Terming it as a "game changer", a State Bank of India report has welcomed Reserve Bank Governor Raghuram Rajan's stated focus on deepening the penetration of mobile banking.
Mumbai: Terming it as a "game changer", a State Bank of India report has welcomed Reserve Bank Governor Raghuram Rajan's stated focus on deepening the penetration of mobile banking.
"Mobile payments could be a game changer, both in the financial sector as well for mobile phone companies," an SBI research report said after Rajan announced a slew of measures in his maiden address as the head of the central bank.
In this address, Rajan had announced the constitution of a technical group to study the feasibility of using an encrypted, SMS-based application for fund transfer, which which can run on any cellular phone handset.
Speaking of the advantages of mobile banking, the SBI note said that only 60 percent of the population is covered by banking services today, though more than 75 percent have mobile phones.
Additionally, mobile payments are also cheaper, the SBI note said, adding that a transaction through a mobile phone costs merely 2 percent of a bank branch based funds transfer, 10 percent of an ATM-based funds transfer and 50 percent of an online banking transaction.
"Future business opportunities of banks will depend crucially on how well they connect with their technology savvy customers," the SBI report said.