Enquiry Form


Mobile Banking for the co-operative segment in India

Updated On : May 2016  |  by Amol S. Khanvilkar

Mobile banking users and transactions are growing by leaps and bounds in India. Increasing smartphone adoption and initiatives such as media promotions and customer education programs for mobile banking have led to this uptrend.

The major share of this market belongs to Public Sector Banks (PSB’s) and Private Sector Banks like ICICI Bank, SBI, IDBI, HDFC, AXIs Bank etc.

The major factors for this trend are:-

  • Changing Mind set and Mobile Banking acceptance The younger generation is more open to using the latest technologies. Even the middle aged groups have not started using mobile banking for utility payments and fund transfers.
  • Huge savings in transaction costs for the bank
  • Availability of devices Smartphones are easily available today in the price range of Rs 5000. This kind of availability of devices has increased the user base of mobile banking applications.
  • Security Banks have introduced very secure mobile banking platforms which have added to the confidence of the users.
  • NPCI initiatives.

Co-Operative Banks and Mobile banking

Today though some of the prominent co-operative banks have gone live with their mobile banking applications, much requires to be done with most of the other banks.

Co-operative banks will have fast track their go to market (GTM) strategies regarding mobile banking. PSB’s and private banks who till now had no inroads to the customers segments loyal to co-operative banks have suddenly found a great channel in mobile banking.

The huge spurge in their mobile banking transactions is partly due to these customers who were earlier banking only with co-op banks.

Since RBI has a stringent policy for allowing co-op banks for mobile banking, they may first start with application which gives users credit facility. NPCI already incentives banks by providing them with a small incentive for transactions both for debit and credit transactions.

The banks should take immediate initiatives to make their banking websites smartphone compatible and friendly. Nice to have things like ATM, branch locaters, service charges, EMI calculators, product information, bank events information should be made available to customer. Bank should try innovative solutions like providing a friendly electronic pass book, which can enhance user experience as also obviate the need for providing costly equipment like passbook writers in the branches. They should also examine technology to enhance ease of use like local language interface and bio-metric and voice based security and functionality.

Mobile Banking initiatives should be adopted as the central point of the banks strategy to reduce costs and enhance user experience. Incentives for users can include lower service charges for using facilities.

There is also a danger that if this facility is not provided, customers in the age group of 18 – 30 may not prefer opening accounts or migrate their existing accounts to more mobile savvy banks.

More importantly this will inculcate mobile banking habits in users which will help the banks get ready subscriber base after launching full scale mobile banking applications.

Using its 20 years of experience of working in this segment, Nelito has introduced an attractive technological and right priced solution for cooperative, small and payment banks. All transactions supported by IMPS are available off the shelf.

Different customization requirements for enhanced user experience can be undertaken and deployed quickly.

Nelito provides Mobile Device Management (MDM), which is critical to manage security, scalability, device management, upgrades of solutions and a platform to rapidly build applications.

The banks have therefore a choice to start off with a lower investment and scale to a mobile banking platform as and when they achieve scale and see the real potential of adopting a mobile banking strategy.

You can contact us to know more about of mobile banking services.

You can check Nelito's Solution for Micro Finance here.

Also Read

Leave Comments :


  • CBS

    “The Bank is associated with M/S Nelito since 2002. M/S Nelito Systems Ltd has been our CBS vendor since 2009. The Products, quality of service offered by them are excellent. They have a very good support team and are trained enough for handling any type of situation.”

    D K Kandpal | Vice President (IT)

    Nainital Bank

    “Good & Co-operative.”

    Ronniee Gupta | DGM

    UCO Bank
  • CBS

    “We appreciate your local team who continuously supported & assisted our team to meet the goal.”

    Nagendra Nath Sinha | Principal Secretary IT

    Government of Jharkhand, Ranchi
  • CBS

    Knowledge and service provided to the bank is beyond expectation. And we would definitely engage and recommend solution to others .

    Rachelle F. Rivas | IT Project Manager (Senior Manager)

    Bank of the Philippine Islands (BPI)
  • CBS

    • As Vendor strict adherence to process & procedures
    • Risk Mitigants in Place
    • Flexible to customer requirements

    Dinesh Negi | VP (Clg)

    DCB Bank Ltd
  • Custom Application Development testimonial

    Bank has implemented CBS of Nelito Ltd in the year 2008-09 in phase manner. Also integrated RTGS/NEFT, CTS, MMS etc which help us in smooth automation of banking operation.

    K.T. Wadia | CEO

    The Sutex Co-op bank Ltd
  • CBS

    Experience during development of Rating Engine Module has been good in the context of commitment to meet timelines & lot of hard work has been put by Nelito's team.

    Ashuthsoh Satsangi | VP-Operations

  • CBS

    Everything was successfully implemented and tested. The implementation was professionally done in a very efficient and cooperative manner. Migration was very smooth.

    Frithjof Ramb | Vice President

    SBI- Frankfurt, Germany
  • CBS

    Nelito and its team has always been supportive and efficient in achieving the tasks set up by the Dept. Apps developed by the software engineers for the Public Health Dept have proved to be excellent among the top competitors and have been acclaimed for its effective service delivery to the end user at the grass root level which is the foremost object of any Govt organization. Many thanks for the sincere efforts.

    Sanjay Kamlakar | Under Secretary to GoM

    Govt of Maharashtra
  • DGM

    "We appreciate Nelito team who were always on time and responsive to our needs and changing ideas. They worked efficiently from the project inception to its completion in a timely and professional manner. Their understanding of this space has been invaluable to the success and launch of 'PMAY CLSS' app."

    Susanta K. Padhi | DGM

    National Housing Bank