mo bankin india: bar d adoption triggers report-final.pdfmobile banking is more popular than branch...
TRANSCRIPT
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ContentsExecutiveSummary............................................................................................................................................iiiIntroductionandBackground..........................................................................................................................1Indianbankingandcellularmarket............................................................................................................................1BankingandMobilePhones:APotentiallyHappyIndianMarriage.............................................................3MobileBankinginIndiatoday.......................................................................................................................................5Technologicalandregulatoryfactorsimpactingfuturegrowth.....................................................................6
MobileBankinginIndia:BarriersandAdoptionTriggers.....................................................................9StudyObjectiveandDesign............................................................................................................................................9HowdoestheIndianconsumerbank?.....................................................................................................................10Issuesfacedintraditionalbanking.......................................................................................................................12
Awarenessandadoptionpatternsformobilebanking.....................................................................................14Sourcesofawareness.................................................................................................................................................14Triggersforadoption.................................................................................................................................................15Barrierstoadoption...................................................................................................................................................16Whoisusingmobilebankingtoday?...................................................................................................................19
Frequencyandpatternsofuseamongmobilebankingusers........................................................................21TypesoftasksbySECandovertenureofuse..................................................................................................22Post‐adoptionchangesintraditionalbranchbankinghabits...................................................................24
WhowillbethefutureusersofmobilebankinginIndia?...............................................................................24Likelihoodofusageamongcurrentnon‐users................................................................................................24Future:Drawingfromlowersocio‐economicstrata.....................................................................................25
Conclusion.............................................................................................................................................................27Appendix1:Somemobilebankingmodelsindevelopingcountries...............................................29Appendix2:SurveyQuestionnaire..............................................................................................................30RecruitingQuestionnaire..............................................................................................................................................30Screener................................................................................................................................................................................34DetailedQuestionnaire...................................................................................................................................................60Section1–OverallBankingInformation............................................................................................................60Section2–UsageofInternetbanking..................................................................................................................66Section3–UsageofMobileBanking....................................................................................................................68Section4:ExpectedUsageamongRespondentsaware(butnon‐users)ofMobileBanking.......73Section5‐Mobilephoneusage..............................................................................................................................76Section6‐PC/Internetusage...................................................................................................................................79Section7‐Demographics...........................................................................................................................................82
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ExecutiveSummaryGlobally,mobilebankingserviceshavebecomeapopularmethodtoconductfinancialtransactions.India’smobilebankingsectorisinanascentstageandpoisedforrapidgrowth.Tobetterunderstandthissector,thisreportpresentsfindingsfromasurveyconductedinAprilandMay2012acrossfiveIndiancities.Respondentsinsocio‐economicclassification(SEC)A1‐2andB1‐2wereaskedanarrayofquestionsonbankinghabits,adoptionanduseofmobilebankingandcellularphoneusage.Keyfindingsofthesurveyinclude: Thereisconsiderabledissatisfactionwithtraditionalmodesofbanking
82%ofrespondentscomplainthattraveltimeisthetoppervasiveproblem Mobilebankingismorepopularthanbranchbankinginseveralcategories:58%of
customersdepositandtransferviamobilevs.44%atthebranch. Lessthan30%ofrespondentsuseInternetbankingforanytask.
Televisionandword‐ofmoutharethemostpopularsourcesofawarenessformobile
banking 62%ofm‐bankingusersand50%ofnon‐usersheardaboutmobilebankingfrom
family,friendsofcolleagues. Lessthan10%ofrespondentshearddirectlyfromtheirbanksaboutmobilebank
offerings.
Comfortandconvenienceisatoptriggerforadoptingmobilebanking 88%ofmobilebankinguserscitedthecomfortandaccessibilityoftheirphoneasthe
topreasonforadoption. Checkingandviewingbankbalancesisfirstandmostcommontask Experiencedusersusem‐banking50%moreweeklythannewusersandperformmore
sophisticatedtasks. 37%ofSECA1/A2respondentsusem‐bankingcomparedto23%ofB1/B2
respondents.
Technologyproblemsbiggestbarrierstoadoptionanduse Incompatiblecellphoneandmobilenetworkproblemstophurdlefor70%ofnon‐
adopters SECArespondentsarerelativelymoreconcernedaboutsecurityandcustomersupport
issues,SECBfacemoretechnologicalandawarenessproblems
Thirdgenerationcellulartechnologyandsmartphonesboostadoptionanduse 41%of3Guseralsousemobilebankingvs.30%of2Gusers 49%ofsmartphoneownersdom‐bankingwhile0%ofthosewithbasicphonedo Usersandnon‐usersofmobilebankinglookmuchmoresimilaroncetechnologyis
accountedfor.
Mobilebankingusersarehighlysatisfiedwithexperience 94%ofm‐bankinguserssayphysicalvisitstothebankhavebeenreducedsince
adoption. 90%ofuserswouldrecommendusetofamilyandfriends.
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IntroductionandBackgroundMobilebanking(m‐banking)hasemergedasapopularmodeofbankinginmanydevelopedanddevelopingcountries.InIndia,thereareapproximately12millionmobilebankingusersandthisfigureisexpectedtogrowrapidlywithmobiletransactionsexceedingcreditcardtransactionsbytheendofthedecade.Bysomemeasures,therearemoremobilephonesinIndiathantherearebankaccounts.Thecombinationoftwofactors—alargeunbankedpopulationandtheubiquityofcellphones—isacatalystforhighmobilebankingadoption.Tofullyunderstandthecurrentstatusandfuturetrendsinthismarketrequiressomecomprehensionofthegeneralbankingsector‐‐theturfwheremobilescompetewithphysicalbankbranchesandcomputers.Also,knowledgeofcellularphonepenetrationisneededtogetasenseofwhomobilebankingserviceswillreach.Thefollowingpagesprovideabriefbackgroundonthesetopicsandsomeinformationonthestructureandservicesinthemobilebankingsector.IndianbankingandcellularmarketBankingmodesavailabletotheIndiancustomerThereare80commercialbanksinIndia,operatingaround77,000branchesandwithover1millionemployees.Thesectorismainlycomposedofpublic,privateandforeignbanks.Inaddition,thereisalsoavastnetworkofruralbanksandcreditinstitutions.Butdespitesuchasprawlingnetworkofinstitutionsandmuchpushfromthegovernmentforfinancialinclusion,morethan70%ofIndia’spopulationremainsoutsidetheformalbankingsector.Inrecentyears,technologyhasexpandedchannelsthroughwhichconsumerscaninteractwiththeirfinancialinstitutions,providingnotonlyeasieraccesstotheexistingbase,butalsofacilitatingpenetrationoffinancialservicesamongthepopulation.Box1depictsthevariousbankingchannelsavailabletotheIndianconsumer.Brickandmortarbranchnetwork:BrickandmortarbranchesarethefoundationofIndia’sbankingsystem.InIndia,thesebranchescanrangefromcomplexoperationswithhundredsofemployeesindenseurbanlocationstoone‐man,single‐roombranchesinruralareas.Thenationalizationofbanksinthelate1960sandearly1980swasaccompaniedbygovernmentefforttowardsbringingmoreandmoreofthepopulationintothebankingnet.Tightregulationsgovernedtheexpansionofbranches,withaviewtoincreaseinclusion;bankswererequiredtoopencertainnumberofruralbranchesforanynon‐ruralbranchestheywantedtooperate.Despitesuchregulationsandencouragement,branchespercapitaremainamongthelowestinemergingmarkets(12000people/branch).ThetypicalscenarioinsideatraditionalIndianbankinvolveswaitinginlongqueuesevenforthesimplestoftransactions,suchasapassbookupdateorcashwithdrawal.AutomaticTellerMachines(ATMs):InnovationsinbankingdeliverychannelsstartedwiththeintroductionofATMsasaself‐servicedeliverychannelinthelate1990s.ATMsalsomarkedtheentryofanytimebankingascustomerscouldnowaccessmoneyfromtheirbankaccountsatatimeoftheirconvenience.Asof2012,ATMsremainthemostsuccessfuldeliverychannelinIndiafollowedbytelephonebankingandinternetbanking.Withabout75000plusoff‐branchandin‐branchATMsinstalled,banksareseekingtoreachouttoalargecustomerbaseatasubstantiallylowercost,givingthemeasieraccessandfasterservice.TheStateBankofIndiaandassociate
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banksownthelargestnumberofATMsat25,060.TheyarefollowedbyAxisBank(6,270),ICICIBank(6,104),HDFCBank(5,471)andPunjabNationalBank(5,050).1
Typically,atransaction,whichcostsRs.50atabranch,costsaboutRs.15ifdonethroughanATM.ResearchshowsthatthenumberoffootfallsatbankbrancheshasfallendrasticallyaftertheinstallationofATMs.InordertofurtherreducethecostofservicedeliveryandrevenuesthroughATMs,bankshavestartedout‐sourcingandsharingofATMservicesandcross‐sellingotherproducts.SomebankshavealreadystarteddispensingrailwayticketsandmovieticketsthroughtheirATMs.Inthefuture,abank’sATMmayfunctionlikeakioskdeliveringmanymorenon‐cashtransactions,furtherincreasingtheprofitabilityofATMs.
InternetBanking:Increasinginterestinself‐servicecontinuedandinternetusagepromptedbankstointroducetheconceptof“anywherebanking.”Customerscouldnowaccesstheirbankaccounts,checktheiraccountdetails,gettheirbankstatements,transfermoneytootheraccountsandpaytheirbillsfromthecomfortsoftheirhomeoroffice.InternetBanking,alsoofferedsignificantcostadvantagetobanks.Anet‐basedtransactioncoststhebankonlyaroundRs.4,whichismuchlowerthanevenanATM,mainlyduetosavingsonprohibitiverealestatecostsaswellaslaborcosts.2However,internetbankinghasgrownslowlyinIndiaduetoacombinationofpsychological,legal,technologicalandsocioeconomicfactors.Thebiggestlimitationofinternetbankingistherequirementofacomputerwithaninternetconnection,whichisnotacommonacrossIndianhouseholds.Alackofcriticalmassofearlyadopters,lackofastrongtrustenvironment,slownessinadoptionofinternet,lowpenetrationofPCsandaccesstointernetaresomeoftheimpedimentsintheadoptionofinternetbankinginIndia.SecurityissuesalsoloomlargeandcustomersrestrictusageofInternetbankingtotheirhomeandofficecomputers.
HighpenetrationandrapidgrowthintheIndiancellularmarket : ThespreadofmobilephonesacrossIndiaisoneofthemostremarkableeconomicandtechnologysuccessstoriesofthelast15years.Ithascontributedsignificantlytothegrowthandmodernizationofvarioussectorsandtheoverallsocio‐economicdevelopmentofIndia.
