Pros And Cons Of Mobile Banking

1395 Words6 Pages
Finding solutions- When we tried to find our possible solutions for the problem of FI in India, we mainly came across following solutions- 1. Increasing number of banks by issuing more licenses 2. Direct transfer of funds to beneficiary account through different schemes- Pradhan Mantri Jan Dhan Yojna 3. Use of technology- Mobile Banking 4. Business Correspondent model These solutions have been tried and tested under different circumstances and they each have their own unique pros and cons. We tried to have a comparative study of the above solutions to check which fits the current solution fits best to India’s situation. New Banking Licenses While conventional banks have been in existence for past several decades, RBI…show more content…
Pros The new banking licenses issue is expected to be the stepping stone for the benefit of the entire economy. The new banks will not only provide last mile connectivity to rural areas but in creating a business model which is sustainable and profitable. The increased competition will push older banks to be more competitive and bring about a significant change in their functioning and leading to more number of banks focusing on areas such as product innovation, pricing models, alternate channels usage, data analytics, marketing and branding, etc. The new banks are likely to adopt unique business and operating models that would be aligned with their vision and strategic objectives. It is expected that the new entrants shall have the “ends” it has to achieve but the “means” to achieve shall vary from player to player based on the current business or operational characteristics of the promoting entities. Cons Tracking the flow of funds may cause problems in case of new banks and strict regulations have to be made and implemented for this otherwise this may lead to serious economy shocks to…show more content…
Use of technology includes using widely available technology platforms to provide the banking solution to the masses and also developing and dissipating newer technology platforms to provide customized banking solutions. The currently available technology platforms include mobiles and digital portable devices widely used by the public. Many banks have already started on the path of using technology solutions to increase their reach. I-banking or the internet banking facility of almost all commercial banks, M-Pesa of Vodafone, Airtel Money etc. products are initial steps in this manner. This solution is easy to taken to the masses throughout the country. Maintaining fully equipped ATM machines which can offer almost all the facilities offered in a branch, thereby offering branchless banking solutions, is also an initiative which is being tested in the urban region. With a strong network of telecommunication lines throughout the country, India has favourable strategic assets for growth of technology initiative in banking industry. The sophisticated technology has the potential to create a huge change in the life of the population at the bottom of the

More about Pros And Cons Of Mobile Banking

Open Document