A PROJECT REPORT ON MOBILE BANKING

BACHELOR OF COMMERCE BANKING & INSURANCE SEMESTER V (2010-2011)

SUBMITTED BY VARIYA KARTIK S Ro !o"#1

MUMBAI PRADESH ARYA VIDYA SABHA GURUKUL COLLEGE OF COMMERCE T$ %& Ro%'( G)%*&o+%, (E)( M-./%$ -#00 000

PROJECT ON MOBILE BANKING

BACHELOR OF COMMERCE - BANKING & INSURANCE SEMESTER V (2010-11)

S-/.$**1' I! P%,*$% F- 2$ .1!* o2 *)1 ,13-$,1.1!*4 2o, *)1 A5%,' o2 D16,11 o2 B%7)1 o, o2 Co..1,71 8 B%!&$!6 &I!4-,%!71

B9 KARTIK S VARIYA Ro No"#1

MUMBAI PRADESH ARYA VIDYA SABHA GURUKUL COLLEGE OF COMMERCE T$ %& Ro%'( G)%*&o+%, (E)( M-./%$ -#00 000

MUMBAI PRADESH ARYA VIDYA SABHA GURUKUL COLLEGE OF COMMERCE T$ %& Ro%'( G)%*&o+%, (E)( M-./%$ -#00 000

CERTIFICATE

This is to certify that MR" KARTIK S VARIYA of B.Com Banking & Insurance Semester V (2010-11) has successfu y com! ete" the !ro#ect on MOBILE BANKING un"er the gui"ance of PROF":AINUDIAN KHAN"

Co-,41 Co-o,'$!%*o,

P,$!7$+%

P,o;17* G-$'1 < I!*1,!% E=%.$!1,

E=*1,!% E=%.$!1,

DECLARATION

I MR" KARTIK S VARIYA the stu"ent of B.Com. - Banking & Insurance Semester V (2010-11) here$y "ec are that I ha%e com! ete" the &ro#ect on MOBILE BANKING"

The information su$mitte" is true an" origina to the $est of my kno' e"ge.

Signature of stu"ent ((ame of stu"ent)

D14$6! o2 4*-'9
Objectives of the study
The attempt has been made to achieve following objectives: 1. To find out the awareness of mobile banking in India. 2. To study the problem related to mobile banking. . To study the use of mobile banking. !. To study the popularity of mobile banking.

"cope of "tudy
The following has been covered under the project #$obile %anking&. 1. Introduction to mobile banking 2. 'dvantages ( )isadvantages . "$" banking !. *+%anking ,. IT in %anking -. "urvey to find out the awareness

.imitations
1. I have restricted my project on /mobile banking0 to the e1tent of individual0s only. 2. "urvey has been conducted on micro level basis to know awareness of mobile banking.

. Only 2, customers of different ages have been considered for undertaking the study.

$ethodology
1. 2rimary study has been undertaken on micro level basis on focusing only a few individuals. 2. "econdary data is collected by undertaking e1tensive library research as well as from various websites and books.

ACKNO>LEDGEMENT

First, I would like to express my immense gratitude towards our institution GURUKUL COLLEGE OF COMMERCE t at elped me to attain pro!ound "anking skills in t e !ield o! "anking, t ere"y !ul!illing my most # eris ed goal$ I am t ank!ul to my tea# ers, #olleagues, !riends !or t eir signi!i#ant support$ I wis to #on%ey my sin#ere t anks to &rin#ipal, O! GURUKUL College, !or t eir en#ouragement and ad%i#e$ It plunges me in ex ilaration in taking pri%ilege in expressing my eart!elt gratitude to all t ose w o elped, en#ouraged and !oreseeing su##ess!ul #ompletion o! my pro'e#t$ E#stasies to work under gregarious guidan#e o! ()I*U+I)* K,)* to w o extremely in de"ated !or er %alua"le and timely suggestions$ I express my grate!ul t anks to e%eryone w o a%e #ontri"uted e%en in a small way towards su##ess!ul #ompletion o! t is pro'e#t$ In addition, all t ose w o all dire#tly or indire#tly #ontri"uted t eir assistan#e in !inis ing out t is pro'e#t su##ess!ully$ I t ank all t e sta!! mem"ers w o a%e pro%ided all en#ouragement and support in t e !orm o! %arious inputs !rom time to time$

I3)*4

CH"1 INTRODUCTION
MO-ILE -)*KI*G .also known as M/ "anking, 0M0 "anking et#$1 is a term used !or per!orming "alan#e # e#ks, a##ount transa#tions, payments et#$ %ia a mo"ile de%i#e su# as a mobile phone$ Mo"ile per!ormed %ia "$" or t e $obile Internet "ut #an also use spe#ial programs #alled #lients downloaded to t e mo"ile de%i#e$Mo"ile "anking is a way !or t e #ustomer to per!orm "anking a#tions on is or er #ell p one or ot er mo"ile de%i#e$ It is also known as M/-anking or 0M0 -anking$Mo"ile "anking allows t e user to log into is or er a##ount !rom a #ell p one, and t en use t e p one to make payments, # e#k "alan#es, trans!er money "etween a##ounts, noti!y t e "ank o! a lost or stolen #redit #ard, stop payment on a # e#k, re#ei%e a new &I*, or %iew a monthly statement, among ot er transa#tions$ 2 is type o! "anking is meant to "e more #on%enient !or t e #onsumer t an a%ing to p ysi#ally go into a "ank, log on !rom t eir ome computer, or make a p one #all$ 3 ile all o! t is is true, some are #on#erned a"out t e se#urity o! mo"ile "anking$ "anking today is most o!ten

ORIGIN
Mo"ile "anking pro"a"ly ad its origin in *o%em"er 4567$In India, t e !irst "ank on w eel was laun# ed "y t e "ank o! &atiala in 4589$ Internet "anking elped gi%e t e #ustomer:s anytime a##ess to t eir "anks$ Customers #ould # e#k out t eir a##ount details, get t eir "ank statements, per!orm transa#tions like trans!erring money to ot er a##ounts and pay t eir "ills sitting in t e #om!ort o! t eir omes and o!!i#es$ ,owe%er t e "iggest limitation o! Internet "anking is t e re;uirement o! a &C wit an Internet #onne#tion, not a "ig o"sta#le i! we look at t e U0 and t e European Mo"ile "anking < 2 e Future 3 ite &aper O%er%iew )"stra#t 2 is paper des#ri"es t e "asi# #on#epts, ser%i#es o!!ered, market sur%ey and te# nology w i# ena"les Mo"ile "anking$ O%er t e last !ew years, t e mo"ile and wireless market as "een one o! t e !astest growing markets in t e world and it is still growing at a rapid pa#e$ 2 is opens up uge markets !or !inan#ial institutions interested in o!!ering %alue added ser%i#es$ 3it mo"ile te# nology, "anks #an o!!er a wide range o! ser%i#es to t eir #ustomers su# as doing !unds trans!er w ile tra%eling, re#ei%ing online updates o! sto#k pri#e or e%en per!orming sto#k trading w ile "eing stu#k in tra!!i#$ Mo"ile de%i#es, espe#ially smart/p ones, are t e most promising way to rea# t e masses and to #reate =sti#kiness> among #urrent ig #ustomers, due to t eir a"ility to pro%ide ser%i#es anytime, anyw ere, wit

rate o! penetration and potential to grow$ +o#ument )udien#e 2 is do#ument is primarily intended !or Marketing, 0ales, &rodu#t 0upport, Internet 0er%i#es Group, &ro'e#t Engineering and anyone w o is interested in Mo"ile "anking$ Mo"ile