ThenumberofmobilephonesubscribersinIndiareachedawhopping916millionattheendofMarch2012.TheIndianmobilephoneindustryregisteredaconsistentoverallgrowthrateofaround45%annuallyintermsofsubscribers.Thesector,asshowninFigure1,remainscompetitivewithseveraldomesticandinternationalplayersvyingforthisgrowingcustomerbase.Today,amobilephonehasbecomeanessentialpartofanaverageIndian’sexistence.Thisisaresultofpositiveregulatorychanges,intensecompetitionamongmultipleoperators,low‐pricedhandsets,prepaidcards,lowtariffsandsignificantinvestmentsintelecominfrastructure.Thewell‐distributednetworkoftelecommunicationservicesinIndiahasresultedinwideningofmarkets,efficientinformationflows,lowertransactioncostsandaneffectivesubstituteforinfeasiblephysicaltransport. 1Banksinstall19,000ATMsin2010‐11http://articles.economictimes.indiatimes.com/2011‐04‐08/news/29396871_1_atms‐npci‐national‐financial‐switch2RetailBanking:ChallengesAheadinDistributionChannelsinUrban/RuralIndia,RBIBulletin,January2004
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Box1:Ba
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ankingmod
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anksarenowpetitivefinanelyonpricetcrossmultiplofcustomera
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MobileBanking
Usingmobilephonetoaccessthebank’swebsitethroughabrowseroramobileapptoperformfinancialactivities
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customers,aons.AsIndiaobaltrendsaanytimebantheirconvenhancedconsu
usinessmodeyareseekingres,byleveraheyarealsooenhanceth
mobilephoneendingfinannefitstoindieenfinancialfacturerswiveanyaccesstofthenearlinstitutional
SMSBanking
SubscribingforSMSalertsfromthebank.Receivingalertsincaseofcashwithdrawal,moneytransfer,credit/debitcardtransaction
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technologiescostsonly$209.TheRBIreportsthatwhilethegovernmenttypicallyincursatransactioncostof12‐13percent,mobilebankingbringsthiscostdownto2percent.4Mobilebankingoffersthephysicalproximitythatothermethodslikebranchbankingandeventechnology‐basedchannelssuchastheInternetorATMs,cannotmatch.Withmobilebanking,customersnowessentiallycarrytheirbankwiththem,trulyfacilitating,anytime,anywherebanking.
Bankshavestartedofferinginformation‐basedserviceslikebalanceenquiry,stoppaymentinstructionofchecks,transactionsenquiryandlocationofthenearestATM/branchonmobilefunds.Acceptanceoftransferoffundsinstructionforcredittobeneficiariesofsame/oranotherbankinfavorofpreregisteredbeneficiarieshavealsocommencedinafewbanks.Additionally,thisnewchannelgivesthebankabilitytocross‐sellandup‐selltheirothercomplexbankingproductsandservicessuchasvehicleloansorcreditcards.
Sinceonly40percentoftheadultpopulationhasbankaccounts,whereasmorethan70percentofadultsownamobileconnection,linkingbankingwithtelecomseemstobethecorrectchoiceforIndia’scommercialbanks.Withalargemobilehandsetpenetration,itistheobviouschoicetocrosstheextremelylowcredit/debitcardpenetrationbarrier(whichisbelow10percentofthepopulation).Thehighpenetrationlevelsofmobilephonesandlowtransactioncostsinvolvedinmobilebankingarelikelytobethepotentialgrowthdriversfortheseservices.MobileBankinginIndiatodayMobilebankingbusinessmodels5ThepredominantmodelformobilebankinginIndiaisthebank‐ledmodelwhereinbanksarethefocalpointoftransactionsanditistheirbrandthatdominates.Mobilebankingisofferedtocustomers/depositorsoftheparticularbankandallaccountingandtransfersarethroughthebank.Avariantofthismodeliswheretelecomoperatorsandbankspartnertoofferservices.ExamplesofthesearejointventuresbetweenAirtelandAxisbankandVodaforeEssarandICICIBank.Often,thecellularserviceoperatorwillprovideacustomizedplatformorbuilt‐inapplicationstofacilitatem‐bankingtransactions.
Bankswithmobilebankingoptionsofferservicesinthegeneralcategoriesofaccountinformationprovision,paymentsandtransfers,investments,supportandcontentservices.Table2providesmoredetailsonthesesegments.Mostm‐banking/m‐paymentssystemsinIndiaenableuserstodo i) Storevalue(currency)inanaccountaccessibleviathehandset.Iftheuseralreadyhasabank
account,thisisgenerallyaquestionoflinkingtoabankaccount.Iftheuserdoesnothaveanaccount,thentheprocesscreatesabankaccountforherorcreatesapseudobankaccount,heldbyathirdpartyortheuser’smobileoperator.
ii) Convertcashinandoutofthestoredvalueaccount.Iftheaccountislinkedtoabankaccount,thenuserscanvisitbankstocash‐inandcash‐out.Inmanycases,userscanvisitacornerkiosk
4MobileBanking:OpportunitiesandchallengesintheIndianmarkethttp://www.tele.net.in/discussion‐board/item/7732‐mobile‐banking‐opportunities‐and‐challenges‐in‐the‐indian‐market5Morawczynski,O.&Miscione,G.(2008).“ExploringTrustinMobileBankingTransactions:TheCaseOfM‐PesaInKenya,”,SocialDimensionsofInformationandCommunicationTechnologyPolicy,pp.287‐298
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orgrocerystoreandtransactwithanindependentretailerworkingasanagentforthetransactionsystem.
iii) Transferstoredvaluebetweenaccounts.Userscangenerallytransferfundsbetweenaccountslinkedtotwomobilephones,byusingasetofSMSmessages(ormenucommands)andPINnumbers.
TechnologicalandregulatoryfactorsimpactingfuturegrowthInformationtechnologyholdsapromisetochangethefaceofconsumerbankinginthenextfewyearsthroughtheconvergenceofbankingandtelecomplayers.Technologywillbecomeimperativeinbankingforprovidingconvenienceinproductdelivery,increasingproductivityandperformance.AsmobilenetworksinIndiaareupgradedwithWAP,GPRSandUMTStodelivernext‐generationmultimediaservices,bankscanprovideahostofservicesonmobilephonesandwillhaveimmediateandfullcontrolovertheirfinances.Customerswillbeabletoviewtheiraccountstatement,transferfundsbetweenaccounts,getinstantnotificationswhenevertheytransact.Next‐generationmobilebankingserviceswilldeliversignificantimprovementswithuser‐friendlyicondriveninstructions,instantaccess,securityandimmediatetransactionprocessingallatalowercost.Bankscanalsoattainhigherlevelsofcustomersatisfactionandincreasedloyaltybyprovidinganywhere,anytimebanking.Theywillalsobenefitfurtherfromloweradministrativecosts,fewerbranches,reducedheadcount,streamlinedcallcentersandlowerhandlingcharges‐savingsthat,hopefully,willbepassedontocustomers.Consideringthefar‐reachingimpactofcertaintechnologies,weshouldexpecttoseemajorshiftsinthebankingindustryunlikeanywehaveseenbefore
Box2:Mobilebankingservice
AccountInformation
Mini‐statementsandcheckingofaccounthistory Alertsonaccountactivityorpassingofsetthresholds Monitoringoftermdeposits Accesstoloanstatements Accesstocardstatements Mutualfunds/equitystatements Insurancepolicymanagement Pensionplanmanagement
Payments&Transfers
Domesticandinternationalfundtransfers Micro‐paymenthandling Mobilerecharging Commercialpaymentprocessing Billpaymentprocessing
Investments Portfoliomanagementservices Real‐timestockquotes Personalizedalertsandnotificationsonsecurityprices
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Impactoflaunchof3GonmobilebankingservicesInIndia,thecurrent3Gfootprintislimitedtothemetrosandurban/semi‐urbanareas.Intheshortrun,3Gwillonlyhaveanindirectimpactasmobilebankingservicesarenotbandwidthintensiveand,thus,donotneedhigh‐speedconnectivity.However,soonenough,3Gwillbeakeyfactorinmobilebankinggainingtraction.Thisisbecauseitoffersincreasedsecurityprotocolsandmorebandwidthforsecuremobile‐basedtransactions.Thirdgenerationtechnologywillalsodrivetheuptakeofsmart‐phoneswhichwillenablemoresecureanduser‐friendlyinterfacesformobilebankingapplications.ManagingthenetworkserviceproviderrelationshipByvirtueofitsverynatureofoperation,mobilebankingbringsacertainclashofinterestwithrespecttoownershipofendcustomersandrevenuesharingbetweennetworkserviceprovidersandfinancialinstitutions.Networkserviceprovidersoffermobileservicesforusersandoftentheyalsoprovideheavilysubsidizedhandsets.Financialinstitutionssharearelationshipwiththecustomerintermsofholdingtheaccountandcreditcard,owningtheexpertisetoprocesstransactions,andsoon.Giventhisscenario,itisobviousthatthefinancialinstitutionmustclearlyestablishthedynamicsofthepartnership,forbusinessviability.Mobilebankingsolutionproviderswoulddowelltooptimizethedeploymentmechanismtoreducedependencyonnetworkserviceproviders,toaviableminimum.Prudentregulation:AkeyfactorinfuturegrowthAnumberofregulatorypoliciesstymiemobilebankinginIndia.Full‐scalecommercialimplementationofruralm‐bankingiscomplex,asitrequiresamultitudeofplayers,suchastelecomoperators,m‐bankingproductdevelopers,regulatorsandfinancialinstitutionstoenvisageandcoordinatedelivery.In2008,theReserveBankofIndia(RBI)laidoutoperatingguidelinesformobilebankingtransactions,whichincludemethodsforbankstocollaboratewithtelecomproviders,strengtheningthesecurityframeworkandlayingdowncommonstandardsforcompletingtransactions.TheReserveBankofIndiapermittedonlylicensedbankswithaphysicalbankpresenceinIndiaandbarsnon‐bankfinancecompaniesandmicrofinanceinstitutionstolaunchmobilebanking.Thisdisqualifiesmobilenetworkoperatorsfromofferingtheirownservice.Serviceswererestrictedtocustomersofbanksandholdersofdebit/creditcardsissuedasperRBIguidelines.
