To provide faster mobile banking transactions, the largest private sector bank of India, ICICI Bank has set up a dedicated payment gateway for its customers. This step will provide much faster banking transactions by mobile phones. By creating a separate gateway, the bank is focusing on mobile banking rather than internet banking.
ICICI Bank’s executive director Rajeev Sabharwal relaunched the new mobile bank app and said,”We acquire 5 lakh customers for mobile and internet banking every month. By the end of the year, we will have 1 crore mobile banking with us, and that will be a significant shift in Indian banking industry”. ICICI Bank adds 3 lakh mobile banking users every month. As smartphone users have been increased in India, mobile banking is also picking up the pace. The mobile banking transactions crossed Rs. 1,035.30 billion for the financial year 2015-15. It was Rs. 224.18 billion in the last year.
He stated that the use of the digital channel was economical as compared to the physical channel. "There is a cost of setting it up the system and after that cost of incremental customers adopting is extremely low. So scalability is much higher. Secondly, whatever the customer does seamlessly flows back in the system, so you don’t need to enter that information again in our banking system," said Rajiv Sabharwal.
According to ICICI Bank, 60% of its transactions are taking place through the internet and mobile banking segment. In mobile banking, the average ticket size of the transaction is close to Rs. 5000. The transforming app of ICICI "iMobile” would avow the customers to withdraw cash without having a card, pay to contacts on the phone, scan integrated details of all accounts in the app and get alerts from Google Now. The mobile apps of the bank are e-wallet known as pocket, iMobile, and SMS banking which contributes for 50 lakh active mobile banking users. According to the data circulated by RBI, ICICI Bank has jumped to Rs. 5342 crore in April by mobile banking transactions.