"anking addresses t is !undamental limitation o! Internet

"anking, as it redu#es as seen an

t e #ustomer re;uirement to 'ust a mo"ile p one$ Mo"ile usage

explosi%e growt in most o! t e )sian e#onomies like India, C ina and Korea$ 2 e main reason t at Mo"ile "anking s#ores o%er Internet "anking is t at it ena"les ?)nyw ere )nytime "anking:$ Customers don:t need a##ess to a #omputer terminal to a##ess t eir "ank a##ounts, now t e #an do so on/t e/go w ile waiting !or t e "us to work, tra%eling or w en t ey are waiting !or t eir orders to #ome t roug in a restaurant$ 2 e s#ale at w i# Mo"ile "anking as t e potential to grow #an "e gauged "y looking at t e pa#e users are getting mo"ile in t ese "ig )sian e#onomies$ )##ording to t e Cellular Operators: )sso#iation o! India .CO)I1 t e mo"ile su"s#ri"er "ase in India it 69$7 million in t e )ugust @996$ In 0eptem"er @996 it added a"out 4$A8million more$ 2 e explosion as most analysts say, is yet to #ome as India as a"out one o! t e "iggest untapped markets$ C ina, w i# already witnessed t e mo"ile "oom, is expe#ted to a%e a"out B99 million mo"ile users "y t e end o! @996$ )ll o! t ese #ountries a%e seen gradual roll/out o! mo"ile "anking ser%i#es, t e most aggressi%e "eing Korea w i# is now witnessing t e roll/out o! some o! t e most ad%an#ed ser%i#es like using mo"ile p ones to pay "ills in s ops and restaurants$

)efinition of $obile %anking:

Mo"ile "anking is de!ined asC DMo"ile -anking re!ers to pro%ision and a%ailment o! "anking/ and !inan#ial ser%i#es wit t e elp o! mo"ile tele#ommuni#ation de%i#es$ 2 e s#ope o! o!!ered ser%i#es may in#lude !a#ilities to #ondu#t "ank and sto#k market transa#tions, to administer a##ounts and to a##ess Customised in!ormation$D

CH2" Mo/$ 1 B%!&$!6 Co!71+*-% Mo'1

)##ording to t is model Mo"ile -anking #an "e said to #onsist o! t ree inter/ related #on#eptsC

$obile 'ccounting $obile %rokerage $obile 5inancial Information "ervices

Most ser%i#es in t e #ategories designated 'ccounting and %rokerage are transa#tion/"ased$ 2 e non/transa#tion/"ased ser%i#es o! an in!ormational nature are owe%er essential !or #ondu#ting transa#tions / !or instan#e, "alan#e in;uiries mig t "e needed "e!ore #ommitting a money remittan#e$ 2 e a##ounting and "rokerage ser%i#es are t ere!ore o!!ered in%aria"ly in #om"ination wit in!ormation ser%i#es$ In!ormation ser%i#es, on t e ot er and, may "e o!!ered as independent module$Mo"ile p one "anking may also "e used to elp in "usiness situations$

T,1!'4 $! .o/$ 1 /%!&$!6

2 e ad%ent o! t e Internet as ena"led new ways to #ondu#t "anking "usiness, resulting in t e #reation o! new institutions, su# as online "anks, online "rokers and wealt managers$ 0u# institutions still a##ount !or a tiny per#entage o! t e industry$ O%er t e last !ew years, t e mo"ile and wireless market as "een one o! t e !astest growing markets in t e world and it is still growing at a rapid pa#e$ )##ording to t e 6"$ 'ssociation and Ovum, t e num"er o! mo"ile su"s#ri"ers ex#eeded @ "illion in 0eptem"er @998, and nowex#eeds @$8 "illion .o! w i# more t an @ "illion are 6"$1$ 3it mo"ile te# nology, "anks #an o!!er ser%i#es to t eir #ustomers su# as doing !unds trans!er w ile tra%elling, re#ei%ing online updates o! sto#k pri#e or e%en per!orming stock trading w ile "eing stu#k in tra!!i#$ "martphones and
6#onne#ti%ity pro%ide some #apa"ilities t at older text message/only p ones do

not$ )##ording to a study "y !inan#ial #onsultan#y 7elent, B8E o! online banking ouse olds will "e using mo"ile "anking "y @949, up !rom less t an 4E today$ Upwards o! F9E o! "ank #enter #all %olume is pro'e#ted to #ome !rom mo"ile p ones$ Mo"ile "anking will e%entually allow users to make payments at t e

p ysi#al point of sale$ DMo"ile contactless payments> will make up 49E o! t e #onta#tless market "y @949$ )not er study !rom @949 "y %erg Insight !ore#asts t at t e num"er o! mo"ile "anking users in t e U0 will grow !rom 4@ million in @995 to A7 million in @948$ 2 e same study also predi#ts t at t e European market will grow !rom F million mo"ile "anking users in @995 to 448 million users in @948$ Many "elie%e t at mo"ile users a%e 'ust started to !ully utiliGe t e data #apa"ilities in t eir mobile phones$ In )sian #ountries like India, 7hina, %angladesh, Indonesia and 2hilippines, w ere mo"ile in!rastru#ture is #omparati%ely "etter t an t e !ixed/line in!rastru#ture, and in *uropean #ountries, w ere mo"ile p one penetration is %ery ig .at least A9E o! #onsumers use a mo"ile p one1, mo"ile "anking is likely to appeal e%en more$

Mo/$ 1 /%!&$!6 /-4$!144 .o'1 4

) wide spe#trum o! Mo"ileH"ran# less "anking models is e%ol%ing$ 2 ese models di!!er primarily on t e ;uestion t at w o will esta"lis t e relations ip .a##ount opening, deposit taking, lending et#$1 to t e end #ustomer, t e "ank or t e *on/ "ank H2ele#ommuni#ation Company .2el#o1$ )not er di!!eren#e lies in t e nature o! agen#y agreement "etween "ank and t e *on/ "ank$ Models o! "ran# less "anking #an "e #lassi!ied into t ree "road #ategories / "ank Fo#used, "ank /Led and *on/"ank /Led$ I. %ank +focused model: 2 e "ank /!o#used model emerges w en a traditional "ank uses non/traditional low/#ost deli%ery # annels to pro%ide "anking ser%i#es to its existing #ustomers$ Examples range !rom use o! automatic teller machines .)2Ms1 to internet "anking or mo"ile p one "anking to pro%ide #ertain limited "anking ser%i#es to "ankIsI #ustomers$ 2 is model is additi%e in nature and may "e seen as a modest extension o! #on%entional "ran# /"ased "anking$ II. %ank +led model: 2 e "ank /led model o!!ers a distin#t alternati%e to #on%entional "ran# / "ased "anking in t at #ustomer #ondu#ts !inan#ial transa#tions at a w ole range

o! retail agents .or t roug mo"ile p one1 instead o! at "ank "ran# es or t roug "ank employees$ 2 is model promises t e potential to su"stantially in#rease t e !inan#ial ser%i#es outrea# "y using a di!!erent deli%ery # annel .retailersH mo"ile p ones1, a di!!erent trade partner .tel#o H # ain store1 a%ing experien#e and target market distin#t !rom traditional "anks, and may "e signi!i#antly # eaper t an t e "ank /"ased alternati%es$ 2 e "ank /led model may "e implemented "y eit er using #orrespondent arrangements or "y #reating a JK "etween "ank and 2el#oHnon/ "ank$ In t is model #ustomer a##ount relations ip rests wit t e n "ank B *on/ "ank /led model 2 e non/ "ank /led model is w ere a "ank does not #ome into t e pi#ture .ex#ept possi"ly as a sa!e/keeper o! surplus !unds1 and t e non/ "ank .e$g$ 2el#o1 per!orms all t e !un#tions$

