MOBILE BANKING

UNIVERSITY OF MUMBAI

LALA LAJPATRAI COLLEGE OF COMMERCE OF ECONOMICS

MAHALAXMI, MUMBAI:-400034
TEL NO: - 24928240/41

A PROJECT ON:(MOBILE BANKING)

SUBMITTED BY:Mr. PANKAJSINGH YADAV

1011355

PROJECT GUIDE:Mrs. VAIDEHI KAMATH

BACHELOR OF COMMERCE (BANKING & INSURANCE)

SEMESTER 5th
ACADEMIC YEAR
2012-2013

PLACE: MUMBAI

SIGNATURE

DATE :

(VAIDEHI KAMATH)
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MOBILE BANKING

ACKNOWLEDGEMENT

With a great pleasure, I express my gratitude to Prof. VAIDEHI KAMATH of

Lala Lajpat Rai College of Commerce & Economics, and I am very thankful
to her for being my inspiration in the completion of my project. She gave me
her precious time and valuable advice for this project.

I am thankful to the librarians who gave me full support with the available
sources.

I am thankful to my parents and friends who supported me throughout the

project.

MOBILE BANKING

DECLARATION

I, Mr. Pankajsingh Yadav, Roll no 1011355, student of Lala Lajpat Rai

College of Commerce & Economics, T.Y.B.B.I(5 th Semester) hereby declare
that I have completed this project on MOBILE BANKING in the academic
year 2012-2013. This project submitted is true and original copy to the best of
my knowledge.

MOBILE BANKING

CERTIFICATE

I, Prof. Vaidehi Kamath of Lala Lajpat Rai College Of Commerce

And Economics, hereby certify that Mr. Pankajsingh Yadav, student of
T.Y.B.B.I (5th Semester) have completed his project on MOBILE
BANKING in the Academic Year 2012-2013.

This project submitted is true and original copy to the best of my

knowledge.

SIGNATURE
(Vaidehi Kamath)

INDEX

MOBILE BANKING

Sr. No

TOPICS

Introduction to Mobile Banking

Models of Mobile Banking

A Boon for Unbanked

Mobile Banking in India

A Boon for Rural India

Norms Drawn up for Mobile Banking by RBI

Mobile Banking Payment System & Technology in India

Challenges for Mobile Banking solution

Revolution for Mobile Phones in Banking Services

10

Customer Survey & Report

11

Interview Analysis

12

Conclusion

MOBILE BANKING

MOBILE BANKING
BRIEF HISTORY
The first mobile banking and payment initiatives were announced during 1999
(the same year that Fundamo deployed their first prototype). The first major
deployment was made by a company called Paybox (largely supported
financially by Deutsche Bank). The company was founded by two young
Germans Mathias Entemann and Eckart Ortwein and successfully deployed the
solution in Germany, Austria, Sweden, Spain and the UK.

Israel produced a large number of mobile payment start-ups. People have

expectations that technological innovation is seen first in the developed
markets; countries like Japan, Korea and the US are usually the first to
showcase new breakthrough in computer or mobile technologies but one of the
first countries to adopt the technology is not one of those mentioned above, but
Kenya, on the continent of Africa.
The more time a customer spends transacting with a bank, the more loyal that
customer is. In the hyper competitive banking industry, where companies are
mercy less in their attempts to lure customers away from competitors, mobile
banking feels a little like an arms race.

INTRODUCTION
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MOBILE BANKING

The account that travels with you. This is needed in today's fast business
environment with unending deadlines for fulfillment and loads of appointments
to meet and meetings to attend. With mobile banking facilities, one can bank
from anywhere, at anytime and in any condition or anyhow.

Mobile Banking is a fusion of mobile technology and financial services.

Mobile Banking is the hottest area of development in the banking sector and is
expected to replace the credit/debit card system in future. In past two years,
mobile banking users have increased three times if we compare the use of either
debit card or credit card. Moreover 85-90% mobile users do not own credit
cards.
Mobile banking uses the same infrastructure like the ATM solution. In countries
like Korea, two SIM Card is used in mobile phones. One for the telephonic
purpose and the other for banking. Bank account data is encrypted on a smartcard chip. About 3.3 million transactions were reported by Bank of Korea in
2004.

A MOBILE BANKING CONCEPTUAL MODEL

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MOBILE BANKING

In one academic model, Mobile banking is defined as:

"Mobile Banking refers to provision and availment of banking and financial
services with the help of mobile telecommunication devices. The scope of
offered services may include facilities to conduct bank and stock market
transactions, to administer accounts and to access customized information."
According to this model Mobile Banking can be said to consist of three interrelated concepts:
Mobile Accounting
Mobile Brokerage
Mobile Financial Information Services
Most services in the categories designated Accounting and Brokerage are
transaction-based. The non-transaction-based services of an informational
nature are however essential for conducting transactions for instance, balance
enquiries might be needed before committing a money remittance. The
accounting and brokerage services are therefore offered invariably in
combination with information services. Information services, on the other hand,
may be offered as an independent module.

MOBILE BANKING CONCEPT

MOBILE BANKING

The lifespan of all good ideas can be broken into five phases: concept,
prototype, pilot, pre-production, commercial deployment. Few ideas ever
reach the stage of commercial deployment, because they are just not viable, or
have been ill conceived or badly deployed. For some or other reason, mobile
banking has been over saturated with concepts and to some degree with
prototypes.
The reality is that very few of these ever progress past the rudimentary
prototype stage. And it is actually quite easy to demonstrate simple mobile
banking functionality in a prototype environment. These are sometimes
addressed in the few prototypes that migrate to pilot.
A pilot usually consists of a few hundred, maybe thousands of subscribers
performing transactions in a controlled environment with limited functionality.
Even if pilots work, they often don't address important aspects like scalability
and system responses to unpredicted actions or break downs. What happens in
the case of transactions that have been lost and how does the system respond to
situations where a component is not available. Important legal aspects are also
often not addressed yet at this stage. Pilots seldom uncover the real system
challenges and at best highlights key elements regarding user experience.
During the pre-production stage business processes and system reliability and
robustness should be attended to. Many different business processes are
required if a system is to be deployed in a production environment. This should
include registration, dispute resolutions, service activation to name only a few.
What looked easy during pilot now turns out to be a nightmare of realities.
It is only when a solution is deployed commercially those they most important
element of any idea is tested.
Mobile banking can offer services such as the following:

MOBILE BANKING

Account Information
Mini-statements and checking of account history
Monitoring of term deposits & Access to loan statements
Mutual funds / equity statements
Insurance policy management
Pension plan management

Payments & Transfers

Domestic and international fund transfers
Bill payment processing &Mobile recharging
Commercial payment processing

Investments
Portfolio management services
Personalized alerts and notifications on security prices

Support
Cheque book and card requests & ATM Location
Exchange of data messages and email, including complaint submission and
tracking.

MOBILE BANKING BUSINESS MODELS

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MOBILE BANKING

A wide spectrum of Mobile/branchless banking models is evolving. Who will

establish the relationship to the end customer, the Bank or the NonBank/Telecommunication Company (Telco)? Another difference lies in the
nature of agency agreement between bank and the Non-Bank.

