S. P. Ketkar,
Ravi Shankar
D. K. Banwet


Given that government reckons mobile phone as a vehicle for financial inclusion; banks view it as a cost-effective way of reaching out and telcos see mobile banking as an emerging stream of revenue; several enablers and drivers are at play in India’s m-banking space. At the same time, low adoption of mobiles as a channel for banking, even after two years of the Reserve Bank notifying the operating guidelines, points to existence of several barriers blocking/inhibiting the spread of mobile banking in India. In these circumstances, a method like Interpretive Structural Modeling (ISM), which forces the managers to consider linkages amongst issues, can provide a better insight than the conventional survey merely seeking ranking or rating of the importance of issues. ISM of enablers/drivers brings out the factors such as ‘facility to get quick updates’, ‘time and cost saving’, ‘reach of telecom distribution’ and ‘need for telcos to improve customer retention’ as the key drivers. On the other hand, ‘lack of need for banking’, ‘quality of telecom service reach and reliability’ and ‘interoperability among banks and Telcos’ emerge as the inhibitors likely to have highest impact on success of m-banking implementation. Finally, juxtaposition of the two outputs on a common driver-dependency grid segregates the issues to be addressed in different stages of implementation and also highlights the factors needing attention of the top levels in government, Banks and Telcos.

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Published Date: 

February, 2012

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