M-Banking & M-Payments: The Next Frontier in India
Can you carry your money in your mobile?
The Indian telecom industry has shown high growth in the mobile business, enrolling over 870 million subscribers, reaching not just urban, but almost 40% of rural India.
Low income households might be interested in savings and loan services, but distance from a bank branch, inability to cash out, and lack of awareness maybe deterring them from using formal banking.
The financial services sector in India has recognized the opportunity to achieve higher financial inclusion and to improve service quality for the financially included. But, the stakeholders – financial services players, regulators, telecom and technology players – do not yet have a successful business model and technology solution to provide financial services over mobile devices. While, the opportunity of mobile based financial services – broadly termed M-Banking, M-Wallet and M-Payments (“Mobile Money”) – is recognized, stakeholders are still calibrating the consumer proposition, service delivery mechanism and regulatory environment to find the sweet spot.
What can unbanked and under-banked customers be offered on a mobile channel?
- Money management and cash flow management
- Remittance solutions
- Bill payments
- Receipt of subsidies
- Business payments and collections, especially for Micro, Small and Medium Enterprises (MSMEs)