State Bank of India leads mobile banking space with 50% share

Sarkaritel
By Sarkaritel September 18, 2014 12:33

State Bank of India leads mobile banking space with 50% share


Mumbai, 18 September 2014: The State Bank of India (SBI), country’s largest commercial bank, generates about 50% of mobile banking transactions according to RBI Data. SBI, with over 1.15 crore registered mobile banking customers, has become the undisputable market leader in this segment and way ahead of the nearest competitor in the market.

As of now, SBI’s user base for mobile banking is around 4.5% of total retail customer base. The bank expects a rapid growth in the user base reaching around 10%-12% of the total retail customer base by the end of 2 years and around 30%-35% of the total retail customer base in 3-5 years. Mobile banking services of SBI can be availed by the customers irrespective of the mobile handsets used by them.

Arundhati Bhattacharya, Chairman, State Bank of India said, “India has just witnessed the launch of message-banking. We are confident that once this is understood by people, there will be an explosion of banking activities in the mobile space. This is what the future of banking holds”.

SBI has been aggressive about migration of customers to direct channels and mobile banking service is an important part of this strategy. At present, customers can access the bank through “State Bank Anywhere” – the bank’s Smartphone app which is integrated with Internet banking. The service which is expected to be used by the masses is “State Bank Freedom”, which can be accessed by all kinds of phones.

“Mobile banking will also play a large part in the role of the yet-to-be-launched payment banks with which SBI plans to have tie-ups”, Bhattacharya added.

The aggressive promotion of alternative channels is part of SBI’s strategy to decongest branches, which is expected to increase as the bank has opened over 1.5 crore new accounts under the Prime Minister’s Jan Dhan Yojana.

Sarkaritel
By Sarkaritel September 18, 2014 12:33