Mobile banking has been knocking on our doors since quite some time now. In India, one of the first entrants were BOKU, who along with Airtel, were one of the first to introduce mobile banking solutions to their customers which allowed them to make purchases on their favorite gaming, entertainment, and social networking websites. Then came a radical new mobile payment solution through Accells and mChek that showcased a revolutionary patent pending technology which can make contactless payments possible with the help of mobile phones.
Then Citibank got into the game with a trial mobile banking project with Vodafone and Nokia. Syndicate Bank and Paymate entered and mobile banking world, followed by Nokia, who tied up with Obopay, to introduce Nokia Money to their customers who could use to pay merchants for goods and services, pay their utility bills, or recharge their prepaid SIM cards. However, Nokia and Obopay have now partnered with YES Bank to bring mobile banking to customers, importantly with the permission of RBI. But with so much mobile banking options available, are there any takers?
According to a recent research by TowerGroup, mobile banking usage in India is estimated to increase from 10 million users in 2009 to 53 million in 2013. This might explain the increase in players who provide mobile banking. However, how many of us really believe that mobile banking is really he next big thing? E-banking definitely lived up to expectations but at the same time was prone to security lapses. Will mobile banking be safe?
Secuirty
Though mobile banking offers to be more secure than e-banking, there have been cases of fraud even through mobile banking, where a customer found himself duped of over 2 lakh rupees. This definitely raises concerns. If someone were to obtain the SIM card of a person who has active mobile banking, then he might be able to use it. But at the same time, compared to e-banking, the mobile version is definitely a safer bet.
Future
Though social networking is the craze in India, people would be extremely reluctant to do banking via social networking websites. E-banking will have problems extending to the rural sectors, and this will extend an opportunity for mobile banking to stretch its wings. With the number of mobile connections increasing exponentially in India, including rural areas where the number had reached 100 million same time last year, it definitely looks like mobile banking has more than enough room to expand. Somehow, I am still a bit skeptical over its growth. How about you?