Bank-focused model
The bank-focused model emerges when a traditional bank uses non-traditional
low-cost delivery channels to provide banking services to its existing customers.
Examples range from use of ATMs to internet banking or mobile phone banking
to provide certain limited banking services to banks customers.

Bank-led model
The bank-led model offers a distinct alternative to conventional branch-based
banking in that customer conducts financial transactions at a whole range of
retail agents (or through mobile phone) instead of at bank branches or through
bank employees. This model promises the potential to substantially increase the
financial services outreach by using a different delivery channel (retailers/
mobile phones), a different trade partner (telco / chain store) having experience
and target market distinct from traditional banks, and may be significantly
cheaper than the bank-based alternatives. In this model customer account
relationship rests with the bank

Non-bank-led model
The non-bank-led model is where a bank does not come into the picture (except
possibly as a safe-keeper of surplus funds) and the non-bank (e.g. Telco)
performs all the functions.

BANKS LOVE MOBILE BANKING

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Banks want peoples to sign up for a number of reasons:

To reduce costs. The savings can be dramatic. While a chat with a phone
rep costs the bank about $1 per minute, a one-way text costs just 3 cents.
To improve fraud prevention. Mobile banking can allow banks to
quickly notify customers of potentially fraudulent transactions and get a
customer's OK before proceeding.
To boost fee income down the line. Banks typically don't charge for
mobile banking access, but they hope to get a slice of the next step in
mobile banking using your cell to make purchases.

TARGET CUSTOMERS
Mobile bankers may think targeting upwardly-mobile consumers or Baby
Boomers is the right way to go, but according to a recent Yankee Group report,
that is dead wrong. The report suggests that low income users and prepaid users
are the best prospects for mobile banking.
Low-income consumers, however, make up more than 20% of mobile users.
These users may not be as tech-savvy as the upwardly mobile, but if targeted
correctly could be a better resource for m bankers. However, to get users to log
on, bankers must make the interfaces simpler to access and easy to use.
Major retailers across the US are installing contactless readers that can accept
contactless payment and are integrated with POS [point of sale] systems.

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PRIMARY MODELS FOR MOBILE PAYMENT

Mobile payment is new and rapidly-adopting alternative payment method
especially in Asia and Europe. Instead of paying with cash, check or credit
cards, a consumer can use a mobile phone to pay for wide range of services and
digital or hard goods such as:
Music, videos, ringtones, online game subscription or items, wallpapers
and other digital goods.
Transportation fare (bus, subway or train), parking meters and other
services
Books, magazines, tickets and other hard goods.

There are five primary models for mobile payments:

Mobile Wallets storing Cash
Premium SMS based transactional payments
Direct Mobile Billing
Mobile web payments (WAP)
Contactless NFC (Near Field Communication)
Mobile payment has been well adopted in many parts of Europe and Asia
combined market for all types of mobile payments is expected to reach more
than $600B globally by 2013. While mobile payment market for goods and
services, excluding contactless NFC transactions and money transfers, is

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expected to exceed $300B globally by 2013.Some mobile payment solutions are

also used in developing countries for micropayments.

Mobile Wallets
Under this consumer or business lead model a Service provider, be it a Bank,
Mobile Operator or a Payment Service Provider. The subscriber deposits money
into a wallet using cash in transaction and go withdraw doing cash out
transaction. Typically the money can then be sent directly to another wallet
using a Person to Person command and the only identifier needed is the mobile
phone number of the beneficiary.
Early notable implementations of this include Globe's G-Cash in the Philippines
that has over 2 Million active users and PLDTs Smart Money Later success
storey include mPesa in Kenya. The benefits of these systems are that they tend
to target developing economies and the bottom of the pyramid which is under
served by traditional banks and lenders. The challenges facing adoption of such
systems are:
1. Regulatory - governments should mandate and regulate these systems to
ensure consumer protection and Anit-Money Laundering.
2. Establishing Cash in and Cash out distribution networks that are typically
exterior to banking systems and this lower cost and more divers
3. User experience - it has to be simple and easy to use and secure.

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MOBILE BANKING

Premium SMS based transactional payments

This is where the consumer sends a payment request via an SMS text message
to a short code and a premium charge is applied to their phone bill. SMS is the
bread and butter of mobile banking. The merchant involved is informed of the
payment success and can then release the paid for goods.
Since a trusted delivery address has typically not been given these goods are
most frequently digital with the merchant replying using a Multimedia
Messaging Service to deliver the purchased music, ringtones, wallpapers etc. A
Multimedia Messaging Service can also deliver barcodes which can then be
scanned for confirmation of payment by a merchant. This is used as an
electronic ticket for access to cinemas and events or to collect hard goods.

Text messages are the safest form of mobile banking.

No information about your account is stored on your phone and the information
that you receive would not be enough on its own for fraudsters to access your
money if the phone was lost or stolen. SMS based transactional payments have
been popular in Asia and Europe but are now being overtaken by other mobile
payment methods.

Direct Mobile Billing

This is where the consumer uses mobile billing option during checkout at an
ecommerce site such as an online gaming site to make a payment. the
consumer's mobile account is charged for the purchase thus bypassing banks
and credit card companies altogether. This type of mobile payment method,
which is extremely prevalent and popular in Asia, provides the following
benefits: Security , Convenience, Easy, Fast, Proven.
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MOBILE BANKING

Mobile web payments (WAP)

This is where the consumer uses web pages displayed or additional application
s/he downloaded and installed on his/her mobile phone to make a payment. It
uses WAP (Wireless Application Protocol) as underlying technology, thus
inherits all the advantages and disadvantages of WAP. However, using a
familiar web payment model gives a number of a few proven benefits: Followon sales- High customer satisfaction- Ease of use

Contactless NFC (Near Field Communication)

NFC is used mostly in paying for purchases made in physical stores or
transportation services. A consumer uses a special mobile phone equipped with
a smartcard waves his/her phone near a reader module.
Most transactions do not require authentication, but some require authentication
using PIN, before transaction is completed. The payment could be deducted
from pre-paid account or charged to mobile or bank account directly.
Contactless payments made from cell phones will become commonplace by
2012.
Citibank is looking to push the boundaries of mobile banking with some
innovative cell phone trials. One trial, a partnership with MasterCard, AT&T
and Nokia, involves placing near field communications (NFC) chips in certain
Nokia phones. Mobile-payments will be possible even when the phones user
doesnt have a bank account. In such a situation, a cell phone owner buys
prepaid units from a mobile operator and then uses those units to pay for goods
and services at a partnering service provider or retailer. Some see this type of
transaction as a vital way to get basic financial services to populations in
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developing countries or in rural or remote areas, where people are more likely to
have cell phones than bank accounts.
Mobile payment method via NFC faces significant challenges for wide and fast
adoption, while some phone manufacturers and banks are enthusiastic, due to
lack of supporting infrastructure, complex ecosystem of stakeholders, and
standards.
NFC vendors mostly in Europe use contactless payment over mobile phones to
pay for on- and off-street parking.