Mo/$ 1 B%!&$!6 S1,?$714

Mo"ile "anking #an o!!er ser%i#es su# as t e !ollowingC I. 'ccount Information 4$ Mini/statements and # e#king o! a##ount istory @$ )lerts on a##ount a#ti%ity or passing o! set t res olds B$ Monitoring o! term deposits 6$ )##ess to loan statements 8$ )##ess to #ard statements
6.

Mutual !unds H e;uity statements

F$ Insuran#e poli#y management A$ &ension plan management 5$ 0tatus on # e;ue, stop payment on # e;ue II. 2ayments ( Transfers 4$ +omesti# and international !und trans!ers @$ Mi#ro/payment andling B$ Mo"ile re# arging 6$ Commer#ial payment pro#essing 8$ -ill payment pro#essing 7$ &eer to &eer payments

III. Investments 4$ &ort!olio management ser%i#es @$ Real/time sto#k ;uotes B$ &ersonaliGed alerts and noti!i#ations on se#urity pri#es I8. "upport 4$ 0tatus o! re;uests !or #redit, in#luding mortgage appro%al, and insuran#e #o%erage @$ C e#k .# e;ue1 "ook and #ard re;uests B$ Ex# ange o! data messages and email, in#luding #omplaint su"mission and tra#king 6$ )2M Lo#ation 8. 7ontent "ervices 4$ General in!ormation su# as weat er updates, news @$ Loyalty/related o!!ers B$ Lo#ation/"ased ser%i#es -ased on a sur%ey #ondu#ted "y Forrester, mo"ile "anking will "e attra#ti%e

mainly to t e younger, more Dte# /sa%%yD #ustomer segment$ ) t ird o! mo"ile p one users say t at t ey may #onsider per!orming some kind o! !inan#ial transa#tion t roug t eir mo"ile p one$ -ut most o! t e users are interested in per!orming "asi# transa#tions su# as ;uerying !or a##ount "alan#e and making "ill payment$

C)% 1!614 2o, % Mo/$ 1 /%!&$!6 So -*$o!

Key # allenges in de%eloping a sop isti#ated mo"ile "anking appli#ation areC I. Interoperability: 2 ere is a la#k o! #ommon te# nology standards !or mo"ile proto#ols are "eing used !or mo"ile "anking$ Many

"anking < 9T$., :'2, "O'2, 4$. to

name a !ew$ It would "e a wise idea !or t e %endor to de%elop a mo"ile "anking appli#ation t at #an #onne#t multiple "anks$ It would re;uire eit er t e appli#ation to support multiple proto#ols or use o! a #ommon and widely a##epta"le set o! proto#ols !or data ex# ange$ 2 ere are a large num"er o! di!!erent mo"ile p one de%i#es and it is a "ig # allenge !or "anks to o!!er mo"ile "anking solution on any type o! de%i#e$ 0ome o! t ese de%i#es support J@ME and ot ers support 3)& "rowser or only "$"$ O%er#oming interopera"ility issues owe%er a%e "een lo#aliGed, wit #ountries like India using portals like R/3orld to ena"le t e limitations o! low end 'a%a "ased p ones, w ile !o#us on areas su# as 0out )!ri#a a%e de!aulted to t e U00+ as a "asis o! #ommuni#ation a# ie%a"le wit any p one$ 2 e desire !or interopera"ility is largely dependent on t e "anks t emsel%es, w ere installed appli#ations .Ja%a "ased or nati%e1 pro%ide "etter se#urity, are easier to use and allow de%elopment o! more #omplex #apa"ilities similar to t ose o!

internet

"anking w ile 0M0 #an pro%ide t e "asi#s "ut "e#omes di!!i#ult to

operate wit more #omplex transa#tions$ II. "calability ( ;eliability: )not er # allenge !or t e 7IO0s and 7TOs o! t e "anks is to s#ale/up t e mo"ile "anking in!rastru#ture to andle exponential growt o! t e #ustomer "ase$ 3it mo"ile "anking, t e #ustomer may "e sitting in any part o! t e world .true anytime, anyw ere "anking1 and en#e "ankIs need to ensure t at t e systems are up and running in a true @6 x F !as ion$ )s #ustomers will !ind mo"ile "anking more and more use!ul, t eir expe#tations !rom t e solution will in#rease$ -ankIs una"le to meet t e per!orman#e and relia"ility expe#tations may lose #ustomer #on!iden#e$ III. 'pplication distribution: +ue to t e nature o! t e #onne#ti%ity "etween "ank and its #ustomers, it would "e impra#ti#al to expe#t #ustomers to regularly %isit "ank s or #onne#t to a we" site !or regular upgrade o! t eir mo"ile "anking appli#ation$ It will "e expe#ted t at t e mo"ile appli#ation itsel! # e#k t e upgrades and updates and download ne#essary pat# es .so #alled Over The 'ir updates1$ ,owe%er, t ere #ould "e many issues to implement t is approa# su# as upgrade H syn# roniGation o! ot er dependent #omponents$

I8. 2ersonali<ation: It would "e expe#ted !rom t e mo"ile appli#ation to support personaliGation su# asC 4$ &re!erred Language @$ +ate H 2ime !ormat B$ )mount !ormat 6$ +e!ault transa#tions 8$ 0tandard -ene!i#iary list$

CH@" Mo/$ 1 /%!&$!6 $! *)1 5o, '

Mo"ile "anking as #ome in andy in many parts o! t e world wit little or no In!rastru#ture de%elopment, espe#ially in remote and rural areas$ 2 is part o! t e mo"ile #ommer#eis also %ery popular in #ountries w ere most o! t eir population is un"anked$ In most o! t ese pla#es "anks #an only "e !ound in "ig #ities and #ustomers a%e to tra%el undreds o! miles to t e nearest "ank$Countries like 0udan, G ana and 0out )!ri#a re#ei%ed t is new #ommer#e %ery well$ In Latin )meri#a #ountries like Uruguay, &araguay, )rgentina, -raGil, KeneGuela, Colom"ia, Guatemala and re#ently Mexi#o started wit a uge su##ess$In Iran "anks like &arsian, 2e'arat, Mellat, 0aderat, 0epa , ed"i and "ankmelli o!!er t is ser%i#e$ Guatemala as t e support o! -an#o industrial$ Mexi#o released t e Omnili!e, -an#omer and a pri%ate #ompany .M&ower mo"ile #ommer#e wit

