Banks no longer function in a conventional way, demanding consumers to execute key financial tasks at their local branch. The digital age of banking is consumer-centric, enabling major banking operations including money transfer, balance check, and deposits through convenient mobile banking platforms.
The banking sector is driven towards innovation and disruption, to cater to the expectations of Millennial consumers. In this context, these platforms form an essential aspect of the overall consumer-centric banking strategy.
Global Mobile Banking Providers
According to a Salesforce report on the expectations from Millennials from banks for the year 2016, as many as 82% Millennials reported mobile banking platforms as their preferred means to accomplish basic financial management tasks like depositing checks.
The most popular platforms have high deposit limits, are easy to use and integrate with online accounts. On a global scale, Chase, East West Bank, and Eastman Credit Union are among the highest scoring mobile banking providers on a popularity scale.
Mobile Banking Platforms in the Indian Market
In the Indian digital financial landscape, most banks cater to the needs of the mobile consumer through their digital presence. Indian banks serve almost 50% of Indian customers by extending their mobile banking solutions through the latest integrated mobile banking platforms.
Mobile banking transactions through Indian banking and financial institutions have been on the rise in the recent years. The heavy marketing for mobile banking platforms has led to a surge in the number of consumers opting for mobile banking solutions as their primary interface for all financial transactions.
As per data from Reserve Bank records, the value of mobile banking transactions was calculated at INR 49,029 crore during December. This value indicated a 46% rise in the value of transactions from the previous month. During a three-month period, the transaction value seemed to have surged by as much as 82%.
Mobile banking adoption by Indian corporate consumers and the significant rise in smartphone use by Indian consumers are two major factors that clearly explain the rise in mobile transaction value during the past few months.
A few major mobile banking solutions offered to the Indian mobile consumer are listed below:
Axis Mobile by Axis Bank
Axis Mobile, from Axis Bank is a feature-rich and user-friendly app. The mobile banking platform offered by Axis Mobile lets users view their account summary anytime, pull out reports with mini transaction statements, review details of loan accounts and access credit and debit card information instantaneously.
The Axis Mobile application also allows converting credit card transactions into Equated Monthly Installments for the convenience of the consumer. The mobile banking platform offered through Axis Bank is available for users of both Android and Apple mobile platforms.
HDFC Mobile Banking Solution
The HDFC mobile banking solution makes more than 75 different transaction types available through its mobile application. HDFC offers one of the most convenient mobile banking solutions out there, to enable consumers to effortlessly create accounts, view account summaries, review account statements, perform fund transfers and request cheque books through a single interface. The mobile interface also provides functions for easy mobile recharge and credit card bill payments.
Citibank IN Mobile Platform
Citibank IN for Android and iPhone helps consumers perform all the basic banking operations, in addition to assisting them in locating bank branches and ATMs. Citibank IN is one of the most preferred mobile banking solutions because of its effective feature set and design, enabling users to pay bills, request bank statements or transfer funds simply and efficiently.
ICICI Bankâ€™s iMobile Banking Solution
iMobile scores better than the other mobile banking platforms because of its high security. ICICIâ€™s mobile banking solution allows all basic banking tasks, has a branch and ATM locator function, and comprehensive functionality related to management of insurance, loans, fixed deposits or recurring deposits.
Freedom Mobile Platform by State Bank
State Bank Freedom allows users to accomplish basic functions including fund transfer, bill payment and balance enquiry 24 hours a day. In addition, State Bank Freedom app allows instant cheque book requests, ticket booking functions, and mobile recharges instantaneously.
State Bank Freedom is one of the most popular mobile banking platforms in India, because of its highly usable interface, rich feature set, and low battery consumption.
In the coming years, mobile banking platforms in the Indian market will become indispensable, supporting shopping through e-commerce websites and take over as convenient bill payment vehicles. Money transfer will also take center stage and become one of the most important design aspects for mobile banking providers.
Mobile banking has been on the rise during the past decade or so in the Indian subcontinent. Mobile banking providers are witnessing a marked increase in the average transaction size, and therefore average transaction value. ACI Worldwide data captured during 2012 indicated that India had the largest number of consumers opting for mobile banking solutions through smartphones.
Mobile banking transactions increased by as much as 135% during the one-year period from December 2014 to December 2015. The transaction value surged from 16.8 million in December 2014 to 39.5 million in December 2015.
RBI records that the top five Indian banks; ICICI, HDFC, Axis bank, Kotak and State Bank of India (SBI) have managed to raise the basic threshold for mobile transactions considerably. The marked increase in mobile transaction value is directly related to the success of their mobile banking platforms.
Initiatives by the Indian government are in favor of smart phone adoption for the proliferation of mobile banking solutions. The National Payments Corporation of India (NPCI), which oversees all retail payments within the country, aims to support mobile banking providers through several strategies.
Initiatives in favor of mobile banking solutions include support for cashless transactions, interoperability among banking institutions, and easy identification of customers. These and several other novel strategies undertaken by the UPI will create enough disruptive force to enable digital payments among consumers, and between businesses with a high level of security, convenience, and integrity.