A recent article in India Times highlights the rapid growth of electronic payments and mobile banking in India. According to the Reserve Bank of India’s 2017-18 Annual Report, mobile banking volume grew 92% in volume of transactions and 13% in value of transactions from March 2017 to March 2018 while the number of mobile banking users grew 54% during the same time frame and little change in the number of ATMs deployed. In India, 92.6% of total retail payments volume is electronic, up from 88.9% in the previous year, much higher figures than in the U.S. This has set the stage for greater adoption of mobile payments and banking.
“Gone are days where mobile phones were used just to make calls, send messages, and take photographs. An increasing number of us are using our phones for financial transactions.”
Even in the U.S., mobile banking use is growing rapidly and now 71% of U.S. adults are using their mobile devices to communicate with their financial institution, obtain account information, manage their account, pay bills, or make other bank transactions, as indicated in our CustomerMonitor Survey Series Banking and Channels survey conducted in November 2017, a figure that has risen steadily since 2011. And, more consumers are using their mobile devices to make bank transactions, indicated by more than half of respondents. With the growth of online and mobile banking, fewer consumers visit bank branches for simple transactions, though bank branches are still an important part of the banking experience and contribute to consumer’s trust in their financial institution.
As consumers embrace digital and mobile channels to manage their finances, many are reaching beyond banks and credit unions to nontraditional providers that offer compelling experiences such as person-to-person (P2P) money transfer, personal financial management (PFM) tools, and bill payment (bill-pay) to support busy life-styles using multiple platforms for their convenience. Financial institutions can no longer overlook the importance of improving their digital and mobile offerings to retain customers.
Overview by Karen Augustine, Manager, Primary Data Services at Mercator Advisory Group