Kentures1$ Kenya:s 0a!ari#om .&art o! t e Koda!one Group1 as ad t e %ery popular M/&esa 0er%i#e / mainly used to trans!er limited amounts o! money, "ut as "een in#reasingly used to pay utility "ills$ (ain in @995 laun# ed t eir own mo"ile money trans!er "usiness known as ()& in Kenya and ot er )!ri#an #ountries$

Technologies %ehind $obile %anking

2e# ni#ally speaking most o! t ese ser%i#es #an "e deployed using more t an one # annel$ &resently, Mo"ile -anking is "eing deployed using mo"ile appli#ations de%eloped on one o! t e !ollowing !our # annels$ 4$ IKR .Intera#ti%e Koi#e Response1 @$ 0M0 .0 ort Messaging 0er%i#e1 B$ 3)& .3ireless )##ess &roto#ol1 6$ 0tandalone Mo"ile )ppli#ation Clients I. I8;+ Interactive 8oice ;esponse: IKR or Intera#ti%e Koi#e Response ser%i#e operates t roug pre/spe#i!ied num"ers t at "anks ad%ertise to t eir #ustomers$ Customer:s make a #all at t e IKR num"er and are usually greeted "y a stored ele#troni# message !ollowed "y a menu o! di!!erent options$ Customers #an # oose options "y pressing t e #orresponding num"er in t eir keypads, and are t en read out t e #orresponding in!ormation, mostly using a text to spee# program$

Mo"ile "anking "ased on IKR as some ma'or limitations t at t ey #an "e used only !or En;uiry "ased ser%i#es$ )lso, IKR is more expensi%e as #ompared to ot er # annels as it in%ol%es making a %oi#e #all w i# is generally more expensi%e t an sending an 0M0 or making data trans!er .as in 3)& or 0tandalone #lients1$

One way to ena"le IKR is "y deploying a &-L system t at #an ost IKR dial plans$ -anks looking to go t e low #ost way s ould #onsider e%aluating )sterisk, w i# is an open sour#e Linux &-L system$

II. "$" = "hort $essaging "ervice: 0M0 uses t e popular text/messaging standard to ena"le mo"ile appli#ation "ased "anking$ 2 e way t is works is t at t e #ustomer re;uests !or in!ormation "y sending an 0M0 #ontaining a ser%i#e #ommand to a pre/spe#i!ied num"er$ 2 e "ank responds wit a reply 0M0 #ontaining t e spe#i!i# in!ormation$ For example, #ustomers o! t e ,+FC -ank in India #an get t eir a##ount "alan#e details "y sending t e keyword ?,+FC-)L: and re#ei%e t eir "alan#e in!ormation again "y 0M0$

,owe%er t ere a%e "een !ew instan#es w ere e%en transa#tion/"ased ser%i#es a%e "een made a%aila"le to #ustomer using 0M0$ For instan#e, #ustomers o! t e Centurion -ank o! &un'a" #an make !und trans!er "y sending t e 0M0 ?2R* .)H# *o1 .&I* *o1 .)mount1:$

One o! t e ma'or reasons t at transa#tion "ased ser%i#es a%e not taken o! on 0M0 is "e#ause o! #on#erns a"out se#urity$ 2 e main ad%antage o! deploying mo"ile appli#ations o%er 0M0 is t at almost all mo"ile p ones are 0M0 ena"led$

)n 0M0 "ased ser%i#e is osted on a 0M0 gateway t at !urt er #onne#ts to t e Mo"ile ser%i#e pro%iders 0M0 Centre$ 2 ere are a #ouple o! osted I& "ased 0M0 gateways a%aila"le in t e market and also some open sour#e ones like Kannel$

"$" 3etwork 'rchitecture

III.:'2 = :ireless 'ccess 2rotocol:

3)& uses a #on#ept similar to t at used in Internet "anking$ -anks maintain 3)& sites w i# #ustomer:s a##ess using a 3)& #ompati"le "rowser on t eir mo"ile p ones$ 3)& sites o!!er t e !amiliar !orm "ased inter!a#e and #an also implement se#urity ;uite e!!e#ti%ely$

-ank o! )meri#a o!!ers a 3)& "ased ser%i#e # annel to its #ustomers in ,ong Kong$ 2 e "anks #ustomers #an now a%e an anytime, anyw ere a##ess to a se#ure relia"le ser%i#e t at allows t em to a##ess all en;uiry and transa#tion "ased ser%i#es and also more #omplex transa#tion like trade in se#urities t roug t eir p one ) 3)& "ased ser%i#e re;uires osting a 3)& gateway$ Mo"ile )ppli#ation users a##ess t e "ank:s site t roug t e 3)& gateway to #arry out transa#tions, mu# like internet users a##ess a we" portal !or a##essing t e "anks ser%i#es$ 2 e !ollowing !igure demonstrates t e !ramework !or ena"ling mo"ile appli#ations o%er 3)&$ 2 e a#tually !orms t at go into a mo"ile appli#ation are stored on a 3)& ser%er, and ser%ed on demand$ 2 e 3)& Gateway !orms an a##ess point to t e internet !rom t e mo"ile network$

:'2 3etwork 'rchitecture for $obile 'pplications I8. "tandalone $obile 'pplication 7lients: 0tandalone mo"ile appli#ations are t e ones t at old out t e most promise as t ey are most suita"le to implement #omplex "anking transa#tions like trading inse#urities$ 2 ey #an "e easily #ustomiGed a##ording to t e user inter!a#e #omplexity supported "y t e mo"ile$ In addition, mo"ile appli#ations ena"le t e implementation o! a %ery se#ure and relia"le # annel o! #ommuni#ation$

One re;uirement o! mo"ile appli#ations #lients is t at t ey re;uire to "e downloaded on t e #lient de%i#e "e!ore t ey #an "e used, w i# !urt er re;uires t e mo"ile de%i#e to support one o! t e many de%elopment en%ironments like J@ME or Mual#omm:s -RE3$ J@ME is !ast "e#oming an industry standard to deploy mo"ile appli#ations and re;uires t e mo"ile p one to support Ja%a$ 2 e ma'or disad%antage o! mo"ile appli#ation #lients is t at t e appli#ations needs to "e #ustomiGed to ea# mo"ile p one on w i# it mig t !inally run$

CH#" A'?%!*%61 & D$4%'?%!*%61 o2 Mo/$ 1 B%!&$!6

'dvantages) 4$ 2 e "iggest ad%antage t at mo"ile "anking o!!ers to "ank s is t at it drasti#ally #uts down t e #osts o! pro%iding ser%i#e to t e #ustomers$ For example an a%erage teller or p one transa#tion #osts a"out N@$B7 ea# , w ereas an ele#troni# transa#tion #osts only a"out N9$49 ea# $

