21 Ways to Boost Mobile Banking in India through *99#

          We are witnessing a silent revolution amongst our country folks. The belief that LessCash Transactions are beneficial to the economy is growing.

          We are ready to experiment with Digital Transaction tools, as long as they are Safe and the charges are reasonable.

          In the last few years, there have been numerous efforts by the stakeholders to promote Digital Banking channels.

          One such channel is NPCI’s *99# Channel.

          The FAQs at the NPCI site encourage bank’s customers to migrate to LessCash transactions from Cash transactions.

Q: What is Mobile Banking?

Ans: Mobile banking refers to the use of a smartphone or other cellular device to perform online banking tasks while away from your home computer, such as monitoring account balances, transferring funds between accounts, bill payment and locating an ATM.

Mobile Banking generally requires a Smartphone and Net connectivity. The other option is SMS Based mobile banking.

EG: ICICI  Bank SMS Banking

Kotak Mahindra Bank – Bharat Banking APP

Union Bank SMS Banking

          The data on number/type  of 

transactions is not published by any Bank. Hence, it is difficult to judge the success/failure of SMS based banking.

          Over a period of time, Financial institutions explored USSD sessions for financial transactions.

          Q: What is USSD?

          Ans: USSD (Unstructured Supplementary Service Data) is a Global System for Mobile(GSM) communication technology that is used to send text between a mobile phone and an application program in the network. Applications may include prepaid roaming or mobile chatting.

          Read this to know more about “What’s the difference between USSD, MMI and SS codes?”

The most popular usage of USSD is to access the mobile balance. Each operator has his/her own USSD codes to access its services.

This Google search quotes ‘ussd codes for telecom companies in india’, provides the list of USSD codes of different telecom companies in India.

Types of USSD - There are two types of options:

Push - Network pushed USSD service in which the network (MSC, VLR and / or HLR) sends the USSD message toward mobile subscriber.

Pull - Mobile Subscriber requested USSD with user sending a USSD message towards the Gateway. i.e. using USSD Short Codes. e.g. *100

          The only drawback of USSD is that it is ‘Flash Memory ‘type, this means after the session is over, no data is stored on the mobile.

         

USSD in Financial Sector: These articles explore the various facets of USSD in financial sector.

Always Active Mobile – USSD Push

What is USSD & Why Does it Matter for Mobile Financial Services?

USSD in Indian Financial Sector: - In India Banks started to use the USSD option, only after NPCI unveiled its NUUP service. Through  the NPCI NUUP service, banks could immediately launch the services, without the need to enter into individual agreements with each telecom company. NPCI through the aggregator model has taken care of this aspect.

SWOT Analysis of the present *99# NPCI Service

Strengths a) An App to mimic the *99# commands b) Proactive Implementation Team c) The basic framework has been developed by NPCI and is in place. Banks need not individually negotiate with Telcos on commercials or service level agreements.	Weakness a) Charges levied by Telcos b) Service not available for Corporate Phone Connections c) Dependence on Telcos to complete the transaction cycle
Opportunities a) Huge growing market b) As minimal recurring costs are involved, banks can popularise the *99# mobile banking channel c) *99# services can be accessed from  any part of the world, without any additional costs viz roaming etc	Threat a) No audit trial of requests raised b) High transaction charges c) Transaction charges for incomplete  sessions too

21 ways to popularise *99# services in India

The 21 ways are broadly divided into 4 contributors:-

Contributor 1) Regulatory -- Way 1 TO Way 5

Way 01) ::  Free Transactions  - 15 per month per bank account. Charge per 16^th transaction, not to exceed INR1

Way 02) :: Telecom companies to be reimbursed for the free transactions from the USOF Fund

Way 03) :: Fix upper limit per transaction, per day

Way 04) :: Establishment of Awards for promoting *99# service

Way 05) :: Publish Real time MIS like eTAAL

Contributor 2) Banks --  Way 6 TO Way 10

Way 06) ::  Launch Lite APPS for *99# services

Way 07) ::  Promote the ‘App’, through its branches and on-field staff

Way 08) ::  Setup dedicated Help Lines atleast for the initial couple of years, till the stabilisation of *99# services

Way 09) :: Explore ways and means to introduce more value added services to *99# portfolio

Way 10) ::  Encourage Peers viz Regional Rural Banks, Urban Cooperative Banks to launch Apps to promote *99# transactions

Contributor 3) Telecom Companies -- Way 11 TO Way 15

Way 11) :: Popularise *99# facilities on all their communication channels

Way 12) :: Assist bank customers who visit their physical touch-points to install the *99# App and guide them in the initial setup

Way 13) ::  Do not be greedy for transaction charges

Way 14) :: Launch similar Apps for their own USSD messages

Way 15) :: Create a win-win situation for its own customers and banking sector customers to adopt LessCash tools

Contributor 4) Customers -- Way 16 TO Way 21

Way 16) :: Use judiciously the limit of 15 free transactions

Way 17) ::  Double check the relevant data, before you execute a financial transaction

Way 18) :: Do not share your PIN with any one. Do not trust anyone except yourself

Way 19) :: Do not be greedy, and fall into quick money traps

Way 20) :: Spread the Joy of Safe Digital Transactions to your peers

Way 21) :: Give feedback to Regulators, Telcom Companies and Banks on ways and means to increase the transactions under *99# channel.

Q) What is USOF?

Ans: As per the Indian Telegraph Act 1885 (as amended in 2003 and 2006), Universal Service Obligation is defined as access to telegraph service to people in rural and remote areas at affordable and reasonable prices.

The USO Fund was formed through a Universal Access Levy of five% of the revenue earned by the operators under various licences.

The fund aims to boost connectivity in the rural areas.

Read this Article to know the immense possibilities of USOF -

FinMin conservative in allocation under USOF: Telecom Secretary J S Deepak

The following two Graphs (Source USOF website), highlight the resources and tools available with USOF.

Q) What is eTAAL?

Ans: eTaal is a web portal for dissemination of e-Transactions statistics of National and State level e-Governance Projects including Mission Mode Projects.

It receives transaction statistics from web based applications periodically on near real time basis.

As on 15^th August 2016, 3,070 eServices have been integrated to the eTAAL Portal.

Read this Press Release to understand the wonders of eTAAL

The economics of financial *99# transactions through ‘Universal Service Obligation Fund’

15 lacs *99# sessions per month through 5 lacs users. No user has exceeded the free limits i.e crossed 15 sessions.

Pay out from USOF at INR1.50 per session = INR7,50,000.

Is it not worth???