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India leads Asian nations in mobile and internet usage for banking: McKinsey

According to a report by global management consultancy
McKinsey & Company, India leads growth among Asian nations in mobile and internet
usage for banking with around 7 per cent of account holders in the country using
internet for banking transactions. The percentage of online users of banking
transactions was just about 1 per cent in the agency’s 2007 survey. Branch
banking has fallen by a full 15 per cent between 2007 and 2011.

According to a report by global management consultancy
McKinsey & Company, India leads growth among Asian nations in mobile and internet
usage for banking with around 7 per cent of account holders in the country using
internet for banking transactions. The percentage of online users of banking
transactions was just about 1 per cent in the agency’s 2007 survey. Branch
banking has fallen by a full 15 per cent between 2007 and 2011.

The survey is the result of one-on-ones with nearly 20,000
Asians covering the mass, mass-affluent and the affluent consumers across 13
markets, of which the largest survey pool was from India at 5,000 because of
the sheer diversity of this market. The survey is based on the number of times
in a week respondents visited bank branches or used Internet for carrying out
transactions.

“Use of internet for banking has seen a massive rise in
the 2010-2011 survey, taking the overall number of bank consumers who use the internet
to close 7 per cent of the total bank account holders, recording a seven-fold
jump since 2007. Branch banking has come down by a full 15 per cent during the
same period,” Renny Thomas, partner and head, retail banking services, McKinsey
& Company India has said.

In 2007, the number of times Indian respondents
visited bank branch for doing transactions was 0.58 while the same in 2011 was
0.49, showing a fall of 15 per cent. Branch usage has dropped by 27 per cent on
an average across Asia between 2007 and 2011, while usage of the internet and
mobile banking have increased by 28 per cent and 83 per cent, respectively,
says the survey, which was also conducted across the Asia-Pacific region.

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