@$ )dditionally, t is new # annel gi%es t e "ank a"ility to #ross/sell up/sell t eir ot er #omplex "anking produ#ts and ser%i#es su# as %e i#le loans, #redit #ards et#$ B$ For ser%i#e pro%iders, Mo"ile "anking o!!ers t e next surest way to a# ie%e growt $ Countries like Korea w ere mo"ile penetration is nearing saturation, mo"ile "anking is elping ser%i#e pro%iders in#rease re%enues !rom t e now stati# su"s#ri"ers use$ 0er%i#e pro%iders are in#reasingly using t e #omplexity o! t eir supported mo"ile "anking ser%i#es to attra#t new #ustomers and retain old ones$ 6$ ) %ery e!!e#ti%e way o! impro%ing #ustomer ser%i#e #ould "e to in!orm #ustomers "etter$ Credit #ard !raud is one su# area$ 8$ ) "ank #ould, t roug t e use o! mo"ile te# nology, in!orm owners ea# time pur# ases a"o%e a #ertain %alue a%e "een made on t eir #ard$ 2 is way t e owner is always in!ormed w en t eir #ard is used, and ow mu# money was taken !or ea# transa#tion$ 0imilarly, t e "ank #ould remind #ustomers o! outstanding loan repayment dates !or t e payment o! mont ly installments or simply tell t em t at a "ill as "een presented and is up !or payment$ 2 e #ustomers #an t en # e#k t eir "alan#e on t e p one and aut oriGe t e re;uired amounts !or payment$

7$ 2 e #ustomers #an also re;uest !or additional in!ormation$ 2 ey #an automati#ally %iew deposits and wit drawals as t ey o##ur and also pre/ s# edule payments to "e made or # e;ues to "e issued$ F$ 0imilarly, one #ould also re;uest !or ser%i#es like stop # e;ue or issue o! a # e;ue "ook o%er oneIs mo"ile p one$

A$ 2 ere are num"er o! reasons t at s ould persuade "ank s in !a%or o! mo"ile p ones$ 5$ 2 ey are set to "e#ome a #ru#ial part o! t e total "anking ser%i#es experien#e !or t e #ustomers$ 49$ )lso, t ey a%e t e potential to "ring down #osts !or t e "ank itsel!$ 2 roug mo"ile messaging and ot er su# inter!a#es, "ank s pro%ides %alue added ser%i#es to t e #ustomer at marginal #osts$ 44$ 0u# messages also "ear t e %irtue o! "eing targeted and personal making t e ser%i#es o!!ered more e!!e#ti%e$ 2 ey will also #arry "etter results on a##ount o! "etter #ustomer pro!iling$ 4@$ Oet anot er "ene!it is t e anyw ereHanytime # ara#teristi#s o! mo"ile ser%i#es$ ) mo"ile is almost always wit t e #ustomer$ )s su# it #an "e used o%er a %ast geograp i#al area$ 2 e #ustomer does not a%e to %isit t e "ank )2M or a "ran# to a%ail o! t e "ankIs ser%i#es$ Resear# indi#ates t at t e num"er o! !oot!alls at a "ankIs "ran# as !allen down drasti#ally a!ter t e installation o! )2Ms$

4B$ )s su# wit mo"ile ser%i#es, a "ank will need to ire e%en less employees as people will no longer need to %isit "ank "ran# es apart !rom #ertain o##asions$ 46$ 3it Indian tele#om operators working on o!!ering ser%i#es like money

transa#tion$ O%er a mo"ile, it may soon "e possi"le !or a "ank to o!!er p one/"ased #redit systems$ 48$ 2 is will make #redit #ards redundant and also aid in # e#king #redit #ard$ Fraud apart !rom o!!ering en an#ed #ustomer #on%enien#e$ 2 e use o! mo"ile 2e# nologies is t us a win/win proposition !or "ot t e "ank s and t e "ankIs Customers$

47$ 2 e "anks add to t is personaliGed #ommuni#ation t roug t e pro#ess o! )utomation$ For instan#e, i! t e #ustomer asks !or is a##ount or #ard "alan#e a!ter #ondu#ting a transa#tion, t e installed so!tware #an send im an automated reply in!orming o! t e same$ 2 ese automated replies t us sa%e t e "ank t e need to ire )dditional employees !or ser%i#ing #ustomer needs$ 4F$ Use "anking !a#ilities anyw ere, e%en !ar away !rom a "ank $Easy operation < a##ess a##ounts !rom a #ell p one$ Lower operational #osts .!or "ank s1 t an setting up )2M ma# ines$

)isadvantage:
4$ -a#k in days w en Internet was introdu#ed, it was a "oon to t e !inan#ial industry as it redu#ed all %olumes "y opening anot er sel!/ser%i#e # annel !or ser%i#ing #ustomers$ @$ 3it mo"ile t at ad%antage is not t ere as already in%estments are made to redu#e #all %olumes using Internet and Internet is one o! t e te# nologies t at is e%er spreading in #ustomer #ommunity$

B$ )lmost A9E o! t e people in U0 already a%e internet #onne#tion$ Mo"ile "anking would "e anot er %alue added ser%i#e t at #an "e pro%ided "y !inan#ial institutions, it may only "ring good will$ 6$ +epending on t e te# nologi#al dire#tion !or ena"ling Mo"ile #ompanies eit er as to spend enormous amount o! money in mat# ing #ustomerIs expe#tation or maintaining anot er stream o! te# nology appli#ations$ 2e# nology still se#urity issues and so!tware distri"ution issues$ >ses 41 &ay "ills @1 2rans!er !unds B1 2ake mini/statements, #ondu#t "alan#e en;uiries 61 0et alerts !or mo%ement in a##ounts < # ange in "alan#e, payments o! "ills set on auto payment mode et#$ 81 &ur# ase items < e$g$ )-*)mroIs Mpower ena"les you to s op )lt oug ad%an#edH ig /end transa#tions #an "e #ondu#ted using #ell p ones, most mo"ile "anking #ustomers use it !or "asi# a#ti%ities like "alan#e en;uiry, making payments o! regular "ills et#$ as

CHA" SMS B%!&$!6

3 en people are ard pressed !or time, t e need !or Danytime anyw ere> is "anking gains utmost importan#e$ -earing t is in mind, "ank s pro%ides a no%el ser%i#e w i# gi%es retail #ustomers a##ount in!ormation and real/time transa#tion #apa"ilities !rom t eir #ell p ones$ 3it 0M0 "anking t e !ollowing ser%i#es #an "e o"tainedC

6et account balance details ;e?uest a che?ue book

;e?uest last three transaction details 2ay bills for electricity@ mobile@ insurance etc.

