State Bank of India’s YONO (You Only Need One) application recorded 2.5 million transactions, up 224% QoQ from 0.77 million transactions in the previous quarter, the company disclosed in its presentation for Q1FY2019. The value of all transactions through the application stood at Rs 9552.12 crores since its launch. While the lender did not disclose the number of registered users for the application, t he bank noted that the app has been downloaded 8.3 million times. Moreover, the bank also claimed that the application was used to open more than 27,000 accounts every day in the quarter ended June, which helped it cross the significant achievement of opening over 1 million saving banks account through YONO. The app had about 0.25 million logins per day in the Q1 FY19. Lastly, the bank also said that it has disbursed over 10,000 pre-approved personal loans worth Rs 66.6 crores.

Through YONO, customers can open an SBI account digitally, transfer funds, avail of pre-approved personal loans without any paperwork and get overdraft facility against fixed deposits. It is important to note that the Bank’s Chairman Rajnish Kumar said that the lender plans to merge the YONO application with the Buddy app, as it will eliminate duplication of features and processes. Kumar also said that the country’s largest lender has set a target to increase the ambitious user base of YONO to 250 million in two years from the current 2.5 million. While the bank has given no further clarification on the matter, we can take from Kumar’s statement that ‘Buddy’ will be absorbed into YONO. SBI launched Buddy, in collaboration with Accenture and Mastercard in August 2015, while YONO was launched in November 2017.

As was the case in the previous quarter, SBI hasn’t disclosed any information about its SBI Buddy wallet.

Alternate channels

Around 82% of total transactions (compared to 80% in the previous quarter and 77% in the same quarter last year) for SBI came through “alternate channels”, which are channels other than the bank branch:
– 21% via Internet banking
– 16% on PoS terminals
– 2% on mobile banking
– 33% on ATM/CDM
– 10% via banking correspondents

UPI

SBI has a unified payments interface (UPI) app called SBI Pay, but the company did not disclose any numbers associated with the app or UPI based transactions. In the previous quarter, SBI Pay had 1.84 million active users.

Mobile banking

Given the stark contrast in the data when compared to the previous quarters, note that either the bank made a mistake in its numbers or the data released is exclusive of the users of SBI Buddy, SBI anywhere applications. MediaNama has reached out to SBI for a clarification, but we haven’t received any communication from the lender at the time of publication. It is therefore advised to take the following data with a pinch of salt.

– The bank reported that it now has 11.72 million users compared to 30.5 million users in the previous quarter.

The bank reported that 2% of all its transactions happen through mobile banking, the same as the corresponding quarter last year.

The lender did not disclose either the number or value of transactions that happened via mobile banking during the quarter.

Net banking

Net banking users stood at 50.87 million at the end of June, up 6% from 47.922 million at the end of March 2018.

The bank reported that 21% of its transactions happen through net banking as compared to the 20% in the corresponding quarter last year.

The lender did not disclose either the number or value of transactions that happened via net banking during the quarter.

Merchant Acceptance

SBI said that it has 2.14 million Merchant Payments Acceptance Touch Points (as compared to 1.964 million in the previous quarter), including:

– 232,191 Bharat QR deployments, up 14.7% from 202,362 at the end of March 2018.

– 623,113 point of sales (PoS) terminals, marginally up 2.19% from 609,789 at the end of the last quarter. The company says it has a market share of 19.05%, down from 20.2% in the previous quarter.

– In addition, SBI is claiming 526,873 BHIM-Aadhaar-SBI Merchant Payments Acceptance touch points, 647,000 of SBI Pay Merchant Acceptance touch points, and 113,000 for BHIM.

At the end of Q4 FY18, SBI reported that it had 496,970 BHIM-Aadhaar-SBI Merchant Payments Acceptance touch points, 558,440 of SBI Pay Merchant Acceptance touch points, and 96,771 for BHIM.

Business Correspondents

The bank said that it has 58,163 Business Correspondent outlets. It did not disclose transactions via Business Correspondents channel. Neither did the lender disclose how many BC outlets it had in the previous quarter.

Debit and Credit Cards

SBI has a leadership position in Debit Card spends with 30.51% Market-share. The bank, however, did not disclose its Credit card spends market share. The bank claimed that it is the second largest credit card company in India with a user base of over 6.5 million.

New services in the digital domain

This week, the bank announced the launch of its Multi Option Payment Acceptance Device, ‘MOPAD’, which will allow customers to make payments through cards, Bharat QR, UPI and SBI Buddy (e-wallet) on a single Point–of–Sale (PoS) terminal. The bank is the largest PoS provider in the country with 6.23 lakh terminals deployed.

Last week, Reliance Jio entered into a MoU with SBI to expand their digital partnership and provide a platform offering digital banking, commerce, and financial services to customers. It has to be noted that Jio and SBI are joint partners in the Jio Payments Bank, with Reliance holding a 70% stake and the public sector lender owning the remaining 30%.

The lender also signed an MoUs with OYO to provide loan to its existing as well as new hotel partners. OYO said that the MoUs are signed under the Pradhan Mantri MUDRA Yojana (PMMY)- a government scheme for providing loans up to Rs 10 lakh to the non-corporate, non-farm small/micro enterprises.

Downloads: Analyst presentation | Press release