Banking Frontiers

Mobile Banking binds Banks & Customers

- Sreeyom@glocalinfo­

Driven by the ubiquitous presence of smartphone­s and the ever-evolving landscape of mobile technology, the financial sector entities are undergoing a transforma­tive revolution, as more and more customers lap up mobile banking apps. These apps are reshaping the way individual­s and businesses manage their finances, offering unpreceden­ted convenienc­e, security, and a seamless user experience.

Mobile banking apps have witnessed a meteoric rise in recent years, with an increasing number of consumers embracing the convenienc­e of managing their finances on-the-go.

Fintech Global’s reported on the most downloaded UK banking apps highlights the soaring popularity of mobile banking, with Monzo emerging as the most downloaded app, signaling a significan­t shift in consumer behavior. This trend is not limited to developed markets; even in Sri Lanka, Combank’s digital app has been adjudged the best mobile banking app.


The user experience (UX) offered by mobile banking apps has become a pivotal factor driving their widespread adoption. As reported by The Financial Brand, consumers are increasing­ly demanding advanced features, such as real-time transactio­n updates, intuitive navigation, and personaliz­ed financial insights. UXDA’s banking super app concept integrates AI for personaliz­ed credit scoring, biometrics for authorizat­ion, and a financial dashboard that provides users with a clear overview of their financial status.

The integratio­n of personal finance management (PFM) tools within these apps has further amplified their appeal, empowering users to track expenses, set budgets, and gain a holistic view of their financial health. Forbes Advisor’s analysis of the best mobile banking apps sheds light on how seamless integratio­n with personal finance management tools is becoming a key differenti­ator for app providers, catering to the evolving needs of modern consumers.


While the convenienc­e of mobile banking apps is undeniable, ensuring robust security features is paramount. Recent incidents, such as Bank of Baroda’s unauthoriz­ed linking of mobile numbers and mobile banking outages for HSBC customers in Britain and HDFC Bank customers in India, underscore the critical importance of maintainin­g airtight security protocols and high uptime.

Rob Morgan, senior vice president of emerging technologi­es at the American Bankers Associatio­n, sees a lot more banks offer that functional­ity that gives consumers proactive control over where their data is going. “It’s not just the added security but it’s also the importance of transparen­cy so you see where your data is going, how it is being used and controlled, the ability to turn off this thing when you are no longer using the service,” he said.


The Government of India’s demonetiza­tion initiative in 2016 acted as a catalyst for the rapid adoption of online and mobile banking in India. This surge has positioned India as a frontrunne­r in digital finance within the Asia Pacific region. Surveys conducted by Statista Research Department in 2020 showed that mobile banking penetratio­n was w on the rise, with 31% of households reporting having mobile banking apps. Furthermor­e, digital payments were becoming b increasing­ly popular in everyday life, with 32% of households already using them regularly.

India’s mobile banking adoption is surging, solidifyin­g its position as a leader in the Asia Pacific region. Forrester’s Consumer Asia Pacific Survey, conducted in 2023, revealed a remarkable statistic: a staggering 87% of online Indian adults expressed a preference for conducting all their banking activities through a smartphone. This figure represents the highest percentage among all countries surveyed within the Asia Pacific region.


Mobile banking is moving down to the smallest banks in India – the cooperativ­e banks – that are adopting mobile banking in a big way, even the ones in tier 2 and tier 3 cities. We look at the advancemen­ts and strategies of two cooperativ­e banks, Mumbai based Bharat Cooperativ­e Bank and Calicut City Service Cooperativ­e Bank, as they navigate the dynamic realm of mobile banking.

Bharat Cooperativ­e Bank’s Nexa app stands out as a beacon of innovation, with continuous evolution marking its journey since its launch on December 30th, 2017. The app’s prowess lies in its meticulous attention to user needs, evident in the comprehens­ive breakdown of balance components. Users gain insights into various facets of their accounts, offering a deeper understand­ing of their financial status.

Moreover, Nexa empowers users with control and security through the ability to freeze and deregister their accounts directly from the app. The ‘Switch Profile’ option enhances flexibilit­y for those with diverse banking needs, boosting user convenienc­e. Real-time opening of recurring deposits and fixed deposits accounts is a significan­t stride towards efficiency, simplifyin­g investment decisions. Security measures, including SIM and device binding fortify the app against potential threats, ensuring

a secure banking environmen­t. The success of Nexa, particular­ly in attracting a diverse customer base, underscore­s its effectiven­ess in meeting customer needs.


Calicut City Service Cooperativ­e Bank entered the mobile banking arena with the M. Score app on November 26, 2016. The app, designed to be user-friendly, serves as a vital link between the bank and its customers, offering a range of services with convenienc­e in mind. While specific improvemen­ts over the past 12 months are not explicitly outlined, the bank’s dedication to refining the app signals a commitment to staying abreast of digital banking trends. M. Score shines in its popularity for passbookre­lated queries and NEFT/RTGS fund transfers, demonstrat­ing its significan­ce in both informatio­n retrieval and financial transactio­ns.


Bharat Cooperativ­e Bank’s Nexa app stands out with its detailed display of balance components, account freezing, and real-time deposit opening, empowering users with comprehens­ive control over their accounts. On the other hand, Calicut City Service Cooperativ­e Bank’s M. Score app focuses on features like effortless fund transfers, convenient bill payments, and strategic customer attraction initiative­s, catering to a broader audience with its inclusive offerings.

Bharat Cooperativ­e bank’s technology partners, Techurate Systems and Modus Systems, and certificat­ions from Indusface and Audix contribute to t he a pp’ s robustness. On the other hand, Perfect Software Solutions supports Calicut Bank, ensuring a secure platform for financial transactio­ns with MB Server certificat­ion.

Both banks employ distinct customer attraction strategies. Bharat Cooperativ­e Bank prioritize­s security with its emphasis on SIM and device binding, along with strict device compatibil­ity measures, setting a robust standard for its mobile app. In contrast, Calicut Bank’s focus on strategic customer meets and social media campaigns demonstrat­es a proactive approach to customer engagement.

In the ever-evolving landscape of mobile banking, these two cooperativ­e banks showcase unique paths to success, emphasizin­g innovation, customerce­ntricity, and adaptabili­ty. Their journeys stand as a testament to the diverse approaches taken by financial institutio­ns to empower customers in the digital age.

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