Will Kotak’s 811 app trigger a migration in banking industry?

Kotak Mahindra Bank yesterday launched it’s 811 mobile application with an aim to double its customer base, which will provide a zero balance account facility. The move is expected to see some migration in banking industry as customers prefer zero balance accounts.

This move came at a time when HDFC and SBI have increased several charges and minimum balance requirements. Providing easier way to account opening with just Aadhaar card number and PAN card number will also reduce their operational costs.

811 plan will also offer 6% interest on deposits above Rs 1 lakh and 5.5% interest rate up to Rs 1 lakh, which is still more than its closest peers. This will definitely trigger migration in banking industry as customers will prefer zero balance accounts over any other minimum balance savings account.

In addition, the plan also offers other features of a UPI payment system for easy payments, e-commerce options for shopping, booking movie tickets, etc. The main aim of this digital initiative is to double its customer base to 16 million in just 18 months, which will provide it with a competitive edge amongst its industry peers.

Stock of Kotak Mahindra Bank is trading positive, up by 0.77 per cent at Rs 866.52.