Mobile Banking in India
1. Mobile Commerce
Mobile Commerce is a transaction where the transfer of ownership or rights to use goods and services are initiated and / or completed by the customer using a mobile phone. Mobile commerce was first started in 1997 in Finland when Coca Cola used SMS messages to send the payment details to their vending machines.
2. Mobile Banking
Mobile banking services are provided by the banks by they allow their customers to access their account information and carry out banking transactions. Mobile banking is an integral part of the Mobile commerce. Checking account information, cheque status, setting alerts like payment reminders, locating ATMs and bank branches, placing orders for cheque books etc are some of the popular services offered by mobile banking. Mobile banking has the potential to bring the banking services to the lower segment of the Indian population who have no access to internet connections and banking services. This will be an innovative way to achieve the Government goal of financial inclusion and reaching the banking services to rural India. Mobile Banking is the hottest area of development in the banking sector and may even replace the credit/debit card system in future. However as the Reserve Bank of India has certain restriction on allowing non-bank organizations in carrying out money transfer, development of mobile banking applications is being sponsored primarily by banks in India.
3. ATM and Internet banking
ATM and internet banking have been around in India for a long time now and they have achieved a reasonable level of success in terms of penetration. Future growth of ATM and internet banking is restricted due to higher cost involved in ATM roll out and inadequate growth in the use of PC and internet in the country as compared to mobile growth. The Mobile penetration has already reached 58% from 4% during the last 10 years in the country and there are 630 million mobile users. The monthly addition of mobile users is 15 – 20 million which is the highest in the world. Mobile banking reduces the cost of banking operations when compared to other options like ATM and branch roll out.
4. Categories of mobile banking services
Mobile banking services are classified on the basis of how information flows to the customer. A mobile banking service may be a pull or push transaction or it may be a transaction based service or inquiry based service. A pull transaction is one in which a mobile phone user requests a service or information from the bank. For example, inquiring about an account balance is a pull transaction. A push transaction, on the other hand, is one in which the bank sends information based on a set of rules. A minimum balance alert is a good example of a push transaction. Transaction-based services are those services where a fund transfer or a payment is made from one account to another. An inquiry based service could be push or pull transaction like account balance enquiry, minimum balance alert etc
5. Modes of mobile banking
a. Interactive Voice Response (IVR)
In the case of IVR service, the customers dial the IVR number from their mobile phone; they are greeted with a menu of options; the customer selects an option and a text-to-speech program reads out the desired information. It also only allows for inquiry-based transactions.
b. Short Message Service (SMS)
SMS banking has several advantages like it is available in every mobile phone and user friendly. It is cost effective and accommodates two way communications. The disadvantages of SMS are related to the inherent limitations of 160 characters in length.
c. Wireless Application Protocol (WAP)
WAP technology facilitates accessing Internet pages from a mobile phone. WAP banking has its disadvantages like smaller screen, requirement of smart phone, lack of anti-virus and firewall protection.
d. Standalone Mobile Application
Some banks provide a downloadable client through which subscribers can access banking services. These applications facilitate complex transactions to be carried out. However these applications are expensive to develop and require smarter phones.
6. Challenges of mobile banking
a. Mobile banking services are limited to network coverage provided by the mobile service provider.
b. Mobile banking is prone to frauds and the mobile service providers and the banks need to have a strong fraud monitoring systems in place.
c. Government and RBI guidelines need to be complied by both the mobile service provider and the banks.
d. Customer identity verification is a major issue for the mobile operator. More than 80% of the customer base in India is prepaid where the address and ID proof are difficult to establish.
e. Money laundering is another major concern for the banking system
7. Semi closed Wallet
RBI has started issuing licence to mobile operators to operate semi closed wallet. The operators are allowed to accept up to Rs 5000 from their customers which can be used at the selected outlets for making payment.
These semi closed wallets are the prepaid payment instruments that are redeemble at a group of selected outlets. The mobile user is not allowed to withdraw cash and the money cannot be converted to talktime. The telecom operator is not allowed to create money or credit. The money thus collected from the customers need to deposited in an escrow account with a bank.
8. Mobile Banking in Africa
Even though mobile banking is now available in all western countries, Africa is considered as one of the leaders in mobile banking with advanced solutions and successful references. In Kenya, M-PESA service of Safaricom allows the customers to send money to their family and friends throughout the country using a mobile phone. The recently introduced M-KESHO allows the customers to deposit money into bank account and earn interest on deposit. Interestingly, Africa’s underdevelopment has also played a major role in the success of their mobile banking.
