More young customers are using bank services and they use mobile banking, Ajai Kumar, Chairman and Managing Director, Corporation Bank. According to a study done in 2011 by the Boston Consulting Group (BCG), mobile banking which constitutes 0.1 per cent of transactions would be the second largest channel of banking after ATMs. “By 2015, I assure you, 20 to 30 per cent of the total transactions could happen by mobile phones,” he said while delivering a lecture on Thursday.
Another digital route that had the potential of taking digital banking to the masses in every corner of the country was SMS banking. For people in rural areas, it was a “great boon” because it was inexpensive and did not require smart phones.
One technology that will transform the way financial transactions were done in India is the Interbank Mobile Payment Service (IMPS) initiated by the National Payment Corporation of India. IMPS enables payments from persons to merchants and transfer of funds through mobile phone. The security required from the user is a mobile number, a password, and the mobile money identifier number (MMID). Card-less smart cards with embedded chips offered the customer 24 /7 access to his bank. — Special Correspondent