Indian Telecom industry has emerged as the fastest growing telecom market in the world. The opening of the telecom sector to the foreign investors has not only led to rapid growth in subscriber base but also helped a great deal towards maximization of consumer benefits, particularly in terms of price discovery following the moderate approach in tariffs. The success of the Indian telecommunications sector has become the cynosure of the world and has made the country a truly attractive investment destination. The growth of cellular mobile services is leading the telecom revolution in India and the other services are following. The service sector has emerged as a prime contributor toward the economy’s progress.
One of the important aspects of the country’s service sector enabling sustainable growth is the banking system. The banking system remains, as always, the most dominant segment of the financial sector. With a jump in the Indian economy from a manufacturing sector, that never really took off, to a nascent service sector, banking as a whole is undergoing a change. A larger option for the consumer is getting translated into a larger demand for financial products and customization of services is fast becoming the norm than a competitive advantage.
Technology has brought about strategic transformation in the working of banks. With years, banks are also adding services to their customers. The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. With stiff competition and advancement of technology, the service provided by banks has become more easy and convenient. In this milieu, what really enables banks to build a lasting competitive advantage is the ability to continuously innovate, achieve differentiation and respond quickly to dynamic business challenges. Financial institutions face greater challenges today than ever before as consumer demand shapes the way they attract and keep customers. Consumers expect to be able to conduct business when they want, how they want and where they want. They also desire to do everything they can do inside their local branch quickly, easily, securely — and remotely. In the evolution of the online banking channel, the next logical step toward optimizing the customer experience is leveraging the mobile banking channel. Financial institutions that embrace this technology have the potential to grow market share and enhance profitability through increased customer satisfaction and loyalty, particularly among coveted younger demographic groups. With cell phones and handheld devices becoming an integral part of everyday life and business, mobile banking will only grow in popularity. Mobile banking has been touted as the future of banking, and for the last couple of years some banks have been slowly rolling out mobile banking programs to test the waters. Mobile technology has drastically changed people’s lives. Today, people access information through mobile devices more than through any other medium. Communications technologies have given people around the world new ways to become more informed, involved global citizens and have provided the impetus for growth, economic activity and, in many areas, the possibility for sustainable well-being. The widespread emergence of mobile banking is having a huge transformative effect in both developed and emerging economies.
What is mobile banking ?
Mobile banking (also known as M-Banking, mbanking, SMS Banking etc.) is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a mobile phone. Mobile banking (M-banking) involves the use of a mobile phone or any other mobile device to undertake financial transactions linked to a client’s account.
The benefits of mobile banking include:
•Bank account holders will be able to manage their finances easily and securely...