The Convenience Revolution: Mobile Banking Explained
In the last decade, India has witnessed a banking revolution that has transformed the way people manage their finances and avail financial services. This revolution has been supported mainly by advent of internet and its increased penetration into the country. With it, came trends such as internet banking & mobile banking and they are growing at a speed which is remarkable. Every hour, there is a new update or innovation in the ecosystem of mobile banking and if not innovation, then work is continuously going on to make the process of mobile banking more and more easy. With the onset of smartphones and the increasing availability of affordable mobile data, mobile banking has become a game-changer for millions of Indians.
The Growth Of Mobile Banking In India
Mobile banking in India has experienced exponential growth over the past decade. An array of elements fostering this growth includes:
Smartphone Penetration: The growing use of smartphones has been instrumental in the adoption of mobile banking. India is one of the largest smartphone markets globally, with millions of people owning devices capable of running banking apps. With so many of us using smartphones, it was natural that the mobile banking will grow.
Ease of Access: Considering India’s diverse population, country’s financial institutions have ensured that the ‘Mobile banking’ app that they are providing is user-friendly and accessible to people of all backgrounds. Many banks have developed apps in multiple languages, making it easier for non-English speakers to use these services.
Government Initiatives: Initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY), the Digital India campaign and various other digitization campaigns have played a crucial role in promoting financial inclusion and encouraging people to use digital media such as mobile banking services. Thanks to PMJDY, people who never dreamed of having a bank account were able to obtain one. Additionally, with the growing use of smartphones and internet penetration, it became easier for them to access and operate their accounts through the ease of their mobiles.
UPI (Unified Payment Interface): The rise of UPI and it ease of use has also contributed to the popularity of mobile banking. The platform offers a wide range of financial services, including payments, transfers, and bill payments.
Benefits Of Mobile Banking In India
Mobile banking offers several advantages to Indian consumers:
Convenience: Imagine standing in long queues just to check your account balance. Earlier it used to take hours & sometimes even full day to even reach to the window of the teller of a bank branch however now the scenario is different, with mobile banking you can do that in few minutes only or sometimes in few seconds. The ambit of mobile banking services is not just limited to checking account balance but one can also avail services such as transfer money, pay bills, and even invest in mutual funds or stocks, all from the comfort of their smartphones.
Financial Inclusion: Mobile banking has made it possible for banking services to reach the remote and underserved areas thus promoting financial inclusion. People who previously had limited access to traditional banks & had to turn to informal, risky financial means for their financial needs, can now participate in the formal financial system, thus reducing their reliance on informal & unregulated financial modes.
Cost Savings: Mobile banking reduces the need for brick-and-mortar branches and paperwork, resulting in cost savings for both banks and customers. This often converts into lower fees and better interest rates for customers.
Security: Mobile banking apps provided by financial institutions (FIs) are packed with secured features like encryption, OTPs, & biometric authentication making mobile banking transactions highly secure and FIs are continually working towards enhancing their security measures more & more.
Digital Payments: Mobile banking has given a big push to the adoption of digital payment methods, reducing the reliance on cash. One such successful example is UPI. This growing usage of digital payment methods also aligns with the government’s push for a less-cash economy.
Looking ahead, mobile banking in India is expected to continue evolving. With ongoing technological advancements and government commitment to digital transformation, mobile banking will likely become even more accessible and secure. Although, there are still few key areas where we need to continuously work on, such as digital literacy. As not everyone is comfortable with smartphones and mobile apps, particularly in rural areas, so improving digital literacy is crucial for the continued growth of mobile banking and our country’s government & financial institutions are also continuously working towards the goal of complete digital literacy.
Mobile banking has truly brought about a convenience revolution in India’s financial landscape. Its growth and adoption have brought financial services to the fingertips of millions, promoting financial inclusion and reducing the reliance on cash. While challenges exist, the future of mobile banking in India is promising, and it will likely play a pivotal role in the country’s journey towards a more digitally inclusive economy. So, if you haven’t already, it might be time to explore the world of mobile banking and experience the financial convenience it offers.