India to lead the way in mobile banking revolution

by Gill Montia

Story link: India to lead the way in mobile banking revolution

Mobile banking is having a transformative effect in both developed and emerging economies, according to Richard Johnson, group strategy director of payments service provider, Monitise plc.

Mr Johnson is therefore urging banks, payments networks and mobile network operators to come together to revolutionise the way people manage their money worldwide.

Addressing banking and telecoms leaders in Mumbai, he outlined a vision of a world in which mobile phone users can turn their handsets into a “mobile wallet” topped up with cash and ready to make wireless money transfers in seconds.

Mr Johnson added: “Whether it is a consumer with multiple bank accounts who needs to stay in constant touch with their balance, or a mobile phone user who has never been in a bank or has no previous financial relationship, it is clear that India, steered by the progressive approach of the Reserve Bank, can lead the way in providing mobile financial access.”

Monitise has recently launched an Indian joint venture with Visa aimed at accelerating delivery of mobile financial services in the country, and is also working along the same lines with Standard Chartered.

In related news, a recent study by ABI Research suggests that by 2015 around 407 million people worldwide will carry out financial transactions using their mobile phones.

The market analyst expects the Asia-Pacific region to lead the way, having already accounted for the lion’s share of the world’s 52.2 million mobile banking subscribers in 2009.