Support
Statusofrequestsforcredit,includingmortgageapproval,andinsurancecoverage
Checkbookandcardrequests Exchangeofdatamessagesandemail,includingcomplaintsubmissionand
trackingContentServices Generalinformationsuchasweatherupdates,news
Loyalty‐relatedoffers Location‐basedservices
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TheRBIhastakenastepforwardbyremovingtheRs50,000transactionlimitthroughmobilephoneswithaviewtoallowcustomerstotransferbiggeramounts.Howeverlendersmayplacepertransactionlimitsbasedontheirownriskperceptionwiththeapprovaloftheirboards.RBIhasalsoallowedbankstoappointfor‐profitbankingcorrespondents(BC),includingtelecomoperatorsandlimitsrelatingtohavingtheBCwithinafixeddistanceofthebankhavealsobeenrelaxed.TheregulationonmobilebankingismovingintherightdirectionbuttheRBIshouldlookatloweringtheentrycost.Forexample,theKnow‐Your‐Customer(KYC)norms6applicabletotelecomcompaniesratherthanbankingKYCrulesshouldbeadequateforopeninganaccount.Itisexpensiveforoperatorstocomplywiththeseregulationsespeciallywhencustomervolumeshavenotstabilized.Afewmoreenablingregulationslargelycenteredonunifyingaccountopeningandcontrolsbetweenoperatorsandbankwilllowercostandincreaseviability.Increasedviabilitywillensurefasterscale‐upandproliferationofservices.Theregulatorshoulddefinetheextenttowhichmobileoperatorscansubstituteorreplicateservicesthatbankstraditionallyoffer.TheRBIhasbeenreluctanttoallownon‐bankingplayersliketelecomoperatorstocarryoutbankingoperationsandrequiressuchservicestobeofferedinpartnershipwiththeexistingnationalbanks..Theseissuesneedtobeaddressedonthepolicyandregulationfront.Financialinclusionreformsshouldalsoprovidenormsformobilebankingfortheruralpopulation.Stringentsecuritynormsandaframeworkforpreventingfraudareneededtochangetheperceivedinsecurityofmobilebankingtransactions.TheRBIhasinthelastfewyears,takenpositivestepstowardsfacilitatinginter‐operabilityamongbanksformobilepaymentthroughtheinterbankmobilepayment.However,amoreintegratedapproachandframeworkformobilebankingistheneedofthehour.TheRBIstillhassomewaytogointermsoffacilitatingthemobileecosystemforgrowthwithanintegratedframework.Policy‐makersandregulatorsfacetwo‐foldchallengesregardingM‐banking:first,toencouragebanksandmobileoperatorstodevelopsolutionsthatarenotproprietaryandsecond,toallowaccesstopotentialnewentrantswhomaydisruptthelucrativebusinessmodelsofthebanksandmobileoperators.Thekeychallengeistodothiswhileatthesametimeensuringhighlevelsofsecurityandtrust.Itisimportantthatmobilebankingisnotseenasaturfwarbetweenthefinancialandtelecommunicationsectorsbutassomething,thatcomplementsexistingfinancialservices.
6KYCrulesrequirethatbanksrequireasystemofdocument‐basedregistrationandthemandatoryphysicalpresenceofthecustomertoopenaccounts
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MobileBankinginIndia:BarriersandAdoptionTriggersMobilebankinghasgrownatablisteringpaceinacrossmanydevelopinganddevelopedcountriesaroundtheworld.InIndiarelativetoaveryhighmobilepenetrationrate,theuseofmobilebanking(m‐banking)servicesremainslow.However,withnewcellulartechnologyasacatalyst,m‐bankinglookswell‐poisedtodrawinmillionsofnewusers,whotiredwiththelumberingbrickandmortarbankingfacilities,seektime‐savingandeasilyaccessiblealternativebankingmodes.StudyObjectiveandDesignThisreportpresentsfactsandanalysisonthebankinghabits,awareness,adoptionandusagepatternsamongm‐bankingusersandnon‐users.Itidentifiesfactorsthatwilldriveon‐the‐groundsuccessofmobilebankinginIndia.Todoso,wecollectdataonthebarrierslimitingadoptionofmobilebankingamongstnon‐usersandalsothetriggersthatledtoadoptionamongcurrentusers.Wesurveyed1614respondentsduringAprilandMay2012acrossfivedifferentgeographicallydispersedcitiesofIndiaDelhi,Mumbai,Lucknow,IndoreandKochi.7Theinitialscreeningonlyselectedrespondentswhowereawareofmobilebankingbutmayormaynothaveactuallyadoptedtheservice.8Classifiedonthebasisofsocio‐economicclass(SEC),therespondentsweredrawnfromclassesA1,A2,B1andB2onthis12‐gradescalewhichisbasedoneducationandnumberofconsumerdurablesowned.InIndia,thesefourSECrepresent11.8%ofthegeneralpopulationand25%oftheurbanpopulation.932%oftherespondentswereusersofmobilebanking.Detailedinformationwascollectedonavarietyofsubjects—bankspatronizedandbankinghabits,typesoffinancialtransactionsconducted,advantagesanddisadvantageofmobilebanking,cellularusageanddemographicfeatures.
Table1:Sampledistributionacrosscities
Delhi Indore Kochi Lucknow Mumbai TotalNonUserofM‐banking,AccountwithaPrivateSectorBank 102 101 100 102 102 507NonUserofM‐banking,AccountwithaPublicSectorBank 119 122 105 113 139 598UserofM‐banking,AccountwithaPrivateSectorBank 52 50 57 50 52 261UserofM‐banking,AccountwithaPublicSectorBank 48 50 50 50 50 248Total 321 323 312 315 343 1614
7DelhiandMumbaiareclassifiedas“Tier1”citiesandKochi,LucknowandIndoreareclassifiedas“Tier2”cities.Tier1citieshaveapopulationofover4millionwhileTier2citiespopulationis1millionto4million.8 Consumers were initially surveyed on the street briefly. Out of these respondents, only those consumers who were aware of M‐Banking were later interviewed face‐to‐face in the CAPI (Computer‐assisted personal interviewing) center. The interview work was fully controlled and any possibility of leaving out questions was eliminated. 9ThissystemisdevelopedbytheMediaResearchUsersCouncil(MRUC)andtheMarketResearchSocietyofIndia(MRSI).
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HowdoestheIndianconsumerbank?Asinthecaseofanyconsumerdecision,theadoptionanduseofmobilebankingdependsheavilyonhowattractivethealternativeproductis.ForIndianswithaccesstoformalbanking(thesegmentofthepopulationrepresentedinthissurvey)brickandmortarbranchesarethetraditionalmodeofconductingbankingtransactions.Weaskedrespondents,whoallhaveaccountsineitherpublic(49%)orprivatebanks(51%),abouttheiruseandsatisfactionwiththeseservices.Mostconsumersphysicallyvisitedabranchbankonceamonthorless.Themostwidelyperformedbranchbankingactivitiesrevolvearoundviewingbalancesandtransfer/depositingmoney.Intheprecedingthreemonths,86%ofusershadtransferredanddepositedmoneyand82%hadcheckedtheirbalance.Adistantthirdwastaskspayinginsurancepremiums(20%).Thereismuchlessactivityinmoresophisticatedtaskssuchasinvestinginshares(10%),creditcardtransaction(6%)ormutualfundactivity(4%).
Table2:Bankingactivities
Activitiesdoneinlast3months AllUsers M‐Bankingusers M‐Bankingnon–users
Base: 1614 509 1105PaymentofBills 53% 38%Transfer/depositmoney 86% 86% 85%Check/Viewaccountbalance 82% 90% 78%Payinsurancepremium 20% 26% 17%MonitoringDeposits/Fixed/RDs 7% 7% 7%Investinsharemarket 6% 7% 5%Requestchequebook 15% 17% 13%ViewMiniStatements 15% 18% 13%ViewLoanstatements 8% 10% 6%ViewCreditCardStatements 10% 10% 10%InvestinMFs 4% 6% 3%Stoppaymentoncheques 8% 11% 7%Functionalitytostop,changeanddeletepayments/ECSLinkingaccountforAutoDebit 4% 6% 3%PINprovision 7% 11% 5%Updatingpassbook 17% 12% 19%ThereissomeheterogeneitybySECinthetypesofbankingactivitiesdoneatthephysicalbranch,morewell‐offandeducatedclasses(SECA)withpresumablymoreadvancedfinancialknowledge,moreresourcesandhigherpotentialreturnstendtodomorecomplexfinancialtransactionslikeinvestinginshareormutualfundsandcreditcardactivity.However,thebiggestdifferenceacross
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classesemergesonthedimensionofhowthesetransactionstakeplace.AsFigure2shows,themajorityindividualsinupperclassesdepositortransfermoneybysomeothermediumratherthanphysicallyvisitingabranch.ThisproportiondecreasesaswegodowntheSECscale.
Figure2:Physicalbranchastopmodefordeposits/transfers
Thispicture,whichcouldbereplicatedforavarietyofotherbankservices,showsthatmoreeducatedandwell‐offindividualsarefindingconvenienceinnon‐traditionalbankingmodeslikeATM,internet,mobileorphonebanking.Althoughnotexplicitlydefinedinthesurvey,manyofthehigherclassesreportedusing“Other”modeswhichmostlikelymeanstheyareusingdomestichelporassistantstoconductbankingactivity.Eventhoughbankbranchesarelocatedmoreconvenientlyforaffluenthouseholds,theiropportunitycostoftimeisalsoincentivizingthemtoavoidcrowdedandtime‐consumingbankbranches.
Interestingly,thedataalsoshowsthatinternetor“net”bankinghasnotcaughton.Lessthan25%ofcustomersuseonlineservicesforbanking.Inmanyservicecategories,thereisevidenceofa“leapfrogging”effect.Consumersareskippingoveranintermediatebankingmodesuchasinternetorphonebankingandadoptingthelatesttechnologyi.e.mobilebanking.Forexample,amongstthosewithaccesstomobilebanking,47%usebranchbankingforpayingbills,25%useinternetbankingand40%usem‐banking.
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
SECA1 SECA2 SECB1 SECB2
%respondents
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Figure3Modesofbankingfordifferenttasks
Branch ATM Net Mobile Phone Other
PaymentofBills 47% 16% 28% 40% 1% 6%
Transfer/depositmoney 44% 29% 27% 58% 1% 4%
Check/Viewa/cbalance 25% 60% 22% 66% 1% 3%
Payinsurancepremium 32% 13% 31% 40% 3% 10%
MonitoringDeposits/Fixed/RDs 30% 22% 16% 16% 0 22%
Investinsharemarket 8% 8% 17% 36% 6% 31%
Requestchequebook 44% 30% 3% 34% 2% 14%
ViewMiniStatements 24% 50% 21% 47% 3% 10%
ViewLoanstatements 30% 23% 2% 25% 2% 30%
ViewCreditCardStatements 49% 24% 14% 16% 4% 16%
InvestinMFs 22% 22% 13% 34% 0% 22%
Stoppaymentoncheques 37% 7% 17% 54% 6% 15%Functionalitytostop,changeanddeletepayments/ECS 23% 19% 10% 35% 3% 29%
PINprovision 18% 45% 20% 45% 4% 13%
PassbookUpdate 93% 0 0 0 0 7
IssuesfacedintraditionalbankingThemovementawayfrombrickandmortarbankingisnotsurprisingasthereisconsiderabledissatisfactionwithtraditionalbankingalongseveraldimensions.Respondentscomplainedabouttheamountoftimeandenergytheyhadtoexpendtomerelycommutetotheirbank.Mostconsumersalsocomplainedaboutinordinatedelaysandharassmentfacedinsidethebank.Usuallythisphysicalbranchbankinginvolveswaitinginserpentinequeuesandmovingfromonecountertoanothertogetevenbasictasksaccomplished.
