<div><em><strong>Mobile banking users in India account for over 50 per cent of its population at present, reports Haider Ali Khan</strong></em></div><div> </div><div>The number of mobile banking users globally is forecasted to double to 1.8 billion, over 25 per cent of the world's population, in the next four years, according to research by KPMG using primary survey data supplied by UBS Evidence Lab.</div><div> </div><div>The Global Mobile Banking Report stated that mobile banking users in India account for over 50 per cent of its population at present.</div><div> </div><div>Adoption rates are highest in developing countries like India, which is about a 60-70 per cent. The survey also suggests that mobile banking and payment systems are increasingly being integrated with other technologies, driving an era of ‘Open Banking’. </div><div> </div><div>"The differentiation in mobile banking has been a difficult area and sustained differentiation is almost impossible. Many banks are adopting 'Mobile First' strategy, which provides a relatively better competitive advantage," Akhilesh Tuteja, partner and head of IT advisory services at KPMG in India, said.</div><div> </div><div>The availability of mobile banking services is a key indicator when consumers choose to switch banks and the report highlights a clear link between a strong mobile proposition, customer satisfaction and advocacy. Indian customers demonstrate the highest likelihood of changing banks driven by the availability of better mobile banking services.</div><div> </div><div>The report also says that as mobile banking technology is driving an area of ‘Open Banking’, where consumers can bank within context, across a variety of channels, operating systems and devices, including phones, tablets and wearable. </div><div> </div><div>The report highlights three key areas for banks to focus on in order to take advantage of the surge in mobile banking, and therefore prepare for the ‘Open Banking’ era.</div><div> </div><div>Mobile banking offers many opportunities for cross-selling other financial services, but unwanted sales messages can invade what the report calls ‘device intimacy’ and lead to customer complaints, reduced usage or even switching to another provider.</div><div> </div><div>Consumers tend to value personalised support via mobile services. The report urges banks to use, social media banking and cloud storage.</div><div> </div><div>Banks are investing unprecedented amounts in mobile and other technology. To stay at the fore, many large banks are increasingly acquiring technology start-ups and investing in incubators.</div><div> </div><div>Banks are urged to heavily invest in technologies that can evolve and protect against future threats, as well as tackle current pressures from malware and social engineering.</div><div> </div><div>Forty per cent of consumers have raised concerns about entering card details in mobile devices and the possibility of losing a handset.</div><div> </div><div>Biometric apps and finger print scanning are earmarked as ways to bolster the security of mobile banking, whilst ensuring ease of access; only ahandful of the main banks assessed in the research currently offerthis service.</div>
