost as compared to the traditionaland older modes of banking


20/76

Box3:M

Figure 6

reason i

mobilep

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too slo

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nonuser re

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and need fo

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ransmission is

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attimesth

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21/76

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22/76

19

Figure6: Barrierstoadoption

Whoisusingmobilebankingtoday?

Mobile banking adopters tend to be relatively young, between the ages of 2635 years. Since the

survey was conducted in urban areas, illiteracy or only primary education was not common. Levels

of some college education were roughly the same among both users and nonusers, but mbanking

users tended to have more higher education and nonusers tended to have higher fraction of those

with only secondary education. More students were mbanking users as were working

professionally. Finally, mobile banking users belong to the high socioeconomic grades (A1 and A2).

70

67

67

66

65

63

62

61

59

59

58

58

5655

54

Incompatible phone

No mobile network at times

Not many people I know use

No human interface or service executive

No need

Internet banking more popular

Lack of acknowledgement in receiving transaction

Expensive to use mobile for this

Fear of losing phone and data

Don't know much about mbanking or how to use

Data transmission slow on mobile

Services not versatile enough

High possibility of errorsToo complicated to use

Not secure and safe


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20

Figure7:Characteristicsofusersandnonusers

MBankingUsers MBankingNonUsers

Base 509 1105

Age1825Years 44% 48%

2635yeas 40% 36%

3645 years 16% 14%

4655 years 3%

EducationalStatus

School 5 to 9 Years 1%

SSC \ HSC 6% 14%

Some College but not Graduate 20% 19%

Graduate \ Post Graduate : General 59% 58%

Graduate \ Post Graduate : Professional 15% 8%

OccupationalStatus

Student 25% 30%

Working Professionals 34% 29%

Businessman 24% 24%

Self Employed Professional 4% 3%

Housewife 8% 9%

SEC

A1 33% 20%

A2 36% 34%

B1 23% 29%

B2 9% 17%

IndividualIncome(MonthlyAverage,Rs.

thousands)35.1 26.9

HouseholdIncome(MonthlyAverage,Rs.thousands)

86.4 56.4

Mobile banking users also use more advanced phones.10

10Basic phone is one with minimal features like calling, sending text, receiving calls and may have radio withno option of camera, media player, videos or internet access. Multimedia phone can handle music picturesand videos. Smartphones allow users to store information, email, install programs, click pictures, storeimages and videos. These are phones where applications from a third party are accessible. See appendix forpictures.


24/76

21

Figure8:%mobilebankingusersbySECandphonetype

Basic Multimedia Smartphone All

SECA1 0 41% 50% 43%

SECA2 0 27% 56% 33%

SECB1

0

27% 40% 27%

SECB2 0 17% 37% 19%

All 0 28% 49% 32%

Many of the entrylevel handsets that are prevalent in India do not support applications like

JAVA and internet browsing. They are browserunfriendly, and have monochromatic, low

resolution screens, which are designed to deliver voice rather than data. Additionally, 3G

technology also encourages adoption.

Figure9:%mobilebankingusersbySECandcelltechnology

2G 3G All

SECA1 42% 48% 43%

SECA2 32% 36% 32%

SECB1 24% 39% 26%

SECB2 20% 29% 21%

All 30% 41% 32%

Thus, the data suggests that lack of technology and mobile infrastructure remains a big hurdle to

adoption. However, the rapid 3G expansion and falling price of sleeker and more userfriendly

handsets should encourage the largescale adoption of sophisticated mobile banking applications.

Banks and mobile phone providers that are preparing to provide excellent mobile banking services

in the immediate future therefore have great potential for large scale and rapid adoption of mobile

banking services.

Frequencyandpatternsofuseamongmobilebankingusers

Moving beyond adoption, the survey gathered information on usage patterns of adopters. On

average, Mbanking users used mobile banking service .97 times a week. Most users used it once a

month, followed by a large group of weekly users. The frequency of usage increases with theexperience of the user. The most recent adopters of mobile banking use the service .80 times a

week while the most experienced ones average 1.24 times weekly. The first mobile banking service

that consumers tend to use is of the simplest kindchecking or viewing an account balance on

their phone. Forty six percent of respondents acknowledged this as their first type of mobile

banking transaction followed by 31% stating that transferring or depositing money was their first

one.


