Mobile Banking in India..
M. Balakrishnan,
Chief Operating Officer, NPCI, India
30th March, 2012
Demographics – Age wise – 34% < 14 years and 27% 15-29 years
19%
10%
19%
Population distribution
25%
11%
26%
8%
8%
20%
36%
27%
11%
38%
8%
Children (0-14)
Youth (15-29)
Middle aged (45-59)
Senior (60+)
30 plus (30-44)
34%
21%
Children (0-14)
Youth (15-29)
Middle aged (45-59)
Senior (60+)
30 plus (30-44)
12%
21%
30% 29%
11%
7% 7%
32%
Source: Tata Statistical Outline of India, Marketing White Book 2006
30%
Fortune moving from Bottom of Pyramid….to middle of diamond
Source: Tata Statistical Outline of India, Marketing White Book 2006
Taken from BCG’s Indian Banking 2020 – September 2010
Retail Payment Systems in India – A quick Analysis of 2010-11
Value
Volume
Year
2010-11
ECS Credit
5.11
1.59
ECS Debit
6.83
0.64
NEFT
5.77
8.21
Credit Card
11.55
0.66
Debit Card
10.33
0.34
Cheques
60.41
88.56
Retail Payment Systems in India – Where it is headed
Source: A BCG report
Indian Retail Banking Customers Banking Habits…
Retail Banking Customers - Barriers to Using different
Channel
Accessibility is a problem / No facility
Lower Awareness about Service/Channel
Do not feel the need to use / The channel satisfies my need
Channel convenience
Service is not prompt
Importance of Channels
Bank Branch
ATM
17%
n/a
9%
41%
21%
38%
14%
7%
39%
11%
n/a
39%
Internet
n/a
31%
37%
2%
n/a
10%
Call Centre
/Phone Banking Mobile
2%
1%
28%
29%
41%
38%
4%
3%
3%
16%
7%
6%
Alternate Channel usage is low. But intention is there if awareness is created.
Based on Accenture Study of 3000+ customers in India , 2010
National Payments Corporation of India – back ground
RBI’s Vision Document on Payment System (20052008) envisaged new Institutional Structure for
Retail Payment Systems. To Focus on
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Efficiency enhancements,
Uniformity in service delivery and customer
experience, extending the reach
Product innovation
New entity named as the “National Payments
Corporation of India( NPCI)”. NPCI is a non
dividend paying company (Section 25)
Interbank Mobile Payment Service – IMPS in India…
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800+ million mobiles
300+ million Bank accounts
Completely inter operable
Rides on existing ATM infra and
ISO 8583 message formats
Unique MMID concept
Co created – creates value
Can be used for intra bank
A lot of freedom for banks
SMS based also allowed – seen
some innovations
Good for financial inclusion
Bank led model – more likely to
succeed in India
38 Banks already members
Adding more capabilities
• Merchant Payment
• Thru other channels
Interbank Mobile Payment Service – IMPS in India… My concern
Fantabulous - First Indian made
bi-wheeler to have an electric
starter – made by Enfield – in
Late 60’s and early 70’s – An
innovation that did not catch the
fever – It was ahead of its time…
Kinetic Honda - Another Indian
made bi-wheeler to have an
electric starter – came in late 90’s
and early 2000’s and was a huge
success…
What is possible!!!
Wheatear - small songbird of northern America
and Eurasia having a distinctive white rump
thrush - songbirds characteristically having
brownish upper plumage with a spotted breast
genus Oenanthe, Oenanthe – wheatears
Weigh 25 grams ( 2 spoons of sugar)
The Alaskan birds spent the winter in Africa before returning back home, a journey of
about 14,500 km each way, in which they flew on average 290km a day. They travelled
over Siberia and across the Arabian desert, heading to Sudan, Uganda and Kenya, a trip
that took about 91 days on the outward trip but only 55 days for the return leg.
"It seems that bird migration is limited by the size of the Earth. If the planet was larger,
they would probably migrate even further."
If such small birds can do this, can we not?????
Interbank Mobile Payment Service – IMPS in India…
Extend , Expand and Transform….
That is what India has done on Mobile channel…
IMPS will transform the way Indians will do payment…
Thank you…