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Figure3: Problemswithtraditionalbanking
Visitingabankphysicallyistime‐consumingandconsumerssaidtheyareforcedtodefer
otherimportantworktotraveltoabank.Infact,morethan50%oftheconsumersrankeditasoneoftheirtopthreeproblems.Almostoneofeverythreebankingusersneedstotravelmorethan2kilometerstoreachouttoitsnearestbankbranch,withanaveragetimeof17‐18minutes.ThisproblemismarginallybetterinTier1citieswhereaveragedistancesandtraveltimestobankbranchesareshorter,butitremainsdaunting.Moreover,sincelowerSECstendtolivefartheronaveragefrombankbranchesonaveragetheseproblemsaremagnifiedforthem.TheopportunitycostoftimemaybelowerforlowerSECssothatwaitinginaqueueisrelativelylessexpensiveforasmallshopkeeperthanahighpoweredexecutive.Butonnet,thesluggishIndianbankinginfrastructureinordinatelyburdensevenlowermiddleclass(SECB)bankingcustomers.Respondentswithaccountinprivatebanks(bothdomesticandforeign)tendtobelessdispleasedwiththeirbankingexperienceintermsofcustomerserviceanddelaysthatthosewithaccountsinpublicsectorinstitutions.Also,notethatthedifferencesmaybehigherthatthenumbersshowbecausecustomersoftherespectivetypesofbanksarenotsimilari.e.privatebankcustomerstendtobemoredemandingaswell.Butthelatterdobetteronthelocationalfront,whichisnotsurprisingaspublicsectorbanksoftenhavethepickofchoicelocationsavailableatsubsidizedrates.Overall,however,thefiguressuggestthatbanksinIndiahavenotliveduptheexpectationsoftheircustomers.
82737375
7172
646363636166
5654
50
TimewastedtravellingMovefromonecountertoanotherone
LongqueuesUnabletolocateabankbranchwhiletraveling
InconvenientbranchlocationsNotaccessible24*7
PoorserviceUnhelpfulbankemployees
InadequateknowledgeofthestaffErrorsinrecordingtransactions
NocustomisedservicesChequeclearancenotreflectedonthesameday
PoorbankinfrastructureBetterservicesatotherbanks
Unreliableinpast
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Figure3:%respondentsinstrongagreement
Holdaccountinpublicsectorbank
Holdaccountinprivatesectorbank
“Iendupwastingalotoftimetravellingtobank” 82% 86%“Ihavetomovefromonecountertoanothertogetworkdone”
69% 65%
“Bankemployees/frontdeskexecutivesatthebankarenotwillingtohelpme”
56% 54%
ItisimportanttokeepinmindthatproblemsofaccessandserviceexistonanevenlargerscaleforlowerSECs(classificationsC‐E)whoarenotincludedinthesurvey.BranchespercapitainIndiastillremainamongthelowestintheworldandbasicaccessremainsapervasiveproblem.Inspiteofabigpushbythegovernmenttowardsfinancialinclusion,lessthan80%ofthepopulationhasaccesstoformalsectorlendingrepresentingfertilegroundsformobilebankingtomakeinroads.AwarenessandadoptionpatternsformobilebankingSourcesofawarenessBysurveydesign,allrespondentsinthesurveywereawareofmobilebanking.Televisionandword‐of‐mouthandinternetarethetopsourcesforawarenessoverall.Word‐of‐mouthisparticularlyeffectiveforusers.
Figure4:Sourcesofawarenessformobilebanking
62
60
55
53
41
28
13
9
50
62
33
48
39
22
11
4
Friends/family/Colleaguesusingtheservice
Television
Internet
AttheBankbranch
Newspapers/Magazines/OtherPrintads
ThroughtheMobileServiceprovider
Directmailers
Callfromabank M‐BankingUser M‐BankingNon‐User
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Moreandmoreconsumersrelyonadvicefromfriends,familyandevenstrangerstomakepurchasedecisionsintechnologyenabledbankingservicescategoryespeciallyM‐banking.Thesurveyreinforcedwhatalmosteverybusinesspersonknows,thebestleadorreferralisoftentheonethatcomesstraightfromthemouth—asatisfiedcustomer’smouth,thatis.AsurprisingfactgiventhatIndiahasabank‐ledmodelformobilebanking,banksarenotamoreprominentsourceofawareness.Only5%ofpeopleheardaboutm‐bankingservicesthroughtheirbank.Additionally,mobileprovidersarenotprominentsourceofinformation(23%).Aswewillseebelowwhendiscussingbarrierstoadoption,eventhougheveryoneinthesurveyisawarethatbankingthroughamobiledeviceispossible,under‐awarenessisthepressingproblem.Potentialusersoftendonotrealizetheextenttowhichm‐bankingcanmakebankingmoreefficientandlowcost.Intheseembryonicstagesofgrowth,banksandmobileprovidersmustdriveawarenessabouttheirproducts.Thefindingthatword‐of‐mouthandpeeruseissoimportanttoawarenessimpliesthatreachingacriticalmassofuserswillbevitaltopropellingm‐bankingforward.ThisfactalsopointstolowSECgroups,whereadoptionmaybemuchbelowthecriticalthreshold,asanimportanttargetformarketers.TriggersforadoptionWhenaskedwhatattractedthemtotheservice,thecomfortandconvenienceofusingtheircellphoneemergedasthetopreasonformostusers.Asdiscussedearlier,cellphoneshavemadedeepin‐roadsamongtheIndianpopulation.Allsegmentsofindividualsandhouseholdshaveoneandareadeptatusingit.Theideaofdoingbasicbankingonsuchafamiliardeviceistheimmediateattractionofmobilebanking.Thefigurebelowshowsthesevarioustriggersforadoption.
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Figure5: Triggersforadoption
Asweseeabove,mostrespondentsfamiliarityandcomfortwiththeircellulardeviceisimpetusforventuringintonewapplicationssuchasm‐banking.Toprankinggiventoseveralbankingcategoriessuchas“Usingamobileforbankingmakesbankinghassle‐freeandeffortless,”“Icandobankinganytime/anywhere(24/7banking),”and“Bankingthroughthemobilesavesalotoftime”alsounderscorethetimeandenergysavingadvantagesthatm‐bankingpresentsovertraditionalbanking.Ontheotherthelowrankingofcertaincategorieslike“mobilebankinghasauser‐friendlyinterface”and“abilitytoconductfinancialtransactions”highlightcertainareas,specificallyimprovinguser‐technologiesandcateringtosmallercustomers,thatm‐bankingprovidersmustbettertogetmoretractionintheIndiancontext.Theideathathavingtherightcellphoneisakeyfactorbehindadoptionisreinforcedifwelookatthebarriersratherthantriggerstoadoption.BarrierstoadoptionOverall,wecanclassifythehurdlesthatrespondentsstatedasreasonsfornotusingmobilephonestofourmajorcategories‐‐lackofawareness,technologyproblems,securityconcernsandsupportissues.Box3categorizesthespecificstatementsevaluatedinthesurveyunderthesefourbroadareas.
88
88
85
84
84
84
83
83
83
80
Icandobankinganytime/anywhere
BankingthroughthemobilesavesalotoftimeUsingamobileforbankingmakesbankinghasslefree
andeffortless
MobilebankinghasauserfriendlyinterfaceAbilitytoconductfinancialtransactionsofeven
smallerdenominationsConsistentserviceexperience,ashumanintervention
islessIstartedusingMobileBankingasmostofmyfriends
andcolleagueswerealsousingit
ItakekeeninterestinnewertechnologiesItinvolveslowercostascomparedtothetraditional
andoldermodesofbanking
-
Box3:M
Figure6reasonin“mobilepadoption
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“Notmanycurrently“Icurrenttheneed”“Notaspobanking”“Itisexpemobileforactivities”“Don’tkno“M‐bankinversatilee“M‐bankincomplicat
ajorcategor
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ypeopleIknowusem‐bankingtlydon’thave
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ensivetouserthese”owmuchaboutngservicesnotenough”ngistootedtouse”
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ercentageofng.Technolotobecompatipportissues
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“Mobilebecombankin“Attimmobile“Datattooslow
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onecanmisuselsincaseIlosemle”
ibilityoferrorsnkinghigherthernetbanking”
ankingisnotasecuremodetodcialtransaction
acertainissubilenetworkarethebiggestcomeinsec
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ckofnowledgementotransactionates”
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-
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ThedataAlthoughsameholtheywereotherhancustomerbanking,potentialTheresulbankingagainacceconcerneworryabmoredemperspectiamonglo
e6:Respond
alsoshowsthtechnologydsforawareealsoknewlnd,SECAresrsupport.Thbanksandteusersbutadltsalsosuggealternatives,sstofinanciaedaboutsecuoutsecuritymandingandive,itmightbowerSECsco
dentswhor
thatdifferentisthetopconenessaslowelessaboutthspondentsexhesefindingselecomoperaddressheteroestthattrustlowerSECsaalservices.Hurityissues.Handtrustiss
dalsobeconcbeeasiertoest‐effectively
ranksecuritm
tSECsattribuncernforeveerSECswereheservicesanxpressedmorconveythatatorsmustnoogeneouscontandsecurityaremorewilHigherSECswHowever,thisues.Asconscernedaboutenrollandexy.
31
164
ty(top)ormmobilebanki
uteddiffereneryone,itcarelesslikelytondadvantagereworryabotoensurewotadoptaonncerns.yareasortollingtouseawhohavereaisdoesnotmsumersenroltsecurity.Buxpandfinanc
SECA SEC
SECA SEC
mobilecovering
ntweightstorriedmoreimohavepeersesmobilebaoutsecurityawideadoptionne‐size‐fits‐a
ofluxurygoonyformofbasonablefinameanoverthellintheseserutfromanimialinclusion
47
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rage(bottom
odifferentcamportancefosusingmobilankinghadtoaswellasgetnandproliferallapproachi
od;facedwithankingthateancialserviceelong‐termbrvices,theyammediateadothroughmo
7
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tegories.orSECB.Thlebankinganoodder.Onthttingapproprationofmointargeting
hpoortraditenablesthemesaremorebanksneednarelikelytoboptionbilebanking
18
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19
Figure6: Barrierstoadoption
Whoisusingmobilebankingtoday?Mobilebankingadopterstendtoberelativelyyoung,betweentheagesof26‐35years.Sincethesurveywasconductedinurbanareas,illiteracyoronlyprimaryeducationwasnotcommon.Levelsofsomecollegeeducationwereroughlythesameamongbothusersandnon‐users,butm‐bankinguserstendedtohavemorehighereducationandnon‐userstendedtohavehigherfractionofthosewithonlysecondaryeducation.Morestudentswerem‐bankingusersaswereworkingprofessionally.Finally,mobilebankingusersbelongtothehighsocio‐economicgrades(A1andA2).
706767666563626159595858565554
IncompatiblephoneNomobilenetworkattimesNotmanypeopleIknowuse
NohumaninterfaceorserviceexecutiveNoneed
InternetbankingmorepopularLackofacknowledgementinreceivingtransaction
ExpensivetousemobileforthisFearoflosingphoneanddata
Don'tknowmuchaboutm‐bankingorhowtouseDatatransmissionslowonmobile
ServicesnotversatileenoughHighpossibilityoferrorsToocomplicatedtouse
Notsecureandsafe
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Figure7:Characteristicsofusersandnon‐users
M‐BankingUsers M‐BankingNonUsersBase 509 1105Age18‐25Years 44% 48%26‐35yeas 40% 36%36‐45years 16% 14%46‐55years ‐ 3%EducationalStatusSchool5to9Years ‐ 1%SSC\HSC 6% 14%SomeCollegebutnotGraduate 20% 19%Graduate\PostGraduate:General 59% 58%Graduate\PostGraduate:Professional 15% 8%OccupationalStatusStudent 25% 30%WorkingProfessionals 34% 29%Businessman 24% 24%SelfEmployedProfessional 4% 3%Housewife 8% 9%SECA1 33% 20%A2 36% 34%B1 23% 29%B2 9% 17%IndividualIncome(MonthlyAverage,Rs.thousands) 35.1 26.9HouseholdIncome(MonthlyAverage,Rs.thousands) 86.4 56.4
Mobilebankingusersalsousemoreadvancedphones.10
10Basicphoneisonewithminimalfeatureslikecalling,sendingtext,receivingcallsandmayhaveradiowithnooptionofcamera,mediaplayer,videosorinternetaccess.Multimediaphonecanhandlemusicpicturesandvideos.Smartphonesallowuserstostoreinformation,email,installprograms,clickpictures,storeimagesandvideos.Thesearephoneswhereapplicationsfromathirdpartyareaccessible.Seeappendixforpictures.
