If you go to a bank branch to make a deposit, the bank will incur a cost of Rs 50-Rs 60. If you withdraw cash from an automated teller machine (ATM), the cost for the bank is approximately one-fifth of that incurred through a branch. Needless to say, if you choose to transact from your desktop or mobile handset, the cost to the bank comes down substantially.
Baring SBI, all the 25 other government banks (including associate banks of SBI) clocked less than Rs 180 crore in June, less than one-fifth of ICICI Bank.
The private sector banks are now talking about minimum 100 per cent growth in the value of mobile transactions over the next one year. This kind of growth is possible since mobile banking has become a core part of their strategy which is evident from their marketing and communication strategies. In addition, these banks have tailor-made apps to suit different technology platforms like android, windows, iOS, etc for the benefit of the customer. These banks are attempting to make the experience of transacting in the digital world device agnostic and as a result, all the features that are available on the web, are mostly available on the mobile handset.
Manojit Saha is Banking Editor and reports on the RBI and banking industry from Mumbai