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A BOON FOR UNBANKED

According to a Business Standard survey, one out of every three persons
was ready to change his/her banks to avail free mobile banking services.
Around 50 percent of the people who were surveyed used cell phones to check
their bank balance. Awareness of mobile banking is also high in India. Although
such players still account for a tiny percentage of the industry, it is the latest in
customer convenience in banking, to access and operate your bank account from
anywhere from your cell phone. This is available on advance technology
phones.
Providers targeting the unbanked may also prefer basic technologies. Smaller
banks and entrepreneurs which see the unbanked niche as attractive are due to
their size likely to lack bargaining power with mobile operators. They face a
tough time negotiating the right to put a mobile banking application directly
onto the SIM card in mobile phones (which enables a higher standard of end-toend encryption). And even large banks may prefer technologies that work on
any handset and any operator network. They want to ensure all bank clients can
access the service, and it eliminates the need to negotiate any revenue sharing
with operators: the bank keeps the whole pie.
In low income countries, mobile-banking may enable leapfrogging in the
sense of reducing the need for the rollout of higher cost financial infrastructure,
such as dedicated POS devices. Mobile-banking potentially brings new players,
telecoms, to the table; in many LICs, these may be stronger than retail banks
and better placed to reach out to unbanked customers.

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MOBILE BANKING IN INDIA

Two important, yet quite unrelated, events in the evolution of mobile payments
in India occurred in 2008. Firstly, the new credit policy of the RBI came along
with guidelines for facilitating mobile payments. Secondly, Mobile banking is
the most promising front-end technology for broadening the access of finance
in the country. Taken together, these are defining moments in the recognition of
mobile now as an accepted channel for banking and commerce, and clearing the
way for its rapid and mass deployment across the country by the financial
sector.
Technology related regulation can never keep pace with the fast-pace nature of
technology innovations and progress, nor fully define it. Regulation here has to
have a light touch, so as not to throttle innovation, yet, serve public interest.
The mobile phone culture is growing and has penetrated the urban and semiurban population in India. The number of mobile users is estimated to have far
surpassed the number of Internet users. Recently, in India, there has been a
phenomenal growth in the use of Mobile Banking applications with leading
banks adopting Mobile Transaction platform and the Central Bank (RBI)
publishing guidelines for mobile banking operations.

Estimates suggest that there are approx 40 million internet users which are
expected to rise to 100 million soon despite this growth, penetration and use
levels remain low, especially in non-metro areas. Research also suggests that
internet banking is picking up amongst the target user group.

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While internet penetration and use in India is relatively low, mobile phone
penetration is much higher and growing rapidly. There are over 200 million
mobile phone subscribers in India and the number continues to explode.
Financial services companies are now working with mobile payment players
like m-Check to offer innovative mobile phone solutions to urban and rural
Indian population. Reserve Bank of India has restrictions on non-bank
involvement in money transfer. Therefore, development of mobile financial
services applications is being sponsored primarily by banks in India.
Once the transaction is completed, the customer is intimated on his mobile
phone again. Citi and m Check are also exploring the possibility of a similar
offer for mutual funds. They have also launched a mobile application which
enables farmers to receive money for sale of produce through their mobile
phones. These payments take the form of intent to pay information that can be
cashed at partner banks.
Visa recently announced the launch of its Visa Money Transfer on Mobile
service, which will enable money transfer via the mobile phone. Initially, this
service will be a pilot program available to Visa cardholders of Corporation
Bank, HDFC Bank and ICICI Bank.
The use of mobile for financial and non-financial transactions has had a
chequered history. Several initiatives during the last decade (overseas) have
come and gone, and several more initiatives into the future are emerging. The
difference between now and then is: Mobiles have come a along way.
They find themselves in the hands of a third of humanity, and have piped the
internet in penetration. Mobile banking as a service is still to catch up in large
parts of the world. Even the developed countries, where mobile banking has

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gained momentum, are still exploring opportunities to exploit this space and
develop new ways of usage.
India is no different. It is among the fastest growing markets in the world. In
developed countries, mobile-commerce has started gaining popularity due to
higher level of comfort with emerging technologies. Also, increasing
penetration of mobile phones in countries across the world has fuelled
expectations. Thus, mobile banking is the service of the future and m-commerce
is inevitable.
Mobile banking is expected to become common and popular the world over
and replace traditional banking activities and facilities. In fact, people have
begun to prefer mobile banking to debit/credit cards, also because the numbers
of cell phone users are more than debit/credit card holders.
Mobile banking has the potential to bring a whole host of people that have
no/little access to land lines/internet connections onto the electronic platform an
innovative way to generate financial inclusion. To do so successfully will
require customer training, technology stabilization and managing carefully the
know your customer issues.

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A BOON FOR RURAL INDIA

Thousands of people from rural areas across 12 states are likely to get their
social security pension and wages paid under the National Rural Employment
Guarantee Act (NREGA) scheme with the help of mobiles over the coming
few months.
In Andhra Pradesh alone, for instance, 250,000 people have registered for
mobile banking services. The state government is rolling out a program me to
enroll three million people by the end of 2008. AP government has tied up with
banks like the State Bank of India, Union Bank of India, Axis Bank, State Bank
of Hyderabad, Andhra Pradesh Grameen Vikas Bank. A Little World (ALW), a
technology implementation partner, has collaborated with NXP Semiconductors
to design a mobile for the AP government that encloses an RFID card, and
works with ALW's micro-banking platform ZERO.
Mobile banking pilots and full-scale operations are being conducted across 12
states, and the entire ecosystem is being managed by the government with the
help of the Reserve Bank of India, banks, leading telecom operators and
technology implementation partners.
The ecosystem is important since banking regulations in India currently do not
allow cash for exchange of another 'unit' such as 'airtime' in the case of mobiles.
Only banks and the Indian Post (through money orders) are currently allowed
such transfers.
Mobile banking, which is catching up fast in the cities and hinterland, is not
only helping the government to take a step forward towards fulfilling its aim of
having one bank account for every household, but also saving it crores of rupees
by way of reduced transaction costs.

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While the government incurs a transaction cost of Rs 12-13 for every Rs 100 it
shells out, mobile banking helps it reduce the cost to a mere Rs 2. RBI
estimates that around 40 per cent of Indians lack access to formal financial
services and is largely 'unbanked'.
India has around 135 million households who do not possess any bank
account. But the country's mobile customer base is rising at a whooping eight
million per month. Hence there is an immense scope for fruitful mobile banking
ventures. The mobile acts as a branch of the bank by storing a database of
customers. It also has a smartcard, which biometrically stores the identity of the
customer such as name, address, photograph, fingerprint templates and relevant
details of the savings or loan accounts held by the issuing bank. Customers get a
secure electronic identity via phone or smartcard, while agents take deposits and
dispense cash.
ALW works with the banks on a revenue-sharing basis. ALW is conducting a
pilot programme with SKS Microfinance and the Bank of India to provide a
mobile banking service that works on BSNL SIM cards.
Airtel has already partnered with the Indian Farmers' Fertiliser Cooperative
Limited (IFFCO) to set up IFFCO Kisan Sanchar Limited in Rajasthan.