9. Conclusion
The RBI guidelines have restricted the mobile banking transactions to Rs 2500 per transaction subject to an overall cap of Rs 5000 per day per customer. RBI has reservations about any non banking organizations creating credit and there are fears over money laundering. The expansion of banking services particularly to rural India through the traditional banking model of branches and ATM has got restriction due to high cost involved. To achieve the goal of financial inclusion, Government and RBI need to change the present approach. The only option left to the Government is to allow the telecom operators to join the banking industry to carry the banking services to millions of Indian people who reside in Rural India. The telecom industry over the last decade developed the expertise in handling large volume of small transactions and they are highly successful in spreading their distribution network and reaching the customers over the entire country. There should not be any more delay in trying a new model which will usher the country to the next level of banking revolution. The scope for mobile banking is tremendous considering the cash transaction of Rs 15 trillion carried out in the country.
10. Some statistics on mobile banking in India (source HT dated 19-Aug-2010)
- 19.7 million people visited business / finance web sites in June 2010
- Year-on-year growth in online traffic to finance web sites is 45%
- Banking / financial web sites share 50% among the total internet users in June 2010
- 72% of the visitors to the business / finance sites were men
- Web sites of ICICI bank, HDFC group and SBI attracted most traffic
- A siginficant portion of people accessing Indian baning sites are from abroad. ICICI topped with 12.3% visitors outside India.
- 1% (8 million) of the country’s 650 million cell phone users avail mobile commerce services. This is expected to go up to 50 million by 2012.
About the Author
The author can be reached at vsmoni@hotmail.com. Visit indiatelecomonline.com for more articles
Tea vending Machine demo for India team
|
|
Haier HC125FVS – 125-Can Beverage Center, Black $142.99 125 Can Bev Center – Blk/Slvr… |
|
|
Koolatron CC10G Coca-Cola Can-Shaped 8-Can-Capacity Fridge, Red $99.00 Koolatron Coca – Cola Can Cooler / Warmer keeps food and beverages at the right temperature anywhere. Looks like a huge Coca-Cola can, but it’s a cooler and warmer! This Coca-Cola Thermoelectric Cooler / Warmer is ideal for the car, boat or home. It operates on 12V DC power or 110V AC with an AC adaptor, so you can use it almost anywhere. It holds up to ten 12-oz. cans of soda or beer. Cools food … |
|
|
New Commercial 30 Hot Dog Roller Grill Cooker Machine 2200 Watts Vending Business $124.95 BestChoiceProducts Presents to you, this Brand New COMMERCIAL 11 ROLLERS 30 HOT DOGS GRILL perfects for all Sport events, Commercial uses such as Convenient Stores, Liquid Stores, Long Meetings, Super Markets, Grocery Stores. BestChoiceProducts purchases all of our Products directly from the manufacture. Buy from us and save big!! SPACIFICATIONS: CE Approved Brand New in Retail Packaging…. |
|
|
The 2009-2014 Outlook for Parts for Vending Machines Excluding Coin-Operated Mechanisms in India $495.00 This econometric study covers the latent demand outlook for parts for vending machines excluding coin-operated mechanisms across the states, union territories and cities of India. Latent demand (in millions of U.S. dollars), or potential industry earnings (P.I.E.) estimates are given across over 2,800 cities in India. For each city in question, the percent share the city is of it’s state or union … |
|
|
The 2009-2014 Outlook for Vending Machines Excluding Money Changing Machines and Coin-Operated Mechanisms in India $495.00 This econometric study covers the latent demand outlook for vending machines excluding money changing machines and coin-operated mechanisms across the states, union territories and cities of India. Latent demand (in millions of U.S. dollars), or potential industry earnings (P.I.E.) estimates are given across over 5,100 cities in India. For each city in question, the percent share the city is of it… |
|
|
The 2009-2014 Outlook for Parts for Vending, Money Changing, and Dispensing Machines in India $495.00 This econometric study covers the latent demand outlook for parts for vending, money changing, and dispensing machines across the states, union territories and cities of India. Latent demand (in millions of U.S. dollars), or potential industry earnings (P.I.E.) estimates are given across over 3,400 cities in India. For each city in question, the percent share the city is of it’s state or union ter… |
|
|
Vending Machines $23.75 Vending Machines |
|
|
Vending Machines at Main Station $24.99 Michael Gebicki Vending Machines at Main Station – Photographic Print |