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22

TypesoftasksbySECandovertenureofuse

Over time, the nature of the tasks tends to become more complex. Banking transactions that

necessitate more trust and confidence in mobile banking as a medium also rise over the tenure of

use. New customers tend to simply check or view account balances more compared to experienced

users.

Figure10:%usersfirsttransactionusingmobilebanking

Figure 11 shows four different banking tasks that increase in complexity. Basic account balance

viewing is simply gathering information. Transferring of money requires a higher level of trust and

proficiency. Moving higher on the ladder of complexity, more involved decision is needed when

investing in mutual funds. And finally the task requiring the highest level of trust and complexity is

electronic clearing services (ECS) which moves fund among different bank accounts often

automatically. We see that users new to mbanking are most likely to transfer/deposit funds and

view balances but do much less of the other two tasks. Users who have been mbanking for two

years or more, spend relatively less time on the basic transactions.

46

32

10

2

2

2

1

1

1

1

1


26/76

23

Similarly, higher SECs also conduct more sophisticated transactions. This is in part both because

higher SECs are more likely to have been longer users of mbanking but also because there is higher

demand for these services by them. Larger wealth and portfolio diversification elicits more need

for certain banking transactions. As banking needs but also time constraints increase, mobilebanking offers an efficient and hasslefree way to manage finances.

Hence while banks can acquire new customers relatively easily through simple transactions, they

should be prepared to provide higher quality and more complex services as customers become

more experienced if they would like to retain such customers in the face of competing banks

augmenting their mobile services. This is particularly important for the higher SEC customers

requiring more complex services.

Figure12: TypeoftransactionsbySEC

Viewing

BalanceTransfer/deposit Investing ECS

SECA1 62% 79% 25% 0%

SECA2 75% 64% 50% 54%

SECB1 61% 67% 18% 29%

SECB2 54% 47% 33% 22%

40%

79%

25%

0%

62%

47%

33%

22%

Viewing balance

Transfer/Deposit

Investing in MF

ECSLessthansixmonths 2+years

Figure11:Typeofmbankingtasksbylengthofadoption


27/76

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28/76

Future:

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e


29/76

26

Table3:AdoptionanduseacrossSECs

SECA SECB Difference

%Mbankingusers

All

37%

24%

+13

with3G 42% 38% +4

Mobilephone/Branchuseratio

All ~1.7 1 +.7

with3G 1.7 1.4 +.3

As we have seen, one of the top constraints to adoption of mobile banking is the perception that the

users cell phone is not conducive to mobile banking. It is the leading reason (following

unavailability of a mobile network) that hinders mobile banking usage, both on the intensive and

extensive margins. Given that more 3G smartphone users are doing mobile banking, this problem isclosely tied to the predominant use of second generation basic or multimedia devices over third

generation smartphones. Even among mobile banking adopters, those with a 3G handset use their

cell phone for banking .38 times weekly compared to .28 times weekly by their 2G counterparts.

Third generation smartphones are still out of the price range of less affluent households. But

rapidly advancing technology is pushing prices down and removal of this technological constraint

for poorer household is imminent. Once this happens, mobile banking is likely to take off in a big

away.

On another dimension, poor banking infrastructure has created a pentup demand for mobile

banking. Although all survey respondents have a bank account, there is dissatisfaction across allSECs with these services among various dimensions especially in terms of travel time to banks,

inconvenient location of branches and amount of time spent in the branch. These issues are

magnified among lower SECs. They tend to express even more dissatisfaction about traditional a

banking method which is not surprising because they tend to live farther from banks and have

limited resources like domestic help, computers or phones to skip physical visits. On the supply

side, banks have not done a good job servicing these smaller customers. Richer consumers, on the

other hand have found that mobile banking an effective way to circumvent issues. This was

evidenced by the fact that mobile banking users, in spite of being wealthier with presumably better

access to banks, tend to physically use banks less. So the worse conditions in traditional banking for

less affluent households will attract them to mobile banking as a hasslefree way to do banking.