NORMS DRAWN UP FOR MOBILE BANKING BY RBI

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The country's financial regulatory body, Reserve Bank of India, has relaxed the
norms for mobile banking by raising the caps on fund transfers as well as
mobile-based payments.
RBI has increased fund-transfer limit from Rs. 2,500 a day to Rs. 5,000 a
day.
The regulator has also provided a cap of Rs. 10,000 for purchases through
mobile. A Rs. 10000 limit for purchase of goods / services covers most of
the basic transactions except purchase of electronic / high-end luxury
goods, or air-ticketing.
According to RBI, banks should ensure mobile banking services to
customers of all network operators.
The Central Bank is also planning to relax the registration procedure for
mobile banking on a case-to-case basis, when banks apply for their
licenses. Presently, banks are required to get a form signed by all their
customers.
RBI issued draft guidelines to banks for standardizing mobile banking
operations in the country.
The long-term goal of mobile payment framework in India would be to
enable funds transfer from an account in one bank to any other account in
the same or any other bank in real time irrespective of the mobile network
a customer has subscribed to this would require inter-operability between
mobile payments service providers and banks and development of a host
of message formats.
The RBIs initiative is intended to standardize the processes i.e. interoperability (transactions between banks).
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Most of the major banks today offer the first level of mobile banking
services. Only a few private and foreign banks offer services involving
financial transactions such as payments, transfers and stop payments.
Providing a framework for enabling mobile payment services will require
the collaboration of banks, mobile payments service providers and mobile
network operators. The service can also be provided as a proximity
payment system, where the transactions are independent of the networks.
The Reserve Bank proposed that licensed banks would be allowed to
offer mobile payment services to Indian residents after getting approval
from their boards. The facility would be restricted to only bank accounts
and credit card accounts, which comply to know your customer norms.
Only Indian currency would be used for the services and cross-border
transfers through mobile banking are strictly prohibited. Only those
banks, which have implemented core banking solutions, would be
permitted to provide such services.

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MOBILE PAYMENT SYSTEM IN INDIA

Indian banks and payment service providers have been by and large dovetailing
their mobile payment initiatives under the umbrella of mobile banking even
before the guidelines were out. The banking system has already been in
conformity with these suggested guidelines, which now have the legal sanction
of the Reserve Bank of India. Banks own operating experience and other
payments systems prevalent have provided the necessary grist for the RBI mill,
and as time go on, hopefully these will evolve and become far more enabling
for stakeholders, rather than favor one approach or another or cripple
themselves in strangulated regulations.
On the financial inclusion side, Dr. Raghuraman's recommendations of creating
a 'National Electronic Financial Inclusion System' (NEFIS), the backbone of
such a system would be in its ability to carry out small value transactions (Rs.
100) at limited transaction. And the only way that can be done on a mass
acceptable basis is via SMS, which is the single most pervasive feature in
mobile technology revolution. Although advanced / high-end transactions can
be conducted using cell phones, most mobile banking customers use it for basic
activities like balance enquiry, making payments of regular bills, etc.
Most of banks are still stuck on the typical GPRS-based model or working out
applications that need GRPS to operate on. Security is one issue that practically
strips the banking ability out of these services. The only possible solution is the
use of USSD platform, which inherently has higher levels of security as
compared to other existing platforms. The Unstructured Supplementary Service
Data (USSD) platform inherently has higher levels of security as compared to
other existing platforms.

MOBILE BANKING TECHNOLOGY

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If technological revolution is at its peak, One of the notable sectors of the

economy where technology is at it helm of affairs with respect to customer
service is BANKING. Over the years has banking transcended from a
traditional brick-and mortar model of customers queuing for services in the
banks to modern day banking where banks can reach at any point for their
services.
In todays business, technology has been on the predominant indicators of
growth and competitiveness. Entry of new banks resulted in a paradigm shift
in the ways of banking. The banking industry today is in the midst of an IT
revolution. The combination of regulatory and competitive reasons have led to
increasing importance of total banking automation in the banking Industry.
Information Technology has basically been used under two different avenues in
banking. One is Communication and Connectivity and other is Business Process
Reengineering, both basically focusing on increasing its customer reach.
The latest revolution seems to happen with respect to mobile banking an
attempt to leverage on the synergies of mobile banking technology in
telecom and information technology in the banking services.
Today, Banks have welcomed wireless and mobile technology into their
boardroom to offer their customers the freedom of paying bills, planning
payments while stuck in traffic jams, to receive updates on the various
marketing efforts while present at a party to provide more personal and intimate
relationships.

The chart below summarizes these various types of mobile banking services:

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MOBILE BANKING

Push

Pull
Funds transfer

Transaction

Bill payment
Share trade
Check order
Minimum balance

Inquiry

alert

Account balance inquiry

Account

Credit/debit alert
Bill payment alert

statement

inquiry
Check status inquiry

Transaction history
Banks classify these services based on how information flows.
A pull transaction is one in which a mobile phone user actively requests a
service or information from the bank. For example, inquiring about an account
balance is a pull transaction.
A push transaction, on the other hand, is one in which the bank sends
information based on a set of rules. A minimum balance alert is a good example
of a push transaction. The customer defines the rule Tell me when my balance
gets below $100" and the bank generates an automatic message any time that
rule applies. As these examples illustrate, push transactions are generally one
way, from the bank to the customer.
The main reason that Mobile banking scores over Internet banking is that
it enables Anywhere Banking'. The scale at which Mobile banking has the
potential to grow can be gauged by looking at the pace users are getting mobile
in these big Asian economies.

CHALLENGES FOR MOBILE BANKING SOLUTION

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Key challenges in developing a sophisticated mobile banking application are:

Interoperability
There is a lack of common technology standards for mobile banking. Many
protocols are being used for mobile banking HTML, WAP, SOAP, XML to
name a few. It would be a wise idea for the vendor to develop a mobile banking
application that can connect multiple banks. It would require either the
application to support multiple protocols or use of a common and widely
acceptable set of protocols for data exchange.
There are a large number of different mobile phone devices and it is a big
challenge for banks to offer mobile banking solution on any type of device.

Security
Security of financial transaction, being executed from some remote location and
transmission of financial information over the air, are the most complicated
challenges that need to be addressed jointly by mobile application developers,
wireless network service providers and the banks IT department.
Even RBI is concerned about the security, especially when it comes to verifying
the bonafides of users accessing bank accounts from distant locations. Banks
haven't marketed the service aggressively enough to attract customers.
The following aspects need to be addressed to offer a secure infrastructure for
financial transaction over wireless network:
Physical security of the hand-held device. If the bank is offering smartcard based security, the physical security of the device is more important.
Security of the thick-client application running on the device. In case the
device is stolen, the hacker should require ID/Password to access the
application.
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MOBILE BANKING

User ID / Password authentication of banks customer.

Encryption of the data being transmitted over the air.
Encryption of the data that will be stored in device for later / off-line
analysis by the customer.

