SBI to allow mobile banking without bank account

sbi mobile bank

SBI to allow mobilebanking without bank account. SBI being one of the biggest public sector bank in India. SBI entered the market of mobile marketing as a financial service to its consumers with the help of WAP and SMS banking. SBI started a pilot project that would allow banking through mobile phones even if their customers don’t have a bank A/c. The scheme is called mobicash.The service is like a mobile prepaid card allow money to be loaded on customers mobile that he can then spend.

THE PURCHASE OF THE CARD:- The card can be purchased from specialised service providers by even those who don’t have a bank account. Customers need to pay rupees 60, a nonrefundable charge, to specialised service and load a minimum amount of Rs.200 the 1^st time. The prepaid instrument launched in partnership with oxygen a service provider, offer facilities like money transfer, payment at merchant establishments and top ups for mobile prepaid cards. State bank of India estimated that currently cash and cheque payments dominate banking transactions with share of 49 % of these are expected to go down to 15% by 2020. Mobile banking constitutes just 0.1% of total

Volume et valeurs des transactions

banking transaction, would be 2^nd largest channel after ATMs. The report says and expects around 20%-30% of transaction happen via mobile phones by 2020. Public sector banks can be mobile banking a financial inclusion plot without setting up branches. SBI estimated that while a transaction at branch on an average cost Rs.45. a transaction through ATM costs Rs.20 and a transaction through mobile would cost just Re1.

MARKETING STRATEGY:-Participation in various consumer exhibition of meeting: - SBI meets an opportunity to educate people about its personal segments product and services. Tie-ups with oxygen sim card company and target all their customers. Advertising in TV and newspapers SBI has a campaign also to attempt to explain why it is better than other banks. SBI has launched an education initiative to educate its customers about mobile banking. Oral marketing by telling sim card providers to teach them about mobile banking and the ease of use. Banking over mobile from anywhere in India. Introduction of mobile banking follows the relatively successful introduction of internet banking in India. The mobile phone network is the most likely platform value added services such as online banking and mobile consumers. Several issues both technological and cultural mar the adoption of mobile banking. It has a fast growth in urban India. Banking over mobile from anywhere in India without physical premises there. Reduces delays in banking transactions and affordable time to employees for other banking services.

Number of internet users is small in comparison to mobile phone users in India. Security concern is the biggest barrier to adoption of mobile banking. There are more people using a mobile phone than a bank account in India. Setting up a bank branches is not only expensive but time consuming. Account to studies it could easily take more than two decades for bank branches to reach entire 1.2 billon people. Banks will be able to approve and give loans via mobile banking within next five years. This with further reduce the need to go to a branch. 

 First, the ability to save has improved for a majority of users through SBI mobile banking by comparison to earlier practices such as keeping cash on hand. These informal forms of savings often are susceptible to unnecessary and trivial expenditures or claimable by friends/relatives. 

Second, SBI mobile banking has become a very effective, safe, and trustworthy savings instrument for its users; importantly, dependence on risky informal methods has decreased for a large percentage of customers who were previously dependent on these practices for lack of affordable and safe savings options. 

Third, SBI mobile banking is perceived as a good substitute to both traditional banking and informal forms of savings; however, it has not dispelled the need for these existing savings mechanisms. SBI is used as one among many other savings mechanisms—including informal methods—by a sizeable percentage of customers. Fourth, SBI mobile banking is used in conjunction with or as complementary to an existing saving practice. Finally, as per the preference of SBI mobile banking over other forms of savings, users had diverging views. The majority of users consider SBI mobile money accounts as a preferred alternative for small savings. 

At the same time, in spite of an expressed preference for SBI mobile money, one-third of users became inactive following the introduction of transaction charges for deposits and withdrawals. In fact, a considerable minority of customers is concerned about the possible increase in the cost of SBI transactions. This would potentially make the service less attractive to those who are looking to save in small amounts.

SBI mobile banking has increased the capacity of low-income users to save. According to the study, 90 percent of users (N=144) state that their ability to save has increased with the mobile banking services of SBI. In response to a query about the extent of this improvement, 57 percent of users stated their ability to save had ‘definitely improved’ and 41% noted that it had become ‘somewhat better’ after opening an SBI account. Users gave three important reasons for this positive effect of SBI mobile accounts on their overall savings behaviour. First, keeping money in the SBI mobile accounts is much safer than keeping cash on hand (84 percent). Second, having a mobile account enables users to avoid wasteful expenses and to save rather than spend, thus inculcating better saving habits.SBI customers consider the services as safe and trustworthy because their savings are securely deposited with the State Bank of India, whose brand name as a leading public sector commercial bank in India lends credibility to the activities of its business correspondent, after becoming SBI mobile banking customers, dependence on risky and costly alternatives in informal savings practices (keeping cash at home, under the mattress, or on person) largely diminished because SBI mobile account became a safe saving option.11% of the respondents who had ‘no savings’ before SBI accounts were able to save after they opened their SBI accounts because it created an incentive to save. While all users in the study had stated that they found a new method of saving mechanism in the SBI accounts, more than 10 percent of the users with bank accounts found it a better alternative and shifted to saving in mobile money accounts.SBI mobile banking is a preferred alternative for small savers. Asked about their preference for saving in small lump sums of Rs. 1,000 to 2,000 ($20 to $40), 79 percent of users in the study preferred SBI mobile banking accounts as against 26 percent who preferred saving at bank.

CONCLUSION : Mobile banking and mobilepayments can help in creation of mobile based digital cash economy that is more efficient, transparent and inclusive. For this, the regulators as well as banking and telecom industry will need to make a coordinated attempt to delay effective services, educate potential customers and speed up adoption. Higher collaboration between banks ad telecoms will impact mobile adoption in India. Innovative solutions provide security speed convenience ease of use and interoperability should help players gain high acceptance. The study brings forth several insights regarding the effects of SBI mobile banking on the savings behaviour and practices of low income users in the metropolis of Delhi. A critical finding is that SBI mobile banking service is valued as a boon for small savers and users who depended on risky informal savings practices. In particular, a high percentage of users save in SBI mobile banking for emergencies.

More importantly, it is considered as a robust substitute to many informal savings mechanisms as well as a bank account. Yet, savings behaviour indicated that SBI mobile banking accounts have not dispelled the need for some of the savings mechanisms used earlier because different savings methods were perceived as having their own usefulness and purpose. Contrary to expectations, in addition to making payments and deposits easier and more accessible, SBI mobile money accounts also seem to improve efficiency and regularity of other savings mechanisms. Overall, the positive perceptions of mobile banking in the daily lives of SBI account holders are an encouraging sign of the potential of mobile money for expanding the financial inclusion of large numbers of low income households in India.

 The negative perceptions of non users with regard to their saving capacity speak on the one hand, to their irregular income and, on the other hand, to their lack of awareness of the potential of mobile banking for improving creative strategies for reaching out to the poor in India and elsewhere. This alone will ensure their financial inclusion home.

by akshay Kothari, anudeep dongre .s, chanda pokharna -   Esc Pau MBA franco-Indien - Avril 2014.