HSBC's oldest customer to download its banking app was 108 years old!!!

FDIC says that “In terms of technological change, there is little evidence that the emergence of new electronic channels for delivering banking services has substantially diminished the need for traditional branch offices where banking relationships are built."It does stand true when one see a rather marginal decline of branches in the US from 99,550 in 2009 to 94,725 in 2014. But can we ignore the average number of teller transactions per office declined by 45% between 1992 and 2013, from 11,700 per month to 6,400 in a backdrop where customer base has increased manifold. A recent survey finds that 19% of people aged 18 to 29 visited a bank branch which is 29% age group for 30 to 49.

Mobile banking spread is twofold -  While on one hand it serves the’ Client Aspiration’ on the other it ‘Reaching the unbanked populace’

Client Aspiration

British banks (British Bankers' Association) are seeing stronger growth in mobile and internet banking from customers in their 70s and 80s than younger generations as nearly 2.3 million people aged over 70 are now using internet banking which is equivalent of 30 percent of that age group. Over 450,000 customers over 60 are using banking apps on smart phones, iPads and other tablets.

RBS launched ‘Touch ID’ which would be available for nearly one million Apple iPhone users that have RBS or NatWest mobile banking apps. The technology recognizes customers' fingerprints and they don't need to remember a password to log in.RBS added that this move is part of the bank's reaction to a decline in customers using its branches and growth in those banking online and via mobile phone apps.

Indias’ largest private sector bank ICICI launched the ‘pocket’ in the last fortnight which is open to anyone, whether they are ICICI account holders or not. No documentation or branch visit is necessary and funds can be added from any bank account in the country.

‘Wintrust Financials’ uses technology from Fidelity National Information Services where the customer uses an app to preselect the amount of money to be withdrawn. Then, the customer visits an A.T.M., and — without inserting a plastic card — presses the “card less cash” button. A Quick Response code appears on the screen, which the customer scans using a smartphone, and the machine dispenses the bills.

Reaching the unbanked populace

The Indian Prime Minister in a bid to end “financial untouchability" for the unbanked populace launched an ambitious scheme which resulted in opening 115 million new bank accounts. Of those, 80 million have no money. The answer seems to be in ‘payments banks’ to  bring bank to the door step of those 80 million accounts with no money spread across 600,000 villages.

Payments banks in India  could cut the use of cash in an economy where nine out of 10 transactions are still paid in notes and coins and kick-start the use of low-cost payment forms like mobile money that have been used by only one in every 300 Indians. That compares with 76 percent of people in Kenya, Africa's mobile money pioneer, where Vodafone's M-Pesa affiliate dominates the market. India like Kenya is targeting its Mobile operators .Retailers and Other payments company have applied for license .The opportunity is seemingly so vast that it has attracted India’s retail major the ‘Future group’ too apart from pre paid wallet companies like PayTM .One should not miss out ‘Tech Mahindra’ which has plans too .So what does Tech Mahindra is known to do? It’s one of the top IT outsourcing companies in India. To top it up India’s’ largest corporate house – Reliance Industries has tied up with India’s’ largest bank of India -State bank of India who asset is close to USD 400 billion with 17000 branches.

 A bank with 17000 branches with deep penetration across the worlds’ seventh largest country certainly is strongly forecasting a trend .