Kotak Mahindra Bank’s long-running digital banking initiatives have put the Kotak811 mobile app on top of the banking charts in the country and third globally during the first half of 2025, according to data from Sensor Tower, a leading app analysis platform.
Kotak811 reported a 250 percent growth during the first half of 2025 — the highest growth for any banking app in the world — to register more than 16 million downloads, the Sensor Tower data shows.
Interestingly, the top two apps were neobanking apps – Brazil’s NuBank and the UK’s Revolut – that do not have any traditional banking operations. The State Bank of India’s Yono app was the fourth highest in downloads at 14 million during the first half.
Incidentally, the growth was achieved even as Kotak was under RBI restrictions to onboard new customers to its digital initiatives until February 12. Much of Kotak’s digital banking initiatives and credit card division could not add new customers for most of the last financial year.
A digital-first approach
“Running digital operations in a fundamentally different way than traditional banking has worked for 811,” Jay Kotak, co-head of Kotak811, told Moneycontrol in response to specific queries, adding that it is a full-service banking account.
Kotak 811 has around 2.6 crore savings account customers, who have completed full KYC, which enables them to avail and access all banking facilities similar to a regular offline branch account holder.
According to Kotak, adopting the low-cost airline model of providing zero-balance accounts with paid add-ons like debit cards and cheque books helped the company provide the services profitably.
Similar to airline industry, where a lot of customers do not mind a lower cost by compromising on a preferred aisle or window seat, digital-first customers who rarely use a physical debit card or cheque book can still avail the full banking services without having to keep a large balance in their savings account.
Yono has the largest install base
The Kotak811 app is a full-fledged digital financial marketplace with savings accounts, digital payments (UPI and IMPS), mutual funds, insurance, and credit cards within the Kotak ecosystem.
In India, SBI’s Yono app still leads in terms of overall install base or usage, but the customer base of SBI is almost 10 times that of Kotak Mahindra Bank. SBI has over 50 crore customers, whereas Kotak has only 5 crore customers.
The Yono app is the digital banking platform for SBI, whereas Kotak811 is a neobanking initiative. The bank also has a Kotak Bank app for traditional bank customers. Meanwhile, Yono app’s downloads were also split among Yono Lite, a smaller-sized, simpler app with limited functionality, which is meant for customers using cheaper smartphones.
Expanding digital banking to affluent customers
Launched in 2017, Kotak 811 is one of the oldest digital banking brands and has been expanded to include upper-middle-class as well as rich customers.
Kotak said that it is difficult for competitors to replicate without significant upfront investment and years of digitisation.
“We offer 811 Super for the mass-affluent segment, which already serves over 10 lakh customers. At the same time, we see many very affluent 811 customers naturally gravitate toward our marquee propositions like Solitaire and Kotak Private, reflecting the versatility and aspirational nature of the 811 ecosystem,” Kotak added.
Fintechs Versus Banks
Notwithstanding Kotak811’s early beginning, the Indian consumers have adopted payment apps such as PhonePe, Google Pay and Paytm for financial transactions and payments. Unlike the fintechs, 811 sells offerings manufactured by the bank itself.
To be sure, other than lending, the payment apps have not been able to diversify their financial services business. Since the regulator does not allow neobanks in India to provide full banking services, banks continue to be the only platforms that can offer full-digital banking solutions.
“Being on the banking platform it brings credibility, regulatory stability, and scalability. More than just a payments app, 811 is a full-fledged digital financial marketplace—starting with savings accounts, payments including UPI, mutual funds, insurance, and credit cards within the Kotak ecosystem,” Kotak said.
The rise of digital-first banking
“The ranking reflects a shift toward mobile-first banking in regions where many still lack traditional bank accounts or branch access. This momentum is driven by the convenience and cost savings these apps offer—allowing users to open accounts, transfer money, and pay bills without visiting a branch,” Sensor Tower said in the report.
According to the app data analysis firm, financial inclusion remains a challenge in some of the emerging economy markets like Brazil, India, Mexico and Colombia and the neobanking apps often play a vital role in expanding access to essential banking services for the masses.
The report noted that consumer banking apps have become the new face of financial services with such apps topping 2 billion downloads in the year ending June 2025—a 5.1 percent year-over-year increase. These apps cumulatively see half a billion downloads every quarter.
“Mobile apps are now the go-to platform for financial services, and banking apps are leading the shift. Their dominance reflects a clear user preference for mobile-first experiences. As app-based banking becomes the default for millions, these platforms are setting the pace for digital transformation across the broader financial services industry,” the report noted.
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