Disruption in Banking in Emerging Market Economy: An Empirical Study of India
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Published
Dec 25, 2017
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Abstract
The present study was taken up to capture the ongoing disruptions in banking in the Indian economy. The objective of this research was to: (1) study the initiatives taken by Reserve Bank of India to stimulate the payment market, (2) explore the disruptions in the Indian payment space, (3) examine the digitization at banks in India and (4) identify the challenges faced by traditional Indian banks and (5) propose measures to cope with threats posed by non-bank players. The study found that as technology companies and other non-bank players have successfully penetrated into large customer segments by offering basic banking services, to the customers at their doorsteps and at
their convenience; it is obligatory for the traditional banks to expand market outreach and enrich service quality via digital podia, strategic alliances and disruptive innovations, in case they wish to avoid the risk of being relegated to back-office utilities.
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How to Cite
AGRAWAL, Reena.
Disruption in Banking in Emerging Market Economy: An Empirical Study of India.
Economic Analysis, [S.l.], v. 50, n. 3-4, p. 20-31, dec. 2017.
ISSN 2560-3949.
Available at: <http://www.library.ien.bg.ac.rs/index.php/ea/article/view/551>. Date accessed: 25 may 2018.
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Articles
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Unbanked with Mobile Money Services”. Alcatel Lucent. pp. 1-3
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DÈveloppement Economiques Organisation for Economic Co-operation and Development.
April 2006: pp. 1-56.
Okereocha, C., 2010. “The Broadband Revolution”. Broad Street Journal, 29 (47): pp. 46-54.
PWC. 2015. “Disrupting cash- Accelerating electronic payments in India”. A Report by PWC,
IAMAI, PCI, October 2015: pp. 1-12.
PWC & ASSOCHAM. 2015. “Logging into digital banking creating access, transforming lives”. A
Report by PWC, ASSOCHAM, April 2015: pp. 1-32.
RNCOS. 2015. “Indian Mobile Wallet Market Outlook 2020”, a Report by RNCOS, November
2015.
Srivastava, Lara. 2008. “The Mobile makes its mark”. In Katz, James E., Handbook of mobile
communication studies. Cambridge, Massachusetts: The MIT Press: pp. 15 – 27.
Ssewanyana Joseph Kasumba. 2007. “ICT access and poverty in Uganda”. International Journal
of Computing and ICT Research, 1(2): pp. 10-19.
The Economist. 2012. “Mobile Money in Africa - Press 1 for modernity: One business where the
poorest continent is miles ahead”. http://www.economist.com/node/21553510. Retrieved on
April 20, 2016).
Development Bank.
Bold, Chris, Porteous, David, and Rotman, Sarah. 2012. “Social cash transfers and financial
inclusion: Evidence from four countries”. Consultative Group for Assisting the Poor (CGAP),
February 2012: pp. 1-20.
Business Week. 2007. “Upwardly mobile in Africa”.
http://www.bloomberg.com/news/articles/2007-09-23/upwardly-mobile-in-africa
(Retrieved on May 1, 2016).
Butler, Rhett. 2005. “Cell phones may help save Africa”.
https://news.mongabay.com/2005/07/cell-phones-may-help-save-africa/ (Retrieved on May
2, 2016).
CII & PWC. 2015. “Banks taking a quantum leap through digital”. A Report by CII & PWC, April
2015: pp. 1-20.
Collins, Daryl, Morduch, Jonathan, Rutherford, Stuart, & Ruthven, Orlanda. 2009.
“Portfolios of the Poor: How the World's Poor Live on $2 a Day”. Princeton University Press.
Davidson, Neil, and Pénicaud, Claire. 2012. “State of the Industry: Results from the 2011 Global
Mobile Money Adoption Survey”. GSMA, London.
Desai Seema. 2012. “Mobile money for the unbanked”. GSM (Annual Report 2012) accessed
from http://www.gsma.com/mobilefordevepment/wpcontent/upload s/2012/10/ 2012.
Donovan, Kevin. 2012. “Private sector development: What’s next for mobile money?”
http://blogs.worldbank.org/psd/what-s-next-for-mobile-money-0. (Retrieved on May 2,
2016).
Ehrbeck Tilman, Mark Pickens, Michael Tarazi. 2012. “Financially Inclusive Ecosystems: The
roles of government today”. CGAP, February 2012: pp. 1-11.
Elijah, Obayelu A., and Ogunlade, I. 2006. “Analysis of the uses of information and
communication technology for gender empowerment and sustainable poverty alleviation in
Nigeria”. International Journal of Education and Development using Information and
Communication Technology (IJEDICT), 2(3): 45-69.
eMarketer. 2014. “2 Billion Consumers Worldwide to Get Smart (phones) by 2016”. Retrieved
from http://www.emarketer.com.