|
|
Vending Machines: Coined Consumerism $22.98 In airports, iPods, headphones and other technological gadgets are sold in vending machines; artists from London to Buenos Aires have converted cigarette vending machines to sell art; along New York City’s St. Marks Place numerous kiosks provide "fresh food" for late-night snackers via, you guessed it, vending machines. Marketers have caught on to the trend, too. In Times Square, the clothing company Uniqlo launched a new clothing line by installing human models in vending machines, so passersby could see how the clothing looked out of its packaging. There is no doubt that the Japanese lead the way when it comes to vending machines and the items they dispense. In cities and suburbs alike, vending machines in Japan are ubiquitous, providing everything from the expected (hot tea, food, candy) to the surprising (umbrellas, toilet paper, liquor, porn). Taking a cue from the Japanese, the growing trend to sell anything and everything via vending machines has caught on across the globe. With photographs from all over the world and essays that track the development of vending machines over time, "Vending Machines: Coined Consumerism" serves as an intriguing, and mystifying, visual reference-point for every consumer on the go. |
|
|
Vending Machines: An American Social History $11.48 This work traces the history of the vending machine from its inception to its current place in popular American culture, with the eight chapters covering significant eras. Successes and failures of the machines, economic factors influencing the popularity (or lack thereof) of vending machines, and the struggle of the industry to become a dominant method of retailing are discussed. This text is richly illustrated and includes appendices on vending dollar value, vending sales by location type, and vending statistics. |
|
|
Cyclist, Vending Machines, Shinjuku, Tokyo, Honshu, Japan $19.99 Christian Kober Cyclist, Vending Machines, Shinjuku, Tokyo, Honshu, Japan – Photographic Print |
|
|
The Vending Jackpot $19.77 Tomorrow youll be back at work sitting at your desk… Think how different youd feel if you had several thousand dollars sitting in cash machines all over town… Wouldnt you love to pick up that money? As a vending operator, youll enjoy the personal freedom of making money even when youre not there. Whether youre having dinner, playing with your kids, enjoying a ball game, or staying home watching TV, you machines are out there making a steady, reliable income–automatically! The Vending Jackpot is packed with the insider strategies you need to succeed. |
|
|
S P Whistle Stop LIO22548 Kiosk 2 with 3 Vending Machines $50.75 llunimated vending machines included. Satisfaction ensured. Always providing you with the best selection and the best value. |
|
|
Cafeteria With Vending Machines For Sandwiches, Juices, Ice-Cream, Soups and Cookies $24.99 H. Armstrong Roberts Cafeteria With Vending Machines For Sandwiches, Juices, Ice-Cream, Soups and Cookies – Photographic Print |
|
|
The 2006-2011 World Outlook for Vending Machines Excluding Parts $795 The latent demand for vending machines excluding parts is not actual or historic sales. Nor is latent demand future sales. In fact, latent demand can be lower either lower or higher than actual sales if a market is inefficient (i.e., not representative of relatively competitive levels). Inefficiencies arise from a number of factors, including the lack of international openness, cultural barriers to consumption, regulations, and cartel-like behavior on the part of firms. In general, however, latent demand is typically larger than actual sales in a country market. |
|
|
Vending Machines By Salyers, Christopher D. $33.14 Author: Salyers, Christopher D. Subtitle: Coined Consumerism Publication Date: 2010/04/13 Number of Pages: 129 Binding Type: Hardcover Language: English Depth: 0.50 Width: 7.25 Height: 9.25 |
|
|
Vending Success Secrets $21.95 Learn the truth about who really is getting rich with vending and game machines! Learn the pitfalls, risks, and rip-offs! Get great locations, route management, machine selection, financing, and learn how to get started. Receive ready-to-use forms and rou |
|
|
The 2006-2011 World Outlook for Parts for Vending, Money Changing, and Dispensing Machines $795 The latent demand for parts for vending, money changing, and dispensing machines is not actual or historic sales. Nor is latent demand future sales. In fact, latent demand can be lower either lower or higher than actual sales if a market is inefficient (i.e., not representative of relatively competitive levels). Inefficiencies arise from a number of factors, including the lack of international openness, cultural barriers to consumption, regulations, and cartel-like behavior on the part of firms. In general, however, latent demand is typically larger than actual sales in a country market. |