"$" banking Overview: In order to a%ail t e ser%i#es mentioned a"o%e, a user su"s#ri"ing to a wireless #arrier sends an 0M0 wit num"er$ 2 e ser%i#e pro%ider !orwards t is message to t e "ankIs mo"ile appli#ations$ 2 e mo"ile "anking appli#ations inter!a#e wit t e #ore "anking "anking a prede!ined #ode to t e "ulk ser%i#e pro%iderIs

ser%ers .t at #ontain t e user a##ount in!ormation1 t at ser%i#e t e re;uest made "y t e user$ 2 e response is t en sent "y t e mo"ile "anking appli#ations to t e "ulk ser%i#e pro%ider w o in turn !orward it to t e %alid user %ia 0M0$ 3 i# is %ery well explaining in t e !ollowing diagramP

2 ere are two ways in w i# a "ank #an #ommuni#ate wit a #ustomer using 0M0C 4$ In t e !irst met od t e "ank proa#ti%ely sends data to #ustomers in response to #ertain transa#tions$ For e$g$ a##ount to a##ount trans!er, salary #redit and some promotional messages$ 2 is data #an "e sent to t e #ustomer in two ways a. *+mail to mobile A*2$BC In t is met od, t e "ank sends an email to t e mo"ile "anking appli#ation t roug a spe#i!i# email address$ 2 is email may #onsist o! t e message #ontent toget er wit t e mo"ile num"ers o! t e #ustomer$ 2 e mo"ile "anking appli#ation in turn sends t is message in a spe#i!i# !ormat .!or e$g$ LML tags are part o! a ,22& GE2 message ;uery string1 to t e ser%i#e pro%iderIs appli#ation ser%er$ From ere on t e in!ormation !rom t e LML tags is extra#ted and sent as a 0M0 to t e wireless #arrier w i# in turn !orwards t is message to t e #ustomer$

b. )atabase to mobile A)2$B: ,ere a mo"ile "anking appli#ation #ontinuously polls t e "ank s data"ase ser%er and w ene%er a rele%ant e%ent appens, !or e$g$ an a##ount to a##ount trans!er, it !orwards t e spe#i!i# message to t e ser%i#e pro%iderIs appli#ation ser%er$ 2 e message !ormat may "e t e same as t e one used in t e E@M #ase$ 2 is message is t en !orwarded to t e wireless #arrier w i# in turn !orwards t is message to t e #ustomer$

In t e se#ond met od t e "ank sends data in response to spe#i!i# #ustomer ;uery su# as a##ount "alan#e details$ 2 e #ustomer !irst sends a pre/de!ined re;uest #ode %ia 0M0 to t e -ulk 0M0 ser%i#e pro%iderIs registered mo"ile num"er$ +epending on t e message #ode, t e "ulk 0M0 pro%ider !orwards t e 0M0 to a &ULL appli#ation in t e mo"ile "anking ser%er$ 2 e &ULL appli#ation re#ei%es t e re;uest and !orwards it to t e #ore "anking appli#ation !or !urt er pro#essing$ 2 e #ore "anking ser%er t en pro#esses t is message and sends t e reply to t e in turn !orwards in to t e #ustomer %ia t e ser%i#e &ULL appli#ation w i#

pro%ider$ )s in t e a"o%e #ases t e re;uest and t e response !or t e &ULL appli#ation may "e a ,22& GE2 message wit tags in t e ;uery string$

M%,&1*$!6 4*,%*169 -41' /9 /%!& ?$% .o/$ 1 /%!&$!6

0M0 "anking ser%i#es are operated using "ot &us and &ull messages$ &us messages are t ose t at t e "ank # ooses to send out to a #ustomer:s mo"ile p one, wit out t e #ustomer initiating a re;uest !or t e in!ormation$ 2ypi#ally pus messages #ould "e eit er Mo"ile Marketing messages or messages alerting an e%ent w i# appens in t e #ustomer:s "ank a##ount, su# as a large wit drawal o! !unds !rom t e )2M or a large payment using t e #ustomer:s #redit #ard, et#$ )not er type o! pus message is One/time password .O2&s1$ O2&s are t e latest tool used "y !inan#ial and "anking ser%i#e pro%iders in t e !ig t against #y"er !raud$ Instead o! relying on traditional memoriGed passwords, O2&s are re;uested "y #onsumers ea# time t ey want to per!orm transa#tions using t e online or mo"ile "anking inter!a#e$ 3 en t e re;uest is re#ei%ed t e password is sent to t e #onsumerIs p one %ia 0M0$ 2 e password is expired on#e it as "een used or on#e its s# eduled li!e/#y#le as expired$ &ull messages are t ose t at are initiated "y t e #ustomer, using a mo"ile p one, !or o"taining in!ormation or per!orming a transa#tion in t e "ank a##ount$ Examples o! pull messages !or in!ormation in#lude an a##ount "alan#e in;uiry, or re;uests !or #urrent in!ormation like #urren#y ex# ange rates and deposit interest rates, as pu"lis ed and updated "y t e "ank $ 2 e "ankIs #ustomer is empowered wit t e #apa"ility to sele#t t e list o! a#ti%ities .or alerts1 t at eHs e needs to "e in!ormed$ 2 is !un#tionality to # oose a#ti%ities #an "e done eit er "y integrating to t e Internet "anking # annel or t roug t e "ankIs #ustomer ser%i#e #all #entre$

T9+$7% P-4) & P- S1,?$714 o221,1' -!'1, SMS /%!&$!6

+epending on t e sele#ted extent o! 0M0 "anking transa#tions o!!ered "y t e "ank, a #ustomer #an "e aut oriGed to #arry out eit er non/!inan#ial transa#tions, or "ot and !inan#ial and non/!inan#ial transa#tions$ 0M0 "anking solutions o!!er #ustomers a range o! !un#tionality, #lassi!ied "y &us and &ull ser%i#es as outlined "elow$

Typical 2ush "ervices would include: &eriodi# a##ount "alan#e reporting .say at t e end o! mont 1 Reporting o! salary and ot er #redits to t e "ank a##ount 0u##ess!ul or unsu##ess!ul exe#ution o! a standing order 0u##ess!ul payment o! a # e;ue issued on t e a##ountQ

Insu!!i#ient !unds Large %alue wit drawals on t e )2M or on a de"it #ard #ard$

Large %alue wit drawals on an a##ount

Large %alue payment on a #redit #ard or out o! #ountry a#ti%ity on a #redit One/time password and aut enti#ation

Typical 2ull "ervices would include: )##ount "alan#e in;uiry Mini statement re;uest

Ele#troni# "ill payment sa%ings a##ount to a #urrent a##ount to !und a # e;ue

2rans!ers "etween #ustomer:s own a##ounts, like mo%ing money !rom a 0top payment instru#tion on a # e;ue Re;uesting !or an )2M #ard or #redit #ard to "e suspended

+e/a#ti%ating a #redit or de"it #ard w en it is lost or t e &I* is known to "e #ompromised

Foreign #urren#y ex# ange rates in;uiry Fixed deposit interest rate in;uiry

7oncerns ( "kepticism about "$" %anking

Many "anks would a%e some #on#erns w en t e prospe#ts o! introdu#ing 0M0 "anking are dis#ussed$ Most o! t ese #on#erns #ould re%ol%e around se#urity and operational #ontrols around 0M0 "anking$ ,owe%er supporters o! 0M0 #laim t at w ile 0M0 "anking is not as se#ure as ot er #on%entional "anking # annels, like t e )2M and Internet "anking, t e 0M0 "anking # annel is not intended to "e used !or %ery ig /risk transa#tions$

