Banking at your fingertips

The filled-in application in the prescribed format, once posted online, will go to the bank's central processing server. The bank executives can see the request as a pop-up, and call the applicants for a physical meeting, if satisfied with the parameters.

Originally launched to enable the small and medium enterprises (SMEs) access credit facilities, the service has now been extended to students, professionals, self-employed persons, traders, corporates, agriculturists and individuals.

Over 80 per cent of transactions in some private sector banks take place through direct channels such as telephone, internet, ATMs and mobile phones.

In ICICI Bank 85 per cent of the transactions take place from direct banking channels. On any given day, the bank sends information on various products through one million SMSes.

"When we launched mobile banking, 7 million customers registered with us in about a year. Initially, customers were using mobile phones to receive information on account status. Slowly they have graduated to receiving statement of savings and loan accounts and getting credit invoice among others," says V Vaidyanathan, executive director (retail banking), ICICI Bank.

Recently, HDFC bank partnered with ngpay, a mobile solution brand from JiGrahak Mobility Solution, to enable customers transfer funds to any HDFC or non-HDFC bank account holder.

YES Bank, which had the first movers' advantage in many areas starting from providing Real Time Gross Settlement (RTGS) over internet to providing single PIN system for all the banking transactions, says that technology was crucial for the bank's success.

Says Abhisek Anand Bhagat, vice-president, corporate development & strategy, technology & operations, YES Bank: "There has been a fundamental shift within technology organisations due to advent of the new technologies. This is why the relationship between the financial institutions and technology providers have evolved from just the traditional vendor-supplier relationship to a strategic partnership."

Public sector banks are also making efforts to use technology.

Corporation Bank has partnered Mumbai-based PayMate to enable its customers pay LIC insurance premiums through SMS. Canara Bank is offering non-banking services such as booking of railway tickets, payment of excise and service tax etc.

Given the opportunities in the mobile banking segment, some global handset manufacturers are planning to roll-out solutions for mobile banking.

"Mobile banking will certainly pick up in India, especially since people in many parts of the country do not have access to banking. We are looking for partners in India to launch the service," said Ravin Singh, market development manager, mobile commerce & location-based services, Mobile Devices, Motorola.