Emerging issues and strategies to enhance M-banking services

R. K. Uppal

ICCSR Sponsored Major Research Project, D. A. V. College, Malout, Punjab, India. E-mail: rkuppal_mlt@yahoo.com. Tel: +9194635-99700, 01637-261188 (R).

Accepted 6 January, 2010

   Abstract

In present day banking, total automation of banking operations is an imperative need for all banks to attract more customers, provide efficient services, and survive in the emerging new competition, apart from the profit motive which is the primary objective of the business. In order to achieve these goals of business, various channels have been developed through technology. ‘Mobile Banking’ is one of the best alternative channels available to customers for quick, correct and efficient service at anytime and anywhere. The present paper is devoted to explore the extent of Mobile banking in Indian banking industry where cell phone users are increasing at unexpected rate. Time period taken for study is 2000 - 2001 to 2006 - 2007 because this period is the eye-witness of infant condition of IT and during the same period IT became mature. Simple statistical tools like average, standard deviation, co-efficient of variation are used to calculate the efficiency of various bank groups providing the service of M-banking. On the basis of analysis, the paper concludes that the private sector banks are on the top in providing the M-banking services to their customers and have high profitability as compared to other bank groups under study except foreign banks. The paper also highlights the benefits of M-banking to customers as well as to bankers and suggests some strategies with their possible solutions like to spread awareness regarding M-banking and to increase its area and scope to enhance M-banking services in India, particularly in rural and semi-urban areas..

Key words: Extent of mobile banking, strategies to enhance M-banking services.