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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%
Manyoftheentry‐levelhandsetsthatareprevalentinIndiadonotsupportapplicationslikeJAVAandinternetbrowsing.Theyarebrowser‐unfriendly,andhavemonochromatic,low‐resolutionscreens,whicharedesignedtodelivervoiceratherthandata.Additionally,3Gtechnologyalsoencouragesadoption.
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,thedatasuggeststhatlackoftechnologyandmobileinfrastructureremainsabighurdletoadoption.However,therapid3Gexpansionandfallingpriceofsleekerandmoreuser‐friendlyhandsetsshouldencouragethelarge‐scaleadoptionofsophisticatedmobilebankingapplications.Banksandmobilephoneprovidersthatarepreparingtoprovideexcellentmobilebankingservicesintheimmediatefuturethereforehavegreatpotentialforlargescaleandrapidadoptionofmobilebankingservices.FrequencyandpatternsofuseamongmobilebankingusersMovingbeyondadoption,thesurveygatheredinformationonusagepatternsofadopters.Onaverage,M‐bankingusersusedmobilebankingservice.97timesaweek.Mostusersuseditonceamonth,followedbyalargegroupofweeklyusers.Thefrequencyofusageincreaseswiththeexperienceoftheuser.Themostrecentadoptersofmobilebankingusetheservice.80timesaweekwhilethemostexperiencedonesaverage1.24timesweekly.Thefirstmobilebankingservicethatconsumerstendtouseisofthesimplestkind—checkingorviewinganaccountbalanceontheirphone.Fortysixpercentofrespondentsacknowledgedthisastheirfirsttypeofmobilebankingtransactionfollowedby31%statingthattransferringordepositingmoneywastheirfirstone.
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22
TypesoftasksbySECandovertenureofuseOvertime,thenatureofthetaskstendstobecomemorecomplex.Bankingtransactionsthatnecessitatemoretrustandconfidenceinmobilebankingasamediumalsoriseoverthetenureofuse.Newcustomerstendtosimplycheckorviewaccountbalancesmorecomparedtoexperiencedusers.
Figure10:%usersfirsttransactionusingmobilebanking
Figure11showsfourdifferentbankingtasksthatincreaseincomplexity.Basicaccountbalanceviewingissimplygatheringinformation.Transferringofmoneyrequiresahigherleveloftrustandproficiency.Movinghigherontheladderofcomplexity,moreinvolveddecisionisneededwheninvestinginmutualfunds.Andfinallythetaskrequiringthehighestleveloftrustandcomplexityiselectronicclearingservices(ECS)whichmovesfundamongdifferentbankaccountsoftenautomatically.Weseethatusersnewtom‐bankingaremostlikelytotransfer/depositfundsandviewbalancesbutdomuchlessoftheothertwotasks.Userswhohavebeenm‐bankingfortwoyearsormore,spendrelativelylesstimeonthebasictransactions.
4632
1022211111
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Similarly,higherSECsalsoconductmoresophisticatedtransactions.ThisisinpartbothbecausehigherSECsaremorelikelytohavebeenlongerusersofm‐bankingbutalsobecausethereishigherdemandfortheseservicesbythem.Largerwealthandportfoliodiversificationelicitsmoreneedforcertainbankingtransactions.Asbankingneedsbutalsotimeconstraintsincrease,mobilebankingoffersanefficientandhassle‐freewaytomanagefinances.Hencewhilebankscanacquirenewcustomersrelativelyeasilythroughsimpletransactions,theyshouldbepreparedtoprovidehigherqualityandmorecomplexservicesascustomersbecomemoreexperiencediftheywouldliketoretainsuchcustomersinthefaceofcompetingbanksaugmentingtheirmobileservices.ThisisparticularlyimportantforthehigherSECcustomersrequiringmorecomplexservices.
Figure12: TypeoftransactionsbySEC
ViewingBalance Transfer/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%
Viewingbalance
Transfer/Deposit
InvestinginMF
ECS Lessthansixmonths 2+years
Figure11:Typeofm‐bankingtasksbylengthofadoption
-
Post‐adoMobilebatheirphomanycatinsurancesubstantitraditionahavebeen
Overall,3increaseslargerredgeneral,mexperienc“extremeTheserescontacttocustomerexpenseoloyaltyatWhowiLikelihooAlmostfobankingigivensom
optionchangankingusersonetodobantegoriessuchepremiumsivecategoryalbankinghanreduced.
31%ofresposmonotonicaduction.Simimobilebankice.Almost70ely”likelytor
sultsareproomobilebanrsatisfactionofhigherchutlowercostsillbethefodofusageouroutoffivinthefuture.meguidance
R
Figure1
gesintraditstendtousenkingbusineshastransfer/andinvestinwheremobilabitshavech
ondentssaytallywithm‐bilarly,higheringusersacr0%ofusersrrecommend
misingtobankingmakesnassociatedwurn.Ifhowev.Weassesssfutureuseamongcurrvenon‐users.And20%oandsupport
Reducedalot
13:Changein
tionalbrancbrickandmoss.M‐bankin/depositmonginmutualflebankusershangedsince
therehasbeebankingtenurSECresponrossthesociorateit“verym‐bankingt
nks.Customitmorecostwithmobilebver,customersatisfactionwrsofmobirentnon‐useinthesurvefthosewhotindoingso
63
6
Reduced
nphysicalb
chbankinghortarbankslngisthemosney,automatfunds.Infactspreferbraneadoption,m
enabigdecrurewith42%dentsalsohao‐economicsgood”or“exoothers.
ervisitstopeffective.Hobankingishirsatisfactionwithmobilebilebankinerseyrespondedexpressedso(bottom).
316
tosomeexten
bankvisitss
habitsless,onlyabostcommonmticpaymentst,paymentofnchbanking.m‐bankingus
easeinphys%ofthemostavehigherraspectrumarexcellent”and
hysicalbranowever,onenigh.Ifnot,onnisgreater,obankingnextnginIndia
dthattheyaromereluctan
1
nt Nocha
incemobile
out80%asmmodeoftranss,checkingbafbillsremainAskeddirecersagreetha
icalvisits.Thexperiencedatesofsubstieverysatisfialmost70%
nchesarecosneedstoassenemayloweronemayindut.?
reextremelyncewouldlik
ange
ebanking
muchastheysactionacrosalances,payinstheonlyctlyabouthoatphysicalvi
hisfiguredusersclaimitution.Inedwiththeirare“very”o
tlyandshiftiesswhetherrcostattheucegreater
likelytousekelyconvert
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-
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Table5sandalsoapercentagbranchbaconditionsignificanmobileba 11In‐depth
Figure14:
Drawingfroseenthatuseealthieranditedtohighetoaccountthldsface.
showsthem‐amongthesugepointmorankingishignon3Gtechnntly.Thus,onankinguse.11
analysisinSud
Notatalllikel
%Non‐user
omlowersocersofmobilebelongtohigersocio‐econhetechnologi
‐bankingadoubsetofresprem‐bankinggheramongtnologythatisncetechnolo1
dhirandTewari
4
ly Notver
rslikelytoc
cio‐economebanking,bogherSECs.Tnomicstrata.icalconstrain
optionanduspondentsusingusersthantheformerass,eliminaterogyisaccoun
i(2012)
42
13
rylikely So
18
convert;ifgi
icstrataothintermsoThismayleadHowever,thntsandbank
seacrossSECng3GtechnoSECBandthswell—therrespondentsntedforSECs
1 63
omewhatlikel
2 11
68
1
ivensomeg
ofgreateraddtotheconchiswouldbekingalternati
CA(A1+A2)ology.Weseehattherelativratiois70%with2G,thelookmuchm
39
ly Verylik
guidance(bo
doptionanduclusionthatmhastyconcluiveswhichp
andSECB(ethatoverSveamountsomore.Howeesedifferencemoresimilar
kely Extre
ottom)
usage,tendtmobilebankiusionwithoupoorer
B1+B2)overECAhas13ofm‐bankingever,onceweesgodownintermsof
melylikely
25
tobengisut
rall
gtoe
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26
Table3:AdoptionanduseacrossSECs
SECA SECB Difference
%M‐bankingusersAll 37% 24% +13 with3G 42% 38% +4
Mobilephone/Branchuseratio
All ~1.7 1 +.7 with3G 1.7 1.4 +.3
Aswehaveseen,oneofthetopconstraintstoadoptionofmobilebankingistheperceptionthattheuser’scellphoneisnotconducivetomobilebanking.Itistheleadingreason(followingunavailabilityofamobilenetwork)thathindersmobilebankingusage,bothontheintensiveandextensivemargins.Giventhatmore3Gsmartphoneusersaredoingmobilebanking,thisproblemiscloselytiedtothepredominantuseofsecondgenerationbasicormultimediadevicesoverthirdgenerationsmartphones.Evenamongmobilebankingadopters,thosewitha3Ghandsetusetheircellphoneforbanking.38timesweeklycomparedto.28timesweeklybytheir2Gcounterparts.Thirdgenerationsmartphonesarestilloutofthepricerangeoflessaffluenthouseholds.Butrapidlyadvancingtechnologyispushingpricesdownandremovalofthistechnologicalconstraintforpoorerhouseholdisimminent.Oncethishappens,mobilebankingislikelytotakeoffinabigaway.
Onanotherdimension,poorbankinginfrastructurehascreatedapent‐updemandformobilebanking.Althoughallsurveyrespondentshaveabankaccount,thereisdissatisfactionacrossallSECswiththeseservicesamongvariousdimensionsespeciallyintermsoftraveltimetobanks,inconvenientlocationofbranchesandamountoftimespentinthebranch.TheseissuesaremagnifiedamonglowerSECs.Theytendtoexpressevenmoredissatisfactionabouttraditionalabankingmethodwhichisnotsurprisingbecausetheytendtolivefartherfrombanksandhavelimitedresourceslikedomestichelp,computersorphonestoskipphysicalvisits.Onthesupplyside,bankshavenotdoneagoodjobservicingthesesmallercustomers.Richerconsumers,ontheotherhandhavefoundthatmobilebankinganeffectivewaytocircumventissues.Thiswasevidencedbythefactthatmobilebankingusers,inspiteofbeingwealthierwithpresumablybetteraccesstobanks,tendtophysicallyusebanksless.Sotheworseconditionsintraditionalbankingforlessaffluenthouseholdswillattractthemtomobilebankingasahassle‐freewaytodobanking.Thus,habits,preferencefortraditionalbankingorsocio‐economicstatusarenotlikelytobebarrierstoadoptionandusage.The“pull”factorofcheap,new3Ghandsetscombinedwiththe“push”factoroflumberingtraditionalbankinginfrastructurearelikelytoresultinrapiddemandformobilebankingacrossavarietyofusers.
