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HDFC Bank, the country’s second-largest private sector lender, has upped the focus on mobile banking transactions in the past few months as part of its strategy to transform itself into a digital bank. Now, the lender believes mobile banking will overtake internet banking by next year.
“Usage of mobiles has been growing rapidly and outpacing the growth of the internet transactions. We feel next by year it will overtake internet banking,” said Nitin Chugh, head-digital banking, HDFC Bank.
In FY15, 63 per cent of the total transactions were via the digital medium for HDFC bank. In FY14, only 55 per cent of the transaction were via the digital medium whereas the share of digital banking was at 44 per cent in FY13.
ALSO READ: HDFC Bank leads in mobile banking transactions, grows nine-fold
Though, the bank does not give a break-up between mobile and internet, at present the share of internet is more.
However, mobile banking has been growing at a much faster pace, said Chugh.
According to Reserve Bank of India (RBI) data, the bank had reported mobile transactions worth over Rs 5,686 crore in April this year. In the same period last year, transactions of Rs 668.2 crore were reported via mobile banking.
In order to improve its focus on digital, the bank has now expanded into the wearable category by launching its mobile banking application on the Apple Watch.
Currently, 10 transactions are allowed on the watch, including viewing account information, recharging a prepaid phone account, placing a cheque book request, viewing offers etc.
The bank plans to add four-five more transactions in the coming month. However, it will stay away from allowing transactions such as fund transfer etc.
ALSO READ: Payments Corporation develops unified payment interface for mobile banking
As of now, there are 175 transactions that are allowed on the internet and 80 on mobile phones.
At present, the bank has launched the watch application only for Apple Watches, but, going ahead, will also be extending this feature to watches made by Samsung and Motorola.
ICICI Bank, another private sector lender, also offers mobile banking on watches by Apple and Samsung.
Apple is yet to launch its Watch in the country but many in India are using the device bought abroad, from prices starting at $370 (including taxes).
“Usage of mobiles has been growing rapidly and outpacing the growth of the internet transactions. We feel next by year it will overtake internet banking,” said Nitin Chugh, head-digital banking, HDFC Bank.
In FY15, 63 per cent of the total transactions were via the digital medium for HDFC bank. In FY14, only 55 per cent of the transaction were via the digital medium whereas the share of digital banking was at 44 per cent in FY13.
ALSO READ: HDFC Bank leads in mobile banking transactions, grows nine-fold
Though, the bank does not give a break-up between mobile and internet, at present the share of internet is more.
However, mobile banking has been growing at a much faster pace, said Chugh.
According to Reserve Bank of India (RBI) data, the bank had reported mobile transactions worth over Rs 5,686 crore in April this year. In the same period last year, transactions of Rs 668.2 crore were reported via mobile banking.
In order to improve its focus on digital, the bank has now expanded into the wearable category by launching its mobile banking application on the Apple Watch.
Currently, 10 transactions are allowed on the watch, including viewing account information, recharging a prepaid phone account, placing a cheque book request, viewing offers etc.
The bank plans to add four-five more transactions in the coming month. However, it will stay away from allowing transactions such as fund transfer etc.
ALSO READ: Payments Corporation develops unified payment interface for mobile banking
As of now, there are 175 transactions that are allowed on the internet and 80 on mobile phones.
At present, the bank has launched the watch application only for Apple Watches, but, going ahead, will also be extending this feature to watches made by Samsung and Motorola.
ICICI Bank, another private sector lender, also offers mobile banking on watches by Apple and Samsung.
Apple is yet to launch its Watch in the country but many in India are using the device bought abroad, from prices starting at $370 (including taxes).