Thus, habits, preference for traditional banking or socioeconomic status are not likely to be

barriers to adoption and usage. The pull factor of cheap, new 3G handsets combined with the

push factor of lumbering traditional banking infrastructure are likely to result in rapid demand

for mobile banking across a variety of users.


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ConclusionMobile banking provides the promise of expanding both the quality of banking services and reach of

banking services in a large country like India in a costeffective manner. Using a consumer level

survey, we investigated consumer needs that triggers adoption and barriers than serve to limit

adoption of mobile banking. We also evaluated the satisfaction with mobile banking and how

adoption of mobile banking changes usage of traditional banking services.

Our key findings and takeaways are as follows: There is latent demand for mobile banking both

among the richer upper classes and poorer middle classes. The upper middle classes are drawn by

the possibility of superior service that saves time and provide anytime anywhere access to mobile

banking. The poorer middle classes who have limited access to traditional banking services find the

traditional alternative to be very poor, that mobile banking even at the most basic level are

attractive to them.

Richer SECs are also more concerned about issues of security and trust. As sophisticated customers,they have higher expectations to enter the mobile banking category, given their higher levels of

satisfaction with the closer alternative, traditional banking. Hence mobile banking service quality is

likely to be an important competitive weapon in attracting and retaining customers from higher

SECs in the future. We find users even from lower SECs graduate to using more sophisticated

transactions over time, and can become more demanding. So while immediate adoption among

lower SECs may be possible by simply providing them the option, their longterm retention,

especially as banks compete on the quality of services provided requires greater investment in ease

of use and quality of services.

Banks can do more to instill awareness of their mobile banking services to increase adoption.

Customers seem to learn more about mobile banking from friends and relatives than from thebanks themselves. Given that trust and word of mouth are likely to be useful in the adoption of

services, small referral incentives may accelerate the shift to mobile banking. Given the lower costs

of services through mobile banking, even when bank branches are present, it is in the banks

interest to encourage such adoption. Banks may also wish to partner with mobile phone service

providers to have apps installed on handsets that makes it easier to access banking services

through the phone. Given the fairly high levels of satisfaction with mobile banking services, relative

to traditional banking services, the shift may not only be favorable in terms of costs, but also in

terms of customer satisfaction and retention. Mobile banking might therefore truly be a winwin for

banks and customers.

Lower SECs have lower rates of adoption of mobile banking services. However closer inspection

reveals that this is not due to lack of interest and resistance to adopt new behaviors, but due to lack

of access to the complementary infrastructure of smart phones and 3G services. Given that prices of

smart phones are expected to plummet, and 3G penetration are likely to expand dramatically, there

is substantial latent demand waiting to be filled. Banks that are wellprepared to leverage and deal

with this potential explosion in demand are poised to gain substantial market share over the next

few years.


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Overall, mobile banking seems to be an idea whose time has come. Our research suggests that

supply side constraints are the bottlenecks to adoption; consumers are ready and waiting to adopt.

Given the expansion of higher bandwidth data services, and accelerated price drops of smart

phones, investments by banks in easytouse interfaces coupled with marketing of the services is

likely to have large scale payoffs for banks at the frontier.


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Appendix1:Somemobilebankingmodelsindevelopingcountries12

TableA1:Mobilebankingmodelsinemergingmarkets

ModelLead

Bank/telecom

Modeofaction

Philippines

SMART (bankled)GCASH(telecomled)

BancoDOro/SmartTelecomGlobe Telecom

Conventional ATM, POS are used through debitcard

Payment via value chain, account management

Banks sign up account Accounts managed by mobile network operators

(MNOs), banks have realtime access Core processing system lies with MNO, bank

holds delivery channel

KenyaMPesa(telecomled)

Safaricom Safaricom is mainly a payment provider for the

microfinance institution FAULU

Payments are conducted via airtime agents

SouthAfricaMTN (bankled)

Standard Bank,MTN

Clients open bank accounts through remote,interactive process

Mobile money starter packets are available viaMTN agents and bank branches

Core processing system lies with MNO, bankholds delivery channel

Indian Bankled

mCHECKAirtelState Bank of India,ICICI, Citibank

Mobile payment is restricted to bank accountholders, residents of India and transactions inIndian rupees