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MOBILE BANKING

MOBILE BANKING TECHNOLOGY CHALLENGE:

HTML WON
The use of mobile banking is expected to be very high in the US and in Europe
as well. The handsets themselves became very clever. There is no Smartphone
category anymore, because even the medium-level handsets are smart enough to
browse the internet, have at least 320x240 screen resolution and they are fast.
All of this resulted that a really usable software user interface can be run on the
mobile phones.
In this case it is banking software accessing your account balance and
making a payment on your mobile (this you do in 90% of the cases in your
mobile banking).
Before, the big question was about technologies. SIM Toolkit, Java, WAP, SMS
were on the field. Today all of them are dead (except SMS alerts) and HTML is
the one and only. There is no need for any downloads and installation. You just
get a text from your bank to log in here:mobile.mybank.com, and as you click
on it, my mobile browser shows the login screen immediately.
Big and innovative banks have voted on HTML in mobile browsers: Bank of
America, Nordea, Garanti, Deutsche Bank is all doing it. Their approach was to
create a mobile screen sized banking application which is very simple (no
scrolling and diving dozen screens, otherwise the customers can be easily
confused) and does not need much data input. These are the two keys of
usability in mobile banking.

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MOBILE BANKING

REVOLUTION OF MOBILE PHONES IN

BANKING SERVICES
According to the Cellular Operators Association of India (COAI) the mobile
subscriber base in India crossed the 50 million mark in October 2005, which
stood at 50.87 million. The explosion as most analysts say, the worldwide
number of cellular subscribers will surpass 2 billion in 2005up from
11Million in 1990 and 750Million in 2000. Worldwide cellular subscribers are
forecasted to reach 3.2Billion by the end of 2010.
Among the leaders in mobile technologies, most aggressive being Korea which
is now witnessing the roll-out of some of the most advanced services using 3G
technologies, like using mobile phones to pay bills in shops and restaurants.
The growth of mobile technology over the last few years has enriched the
progress of the mobile banking services. Technologies like SMS, WAP, etc have
revolutionized the use the mobile phones in banking services.
Though all the above predictions on cellular base, the Use of mobile technology
with respect to banking services is at a very infant stage. There are a lot of
challenges and issues relating to content, security, coverage, technology and
connectivity speed are to be sorted out with respect to mobile banking
technologies.

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MOBILE BANKING

ROLE OF HANDSETS IN MOBILE BANKING

All new phones now individuals to connect to the internet most through Wi-Fi
connections in hotspots such as pubs, coffee shops, large railway stations or
even town squares, or over the 3G network.
Jon Corke, of What Mobile magazine, says: Mobiles are catching up with the
iPhone and many now offer the full internet experience. These smart phones are
increasingly popular and people expect to be able to surf the net.
It is easy to use internet banking services on these smart phones, but is it safe?
Guy Chambers, of Symantec, the antivirus software company, says: Smart
phones that connect to Wi-Fi internet networks are open to the same virus
attacks as our desktop PCs. Smartphone Security antivirus software from
Norton blocks malicious viruses, deletes spam texts and stops cybercriminals
accessing files on your mobile phone. For example, criminals could use a
technique called a man-in-the-middle attack to gain access to the information on
your mobile if you are logged on to a Wi-Fi network.

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MOBILE BANKING

FRAUDS IN MOBILE BANKING

"Thieves always follow the money," "Thieves followed the money to the
desktop (computer) and they'll follow the money here."
Mobile banking has been at the threshold of a revolution for some time.
While many operators as well as banks, have introduced mobile banking
applications, it never became popular due to security concerns. If we
think that mobile banking solutions are all about cutting down the number
of visits to the bank, think again. Mobile banking frauds have become
very common these days and can happen in a variety of ways.
If you have stored your m-pin on sent messages or on the phone and the
phone are lost, then your account can be easily misused. Anyone can
easily read your messages as they are sent in clear text. If there is virus in
your phone and the same has the capability to access your m-pin details,
then also you can be a victim of fraud.
Frauds can happen by way of cloning of websites. Although most banks
have encrypted websites, but if they are not encrypted, then account users
can be fooled by fake websites.
One of the possible ways of identifying the cloned website is the http
address at the top. The fake website can never have the same uniform
source locator (URL), and therefore, one must always check the
address bar properly at the top.
Even RBI is concerned about the security, especially when it comes to
verifying the bonafides of users accessing bank accounts from distant
locations. Banks haven't marketed the service aggressively enough to
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MOBILE BANKING

attract customers. Furthermore; there is a lack of common technology

standards for mobile banking.
Your paper check is a thief's best friend.

SAFETY MEASURES

Walk before you run"

Apart from the basics, one should be aware of the safety measures that one
needs to take:
Disclosing your password to someone (including bank staff) and using
obvious passwords like name, date of birth, etc., is the biggest folly.
Never store mobile banking PIN (mobile-pin) in your cell phone memory
and also delete all messages that have your m-pin information. Tampering
of any kind with phone or the number should be immediately reported to
the bank; get mobile banking services blocked and request for a new mpin.
Use the phone-lock function on your mobile device when it is not in use.
Choose passwords which are difficult to crack and keep them safe. Strong
passwords have eight characters or more and use a combination of letters,
numerals and symbols.
Never disclose via text message any personal information such as account
numbers, passwords or any combination of sensitive information like
your PAN card, birth date, etc., that could be used for identity theft.
Make sure your phone is configured securely, especially when it comes to
configuring the web-browser and e-mail software. Security and privacy
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MOBILE BANKING

settings can be configured without any special expertise, simply by using

the 'Help' feature of the software, or visiting the vendor's website.
Protect the phone with security software, including a software firewall
and antivirus protection. Download files only from a trusted source. Also,
make sure the Bluetooth is switched off while not in use to avoid viruses.
Before letting someone else have access to your device (lending it to
another person, discarding, or selling your mobile device), ensure that
you have deleted all personal account information. Keep the device
always up-to-date with the latest patches and updates including antivirus
update.
Which one is compatible with your hand-set is the first thing that one
should know as a mobile banking user. A user must know what his bank
is charging for the service and also the rates that telecom companies levy
for connectivity and messaging.
If available, try the browser-based version first. Browser-based
applications are fairly simple to set up and use, while offering decent
encryption.
If you can, download, update and use antivirus software on your Webenabled phone. Antivirus products only are available for phones using
Microsoft or Palm software.
Go paperless for safer banking.

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MOBILE BANKING

RECESSION IS NOT AFFECTING MOBILE BANKING

Growing desire among consumers to keep closer tabs on finances is driving
the trend. The uptake of mobile banking services is increasing as consumers
seek to better monitor their finances.
More than half (52 per cent) of 1,000 UK consumers polled by Monilink and
The Future Foundation are checking their bank balances via their mobile phone
more often a usage increase of 10 per cent since October 2008. As the
recession continues we are seeing consumers adapting their behaviour to help
them get better control of their money, with people checking balances more
often.

A MONEY MAKER FOR U.K. BANKS

Banks view mobile banking as a tremendous opportunity, as the channel
potentially offers new revenue streams from mobile payments; new marketing
and service opportunities, including text alerts; and better hooks into the
unbanked as well as existing customers.

