Mobile banking gathering steam in BRIC countries

Despite concerns over privacy and data security, consumers in Bric countries — Brazil, Russia, India and China — are increasingly using mobile phones for personal banking and retail transactions, according to a recent study by KPMG.

In India, 38 per cent of respondents said they have used mobile phones to shop from retailer’s site, while 43 per cent used it for banking transactions (a significant rise over the previous survey, 8 per cent and 3 per cent, respectively).

This is a global trend too. Globally, the percentage of respondents who have used their mobile devices for banking has more than doubled to 46 per cent from 19 per cent just 18 months ago. The percentage of people who have used a mobile phone to buy goods and services has risen from 10 per cent to 28 per cent.

Jehil Thakkar, executive director of KPMG in India, said, “Of those surveyed in India, 5 per cent of respondents conduct banking through a mobile device almost daily, while 10 per cent do so weekly. As many as 43 per cent of those surveyed said they have done banking through a mobile device at some point. This number is insignificant compared with our previous survey that used the data of 2008. These results clearly indicate that Indian consumers are embracing mobile banking rapidly.”

KPMG covered over 5,600 people across 22 countries for its Fourth Consumers & Convergence Report 2010, an annual survey that examines how consumers use technology.

The report found that respondents from Bric nations have demonstrated greater willingness to pay for both online and mobile content, including content such as news and information, compared with G7 or global users. The survey found they would also consider switching internet-service providers for exclusive content.