Etim, Alice S. 2012. “The emerging market of Sub-Saharan Africa and technology adoption:
Features users` desire in mobile phones”. International Journal of ICT Research and
Development in Africa. 3(1): pp. 14-16.
Etim, Alice S. 2011. “Bottom-up business development: Empowering low income societies
through microfinance and mobile technologies”. International Journal of Humanities & Social
Sciences, 1(13): pp. 1-11.
Gooptu, Biswarup. 2015. “Snapdeal and HDFC Bank tie up to launch co-branded credit card”.
http://articles.economictimes.indiatimes.com/2015-08-03/news/65165461_1_card-kunalbahl-
parag-rao. (Retrieved on April 8, 2016).
GSMA. 2015. “The Mobile Economy India 2015”.A report by GSMA Intelligence. pp. 1-56.
Holmes, G. 2011. “Card and mobile payment opportunities: A framework to consider potential
winners and losers and a snapshot of the future payments landscape in Africa”. Journal of
Payments Strategy and Systems, 5(2): pp. 134-142.
Hughes Nick and Lonie Susie. 2007. “M-PESA: Mobile money for the “Unbanked” and turning
cellphones into 24-Hour tellers in Kenya”. Innovations, 2(2): pp. 63-81.
Hughes, Jon and Youra, Betha. 2014. “The Financial and Emotional Benefits of Fully Engaged
Bank Customers”. http://www.gallup.com/opinion/gallup/173255/financial-emotionalbenefits-
fully-engaged-bank-customers.aspx. (Retrieved on April 9, 2016).
ICICI Bank. http://www.icicibank.com/online-services/money-manager/about-moneymanager.
page (Retrieved on April 20, 2016).
IAMAI. 2015. “Mobile Internet Users to reach 213 million by June 2015”.
http://articles.economictimes.indiatimes.com/2015-01-15/news/58108803_1_urban-indiamobile-
internet-june-2015. (Retrieved on April 29, 2016).
IndusInd Bank. www.indusind.com/content/home/personal-banking/paymentservice/
services/video-branch.html (Retrieved on April 20, 2016).
William Jack and Suri Tanveet. 2010. “The economics of M-PESA”. pp. 1-20.
http://www.mit.edu/~tavneet/M-PESA.pdf. (Retrieved on April 28, 2016).
Jenkins, Beth. (2008). “Developing mobile money ecosystems”. International Finance
Corporation, World Bank and Harvard Kennedy School of Government. pp. 1-36
KPMG. 2016. “Digital Banking- banking on the go”. A Report by KPMG, Feb. 2016: pp. 1-28.
Martinez Meritxell, Claudia Mc Kay. 2011. “Emerging lessons of public funders in branchless
banking”. CGAP, 72: pp. 1-13.
MXV. 2015. “Fintech India Genesis”. A Report by MXV Consulting, July 2015: pp. 1-21.
MyUniverse www.myuniverse.co.in/home.aspx (Retrieved on April 20, 2016).
Newman, Jared. 2012. “Wallet, Wallet everywhere: Making sense of the mobile payment wars”.
http://techland.time.com/2012/05/11/mobile-payment-wars/. (Retrieved on April 28,
2016).
Noz, Amanda, Azzi, Jessica, & Coppens, Toon. 2010. “Bringing financial services to the
Unbanked with Mobile Money Services”. Alcatel Lucent. pp. 1-3
OECD (2006). “Online payment systems for e-Commerce”. Organisation de CoopÈration et. de
DÈveloppement Economiques Organisation for Economic Co-operation and Development.
April 2006: pp. 1-56.
Okereocha, C., 2010. “The Broadband Revolution”. Broad Street Journal, 29 (47): pp. 46-54.
PWC. 2015. “Disrupting cash- Accelerating electronic payments in India”. A Report by PWC,
IAMAI, PCI, October 2015: pp. 1-12.
PWC & ASSOCHAM. 2015. “Logging into digital banking creating access, transforming lives”. A
Report by PWC, ASSOCHAM, April 2015: pp. 1-32.
RNCOS. 2015. “Indian Mobile Wallet Market Outlook 2020”, a Report by RNCOS, November
2015.
Srivastava, Lara. 2008. “The Mobile makes its mark”. In Katz, James E., Handbook of mobile
communication studies. Cambridge, Massachusetts: The MIT Press: pp. 15 – 27.
Ssewanyana Joseph Kasumba. 2007. “ICT access and poverty in Uganda”. International Journal
of Computing and ICT Research, 1(2): pp. 10-19.
The Economist. 2012. “Mobile Money in Africa - Press 1 for modernity: One business where the
poorest continent is miles ahead”. http://www.economist.com/node/21553510. Retrieved on
April 20, 2016).