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MOBILE BANKING

McGee says Huntington's June 30 launch of mobile-banking, for example,

"exceeded our wildest expectations." "The number of users we had after four
weeks was our goal for after eight months,"
"Mobile banking going to happen much faster than previous technologies,"
he continues. "M-banking will happen in 3 years, whereas Internet banking
took 10 years."

US (United States) MOBILE BANKING TRENDS: Beyond

Buzz
Mobile banking will be a significant financial services channel that will be used
by 35% of online banking households by 2010. The relevance of mobile
banking and the likelihood of its success have been in question but mobile
banking is here to stay and will grow significantly faster than online
banking.
Mobile banking works as a remote control, allowing you to check in with
your accounts. The size of the screen on most mobile phones means that it will
not rival the full range of services available from internet banking, but a new
generation of smart phones can log on to the internet wirelessly using Wi-Fi.
These allow account holders to use full-scale internet banking services on the
move using large touch-sensitive screens.
New functionalities will make mobile banking distinct from online banking and
attract users. For instance, mobile banking will eventually allow users to make
payments at the physical point of sale. These mobile contactless payments
will make up 10 percent of the contactless market by 2010.

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MOBILE BANKING

Mobile banking initiatives are of particular interest to 18- to 25-year-olds,

also known as Generation Y. They will gravitate to mobile banking faster than
the general population. According to the report, 40 percent of Generation Y
indicates that mobile financial services will be a factor in their choice of bank.
Five years from now, a significant percentage of this demographic will be in
cell-phone only households, retrieving information and conductions transactions
from their handheld devices frequently.

Celent estimates that by 2010, upwards of 70 percent of bank center call volume
will come from mobile phones. Half of those calls will be related to basic
balance inquiry information. This information will be readily available on a
phone and will take less time than a phone call.
A customer service inquiry via mobile banking (as opposed to a call center) will
cost less and be an impetus for banks to embrace this new channel. Mobile
subscribers of data services will cut across income levels, age, and ethnicity and
are very good leading indicators of mobile content usage, including mobile
financial services.
The mobile banking end game will not be about checking balances and paying
bills. It will evolve into a mobile wallet, allowing banks to generate greater
electronic payment volume through the combination of electronic loyalty
programs, mobile marketing, and contactless payments and by 2010 we will see
the fusion of mobile banking and mobile contactless payments.

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MOBILE BANKING

MOBILE BANKING BECOMES REAL IN US

While most banks and financial institutions offer the convenience and
flexibility of banking online, several have gone further in providing such
services to their tech-savvy consumers on the mobile platform. Although
the market for mobile banking is small at the moment, it has potential for
higher growth.

Source-Financial C onsultancy Celent

With improved Internet data connection speeds and sophisticated mobile
devices, cell phones are becoming one of the hottest platforms for content
delivery serving as a one-stop solution for social networking, watching
videos or shopping via text messages.
The Internet began as a communication medium which has since evolved
to become a customer-interaction channel; likewise, mobile devices are
also moving beyond their initial scope of voice communication towards
other data services such as mobile banking.
The 'always on and connected' nature of cellphones allows one to
conduct their banking needs on the go, without having to visit the bank or
40

MOBILE BANKING

connect to the banks site from their home PC. Several banks now offer
mobile banking services, and the Tower Group expects that eight of the 10
largest banks will offer mobile banking and bill payment by the end of
2007.

MOBILE BANKING YET TO TAKE OFF AMONG

INDIAN BANKS
The much-touted mobile banking is yet to take off in the country owing to lack
of customer awareness and staff training. State-owned banks have received a
much poorer response from their clients compared with their private-sector
peers for mobile banking, with only a small number of PSB customers showing
interest to avail the service.
Union Bank of India, the first state-owned bank which introduced mobilebased banking services in the market, has so far added only 1,700 customers in
mobile banking. As the customer-awareness improves, the response will pick
up. In a bid to popularize the service, UBI plans to launch 40 dedicated
branches across the country.
India's largest lender State Bank of India (SBI) has also received poor
response for its mobile banking product, which it launched in December 2008.
It rolled out the service in association with local technology-service provider,
Spanco Telesystems. SBI has so far received only 10,000 registrations for
mobile banking but hopes to attract more clients to avail the service in the
months ahead. It will take some time for this (mobile banking) to pick up.
People are not techno-savvy and keep apprehensions about the safety of this
service.
Another leading government-owned lender, IDBI Bank has also received a
lukewarm response from its retail customers for its mobile banking roll out. The
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MOBILE BANKING

bank has a tie-up with service provider Pay mate for the service. Since Bank
launched the scheme, around 10,000 customers have registered for the service.
Providing proper customer education and training the staff is critical.

POSITIVENESS/ADVANTAGES OF MOBILBANKING
According to a study by financial consultancy Celent, 35% of online banking
households will be using mobile banking by 2010, up from less than 1% today.
Mobile contactless payments will make up 10% of the contactless market by
2010.
In Asian countries like India, China, Bangladesh, Indonesia and Philippines,
where mobile infrastructure is comparatively better than the fixed-line
infrastructure, and in European countries, where mobile phone penetration is
very high (at least 80% of consumers use a mobile phone), mobile banking is
likely to appeal even more.
According to the German mobile operator Mobilcom, mobile banking will
be the "killer application" for the next generation of mobile technology.
As the trend is shifting to mobile banking, there is a challenge for CIOs and
CTOs of these banks to decide on how to leverage their investment in internet
banking and offer mobile banking, in the shortest possible time. The
proliferation of the 3G (third generation of wireless) and widespread
implementation expected for 20032007 will generate the development of more
sophisticated services such as multimedia and links to m-commerce services.
In some parts of the world, such as the Philippines, Brazil and Africa, mobile
banking is already flourishing but in the United States only about 10 percent of
consumers about 1.7 million people currently use their cell phones to conduct
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MOBILE BANKING

bank transactions. That number is expected to grow to 35 million by 2010.

Several trends will drive this growth. First, more banks are
rolling out mobile banking solutions, paralleling a move by
major cellular carriers to upgrade their networks to deliver
faster data speeds.

NEW INITIATIVES IN MOBILE BANKING

Citibank launches mobile bill payment service in Malaysia - Citibank launched
a new service in Malaysia that will enable its customers to pay bills using their
mobile handsets. The SMS-based service enables customers to use their credit
cards to pay bills. Customers can also receive reminders when bills need paying
and personalize their payments by assigning key words or texts.
Vodafone offers direct access to bank accounts via MoniLink. The service
allows customers of MoniLink banks to check their balance, request a ministatement and top-up their or their friends'/family's 'pay as you talk' mobile
phones. The Monilink system has been set up by Monitise and VocaLink.
Wells Fargo and Visa to conduct public mobile payments trial. Wells Fargo
and Visa are to undertake a public trial of mobile payments technology with up
to 500 customers in the fourth quarter of the year. The move to a public pilot
follows positive feedback from an internal laboratory trial conducted by the
bank in April.
Alliance & Leicester is to pay younger customers 10 for signing up to its
mobile banking services. A&L is introducing the offer to customers who have
signed up to its Premier 21 current account. But the bank says only the first
20,000 customers who register for the m-banking service and use it before the
end of June will receive the 10.
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MOBILE BANKING

Telsecure launches securePay m-payments system in UK. UK mobile payments

start-up Telsecure is launching its securePay front-end payments system that is
designed to protect customers from card-not-present (CNP) fraud.

