Banks have decided to come up with incentives to allure customers to opt in at greater pace for internet banking as well as mobile banking facilities.
As per a report released by consulting firm, Boston Consulting Group (BCG), in case banks are able to generate awareness amongst people about the benefits of mobile banking and also gain confidence on the security level of this facility, then a 20-30% rise in usage of the facility can be expected by the year 2020.
"The cost of a transaction put through a branch is Rs 40. The transaction cost is much lower for net banking at Rs 6 and mobile banking at Rs 9. As transaction volumes on net and mobile pick up, transaction costs will come down," said Mr C.V.R. Rajendran, General Manager, Corporation Bank.
"Banks should look at giving financial incentives for promoting usage of Internet banking and mobile banking," said Dr Ashok Jhunjhunwala, Professor, IIT-Madras, at the recent FICCI-IBA conference.
"We are planning to offer cash-back incentives to our existing Net banking and mobile banking customers in the next 2 to 3 months. We will also give various incentives on loans to these customers," said Mr M. Narendra, Chairman and Managing Director, Indian Overseas Bank.