No interbank network available Banks can make multilateral agreements to

create mobile switches

Pakistan Bankled UBL

Account holder can initiate transaction viamobile with the help of an interactive voiceresponse

Conventional ATM, POS are used as deliverychannel

12Another useful resource is the the Consultative Group to Assist the Poor (CGAP) report BranchlessBanking2010: WhosServed?AtWhatPrice?WhatsNext? provides data and description of variousmobile banking and mobile payment systems in developing nations. It is available at:

http://www.cgap.org/gm/document1.9.47614/FN66_Rev1.pdf


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Q2 Q.C[MA][SA]

RQ AC CB AC RQ BC CB BC RQ

TBC

CB TBC RQ VC CB VC RQ

SCR

CB SCR

(R1) D.V ( SIGN./DATE) 01 02 03 04 05 06 07 08 09 10

(R2) OC /OE / SOE ( SIGN./DATE) 01 02 03 04 05 06 07 08 09 10

(R3) OM/SM ( SIGN./DATE) 01 02 03 04 05 06 07 08 09 10

Q3a DateofInterview[dd/mm/yy]

Pleaserecordusingtheshortdateformat(dd/mm/yy).Forexample,ifthedateis21December2005,record

as211205

Q3b RECORDTIMEINTERVIEWSTARTED/ENDED

Pleaserecordusing24hourformat.Forexample,ifthetimeis2:47pm,recordas1447

Q3c TimeEnded(24hourformat)

Q3d InterviewerName

Q3e InterviewerIDNumber

Q3a Q3b Q3c Q3d Q3e


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inyourhouseholdworksinanyofthefollowingtypesoforganization.[SA]

Banks 1 CLOSE

Financial Institutions 2 CLOSE

TelecommunicationsMobile Service Provider Company/ Handset Manufacturers 3 CLOSE

Market research 4 CLOSE

Advertising or PR agency 5CLOSE

Media/Radio/ Newspaper/Magazine 6 CLOSE

Manufacturer/ Wholesaler/Retailer of consumer electronics like TV, refrigerator, etc 7

Company manufacturing soap/toiletries ________________ 8

Government institutions 9

None of the above 10

Q7 ASKALL

Haveyoubeeninterviewedbyanymarketresearchagencyinthepast6

months?[SA]

Code

Route

Yes 1 CLOSE

No 2


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Screener

(Administeredtoalltherespondents)

Q1. SHOWCARD

ASKALL

Canyoupleasetakealookatthiscardandtellmethehighestlevelofeducation

oftheChiefWageEarnerinyourhousehold?ByChiefWageEarner,Imeanthe

personwhocontributesthemaximumtothemonthlyhouseholdincome. [SA]

Code

Route

Illiterate 1

Literate but no formal schooling 2

SchoolUpto4 years 3

School5 to 9 years 4

SSC/ HSC 5

Some College (includes a Diploma) but not Grad 6

Graduate/ Post Graduate: General 7

Graduate/ Post Graduate: Professional 8

Q2.a SHOWCARD

ASKALL

Canyoupleasetakealookatthiscardandtellmetheoccupationalpositionof

theChiefWageEarnerinyourhousehold?ByChiefWageEarner,Imeanthe

personwhocontributesthemaximumtothemonthlyhouseholdincome.

PROBEFORDESIGNATIONORLEVEL.

[SA]

