Mobile Banking for Rural India: SBI and Airtel Launch a JV, Vodafone and ICICI Team Up.

Last year, RBI (Reserve Bank of India) approved banks to appoint for-profit companies as BCs (Business Correspondents) and this has closed one of the most heated debates in the telecom space – Should Telco serve as a Bank (and vice versa).
State Bank of India, India’s largest commercial bank, and Bharti Airtel have entered into a joint Venture (JV) agreement to make available banking services to India’s unbanked millions.
The newly formed entity, will harness the power of state bank’s strengths and Airtel’s mobile telephony to add value to the banking and financial services sector and empower millions of financially excluded in the country to enhance their livelihood and quality of life. The Joint Venture will become the BC (i.e. Business Correspondent) of SBI and offer banking products and services at affordable cost to the citizens in unbanked and other areas.
The JV as Business Correspondent will engage Airtel’s retailers as Customer Service Points (CSP) all over India in a phased manner. With this, existing and new airtel mobile customers will be able to visit these outlets and open new SBI bank accounts and avail of other banking products and services available at the CSPs. Additionally, existing SBI customers will also get serviced at these outlets.

Vodafone and ICICI

Vodafone and ICICI have also teamed up (its not a JV) to offer mobile banking services in the country. Though the details aren’t yet out, this partnership is on the same lines as SBI/Airtel.
The biggest challenge in this business is to bring down one’s transaction cost and Airtel/SBI JV will *hopefully* bring the scale (plus network effect) that can potentially bring down the transaction cost in the long run.
Eko, a pioneer in this space recently raised funding and such JVs/partnerships between telecom operators and banks do validate their business proposition and help them grow the market.  The pressure is also on them to keep innovating and grow its network at a rapid pace.source
What’s your take on m-payment VAS services?
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Mobile finance: A new way to manage your money

Mobile finance services are gathering steam as mobile banking is the easiest way to do money management.

Convenience is the buzzword in today’s rapidly changing world. And since mobile finance services are growing remarkably, they are driving convenience for consumers and helping companies to cut operational costs. Many consumers and even companies, however, have not yet fully acknowledged the potential of these trendy services.

Stock market digital highlights some key benefits brought by the mobile finance services.
Result-oriented service
Besides being convenient, Mobile finance service is a solution-based service. There will be a very strong organic growth in the mobile finance service segment just because it gets your quicker results with a click of a button.
Advantageous applications
Mobile applications come with excellent benefits. Mobile applications like Money Transfer can assist you in sending money via SMS messages.  Mobile Payment is another application that will soon erase the traditional practices of money deployment.
Mobile-Wallet
Since mobile is omnipresent and does not require special arrangements to communicate the way internet does, every Tom, Dick and Harry can use his mobile as a wallet. Plus, the M-wallet will take care of the payment delay issues and will ensure timely delivery of money.
Mobile finance service is not a new phenomenon anymore. Intensive consumer adoption has led the technological innovation and we will see improved ways of managing money through our inseparable, sixth finger – Mobile. source

Barclays Mobile Banking Service Scoops Top Award

Barclays has trumped its rivals to scoop a much-coveted 2010 Financial Innovation Award for its mobile banking and text banking services.

(PRWEB) January 15, 2011

Barclays has trumped its rivals to scoop a much-coveted 2010 Financial Innovation Award for its mobile banking and text banking services.

The Barclays.mobi application, which allows customers to access their account on a smart phone, picked up the top award for 'transforming performance or customer service through technology – mobile and internet' at a ceremony in Covent Garden, London last month.

Judges of the awards said they were looking for an initiative that creates value, enhances customer service and improves business through technology.

Barclays.mobi was recognised as a leader in its field because, unlike other mobile banking applications, the service can be used on all smart phone platforms, such as iPhone, Blackberry, Android and Windows.

Dr Tony Gandy, one of the judges, said: 'In a hotly-contested category, Barclays mobile banking stood out as a modern application for a modern smart phone market.'

Phil Sowter, Head of Mobile, said: 'Barclays.mobi is unique in the UK financial services market place today.'

He added: 'Barclays.mobi is a new and important part of UK Retail Banking's multi-channel mix, extending choice and improving financial control for our customers.'

The Barclays mobile banking service was launched in May 2009 and receives around half a million visitors from mobile devices each month.

Customers can log in to their account to check balances, make transfers or payments and find the nearest ATM or branch whilst on the go. In addition, the innovative text banking service means customers can choose to receive text alerts that notify them of weekly balances, when a large debit/credit has been made and when they are approaching their account limit.

Barclays customers can register for both mobile banking and text banking by visiting http://www.barclays.co.uk.

Barclays also picked up a 2010 Financial Innovation Award for 'Improving the Customer Experience' through its Customer Discussion Document (CDD), which is a tool that allows customers to evaluate their finances.

About Barclays

Barclays is a major global financial services provider engaged in retail banking (current accounts and savings accounts), credit cards, corporate banking, investment banking, wealth management and investment management services, with an extensive international presence in Europe, the Americas, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 140,000 people. Barclays moves, invests and protects money and provides personal loans, ISAs, home insurance, life insurance, mobile banking and other services for over 49 million customers and clients worldwide.