The 7onvenience 5actor

2 e #on%enien#e o! exe#uting simple transa#tions and sending out in!ormation or alerting a #ustomer on t e mo"ile p one is o!ten t e o%erriding !a#tor t at dominates o%er t e skepti#s w o tend to "e o%erly "itten "y se#urity #on#erns$ )s a personaliGed end/user #ommuni#ation instrument, today mo"ile p ones are per aps t e easiest # annel on w i# #ustomers #an "e rea# ed on t e spot, as t ey #arry t e mo"ile p one all t e time no matter w ere t ey are$ -esides, t e operation o! 0M0 "anking !un#tionality o%er p one key instru#tions makes its use %ery simple$ 2 is is ;uite di!!erent to Internet "anking w i# #an o!!er "roader !un#tionality, "ut as t e limitation o! use only w en t e #ustomer as a##ess to a #omputer and t e Internet$ )lso, urgent warning messages, su# as 0M0 alerts, are re#ei%ed "y t e #ustomer instantaneouslyQ unlike ot er # annels su# as t e post, email, Internet, telep one "anking, et#$ on w i# a "ank :s noti!i#ations to t e #ustomer in%ol%es t e risk o! delayed deli%ery and response$ 2 e 0M0 "anking # annel also a#ts as t e "ankIs means o! alerting its #ustomers, espe#ially in an emergen#y situationQ e$g$ w en t ere is an )2M !raud appening in t e region, t e "ank #an pus a mass alert .alt oug not su"s#ri"ed "y all #ustomers1 or automati#ally alert on an indi%idual "asis w en a prede!ined ?a"normalI transa#tion appens on a #ustomerIs a##ount using t e )2M or #redit #ard$ 2 is #apa"ility mitigates t e risk o! !raud going unnoti#ed !or a long time and in#reases #ustomer #on!iden#e in t e "ankIs in!ormation systems$

7ompensating controls for lack of *ncryption

2 e la#k o! en#ryption on 0M0 messages is an area o! #on#ern t at is o!ten dis#ussed$ 2 is #on#ern sometimes arises wit in t e group o! t e "ankIs te# nology personnel, due t eir !amiliarity and past experien#e wit en#ryption on t e )2M and ot er payment # annels$ 2 e la#k o! en#ryption is in erent to t e 0M0 "anking # annel and se%eral "ank s t at use it a%e o%er#ome t eir !ears "y introdu#ing #ompensating #ontrols and limiting t e s#ope o! t e 0M0 "anking so!tware solutions a%e !ound relia"le means "y w i# "anking appli#ation to w ere it o!!ers an ad%antage o%er ot er # annels$ 0uppliers o! 0M0 t e se#urity ig $ #on#erns #an "e addressed$ 2ypi#ally t e met ods employed are "y pre/registration and using se#urity tokens w ere t e transa#tion risk is per#ei%ed to "e "anking makes t e #ustomer:s task more #um"ersome$ 0ometimes )2M type &I*s are also employed "ut t e usage o! &I*s in 0M0

Technologies *mployed for "$" %anking

Most 0M0 "anking solutions are add/on produ#ts and work wit t e "ankIs existing ost systems deployed in its #omputer and #ommuni#ations en%ironment$ )s most "ank s a%e multiple "a#kend osts, t e more ad%an#ed 0M0 "anking systems are "uilt to "e a"le to work in a multi/ ost "anking en%ironmentQ and to a%e open inter!a#es w i# allow !or messaging "etween existing systems using industry or de/!a#to standards$ 3ell de%eloped and mature 0M0 "anking so!tware solutions normally pro%ide a ro"ust #ontrol en%ironment and a !lexi"le and s#ala"le operating en%ironment$ 2 ese solutions are a"le to #onne#t seamlessly to multiple operators in t e #ountry o! operation$ +epending on t e %olume o! messages t at are re;uire to "e pus edQ means to #onne#t to t e 0M0 #ould "e di!!erent, su# as using simple modems or #onne#ting o%er leased line using low le%el #ommuni#ation proto#ols$ )d%an#ed 0M0 "anking solutions also #ater to pro%iding !ailo%er me# anisms and least/#ost routing options$ "anking ost

T)1 Po44$/ 1 F-*-,1 2o, Mo/$ 1 B%!&$!6

2ayment on approval by "$" 2 is !eature allows !or 'oint a##ounts or "usiness a##ount to a%e a pre/determined limit to prompt !or eit er super%isor or 'oint a##ount older appro%al$ ) payment re;uest is made !rom t e a##ount to anot er pre/nominated a##ountQ a message is t en send to eit er t e super%isor or 'oint a##ount older to also appro%e t e payment$

Two+stage confirmed payment

2 is payment pro#ess is similar to a letter o! #redit, w en t e end user sends a payment instru#tion !or goods or ser%i#es, t e amount o! t e payment will "e trans!erred to a spe#i!i# a##ount$ 2 e "ene!i#iary will "e noti!ied t at t e amount is guaranteed$ On#e t e goods or ser%i#es are deli%ered t e end userHpayee will "e a"le to a##ept or re'e#t t e goodsHser%i#es and make payment a##ordingly "y appro%ing or denying t e payment pro#ess$

$obile 2ayment in ;etail Outlets

Using not ing "ut t eir own mo"ile andset, #onsumers will "e a"le to make pur# ased at a wide %ariety o! retail outlets$ Let:s use t e supermarket as a #ommon exampleC t e #onsumer needs to make a pur# ase !rom a supermarket, eHs e goes to t e #as ier and sends a payment re;uest along wit isH er password and t e spe#i!i# &O0 ma# ine num"er$ 2 e system will t en send "a#k a +igital Money 0e;uen#e *um"er .+M0*1 to t e "uyer$ 3 en asking to pay !or t e goods, t e #as ier will use isH er spe#ial "anking #ard, and w en t e "uyer is asked !or a password all t ey need to do is enter t e +M0*$ )s long as t e transa#tion is wit in t e daily limit o! t e a##ount t e transa#tion will take pla#e instantly$

CHB" E- B%!&$!6
Introduction of *+ banking 2 e a##eleration in te# nology as produ#ed an

extraordinary e!!e#t upon our e#onomy in general as ad a parti#ularly pro!ound impa#t in expanding t e s#ope and utility o! !inan#ial produ#ts o%er t e last ten years$ In!ormation te# nology as made possi"le t e #reation, %aluation, and ex# ange o! #omplex !inan#ial produ#ts on a glo"al "asis and e%en t at 'ust in re#ent years$ +eri%ati%es are o"%iously t e most e%ident o! t e many produ#ts t at te# nology as inspired, "ut t e su"stantial in#rease in our #al#ulation as permitted a %ariety o! ot er produ#ts and, most "ene!i#ially, new ways to un"undled risk$ 3 at is really ;uite extraordinary is t at t ere is no sign t at t is pro#ess o! a##eleration in !inan#ial te# nology is approa# ing an end$ 3e are mo%ing at an ex#eptionally rapid pa#e, !ueled not only "y t e en an#ed mat emati#al appli#ations produ#ed "y our e%er rising #omputing #apa"ilities "ut also "y our expanding tele#ommuni#ations #apa"ilities and t e asso#iated su"stantial "roadening o! our markets$

