Cellular Bank of India

Posted on | December 30, 2006 |

M for Mobile. M for Money. M for Mobile Money.

This artice in ET may seem to be aggrandizing the scope for mobile payments. But I think the writer Mayur Shetty is on solid ground when seeing possibilities for some sort of convergence between banks and mobile operators. Japan and Slovenia are two countries I know where such convergence experiments are already being conducted. More on that later.

Key points from the article:

• It is not rival financial service companies but the telecom operators who might well emerge as the biggest challengers to the monopoly that banks have had over the industry of money.
• The total money mobilised by telecom companies as advance payment from pre-paid users for talktime works out to Rs 4,459 crore.
• The advanced billing systems used by telcos allow them to record the smallest transaction in a cost effective manner, making it suitable for micro-payments.
• Total number of bank accounts in the country, stands at 334 million savings and current accounts.
• “Phone banking” is currently seen as a value added service provided by banks that allows you to operate your bank account over the phone.
• Mobile phone might well emerge as one the major payment channels.
• Banks and telcos can collaborate to offer the latest in banking services to the rural areas.
• Banks can use mobile service providers for delivery of microfinance.
• Tying up with banks can help telcos to reduce non-performing assets and collect payments.

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