After the launch of the mobile app 811, there is a sharp rise in the number of account holders
People are still shying away from approaching banks to get their banking accounts, said a senior official of a private bank. He said that opening account through digital means is an effective way to exponentially increase the number of accounts, that too at minimum cost.
"Still there are a number of reasons why people are not comfortable to go to bank branches. The reasons are different for Public Sector Banks and private banks. However, after we launched our mobile app 811, there is a sharp rise in the number of account holders," said Virat Diwanji, president (retail liabilities and branch banking) at Kotak Mahindra Bank while interacting with media persons in the city on Wednesday.
The bank witnessed a growth of clients from about 8 million in February 2017 to about 14.5 million now and most of them are through this app. While initial authentication is done using Aadhaar number and PAN Number, final authentication is done using biometrics. Over 9,500 accounts are opened every day through the app.
The interaction with a range of customers after their enrolment gave insights that in absence of the app, they would never have opened the account with the bank. To open an account through the app, it is not required to visit a bank branch.
Of the total users of the app, around 90 per cent are in the age bracket of 18-40 years and about 60 per cent of the total users are from the top 20 cities of the country. "The cost of customer acquisition through this mode is just about one fifth or one sixth compared to the traditional method. The ticket size of their deposits is less, but the number of transactions is higher. You can even upgrade them by paying additional charges. After the app, our CASA ratio has also improved," he said.
He also said that the company has adopted artificial intelligence in banking and data generated through consumer behaviour will drastically change the manner in which banks will be serving their customers in the future. However, security is a major concern for citizens and more for banks in the digital space.
MONEY MATTERS
After the launch of the mobile app 811, there is a sharp rise in the number of account holders. Kotak Mahindra Bank witnessed a growth of clients from about 8 million in February 2017 to about 14.5 million now
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