Code

Route

Unskilled worker 01

Skilled worker 02

Petty trader 03


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Shop owner 04

Businessman/Industrialist with No employees 05

Businessman/Industrialist with 19 employees 06

Businessman/Industrialist with 10+ employees 07

SelfEmployed Professional 08

Clerical / Salesman 09

Supervisory Level 10

Officer/Executive Junior 11

Officer/Executive Middle / Senior 12

EducationIlliterate

School

Upto 4th

School

5th 9thSSC / HSC

Some College

(includes a

Diploma) but not

Grad

raduate /

post

graduate

general

Graduate /

gradua

professio

Occupation 1 2 3 4 5 6 7

Unskilled 1 E2 E2 E1 D D D D

Skilled worker 2 E2 E1 D C C B2 B2

Petty trader 3 E2 D D C C B2 B2

Shop owner 4 D D C B2 B1 A2 A2Business / industlist with

number of employees

None 5 D C B2 B1 A2 A2 A1

1 9 6 C B2 B2 B1 A2 A1 A1

10 + 7 B1 B1 A2 A2 A1 A1 A1

Self employed

professional8 D D D B2 B1 A2 A1

Clerical/ salesman 9 D D D C B2 B1 B1

Supervisory level A D D C C B2 B1 A2

Off / exec junior B C C C B2 B1 A2 A2

Off/ exec mid/senior C B1 B1 B1 B1 A2 A1 A1


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Q2b CODESECQ1*Q2a [SA] Code

Route

SEC A1 1

SEC A2 2

SEC B1 3

SEC B2 4

SEC C 5 CLOSE

SEC D 6 CLOSE

SEC E1 7 CLOSE

SEC E2 8 CLOSE

RECORDRESPONSESFORQ3TOQ7INTHEGRIDBELOW

Q3.Canyoupleasetellmeyourageincompletedyears

Q4.RecordGender

Q5.Doyouholdasavingsbankaccount?SA

Q6.Doyouownamobilephoneservice?HereIamreferringtonotonlyowningamobilephonebut

alsoan

active

connection?

SA

Q7.IFCODEDYESINQ6,ASK,is your mobile phone a basic phone, Multimedia phone or Smartphone.IFTHE

RESPONDENTOWNSMORETHANONEPHONE,ASKFORTHEONEHEUSESMOSTOFTEN.SA

Interviewershouldexplainwhateachtypeofphonemeans:

ByBasicphoneI mean a phone with minimal features like calling, sending text SMS, receiving calls, may

have a radio service with no option of camera, media player, videos or internet access.

Multimediaphoneis the one that can handle music, pictures and videos.

Smartphonesallow users to store information, email, install programs, click pictures, store images &

videos. These are the phones where applications from third party are accessible. eg. Facebook


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Name

Q3. Age Q4. Gender Q5. BankA/cQ6.Cellphone Q7.Typeofcellphone

Male Female Yes No Yes No Basic Multimedia Smart

1 2 1 2 1 2 1 2 3

CONTINUEONLYIF:

1. SECABHOUSEHOLD(CODED1TO4INQ2b)

2. RESPONDENTAGEBETWEEN1855YEARS(REFERQ3)

3. BANKACCOUNTHOLDER(CODEDYESI.E.1INQ5)

Q8.

Q9. a

Q9.b

Youmentionedthatyouhaveasavingsbankaccount.Inwhichall

banksdoyouhaveasavingsaccount?[MA]

IFCODEDMORETHANONEOPTIONINQ8,ASKQ9a,ELSECODETHE

SAMEBANKASCODEDINQ8UNDERQ9a:Ofallthebanksyouhave

anaccountin,whichisyourmainsavingsbankaccount;bymainI

meanthebankwithwhichyoudothemaximumnumberof

transactions?[SA]

IFCODEDMORETHANTWOOPTIONSINQ8,ASKQ9b:Andwhichof

theseistheotheraccountwithwhichyoudothenexthighestnumber

oftransactions?[SA]

