ICICI Bank Offers Better Mobile Banking Services Than Its Peers

Ever-increasing smartphone adoption has fueled the use of digital banking services by Indian customers. Forrester data shows that, in 2017, more than half of online banking customers in metro India predominantly use mobile devices to quickly complete simple banking tasks such as checking an account balance and viewing recent transactions. But more interestingly, online banking customers now also use mobile devices for serious and time-consuming banking tasks such as searching for and buying financial products and services. The need for enhanced digital banking services is not just restricted to metropolitan India, but is also emerging in smaller cities.

We recently concluded our 2017 India Mobile Banking Benchmark, which assesses the mobile banking offerings of seven large Indian banks: Axis Bank, HDFC Bank, ICICI Bank, IndusInd Bank, Kotak Mahindra Bank, State Bank of India, and Yes Bank. Of the seven, ICICI Bank received the highest overall score by delivering services that are both useful and usable. The bank has substantially improved its mobile app over the past two years, in the process overtaking the other Indian banks. Some highlights from our report:

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PayTM Payments Bank Disruptive Effects To Be Felt Beyond Banking

In 2016, India’s banking regulator opened up the banking sector to nonbank finance companies (NBFCs) and approved 11 of the 41 applications to set up payments banks in India as part of its ongoing initiatives to increase financial inclusion in the country. So far, PayTM, Airtel, and India Post have launched payments banks. They cater to different customer segments, have slight variations in their offerings, and offer significantly different interest rates.

Source: Airtel press release, November 23, 2016

Source: India Post Payments Bank corporate brochure, February 2, 2017

Source: PayTM website

All three firms have vast customer reach, owing to their existing customer networks, and the potential to amplify the financial inclusion agenda. Forrester believes that PayTM’s payments bank is most favorably positioned to leverage its adjacent financial services ecosystem of retail merchants, utility providers, eCommerce platforms, and mobile wallets.

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