Digital has been the talking point in practically every discussion that banks are having today. So how many really ‘walked the talk’? Did the private banks, as expected, takes the cake or do we see a strong play by public sector banks as well? Without much ado, our analysis indicates that SBI & HDFC should share the cake in ‘Large Bank’ Category; IndusInd Bank in ‘Mid Segment’ and Indian Bank in ‘Small Segment’ Category.
Couple of points to note; here the mobile transaction value & volume has been taken as the measure for performance in digital scale while the bank categorization has been based on contribution of the bank to overall mobile transactions.
Large Bank: >= 5% contribution either in Value or Volume of Mobile Transaction
Mid Bank: >= 1% <5% contribution either in Value or Volume of Mobile Transaction
Small Bank: >= 0.5% < 1% contribution either in Value or Volume of Mobile Transaction
The below charts provides a snapshot of the bank’s contribution to total mobile transactions for the year FY1617; both by value & volume.
The mobile transaction data has been sourced & compiled from RBI monthly data ‘Bankwise Volumes in ECS/NEFT/RTGS/Mobile Transactions – Month YYYY’. We have taken only the Mobile transaction data. Do note that we had normalized the monthly data to ’30 days’ of data to facilitate proper comparison across month.
Segment: Large Bank Category
Criterion: >= 5% contribution either in Value or Volume of Mobile Transaction
- HDFC: At 380% growth from April-16 to Mar-17; it ranks 1st in terms of volume growth
- SBI: At 311% growth from April-16 to Mar-17; it ranks 1st in terms of value growth
Average spend per transaction: SBI with INR 24100 & ICICI with INR 18484 are top 2. The high growth coupled with low average spend per transaction may imply that HDFC bank could capture the lower end transactions of customers as well through mobile banking. This will be a good achievement.
The details are in the table below:
Segment: Mid Bank Category
Criterion: >= 1% <5% contribution either in Value or Volume of Mobile Transaction
- IndusInd Bank: Makes the mark both in Value & Volume growth. It also reports the highest spend per transaction in this category at INR 13363.
KMB, BOB, Federal, Canara are other key banks who have seen significant growth in volume & value (BOB, Federal are in < 1% category by value and hence reflected in next chart)
Details: The month wise data shows the growth month-to-month of mobile transactions (either by value or volume) for the individual banks starting from May-16. FY1617:G is the overall growth for the year (Mar-17 vs. April-16), FY1617:C is the %age contribution of the particular bank in FY1617 to total transactions (by value or volume). Fy1617: Txn Avg provides average spend per mobile transaction for the year FY1617 obtained by dividing total value by total volume.
Segment: Small Bank Category
Criterion: >= 0.5% < 1% contribution either in Value or Volume of Mobile Transaction
- KVB & Indian Bank are neck to neck in volume growth
A few other notable ‘notes’:
1. BOI seems to be in reverse gear, provided it has reported its data correctly to RBI
2. IDBI, which is anyway under PCA, also seems to be laggard in mobilizing its mobility
3. Of the mid-large private banks, Yes & Axis bank growth in mobile transaction volumes has been less spectacular. ‘Yes’ though does better in growth of transaction value
4. Also the impact of demonetization can be observed if one notices the growth figures for Nov-16 & Dec-16 (significant growth compared to previous months); followed by tapering off by Jan-17 & Feb-17
RBI monthly data ‘Bankwise Volumes in ECS/NEFT/RTGS/Mobile Transactions – Month YYYY’ sourced from RBI website on 5th June2017
Monthly figures normalized to 30 days (i.e. multiplied by 30/31 for months with 31 days etc)
All calculations done by Randomwalks and any error is regretted. Do share back in case you notice any