State Bank of India (SBI) plans to significantly boost its mobile banking services, aiming to grow its customer base from 9.4 crore to 20 crore over the next two years. The initiative includes the launch of Yono 2.0, a revamped digital platform designed for a seamless banking experience. SBI Chairman C S Setty unveiled that the bank will strengthen its in-branch digital support by increasing its floor manager network to 10,000 by March. This move ensures that customers receive assistance as they transition to digital banking.
Revamped Digital Banking Experience
The new Yono 2.0 is a complete overhaul of SBI’s internet banking system, now known as Yono Net Banking. Setty stressed that the redesign aims to create a cohesive customer experience across all platforms. Customers starting their banking journey on mobile or internet banking can seamlessly continue in a physical branch when necessary. This integration is vital for enhancing customer satisfaction and facilitating a smooth transition between digital and traditional banking services.
Currently, SBI boasts nearly 10 crore users on its mobile app, with an even larger base using internet banking. The bank intends to double its mobile banking users in the next two years, emphasizing scalability and customer convenience. Setty revealed that around 3.5 crore existing internet banking users have already migrated to the new Yono Net Banking interface, receiving favorable feedback for its user-friendly design.
Expanding Digital Support
To support the shift to digital banking, SBI is ramping up the number of floor managers from approximately 3,500 to 10,000. These managers will help customers navigate new digital channels while still offering support for traditional banking services. This “phygital” approach reflects SBI’s commitment to maintaining a physical presence while prioritizing digital solutions. Setty noted that the cost associated with customer acquisition through digital onboarding is significantly lower than that of traditional branch methods, making this strategy economically viable.
SBI’s digital strategy, termed “Yono-isation,” is focused on simplifying customer journeys across all banking services. Although monetization of these services is not an immediate objective, the bank is targeting a younger demographic, with one-third of its customer base under the age of 30. Currently, SBI opens about 70,000 new accounts each day, with a goal for 90% of these to be created via the mobile application.
Future Developments and Security Measures
SBI is progressing with plans for Yono 3.0, where simplification will be a key design principle. Setty indicated that the upcoming version will directly compete with third-party UPI applications, as improvements in payment features are highly desired by customers. The UPI stack has been entirely redesigned to enhance functionality and user experience.
Security remains a top priority for SBI, adhering to a “security-by-design” framework. Customers will have direct control over their transaction limits and usage settings, ensuring a secure banking environment. Setty mentioned that 60-70% of transactions are monitored in real-time, adding an extra layer of security for users.
Yono 2.0 will be rolled out as an app upgrade in phases, with most Android users expected to transition within the next two weeks. Since its launch in 2017, Yono has become integral to SBI’s digital operations, managing 93% of customer-initiated payments digitally and achieving cumulative digital lending exceeding Rs 2 lakh crore. Setty concluded by stating that Yono is more than just a banking platform; it functions as a digital operating system that aligns with SBI’s Vision 2030.
Digihunt is not a financial advisor and this is not investment advice.