PROCEDURE OF REGISTRATION
Eligible Customers will register through the mobile by downloading the mobile
banking application on to their handset and following the instructions for
registering. They can also register by other methods as provided by their Bank
from time to time. The Customer will have to submit his/ her Debit Card
number and the PIN for registration. The Customer will be eligible to use the
Facility only after the Debit Card and PIN are authenticated by their Bank. The
Bank reserves the right to reject a Customers application for Mobile Banking
Services without giving any reasons.

Applicability of Terms and Conditions

By using the Mobile Banking Services, the Customer thereby agrees to these
Terms and Conditions of the service. These terms and conditions form the
contract between the Customer and Bank and Mobile Banking Services of the
Bank shall be governed by such terms as amended by the Bank from time to
time. These terms and conditions shall be in addition to and not in derogation of
other terms and conditions relating to any account of the Customer and/or the
respective product or the service provided by the Bank.

Business Rules Governing Mobile Banking Services

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MOBILE BANKING

1. The facility will be available to customers having a satisfactory running

account at Core Banking Branches.
2. The customer must have been issued a Debit Card linked to such running
bank account, which is active and operational.
3. The eligible customer will have to register for the service with the Bank
using Debit Card number and Debit Card PIN number. The customer will
only need to send an SMS with prescribed keyword at short code number
and Bank will arrange to enable mobile banking application for the
customer.
4. Three wrong MPIN entries will block the MBS to the account for the day
and two consecutive blockages will remove the data from the mobile
banking application in the handset. The customer will have to re-register
for the service.
5. Any change in the business rules of any of the processes will be notified
on Banks website, which will be construed as sufficient notice to the
customer.

Usage of Facility:
1. Agrees that he/she will use the mobile banking services for financial and
non-financial transactions offered by the bank from time to time.
2. Also irrevocably authorizes the Bank to debit his/ her bank accounts
which have been prescribed by him/her at the time of registration for all
transactions/services undertaken using MPIN.
3. Agrees that he/ she is aware and accept that mobile banking services
offered by the bank will enable him/her to execute any financial
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MOBILE BANKING

transaction using MPIN within the limit prescribed by the Bank and will
be deemed as bonafide transaction.
4. Agrees that the facility entitles him/her to use only a mobile phone
registered in his/her name with the Mobile Service Provider and
undertakes to use the Facility only through the registered mobile number
which has been used to register for the Facility.

Others
1. The Bank reserves the right to decide what services may be offered,
making additions/ deletions to the services offered under the Facility at its
sole discretion.
2. The instructions of the Customer shall be effected only after
authentication of the Customer by verification of his/her USER ID and
MPIN.
4. It shall be the endeavor of the Bank to carry out the instructions received
from the Customers promptly.
5. The Bank shall make all reasonable efforts to ensure that the customer
information is kept confidential.
Fee structure for the Facility:
The Bank reserves the right to charge the Customer a fee for the use of the
services provided under the Facility. The fee structure shall be subject to change
at the Banks discretion.

Accuracy of Information:

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MOBILE BANKING

1. It is the responsibility of the Customer to ensure the correctness of the

information supplied by him/ her to the Bank through the use of the
Facility or any other method. In case of any discrepancy in this
information, the Customer understands that the Bank will not be in any
way responsible for action taken based on the information. If an error in
the information supplied by the Customer is reported to the Bank by the
Customer, the Bank will Endeavour to correct the error promptly
wherever possible on a best effort basis.
2. The Customer understands that the Bank will try, to the best of its ability
and effort, to provide accurate information. However, the Customer shall
not hold the Bank responsible for any errors or omissions that may occur
due to reasons beyond the control of the Bank.
3. The Customer accepts that the Bank shall not be responsible for any
errors which may occur in spite of the steps taken by the Bank to ensure
the accuracy of the information and the Customer shall not have any
claim against the Bank in an event of any loss/ damage suffered by the
Customer as a consequence of an inaccurate information provided by the
Bank.

Responsibilities and obligations of the customer

1. The customer will be responsible for all transactions made through the
use of his/ her mobile phone, SIM card and MPIN.
2. The Customer shall take all steps possible to ensure that his/her mobile
phone is not shared with anyone and shall report any misuse/ loss of the
mobile phone or SIM card immediately.

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MOBILE BANKING

3. The Customer will use the services offered under Facility using the MPIN
in accordance with the procedure as laid down by the Bank from time to
time.
4. The Customer shall keep the USER ID and MPIN confidential.
5. The Customer accepts that any transaction originating from the USER ID
and / or registered mobile phone number shall be assumed to have been
initiated by the Customer.

Termination of Facility:
The Customer can request for termination of the Facility by sending
appropriate message through the mobile banking application on the
handset.
The Bank may, at its discretion, withdraw temporarily or terminate the
Facility, either wholly or in part, at any time without giving prior notice
to the Customer.
The Bank shall Endeavour to give a reasonable notice for withdrawal or
termination of the Facility but shall not be responsible.
The Bank may also terminate or suspend the services under the Facility
without prior notice if the Customer has violated the terms and conditions
laid down by the Bank or the death of the Customer are brought to the
notice of the Bank.

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MOBILE BANKING

Customer Survey
Lala lajpatrai College of Commerce & Economics
Survey on Project of Mobile Banking
Name: -

Designation:-

Signature: -

Contact No:-

1) Do you think awareness, advertisement regarding Mobile Banking is lacking?

o Yes
o No
2) Which services you make most use of in Mobile Banking?
o Checking Balance
o Paying bills
o Other activity
3) What is your opinion on Mobile Banking method as compare to other method?
o Best method
o Complementary to other methods
4) Have you experienced fraud incident while accessing Mobile Banking & does bank
helped you?
o Yes, but they didnt helped
o Yes, but they have helped
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MOBILE BANKING
o No
5) In your opinion, who is the best Mobile Banking services provider in India?
o Nationalized Banks
o Foreign Banks
o Other Banks
6) Are you satisfied with Mobile Banking services?
o Yes
o No

Comment: _____________________________________________________________
Project Guide

Survey Conducted by:

Prof. Vaidehi Kamath

(PANKAJSINGH YADAV)
T.Y.B.COM (B&I)

________________________________________________________________________

Customer Survey report

____________________________________________________

Data Analysis & Interpretation

To know customer view about Mobile Banking services provided by various

Banks, I have done survey of 100 people and asked them certain set of
Question.
1. Do you think awareness, advertisement regarding Mobile Banking is lacking?
Awarness regarding Mobile Banking

YES 75%25%

NO 25%
75%

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MOBILE BANKING

INTERPRETATION:
75% of the people think that awareness regarding Mobile Banking is lacking
because of less promotion activity, advertisement and also because it is a new
invention in Banking sector.
25% the people think that awareness regarding Mobile Banking is not lacking
because since it is a worldwide service and also they are the user of it.