|
|
Start Your Own Vending Business $17.95 Looking for an opportunity to make big profits while setting your own schedule? A vending business could be your ticket to the top. Americans feed vending machines more than $22 billion a year for sodas, candy, coffee and other snacks. That’s a nice chunk of change you could be pocketing.Starting is easy. You can begin part time out of your home. As your customer base increases, you can hire extra help, invest in more machines and expand your service area. There’s no limit to how large your business can grow.Get the inside scoop on how to start up in this lucrative, flexible business. Expert advice covers:• How to select the hottest new products for vending machines• The best ways to finance your new business• The secrets to scouting out territories and establishing routes• Where to find supplies at a discount• Using the internet to expand your business• Setting up and modernizing a home office• And more!Checklists, work sheets and expert tips guide you through every phase of the startup process. With low startup costs and no experience required, a vending business is a perfect choice for your new venture. |
|
|
Any Occasion – Olive Sandwiches – Vending Machines $2.09 Are you a lady with an attitude and a cheeky sense of humor? Then you’ll love this greeting card design from Olive Sandwiches. Fun and retro, with a little bit of edge, these high quality cards are the perfect way to send a humorous message. |
|
|
Pocket Guide to Coin-op Vending Machines $14.96 This book is in New – Excellent condition |
|
|
Manitowoc Ice Machines SPA310 Vending Ice Dispenser, Push Button, Floor Model, 180-lb. Capacity $2800 Vending Ice Dispenser, push button, floor model, approximately 180-lb. capacity, designed for dice or half dice ice types, bucket filling, stainless steel exterior w/vinyl trim, accepts 22″ dice or half dice machines (Ice Machine Not Included). 115v/60/1ph – std. 208-230v/60/1ph – available by request SPA-310 |
|
|
Manitowoc Ice Machines SPA160 Vending Ice Dispenser, Push Button, Floor Model, 118-lb. Capacity $2471.5 Vending Ice Dispenser, push button, floor model, approximately 118-lb. capacity, designed for dice or half dice ice types, bucket filling, stainless steel exterior w/vinyl trim, accepts 22″ dice or half dice machines (Ice Machine Not Included). 115v/60/1ph – std. 208-230v/60/1ph – available by request SPA-160 |
|
|
Manitowoc Ice Machines SCA163 Vending Ice Dispenser, Coin Operated, Floor Model, 120-lb. Capacity $3098 Vending Ice Dispenser, push button, floor model, approximately 120-lb. capacity, coin operated, designed for dice or half dice ice types, bucket filling, stainless steel exterior w/vinyl trim, accepts 22″ dice or half dice machines (Ice Machine Not Included). 115v/60/1ph – std. 208-230v/60/1ph – available by request |
|
|
Manitowoc Ice Machines SCA330 Vending Ice Dispenser, Coin Operated, Floor Model, 180-lb. Capacity $3399 Vending Ice Dispenser, coin operated, floor model, approximately 180-lb. capacity, designed for dice or half dice ice types, bucket filling, stainless steel, exterior w/vinyl trim, accepts 22″ or 30″ dice or half dice machines (Ice Machine Not Included). 115v/60/1ph – std. 115v/60/1ph – std. 208-230v/60/1ph – available by request |
|
|
Manitowoc Ice Machines SRA340 Vending Ice Machine, Room Card, Floor Model, 180-lb. Capacity $2877.5 Vending Ice Dispenser, push button, floor model, approximately 180-lb. capacity, room card, designed for dice or half dice ice types, bucket filling, stainless steel exterior w/vinyl trim, accepts 22″ dice or half dice machines (Ice Machine Not Included). 115v/60/1ph – std. 208-230v/60/1ph – available by request SRA-340 |
|
|
Manitowoc Ice Machines SRA164 Vending Ice Machine, Room Card, Floor Model, 120-lb. Capacity $2545.5 Vending Ice Dispenser, push button, floor model, approximately 120-lb. capacity, room card, designed for dice or half dice ice types, bucket filling, stainless steel exterior w/vinyl trim, accepts 22″ dice or half dice machines (Ice Machine Not Included). 115v/60/1ph – std. 208-230v/60/1ph – available by request SRA-164 |
<!–
hopfeed_template=””;
hopfeed_align=”LEFT”;
hopfeed_type=”IFRAME”;
hopfeed_affiliate_tid=””;
hopfeed_affiliate=”dmark1153″;
hopfeed_fill_slots=”true”;
hopfeed_height=280;
hopfeed_width=336;
hopfeed_cellpadding=5;
hopfeed_rows=20;
hopfeed_cols=1;
hopfeed_font=”Verdana, Arial, Helvetica, Sans Serif”;
hopfeed_font_size=”9pt”;
hopfeed_font_color=”#000000″;
hopfeed_border_color=”#FFFFFF”;
hopfeed_link_font_color=”#3300FF”;
hopfeed_link_font_hover_color=”#3300FF”;
hopfeed_background_color=”#FFFFFF”;
hopfeed_keywords=”vending OR machines OR india”;
hopfeed_path=”http://dmark1153.hopfeed.com”;
hopfeed_link_target=”_blank”;
//–>