M-Banking has the potential to reach India's unbanked population of 720 million in a more cost-effective manner than branch banking. Government schemes like Direct Cash Transfer are pushing m-banking adoption, and banks are required to increase financial inclusion. Mobile phone penetration is deep and growing in India, providing the infrastructure to support services like IMPS for interbank mobile payments. Top banks are seeing large yearly growth in m-banking transactions, ranging from 97-2234%. While m-banking provides money transfer and payment services, challenges remain around usability, user trust due to security concerns, and transaction value limits.

1. M-Banking
Alpha Payment Services India Pvt. Ltd.

2. M-Banking Potential: At a glance
Banking Inclusion
• Unbanked population of 720 million in India
• More than 90% cost effective than branch banking
Government Policy Schemes
• Schemes like DCT(Direct Cash Transfer) to give a push
to m-banking
• Mandates to banks for financial inclusion
Eco-system
• Deep & growing penetration of mobile phones
• Back-end inter bank mobile payment platform like
IMPS

3. M-Banking : Players , Facts & Figures
Top Banks Transactional Value YoY Growth Rate
State Bank of India Rs. 148 cr. 97.1 %
ICICI Bank Rs. 149 cr. 204.6 %
Axis Bank Rs. 50 cr. 2234 %
Citibank Rs. 40 cr. 377 %
M-Banking Transactions
500 4
410.5 Value
400 3 Volume
3.08
In Rs. crores
In millions
300 2.05
2
200
1.08
100 146.5 1
76.2
0 0
April '11 September '11 September '12

4. Mobile Payment Services
Money Transfers:
Remittance services provided by Telecom Cos along with banks
Migrant workers in urban centres are the target segment
Pros:
Cheaper and much faster than remittance through Post Offices
Wide pan India reach of operators with over million outlets
Money Payments:
Payment services provided for utility bills, offline/online merchants
Players like Airtel have tie-ups with 8000 merchants & 250 websites
Pros:
Eliminates the need for carrying credit/debit cards, cash

5. Pain-points
• Complexity to use: Difficult for users with
basic mobiles
• User Trust: Need to generate greater
awareness of security features to improve
user trust
• Transaction Limits: Cap on value on
transactions discourages high value users