An evaluation on the extent of mobile banking in Indian banking industry

Abstract

In present day banking, total automation of banking operations is an imperative need for all banks to attract
more customers, provide efficient services, and survive in the emerging new competition, apart from the
profit motive which is the primary objective of the business. In order to achieve these goals of business,
various channels have been developed through technology. ‘Mobile banking’ is one of the best alternative
channels available to customers for quick, correct and efficient service at anytime and anywhere. The
present paper is devoted to explore the extent of mobile banking in Indian banking industry where cell
phone users are increasing at unexpected rate. Time period taken for study is 2000 - 2001 to 2006 - 2007
because this period is the eye-witness of infant condition of IT and during the same period IT became
mature. Simple statistical tools like average, standard deviation, co- efficient of variation are used to
calculate the efficiency of various bank groups providing the service of M-banking. On the basis of analysis,
the paper concludes that the private sector banks are on the top in providing the M-banking services to their
customers and have high profitability as compared to other bank groups under study except foreign banks.
The paper also highlights the benefits of M-banking to customers as well as to bankers and suggests some
strategies with their possible solutions like to spread awareness regarding M-banking and to increase its
area and scope to enhance M-banking services in India, particularly in rural and semi-urban areas