2. Which services you make most use of in Mobile Banking?

Most use of services in Mobile Banking

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

70%

checking balance

20%

paying bills

10%

other activity

INTERPRETATION:
70% of the people had use Mobile Banking service for Checking & keeping
alerts of their account balance & transactions information.
20% of the people who belongs to high society or white collar people make use
of Mobile banking services for making the payment of various transactions such
as booking of air ticket, purchase of goods, etc.
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MOBILE BANKING

10% of the people who are mostly business person will make use of Mobile
banking services for Investment & other security purposes.

3. What is your opinion on Mobile Banking method as compare to other

method?

Method as compare to other method

Best method 70%

Complementry to
30%

other method 30%

70%

INTERPRETATION:
70% of the people have opinion that Mobile Banking Method is Best method
as compare to other method because it provides anywhere banking facility &
also it saves the time and most importantly everybody has mobile phones to
access this facility.

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MOBILE BANKING

30% of the people have opinion that Mobile Banking Method is

complementary to other method because still in rural areas of India people do
not have mobile & also it is not as superior as Internet Banking.

4. Have you experienced fraud incident while accessing Mobile Banking & does
bank helped you?

Have you Experienced Fraud? & Does Bank helped you?

Yes, but they didn't helped me 20% Yes, but they have helped me 45%
20%
35%

NO 35%
45%

INTERPRETATION:
20% of the people said that Yes, they experienced fraud incident but
unfortunately bank officials has not helped them, they simply were playing
passing games. Hence due to which they have suffered loss.
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MOBILE BANKING

45% of the people said that Yes, they have experienced fraud incident but their
bank officials has helped them by keeping a eye on their officers.
35% of the people said that NO, they have never experienced fraud incident
because of the security feature of Mobile Banking providers.

5. In your opinion, who is the best Mobile Banking services provider in India?
Best Mobile Banking Service provider in India
Nationalised Banks 30%

Foreign Banks 55%

15%
30%

Other Banks 15%

55%

INTERPRETATION:
30% of the people were view that Nationalized Banks are best mobile banking
service provider in India because they are the pioneer in this field and also they
are safe to deal with.

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MOBILE BANKING

55% of the people were view that Foreign Banks are best mobile banking
service provider in India because they are aware of it, they are the founder of it
& also most importantly they emphasizes on quality service.
15% of the people were view that Other Banks are best mobile banking
service provider in India.

6. Are you satisfied with Mobile Banking services?

Satisfaction with Mobile Banking

35%

YES 65%

NO 35%
65%

INTERPRETATION:
65% of the people were satisfied with the mobile banking services. Hence they
feel that it should be implemented on a bigger scale and spread to a large
number of people.

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MOBILE BANKING

35% of the people were not satisfied with the mobile banking services because
they think that it is very complicated and expensive mode of banking service
and there are also chances of being cheated.

OVERALL CONCLUSION OF CUSTOMER SURVEY

Furthermore, in all these customers interest is of paramount importance. The

banking sector in India is demonstrating this and I do hope they would continue
to chart in this traded path.

INTERVIEW
{ANALYSIS}
For better understanding of this topic I have visited ICICI Bank & SBI (State
Bank of India) Bank where I met Mrs. Mayura Vaidya (Manager) & Mr.
Ramesh.W.Pawar (Branch Manager) Respectively. I had asked them certain
set of Question to know their views and thoughts on this segment and here I
have tried to share with you all their experience that they have shared with me.

Answers from the Respondent:

1) From since your bank is providing Mobile Banking?
ICICI Bank - From since year 2000
SBI Bank-It was launched in December 2008.
2) Which software vendor provides you Mobile Banking technicians?
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MOBILE BANKING

ICICI Bank -SPANCO Telesystems

SBI Bank- Obopay Inc
3) How can we start Mobile Banking?
ICICI Bank -You have to type IBAL and send it to 5676766
Also you can visit our website i.e. www.icicibank.com
SBI Bank by sending a SMS <MBSREG>or<SBIREG> <Mobile
Maker> <Mobile Model> to 567676 {e.g MBSREG Nokia 6600}
Also you can visit our website i.e. www.sbi.co.in.
4) What does MPIN means and how much characters/digits it includes?
ICICI Bank & SBI Bank -MPIN means Mobile Personal Identification
Number & Also it consist of 6 characters/digits
5) On what your Mobile Banking services runs?
ICICI Bank- It runs through mode such as SMS, GPRS, Website, etc
SBI Bank - It runs through mode such as SMS, GPRS, GSM, USSD, etc
6) Is there any charge for sending a SMS?
ICICI Bank- It will be as per the Service Provider & generally it is
Nominal charges.
SBI Bank Value Added Service (VAS) charge for the SMS facility.
7) What if a customer changes his/her Mobile number?
ICICI Bank & SBI Bank - He/she can go for General Service request or
He/she can personally visit any ICICI Bank Branch He/she will be
provided new MPIN number & also they can change their MPIN on
website itself.
8) Can a customer avail of this service from outside his/her city of
registration/telecom circle?
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MOBILE BANKING

SBI Bank Yes, just add Add Locally

9) From whom do you face competition?
ICICI Bank Nationalized Banks & Mostly with Private Banks.
SBI Bank Kotak Mahindra Bank, HDFC Bank, ICICI Bank
10) How does recession affect the growth of Mobile Banking services in your
bank?
ICICI Bank Actually it has not affected in fact due to recession
customers are sending more SMS for keeping an eye on their balance
amount.
SBI Bank Yes, it will because people will not get employment, some
might not get their salary, etc due to such circumstance our financial
transaction will affect.
11) What are the marketing strategies that you use for particularly Mobile
Banking?
ICICI Bank & SBI Bank - It is marketed through Hoarding,
advertisement, pamphlets, etc all are handled by Marketing Department
& Mobile staff.
12) What are your aims for next 5 years in respect to Mobile Banking?
ICICI Bank- Maximum registration of people, to reach the rural areas by
opening maximum branches, etc.
SBI Bank A huge market is open i.e. 40% of Indians are unbanked.
Hence my opening new branches in targeted areas, creating awareness,
etc.

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CONCLUSION:
As it is rightly said Necessity is the mother of Invention and hence Mobile
Banking service facility has emerged. Today Mobile banking services is rare,
but in near future it can become common only if today we put our hard work for
achieving it.
According to a Business Standard survey, one out of every three persons was
ready to change his/her banks to avail free mobile banking services. Mobile
banking, which is catching up fast in the cities and hinterland, is not only
helping the government to take a step forward towards fulfilling its aim of
having one bank account for every household, but also saving it crores of rupees
by way of reduced transaction costs.
For getting more information and for practical knowledge I had visited ICICI
Bank and State Bank of India where I came to know about many important
facts about Mobile banking. I would also like to thank them for their support
and co-operation.

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Hence I can conclude that Mobile banking seems to be very easy project but it
is very complicated. Therefore it should be implemented in such a way that
everyone should understand it.

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