The new stat published by NRB showed a somewhat optimistic stat for “Digital Nepal”. Banking Penetration has reached 60% and a whopping 8.3 million are now subscribed to mobile banking.

But does this reflect the real scenario?

NO!

Considering the mobile app download data of Android and iOS barely 23% of 8.3million are using mobile banking. The mobile banking apps have been download 1.2million times via Google Play store. Apple AppStore data were not public. Based on the market share of Apple/iOS and optimistic assumption, lets say iOS user add 800000 mobile banking user. Even adding those numbers, total installation is barely 2million i.e 23%. Customer churn isn’t even considered in this assumption. (stats — https://justpaste.me/WgzX)

Even using the optimistic assumption, download counter shows that only 23% have downloaded app. If real data and engagement data from bank is to be taken, the number is much likely to fall.

It clearly shows majority are still not active user. For many, mobile banking is service that send transaction alert via SMS. Probably, many are not even aware that they are subscribed.

While the customer acquisition of 8.3 might put a big grin in our face, the engagement is abysmal. The adoption of mobile banking hasn’t really taken off!

How did this happened?

For majority of customers,

1. Transaction Alert = Mobile Banking.

They unknowingly subscribe to mobile banking mistaking it for “transaction alert”.

2. Auto activation

Almost all banks in Nepal practice this. SMS Alert or Mobile Banking is automatically activated by sending SMS.

While this might boost income for the banks is short time and there there will be increase in non-interest income, the low activity means people will still visit branch and banks are much likely not to realize the operation efficiency.