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ConclusionMobilebankingprovidesthepromiseofexpandingboththequalityofbankingservicesandreachofbankingservicesinalargecountrylikeIndiainacost‐effectivemanner.Usingaconsumerlevelsurvey,weinvestigatedconsumerneedsthattriggersadoptionandbarriersthanservetolimitadoptionofmobilebanking.Wealsoevaluatedthesatisfactionwithmobilebankingandhowadoptionofmobilebankingchangesusageoftraditionalbankingservices.Ourkeyfindingsandtakeawaysareasfollows:Thereislatentdemandformobilebankingbothamongthericherupperclassesandpoorermiddleclasses.Theuppermiddleclassesaredrawnbythepossibilityofsuperiorservicethatsavestimeandprovideanytimeanywhereaccesstomobilebanking.Thepoorermiddleclasseswhohavelimitedaccesstotraditionalbankingservicesfindthetraditionalalternativetobeverypoor,thatmobilebankingevenatthemostbasiclevelareattractivetothem.RicherSECsarealsomoreconcernedaboutissuesofsecurityandtrust.Assophisticatedcustomers,theyhavehigherexpectationstoenterthemobilebankingcategory,giventheirhigherlevelsofsatisfactionwiththecloseralternative,traditionalbanking.HencemobilebankingservicequalityislikelytobeanimportantcompetitiveweaponinattractingandretainingcustomersfromhigherSECsinthefuture.WefindusersevenfromlowerSECsgraduatetousingmoresophisticatedtransactionsovertime,andcanbecomemoredemanding.SowhileimmediateadoptionamonglowerSECsmaybepossiblebysimplyprovidingthemtheoption,theirlong‐termretention,especiallyasbankscompeteonthequalityofservicesprovidedrequiresgreaterinvestmentineaseofuseandqualityofservices.Bankscandomoretoinstillawarenessoftheirmobilebankingservicestoincreaseadoption.Customersseemtolearnmoreaboutmobilebankingfromfriendsandrelativesthanfromthebanksthemselves.Giventhattrustandwordofmoutharelikelytobeusefulintheadoptionofservices,smallreferralincentivesmayacceleratetheshifttomobilebanking.Giventhelowercostsofservicesthroughmobilebanking,evenwhenbankbranchesarepresent,itisinthebank’sinteresttoencouragesuchadoption.Banksmayalsowishtopartnerwithmobilephoneserviceproviderstohaveappsinstalledonhandsetsthatmakesiteasiertoaccessbankingservicesthroughthephone.Giventhefairlyhighlevelsofsatisfactionwithmobilebankingservices,relativetotraditionalbankingservices,theshiftmaynotonlybefavorableintermsofcosts,butalsointermsofcustomersatisfactionandretention.Mobilebankingmightthereforetrulybeawin‐winforbanksandcustomers.LowerSECshavelowerratesofadoptionofmobilebankingservices.Howevercloserinspectionrevealsthatthisisnotduetolackofinterestandresistancetoadoptnewbehaviors,butduetolackofaccesstothecomplementaryinfrastructureofsmartphonesand3Gservices.Giventhatpricesofsmartphonesareexpectedtoplummet,and3Gpenetrationarelikelytoexpanddramatically,thereissubstantiallatentdemandwaitingtobefilled.Banksthatarewell‐preparedtoleverageanddealwiththispotentialexplosionindemandarepoisedtogainsubstantialmarketshareoverthenextfewyears.
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Overall,mobilebankingseemstobeanideawhosetimehascome.Ourresearchsuggeststhatsupplysideconstraintsarethebottleneckstoadoption;consumersarereadyandwaitingtoadopt.Giventheexpansionofhigherbandwidthdataservices,andacceleratedpricedropsofsmartphones,investmentsbybanksineasy‐to‐useinterfacescoupledwithmarketingoftheservicesislikelytohavelargescalepayoffsforbanksatthefrontier.
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Appendix1:Somemobilebankingmodelsindevelopingcountries12TableA1:Mobilebankingmodelsinemergingmarkets
Model Lead
Bank/telecom Modeofaction
Philippines
SMART(bank‐led)GCASH(telecom‐led)
BancoD’Oro/SmartTelecomGlobeTelecom
ConventionalATM,POSareusedthroughdebitcard
Paymentviavaluechain,accountmanagement Bankssignupaccount Accountsmanagedbymobilenetworkoperators
(MNOs),bankshavereal‐timeaccess CoreprocessingsystemlieswithMNO,bank
holdsdeliverychannel
Kenya M‐Pesa(telecom‐led) Safaricom Safaricomismainlyapaymentproviderforthe
microfinanceinstitutionFAULU Paymentsareconductedviaairtimeagents
SouthAfrica MTN(bank‐led) StandardBank,MTN
Clientsopenbankaccountsthroughremote,interactiveprocess
MobilemoneystarterpacketsareavailableviaMTNagentsandbankbranches
CoreprocessingsystemlieswithMNO,bankholdsdeliverychannel
Indian Bank‐ledmCHECKAirtelStateBankofIndia,ICICI,Citibank
Mobilepaymentisrestrictedtobankaccountholders,residentsofIndiaandtransactionsinIndianrupees
Nointerbanknetworkavailable Bankscanmakemultilateralagreementsto
createmobileswitches
Pakistan Bank‐led UBL Accountholdercaninitiatetransactionvia
mobilewiththehelpofaninteractivevoiceresponse
ConventionalATM,POSareusedasdeliverychannel
12AnotherusefulresourceisthetheConsultativeGrouptoAssistthePoor(CGAP)report“BranchlessBanking2010:Who’sServed?AtWhatPrice?What’sNext?”providesdataanddescriptionofvariousmobilebankingandmobilepaymentsystemsindevelopingnations.Itisavailableat:http://www.cgap.org/gm/document‐1.9.47614/FN66_Rev1.pdf
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Appendix2:SurveyQuestionnaire
RecruitingQuestionnaireNAMEOFRESPONDENT:Mr./Mrs._________________________________________SURNAME_______________________ADDRESSINFULL:
BUILDING/PlotNAME/NO.:_____________________________________FLAT/ROOMNO.:_______FLOORNO.:____STREET/ROADNO./NAME:___________________________LocalityName______________________________________AREANAME:_______________________CITY/District/village:________________________PINCODE:________Talukaname:LANDMARK:__________________________________________________________________________________________EMAILADDRESS:______________________________________________DATASUPPLIERNAME:_______________________________DATAVERIFIERNAME:____________________________Mobilenumber:____________________________LandlineNumber:_____________________
Q1 IDENTIFICATIONNUMBER.
(R1) AREANO.
(R2) G.C.No.
(R3) LISTINGNO.
(R4) MAINNo.
(R5) D.S.No.
(R6) D.V.No.
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Q2 Q.C[MA][SA]
RQAC CBAC RQBC CBBC RQTBC
CBTBC RQVC CBVC RQSCR
CBSCR
(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,recordas211205
Q3b RECORDTIMEINTERVIEWSTARTED/ENDED
Pleaserecordusing24‐hourformat.Forexample,ifthetimeis2:47pm,recordas1447
Q3c TimeEnded(24‐hourformat)
Q3d InterviewerName
Q3e InterviewerIDNumber
Q3a Q3b Q3c Q3d Q3e
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DateofInterview[dd/mm/yy]
TimeStarted
(24‐hourformat)
TimeEnded
(24‐hourformat)
InterviewerName
InterviewerIDNumber
(R1) INTERVIEWDETAILS ______ ____ ________________ ______
Q4 RecordContactNo:
(R1) TelephoneNo.Resi
(R2) TelephoneNo.PP(C/O)
(R3) TelephoneNo.Office
(R4) MobileNo.Self Q5 RECORDCENTER[SA] Code Route
Mumbai 01 Delhi 02 Lucknow 03 Kochi 04 Indore 05ASKTOSPEAKTOANYADULTMEMBERINTHEHOUSEHOLDINTHEAGEBAND18‐55YRS,WITHANACTIVEBANKACCOUNT.Goodmorning/afternoon/evening.Mynameis..........IamaninterviewerfromTheNielsenCompanyLimited.whichisamarketresearchcompany.Weareconductingasmallsurveyandwouldappreciateifyoucouldspareafewminutestoanswerourquestions.Pleasebeassuredthatallyouranswerswillbekeptstrictlyconfidential.
Q6 SHOWCARD
Canyoupleasetakealookatthiscardandtellmewhetheryouoranymember
Code Route
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33
inyourhouseholdworksinanyofthefollowingtypesoforganization.[SA]
Banks 1 CLOSE FinancialInstitutions 2 CLOSE Telecommunications‐MobileServiceProviderCompany/HandsetManufacturers 3 CLOSE Marketresearch 4 CLOSE
AdvertisingorPRagency 5
CLOSE
Media/Radio/Newspaper/Magazine 6 CLOSE Manufacturer/Wholesaler/RetailerofconsumerelectronicslikeTV,refrigerator,etc 7
Companymanufacturingsoap/toiletries…________________ 8
Governmentinstitutions 9
Noneoftheabove 10
Q7 ASKALL
Haveyoubeeninterviewedbyanymarketresearchagencyinthepast6months?[SA]
Code
Route
Yes 1 CLOSE No 2
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Screener(Administeredtoalltherespondents)
Q1. SHOWCARD
ASKALL
CanyoupleasetakealookatthiscardandtellmethehighestlevelofeducationoftheChiefWageEarnerinyourhousehold?ByChiefWageEarner,Imeanthepersonwhocontributesthemaximumtothemonthlyhouseholdincome.[SA]
Code
Route
Illiterate 1 Literatebutnoformalschooling 2 School‐Upto4years 3 School‐5to9years 4 SSC/HSC 5 SomeCollege(includesaDiploma)butnotGrad 6 Graduate/PostGraduate:General 7 Graduate/PostGraduate:Professional 8
Q2. a SHOWCARD
ASKALL
CanyoupleasetakealookatthiscardandtellmetheoccupationalpositionoftheChiefWageEarnerinyourhousehold?ByChiefWageEarner,Imeanthepersonwhocontributesthemaximumtothemonthlyhouseholdincome.PROBEFORDESIGNATIONORLEVEL.