Q8.Bank

accounts

owned

Q9.a.M

ain

Bank

account

Q9b.Oth

Bank

accoun

PUBLICSECTORBANK

Allahabad Bank 1 1 1

Andhra Bank 2 2 2

Bank of Baroda 3 3 3

Bank of India 4 4 4

Bank of Maharashtra 5 5 5

Canara Bank 6 6 6

Central Bank of India 7 7 7


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Corporation Bank 8 8 8

Dena Bank 9 9 9

IDBI Bank 10 10 10

Indian Bank 11 11 11

Indian Overseas Bank 12 12 12

Oriental Bank of Commerce 13 13 13

Punjab & Sind Bank 14 14 14

Punjab National Bank 15 15 15

State Bank of India 16 16 16

State Bank of Bikaner & Jaipur 17 17 17

State Bank of Hyderabad 18 18 18

State Bank of Mysore 19 19 19

State Bank of Patiala 20 20 20

State Bank of Travancore 21 21 21

Syndicate Bank 22 22 22

UCO Bank 23 23 23

Union Bank of India 24 24 24

United Bank of India 25 25 25

Vijaya Banka 26 26 26

PRIVATESECTORBANK

American Express Bank 27 27 27

Axis Bank (Formerly UTI Bank) 28 28 28

Barclays Bank PLC 29 29 29

BNP Paribas 30 30 30

Citibank N.A. 31 31 31


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City Union Bank 32 32 32

DBS Bank 33 33 33

Deutsche Bank AG 34 34 34

Dhanlaxmi Bank 35 35 35

Federal Bank 36 36 36

HDFC 37 37 37

HSBC 38 38 38

ICICI Bank 39 39 39

IndusInd Bank 40 40 40

ING Vysya Bank 41 41 41

Jammu & Kashmir Bank 42 42 42

JPMorgan Chase Bank 43 43 43

Karnataka Bank 44 44 44

Karur Vysya Bank 45 45 45

Kotak Mahindra Bank 46 46 46

Lakshmi Vilas Bank 47 47 47

Royal Bank of Scotland 48 48 48

South Indian Bank 49 49 49

Standard Chartered Bank 50 50 50

Tamilnad Mercantile Bank 51 51 51

UBS 52 52 52

Yes bank 53 53 53

Others Please Specify____________________________ 99 99 99


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Q10.NowIwillshowyouafewconcepts.Iwouldliketoknowifyouhaveheardofthesebefore.

Q10.a.MBANKINGSHOWCARD:mBankingorMobileBankingisatermusedtodefinebanking

overthemobilephonewhichwouldincludeusingtheinternetbrowseronthemobilephoneto

accessthebankwebsiteandthendoanyofthefinancialactivitieslikepayingutilitybills,

transferringmoney,payinganinsurancepremium,etc.OR,usingamobileApplicationforeasy

andsimple

access

to

the

Bank

Mobile

website

to

perform

financial

activities

like

viewing

the

bank

balance,transferringmoney,etc.

AwareofmBanking Code Route

Yes 1 Go to Q10b

No 2 CLOSE

10bNowIwillreadoutafewfinancialactivitiesthatweusuallydoinourdaytodaylife.Iwouldlike

toknow

which

of

these

have

you

heard

are

possible

through

your

mobile

phone

or

through

M

Banking.READOUTEACHACTIVITYONEBYONEANDCODETHEONESTHERESPONDENTISAWARE

OF[MA]

Q10b.Awareofm

banking

(R1) Deposit your telephone/mobile bills, utility bills like electricity bill 01

(R2) Transfer/deposit money 02

(R3) Check/ View account balance 03

(R4) Pay insurance premium 04

(R5) Monitoring Deposits/ Fixed/ Recurring Deposits Short & Long term 05

(R6) Invest in share market 06

(R7) Request cheque book 07

(R8) View Last few transactions/ Mini Statements 08

(R9) View Loan statements 09

(R10) View Credit Card Statements 10

(R11) Invest in Mutual funds 11

(R12) Stop payment on cheques 12


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(R13)Functionality to stop, change and delete payments / ECSLinking account for

Auto Debit

13

(R14) PIN provision Change of PIN/ Password 14

(R15) None of the above 15

TERMINATETHEINTERVIEWIFTHERESPONDENTISNOTAWAREOFANYTHEACTIVITIESINQ10b,

I.E.IFCODED15,NONEOFTHEABOVEINQ10b

Now,Iwouldliketoexposeanotherconcepttoyou.Pleasetellmeifyouhaveheardofthisbefore?

Q11.a.INTERNETBANKINGSHOWCARD:Internetbankingallowscustomersofabanktoconduct

financialtransactionsonasecurewebsiteoperatedbythebank.Toaccessabanksonlinebanking

facility,acustomermusthaveInternetaccessandshouldberegisteredwiththebankingin

mbanking report final

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