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Mobile banking concentrated in five banks

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CIOL Writers
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Mobile banking might be making more and more ground every passing day but as of now Mobile banking penetration in India is concentrated among customers of five banks. According to Reserve Bank of India’s data, the top five banks account for more than 92% of the entire value of mobile banking transactions in the country.

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State Bank of India has the biggest market share at (36%), followed by ICICI Bank (21.5%), HDFC Bank (17.8%), Axis Bank (12.8%) and Kotak Bank (4.7%). A proactive approach in developing mobile apps and making mobile banking feature-rich has reaped in rich results for these banks.

SBI registered over 1.5 crore mobile transactions in December only and has been at the top since April 2015, RBI data revealed. “Till a few months back, SBI customers were doing mostly low to medium value fund transfer and m-Commerce transactions on mobile. However, with the launch of the dedicated user friendly mobile apps for non-retail customers, the average transaction size has shot up more than 5 times,” chairman Arundhati Bhattacharya said in a statement.

State Bank of India launched two mobile applications last year; StateBankAnywhere – SARAL (for small and medium sized firms) and StateBankAnywhere – Corporate (for corporate clients). StateBankAnywhere – SARAL operates with a single authorized user base while the corporate offering can be used by multiple users and has features like direct payment to the Employee Provident Fund Organization or to registered suppliers.

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For Deepak Sharma, head of digital banking at Kotak Mahindra Bank, their bank’s customers are leapfrogging to mobile banking directly from branch banking without using the browser. "Around 35% of our online banking customers are coming in from their mobile phones without having used net banking," he said. As against its market share of 1.4% of deposits, the bank has over 4.5% share of mobile banking.

Commenting on the transactions, Sharma said "In terms of number of logins, mobile banking had overtaken net banking more than six months ago. Now mobile banking is ahead of net banking in terms of transactions as well." He said that the fastest growing segment is online recharge, which is driving transactions.

SBI leads the pack even in the list of volume of transactions done with a 38.5% market share, followed by ICICI Bank at 17%. However, in terms of volume, Axis bank at 15.3% takes the third spot followed by HDFC Bank (9.9%) and Kotak Bank (4.3%).

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