[SA]
Code
Route
Unskilledworker 01 Skilledworker 02 Pettytrader 03
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Shopowner 04 Businessman/Industrialistwith‐ Noemployees 05 Businessman/Industrialistwith‐ 1‐9employees 06 Businessman/Industrialistwith‐ 10+employees 07 Self‐EmployedProfessional 08 Clerical/Salesman 09 SupervisoryLevel 10 Officer/Executive‐Junior 11 Officer/Executive‐Middle/Senior 12
Education Illiterate SchoolUpto4th
School5th–9th SSC/HSC
SomeCollege(includesa
Diploma)butnotGrad
Graduate/post
graduategeneral
Graduate/postgraduate
professionalOccupation 1 2 3 4 5 6 7Unskilled 1 E2 E2 E1 D D D DSkilledworker 2 E2 E1 D C C B2 B2Pettytrader 3 E2 D D C C B2 B2Shopowner 4 D D C B2 B1 A2 A2Business/indust’listwithnumberofemployees
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
Selfemployedprofessional 8 D D D B2 B1 A2 A1Clerical/salesman 9 D D D C B2 B1 B1Supervisorylevel A D D C C B2 B1 A2Off/exec–junior B C C C B2 B1 A2 A2Off/exec‐mid/senior C B1 B1 B1 B1 A2 A1 A1
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Q2b CODESECQ1*Q2a[SA]
Code
Route
SECA1 1 SECA2 2 SECB1 3 SECB2 4 SECC 5 CLOSE SECD 6 CLOSE SECE1 7 CLOSE SECE2 8 CLOSERECORDRESPONSESFORQ3TOQ7INTHEGRIDBELOW
Q3.Canyoupleasetellmeyourageincompletedyears
Q4.RecordGender
Q5.Doyouholdasavingsbankaccount?SA
Q6.Doyouownamobilephoneservice?HereIamreferringtonotonlyowningamobilephonebutalsoanactiveconnection?SAQ7.IFCODEDYESINQ6,ASK,isyourmobilephoneabasicphone,MultimediaphoneorSmartphone.IFTHERESPONDENTOWNSMORETHANONEPHONE,ASKFORTHEONEHEUSESMOSTOFTEN.SA
Interviewershouldexplainwhateachtypeofphonemeans:
ByBasicphoneImeanaphonewithminimalfeatureslikecalling,sendingtextSMS,receivingcalls,mayhavearadioservicewithnooptionofcamera,mediaplayer,videosorinternetaccess.Multimediaphoneistheonethatcanhandlemusic,picturesandvideos.Smartphonesallowuserstostoreinformation,e‐mail,installprograms,clickpictures,storeimages&videos.Thesearethephoneswhereapplicationsfromthirdpartyareaccessible.eg.Facebook
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NameQ3. Age Q4. Gender Q5. BankA/c Q6. 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. RESPONDENTAGEBETWEEN18‐55YEARS(REFERQ3)3. BANKACCOUNTHOLDER(CODEDYESI.E.1INQ5)
Q8.
Q9. a
Q9.b
Youmentionedthatyouhaveasavingsbankaccount.Inwhichallbanksdoyouhaveasavingsaccount?[MA]
IFCODEDMORETHANONEOPTIONINQ8,ASKQ9a,ELSECODETHESAMEBANKASCODEDINQ8UNDERQ9a:Ofallthebanksyouhaveanaccountin,whichisyourmainsavingsbankaccount;bymainImeanthebankwithwhichyoudothemaximumnumberoftransactions?[SA]
IFCODEDMORETHANTWOOPTIONSINQ8,ASKQ9b:Andwhichoftheseistheotheraccountwithwhichyoudothenexthighestnumberoftransactions?[SA]
Q8.Bankaccountsowned
Q9.a.MainBankaccoun
t
Q9b.OtherBankaccount
PUBLICSECTORBANK
AllahabadBank 1 1 1
AndhraBank 2 2 2
BankofBaroda 3 3 3
BankofIndia 4 4 4
BankofMaharashtra 5 5 5
CanaraBank 6 6 6
CentralBankofIndia 7 7 7
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CorporationBank 8 8 8
DenaBank 9 9 9
IDBIBank 10 10 10
IndianBank 11 11 11
IndianOverseasBank 12 12 12
OrientalBankofCommerce 13 13 13
Punjab&SindBank 14 14 14
PunjabNationalBank 15 15 15
StateBankofIndia 16 16 16
StateBankofBikaner&Jaipur 17 17 17
StateBankofHyderabad 18 18 18
StateBankofMysore 19 19 19
StateBankofPatiala 20 20 20
StateBankofTravancore 21 21 21
SyndicateBank 22 22 22
UCOBank 23 23 23
UnionBankofIndia 24 24 24
UnitedBankofIndia 25 25 25
VijayaBanka 26 26 26
PRIVATESECTORBANK
AmericanExpressBank 27 27 27
AxisBank(FormerlyUTIBank) 28 28 28
BarclaysBankPLC 29 29 29
BNPParibas 30 30 30
CitibankN.A. 31 31 31
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CityUnionBank 32 32 32
DBSBank 33 33 33
DeutscheBankAG 34 34 34
DhanlaxmiBank 35 35 35
FederalBank 36 36 36
HDFC 37 37 37
HSBC 38 38 38
ICICIBank 39 39 39
IndusIndBank 40 40 40
INGVysyaBank 41 41 41
Jammu&KashmirBank 42 42 42
JPMorganChaseBank 43 43 43
KarnatakaBank 44 44 44
KarurVysyaBank 45 45 45
KotakMahindraBank 46 46 46
LakshmiVilasBank 47 47 47
RoyalBankofScotland 48 48 48
SouthIndianBank 49 49 49
StandardCharteredBank 50 50 50
TamilnadMercantileBank 51 51 51
UBS 52 52 52
Yesbank 53 53 53
OthersPleaseSpecify____________________________ 99 99 99
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Q10.NowIwillshowyouafewconcepts.Iwouldliketoknowifyouhaveheardofthesebefore.
Q10.a.MBANKINGSHOWCARD:m‐BankingorMobileBankingisatermusedtodefinebankingoverthemobilephonewhichwouldincludeusingtheinternetbrowseronthemobilephonetoaccessthebankwebsiteandthendoanyofthefinancialactivitieslikepayingutilitybills,transferringmoney,payinganinsurancepremium,etc.OR,usingamobileApplicationforeasyandsimpleaccesstotheBankMobilewebsitetoperformfinancialactivitieslikeviewingthebankbalance,transferringmoney,etc.
Awareofm‐Banking Code Route
Yes 1 GotoQ10b No 2 CLOSE
10bNowIwillreadoutafewfinancialactivitiesthatweusuallydoinourdaytodaylife.IwouldliketoknowwhichofthesehaveyouheardarepossiblethroughyourmobilephoneorthroughMBanking.READOUTEACHACTIVITYONEBYONEANDCODETHEONESTHERESPONDENTISAWAREOF[MA]
Q10b.Awareofmbanking
(R1) Deposityourtelephone/mobilebills,utilitybillslikeelectricitybill 01
(R2) Transfer/depositmoney 02
(R3) Check/Viewaccountbalance 03
(R4) Payinsurancepremium 04
(R5) MonitoringDeposits/Fixed/RecurringDeposits–Short&Longterm 05
(R6) Investinsharemarket 06
(R7) Requestchequebook 07
(R8) ViewLastfewtransactions/MiniStatements 08
(R9) ViewLoanstatements 09
(R10) ViewCreditCardStatements 10
(R11) InvestinMutualfunds 11
(R12) Stoppaymentoncheques 12
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(R13) Functionalitytostop,changeanddeletepayments/ECSLinkingaccountforAutoDebit13
(R14) PINprovision‐ChangeofPIN/Password 14
(R15) Noneoftheabove 15
TERMINATETHEINTERVIEWIFTHERESPONDENTISNOTAWAREOFANYTHEACTIVITIESINQ10b,I.E.IFCODED15,NONEOFTHEABOVEINQ10b
Now,Iwouldliketoexposeanotherconcepttoyou.Pleasetellmeifyouhaveheardofthisbefore?
Q11.a.INTERNETBANKINGSHOWCARD:Internetbankingallowscustomersofabanktoconductfinancialtransactionsonasecurewebsiteoperatedbythebank.Toaccessabank’sonlinebankingfacility,acustomermusthaveInternetaccessandshouldberegisteredwiththebankinginstitutionfortheservice,andsetupsomepasswordforcustomerverification.[SA]
AwareofInternetbanking Code Route
Yes 1 GotoQ11b No 2 GotoQ12a
Q11bNowIwillreadoutfewfinancialactivitiesthatweusuallydoinourdaytodaylife.IwouldliketoknowwhichofthesehaveyouheardarepossiblethroughtheInternet.READOUTEACHACTIVITYONEBYONEANDCODETHEONESTHERESPONDENTISAWAREOF[MA]
Activities Q11.b.AwareofInternetbanking
(R1) Deposityourtelephone/mobilebills,utilitybillslikeelectricitybill 01
(R2) Transfer/depositmoney 02
(R3) Check/Viewaccountbalance 03
(R4) Payinsurancepremium 04
(R5) MonitoringDeposits/Fixed/RecurringDeposits–Short&Longterm 05
(R6) Investinsharemarket 06
(R7) Requestchequebook 07
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(R8) ViewLastfewtransactions/MiniStatements 08
(R9) ViewLoanstatements 09
(R10) ViewCreditCardStatements 10
(R11) InvestinMutualfunds 11
(R12) Stoppaymentoncheques 12
(R13) Functionalitytostop,changeanddeletepayments/ECSLinkingaccountforAutoDebit 13
(R14) PINprovision‐ChangeofPIN/Password 14
(R15) Noneoftheabove 15
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Q12a.
Q12b.
TalkingaboutMobileBanking,canyoupleasetellmewheredidyouhearaboutM‐Banking?[MA]
IFAWAREOFINTERNETBANKINGI.E.CODEDYESINQ11aANDCODEDATLEASTONEACTIVITYINQ11b,THENASK:AndwheredidyouhearaboutInternetBanking?[MA]
Q12a‐Mbanking
Q12bInternetBanking
ReadaboutitinNewspapers/Magazines /OtherPrintads ........................................ 01 01 HeardaboutitonTelevision ......................................................................................................... 02 02 Directmailers.................................................................................................................................... 03 03 AttheBankbranch.............................................................................................................................. 04 04 ThroughtheMobileServiceprovider .................................................................................... 05 05 Friends/family/Colleaguesusingtheservice........................................................................ 06 06 Internet.................................................................................................................................................... 07 07 Callfromabankinformingaboutm‐Banking/InternetBanking.................................... 08 08 AnyOther(Pleasespecify)............................................................................................................... 09 09 Providedbythe
bankUsedbyyou
Q13a
Q13b
Q14a
Canyoupleaselookatthiscardandtellmewhichallfacilities/servicesareyouawareofthatareprovidedbyyourmainbank______(READOUTBANKCODEDUNDERQ9a)?
ASKQ13b,IFANOTHERBANKCODEDUNDERQ9b.Nowcanyoupleasetellmewhatallfacilities/servicesareyouawareofthatareprovidedby__________(MENTIONBANKCODEDUNDERQ.9b)?[MA]
Outofallthebankingservices/facilitiesthatyoumentionedareprovidedbyyourMainbank______(READOUTBANKCODEDUNDERQ9a),whichallservices/facilitieshaveyouusedinthelast3months?[MA]
Outofallthebankingservices/facilitiesthatyoumentionedareprovidedbyyournextmostusedbankaccount______(READOUTBANKCODEDUNDERQ9b),
Q13a.MainBank
____
Q13b.Otherbank___
Q14a.MainBank
____
Q14b.Otherbank
______
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Q14b
whichallservices/facilitieshaveyouusedinthelast3months?[MA]
Branch Banking (Physically visiting bank for any financialtransactions/activities)............................................................................. 01 01 01 01
ATMBanking(PhysicallyvisitinganATMtodoanyfinancialtransactions/activities)............................................................................... 02 02 02 02
Internet Banking (Using the Internet to do any financialtransactions/activity).................................................................................. 03 03 03 03
MobileBanking(Usingtheinternetbrowseronthemobileora mobile application to perform any financial activity/transaction) ................................................ 04 04 04 04
SMS Banking (Subscribing for SMS alerts from the bank.Receivingalerts incaseofcashwithdrawal,moneytransfer,credit/debitcardtransactionetc) 05 05 05 05
Phone Banking (Transacting over the phone with the bankhelpline/callcenter) 06 06 06 06
Doorstep / Home Service (Having some one visit you fromthe bank at your home to carry out your financialtransactions/activity) 07 07 07 07
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RECRUITMENTQUOTAS:
TOBEAUTOCODEDBYTHEPROGRAMMERDEPENDINGONTHERESPONSESINTHESCREENER:
SEGMENT CODE INSTRUCTIONS
Aware–NonUserofM‐banking,AccountwithaPublicSectorBank 1
1. CODED1INQ10aANDATLEASTONEACTIVITYINQ10b2. NOTCODED4I.E.MOBILEBANKINGINQ13aANDQ14aUNDER
MAINBANK3. CODEDANY1TO26UNDERQ9a
Aware–NonUserofM‐banking,AccountwithaPrivateSectorBank 2
1. CODED1INQ10aANDATLEASTONEACTIVITYINQ10b2. NOTCODED4I.E.MOBILEBANKINGINQ13aANDQ14aUNDER
MAINBANK3. CODEDANY27TO53UNDERQ9a
Aware–UserofM‐banking,AccountwithaPublicSectorBank 3
1. CODED1INQ10aANDATLEASTONEACTIVITYINQ10b2. CODED4I.E.MOBILEBANKINGINQ13aANDQ14aUNDERMAIN
BANK3. CODEDANY1TO26UNDERQ9a
Aware–UserofM‐banking,AccountwithaPrivateSectorBank 4
1. CODED1INQ10aANDATLEASTONEACTIVITYINQ10b2. CODED4I.E.MOBILEBANKINGINQ13aANDQ14aUNDERMAIN
BANK3. CODEDANY27TO53UNDERQ9a
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DetailedQuestionnaire
Section1–OverallBankingInformationNowIwillreadoutafewfinancialactivities.PleasethinkofyourMainbankaccountonlywhileansweringthefollowingquestions,i.e.savingbankaccountwith________________(ProgrammertoinsertthenameofthebankfromQ9aabove)
Q16a.Canyoutellmewhichofthesefinancialtransactionshaveyoudoneinthelast3months?[MA]
Q16b.ForeachoftheactivitycodedinQ16a,Interviewertoask:Pleasehavealookatthisshowcard.AsIreadeachactivitydonebyyou,pleaseletmeknowwhichmodes/serviceshaveyouusedforperformingthisactivity.INTERVIEWERTOREPEATTHISQUESTIONFOREACHACTIVITYCODEDINQ16a[MAforeachactivity]INTRUCTIONFORPROGRAMMER:ALLMODES/SERVICESCODEDUNDERQ14a,SHOULDBECODEDUNDERQ16bASWELL
SHOWCARD:ListofMODES/SERVICES
1)UsedBranchBankingi.e.visitedthebranchphysically.Herewearereferringtoeitheryouvisitingthebankphysicallyorsomeotherfamilymembervisitingthebankandgettingtheactivitydoneonyourbehalf
2)UsedATMBanking‐>i.e.visitedanearbyATM
3)UsedInternet/NetBanking
3)UsedMobileBanking
4)UsedPhoneBankingi.e.transactedviaBankCallcentre(Helpline)
5)Doorstep/HomeServiceSomeonefromthebankvisitedyourhome
6)OthersPlsspecify
Q16c.IFCODEDMORETHAN1MODE/SERVICEINQ16bFORANYOFTHEACTIVITIES,INTERVIEWERTOASK:Fortheactivity_______________(PROGRAMMERTOINSERTTHEACTIVITYFROMQ16a)whichisthemostoftenusedmode/service?[SAforeachactivity]
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61
Q16d.IFMORETHANONEMODE/SERVICECODEDINQ16bFORANYACTIVITY,ASKQ16dFORTHATACTIVITYELSESPECIFY10UNDERTHESAME.Assumingthatyou_____________(PROGRAMMERTOINSERTTHEACTIVITYFROMQ16a)10timesinthelastthreemonths,whatwastheproportionofusing_______(READMODES/SERVICESCODEDINQ16b)inthese10transactions?
(INSTRUCTIONTOTHEPROGRAMMER:PROPORTIONSHOULDADDUPTO10ANDSHOWTHESUM)
Q16
a Q16bQ16c Q16d
donein
last3
month
sUsed
branch
banking
UsedAT
Mbanking
Intern
et/
Net
banking
Used
Mobile
Banking
Used
Phone
Banking
Doors
tep/
Home
Ser
vice
Others
Pls
specify
oftenused
mode/
facility
branch
banking
UsedAT
Mbanking
Intern
et/
Net
banking
Used
Mobile
Banking
Phone
Banking
Doors
tep/
Home
Ser
vice
Others
Pls
specify
(R1) Deposityourtelephone/mobilebills,utilitybillslikeelectricitybill 01 01 02 03 04 05 06 99 01 01 02 03 04 05 06 99
(R2) Transfer/depositmoney 02 01 02 03 04 05 06 99 02 01 02 03 04 05 06 99
(R3) Check/Viewaccountbalance 03 01 02 03 04 05 06 99 03 01 02 03 04 05 06 99
(R4) Payinsurancepremium 04 01 02 03 04 05 06 99 04 01 02 03 04 05 06 99
(R5) MonitoringDeposits/Fixed/RecurringDeposits–Short&Longterm 05 01 02 03 04 05 06 99 05 01 02 03 04 05 06 99
(R6) Investinsharemarket 06 01 02 03 04 05 06 99 06 01 02 03 04 05 06 99
(R7) Requestchequebook 07 01 02 03 04 05 06 99 07 01 02 03 04 05 06 99
(R8) ViewLastfewtransactions/MiniStatements 08 01 02 03 04 05 06 99 08 01 02 03 04 05 06 99
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(R9) ViewLoanstatements 09 01 02 03 04 05 06 99 09 01 02 03 04 05 06 99
(R10) ViewCreditCardStatements 10 01 02 03 04 05 06 99 10 01 02 03 04 05 06 99
(R11) InvestinMutualfunds 11 01 02 03 04 05 06 99 11 01 02 03 04 05 06 99
(R12) Stoppaymentoncheques 12 01 02 03 04 05 06 99 12 01 02 03 04 05 06 99
(R13)
Functionalitytostop,changeanddeletepayments/ECSLinkingaccountforAutoDebit
13 01 02 03 04 05 06 99 13 01 02 03 04 05 06 99
(R14)
PINprovision‐ChangeofPIN/Password 14 01 02 03 04 05 06 99 14 01 02 03 04 05 06 99
(R15) PassbookUpdation 15 01 02 03 04 05 06 99 15 01 02 03 04 05 06 99
(R16)
Anyother,pleasespecify____________________ 16 01 02 03 04 05 06 99 16 01 02 03 04 05 06 99
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Q17.Atpresent,howoftendoyouvisitthebankphysically?[SA]
Code Route
Daily........................................................................................................................................................... 01 2‐3timesaweek.................................................................................................................................. 02 Onceaweek............................................................................................................................................ 03 Onceafortnight.................................................................................................................................... 04 Onceamonth......................................................................................................................................... 05 Lessthanonceamonth 06
Nevervisitedthebankphysicallyforanyfinancialtransactioninthelastthreemonths 07
Q18.DoanyofyourfamilymembersuseMobileBanking?[MA]
Q19.DoanyofyourfamilymembersuseInternetbankingtransactions?[MA]
M‐banking
Internet
banking
Route
Self(AUTOCODEBASISRESPONSEINQ14a/Q14b)................................ 01 01 Spouse................................................................................................................................. 02 02 Parents................................................................................................................................ 03 03 Siblings 04 04 Grandparents 05 05 Children 06 06 Others 07 07 None 08 08
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Q20
Q21
NowIwillreadoutfewstatementswhichpeoplelikeyouhavementionedasproblemstheyfacewhentheyneedtoreachouttotheirbankphysicallyforanytransaction.AsIreadeachstatement,pleasestateyourlevelofagreementonascaleof1‐5where1meansyoustronglydisagreewhile5meansstronglyagree[SAperstatement]
Amongstalltheproblemsfacedbyyou,rankthetop3problemswhererank1meansthetopmostproblem
Q20 Q21
Problem
Strongly
dis
agree
Disagr
eetosom
eext
ent
Neither
agreenor
disagr
eeAgree
to
some
extent
Strongly
Agree
DK
/CS(If
volun
teer
ed)
Rank
(R1) Iendupwastingalotoftimetravellingtothebank 1 2 3 4 5 9
(R2) Bankbranchesarenotatconvenientlocationsforme 1 2 3 4 5 9
(R3)IamusuallyunabletolocateabankbrancheasilywhenItraveltoadifferentcity
1 2 3 4 5 9
(R4) Ihavetowaitlonginbankqueuesforsomeonetoattendtome 1 2 3 4 5 9
(R5) Serviceprovidedbythebankisnotuptothemark 1 2 3 4 5 9
(R6) VeryoftenInoticethatmybankingtransactionsarenotrecordederror‐free 1 2 3 4 5 9
(R7)Ihavetomovefromonecountertoanotheroneinthebanktogetmyworkdone
1 2 3 4 5 9
(R8) Bankemployees/Frontdeskexecutivesatthebankarenotwillingtohelpcustomers 1 2 3 4 5 9
(R9)Manyatimes,bankemployeesdonothaveadequateknowledgetosatisfymewithmyqueriesandcomplaints
1 2 3 4 5 9
(R10) Mybankdoesn’tprovidepersonal 1 2 3 4 5 9
-
65
attentionorcustomisedservices
(R11) Icannotaccessthebankatallhoursroundtheclockonalldays 1 2 3 4 5 9
(R12) Idonotfindthebankinfrastructuremodernandvisuallyappealing 1 2 3 4 5 9
(R13) Mybankdoesnotofferbetterserviceandfacilitiescomparedtootherbanks 1 2 3 4 5 9
(R14) Mybankdoesnothaveapastrecordofreliabilityandtrustworthiness 1 2 3 4 5 9
(R15) Chequeclearanceincaseofdepositsdonotreflectonthesameday 1 2 3 4 5 9
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66
Section2–UsageofInternetbanking(AdministeredtoalltherespondentswhoareInternetbankingusers,i.e.coded03inQ13b/14bfoanyofhisbankaccountYoumentionedthatyouhavecarriedoutfewfinancialtransactionsusingInternet.NowIwillaskyoufewquestionsrelatedtoyourusageofInternetbanking.
Q1) WhendidyoustartusingInternetBanking?[SA] Code
Inthelast6months......................................................................................................................................... 01 6‐12monthsback........................................................................................................................................... 02 Morethanayearbutlessthan2yearsback........................................................................................ 03 Morethan2yearsback......................................................................................................................