5unctions of *+banking
)t present, t e personal e/ "ank system pro%ides t e !ollowing ser%i#esC 1. In?uiry about the information of account: 2 e #lient in;uires a"out t e details o! is own a##ount in!ormation su# as t e #ards H a##ountIs "alan#e and t e detailed istori#al re#ords o! t e a##ount and downloads t e report list$ 2. 7ard accounts0 transfer: 2 e #lient #an a# ie%e t e !und to anot er personIs Credit Card in t e same #ity$ . %ank +securities accounts transfer: 2 e #lient #an a# ie%e t e !und trans!er "etween is own "ank sa%ings a##ounts o! is own Credit Card a##ount and is own #apital a##ount in t e 0e#urities Company$ Moreo%er, t e #lient #an in;uire a"out t e present "alan#e at real time$ !. The transaction of foreign e1change: 2 e #lient #an trade t e !oreign ex# ange, #an#el orders and in;uire a"out t e in!ormation o! t e transa#tion o! !oreign ex# ange a##ording to t e ex# ange rate gi%en "y our "ank on net$ ,. The %27 disbursement on net: 2 e #lient #an do t e real/time trans!er and get t e !eed"a#k in!ormation a"out payment !rom our "ank w en t e #lient does s opping in t e appointed we"/site$

-. 7lient service: 2 e #lient #an modi!y t e login password, in!ormation o! t e Credit Card and t e #lient in!ormation in e/ "ank on net$ C. 'ccount management: 2 e #lient #an modi!y is own limits o! rig t and state o! t e registered a##ount in t e personal e/ "ank, su# as modi!ying is own login password, !reeGing or deleting some #ards and so on$ A$ ;eporting the loss if the account: 2 e #lient #an report t e loss in t e lo#al area .not nationwide1 w en t e #lientIs Credit Card or pass"ook is missing or stolen$

Types of *+ banking
4$ +eposits, wit drawals, inter/a##ount trans!er and payment o! linked a##ounts at an )2MQ @$ -uying and paying !or goods and ser%i#es using de"it #ards or smart #ards wit out a%ing to #arry #as or a # e;ues "ookQ B$ Using a telep one to per!orm dire#t 6$ Using a #omputer to per!orm dire#t a##ount trans!ers and pay linked "anking/ make a "alan#e en;uiry, inter/ "anking/ make a "alan#e en;uiry, inter/ a##ount trans!ers and pay linked a##ountsQ

'dvantages of *+%anking
1. )##ount In!ormationC Real time "alan#e in!ormation and summary o! dayIs transa#tion$ 2. Fund 2rans!erC Manage your 0upply/C ain network, e!!e#ti%ely "y using our online and trans!er me# anism$ 3e #an a!!e#t !und trans!er on a real time "asis a#ross t e "ank lo#ations$ . Re;uestC Make a "anking re;uest online$ !. )##ount in!ormationC 2 e #omplete data"ase t at t e "ank #ompany is a%aila"le to us at our terminal$ It pro%ides usC Current "alan#e in our a##ount on real/time "asis$ +ayIs transa#tions in t e a##ount$ +etails o! #as #redit limit, drawing power, amount utiliGed, et#$ ,. 2 e real li!e situation o! user/wise limits and multile%el signatories #an "e mapped in t e net/"ased !und trans!er module too$ 3e #an spe#i!y user/wise #ap !or !und trans!er and t e num"er o! appro%als needed !or ea# !und trans!er$ 2 e as a"out our

!und trans!er will not take pla#e unless t e re;uired num"er o! signatories as appro%ed it$ -. 3it a power o! )ttorney !rom our dealers, we #an link t e dealerIs a##ounts to our a##ount in order to a%e an online !und trans!er, sa%ing us time and money in%ol%ed wit # e;ues #olle#tions systems$ )lternati%ely, t e dealer #an #redit our a##ount t roug t is # annel$ 0imilarly, we #ould also a!!e#t %endor and ot er payments online$ C. Customers #an also su"mit t e !ollowing re;uests onlineC Registration !or a##ount statements "y e/mail daily H weekly H !ortnig tly H mont ly "asis$ 0top payment or # e;ues C e;ue "ook replenis ment +emand +ra!t H &ay/order Opening o! !ixed deposit a##ount Opening o! Letter o! #redit D. 2 e #ompany does not a%e to spend anyt ing extra to a%ail su# !a#ilities$ )ll it re;uires is Internet #onne#ti%ity$ 2 e produ#t ena"les t e #ompany to pro/a#ti%ely manage its #as !lows, ease re#on#iliation e!!orts as all t e MI0 is a%aila"le at t e #li#k o! t e mouse$ E. -ill &ayment t roug Ele#troni# "ankingC Internet as t us us ered t e #on#ept o! anytime and anyw ere "anking$ 2o t e indi%idual t e onerous task o! %isiting se%eral pla#es to settle is ser%i#e "ills like telep one, water, ele#tri#ity, et#$, #an "e o%er#ome t roug t e ele#troni# -ill &ay ser%i#e pro%ided "y t e "ank$ ,e #an pay is regular mont ly "ills .telep one, ele#tri#ity, mo"ile p one, insuran#e, et#$1 rig t !rom is desktop$ *o more missed deadlines, no more loss o! interest$ ,e #an s# edule is "ills in ad%an#e, and t us a%oid missing t e "ill deadlines as well as earn extra interest on is money$

1F. Ot er "ene!itsC 2 e e/ "anking pro%ides some ot er "ene!its also$ 2 ey areC Con%enien#e$ 0peed o! #on#luding transa#tions$ 0a!ety/ "anking !rom own ome$ E#onomy/ "anking wit out %isiting your "ank$ C eaper ser%i#e !ees$ 0eamless Integration wit existing en%ironment .I+M/Intelligent +ata Module1$ ,ig ly 0alea"le$ Easy CustomiGation$ Lower Costs o! "ot Installation and Maintenan#e$ .imitation of *+ banking: 4$ 0a!ety situations around )2Ms$ @$ )"use o! "ank #ards "y !raudsters at )2Ms$ B$ +anger o! gi%ing your #ard num"er w en "uying on/line$

CH0" I"T $! B%!&4

2 e re!orms in t e 4559s, w i# led to expansion, #onsolidation and li"eraliGation o! t e "anking and !inan#ial se#tor in India, "roug t in many # anges and # allenges$ ) num"er o! pri%ate and !oreign players entered t e Indian market wit superior te# nologies t at elped t em ser%i#e t eir #ustomers e!!i#iently t roug multiple # annels su# as )2Ms and Online "anking$ Indian "ank s on t e ot er and as "een using I2 more out o! #ompulsion and primarily !or transa#tion pro#essing$ 2 ey now need to adopt I2 to reposition "ank s into t e integrated !inan#ial ser%i#es market$ 2 e need !or pro%iding impro%ed #ustomer ser%i#e, redu#ing transa#tion #osts and in#reasing produ#ti%ity, s all "e t e main dri%ers !or "anking se#tor to adopt I2$ 2 ese #onsiderations are parti#ularly important !or pu"li# se#tor "ank s in India, w o are !a#ing immense #ompetition !rom pri%ate and !oreign "ank s$ I2 #an elp t em mo%e !rom t e present s#enario w ere t ey are working as isolated islands to pro%iding a #entraliGed "anking experien#e$ 2 ere is a need today !or I2 and t e !inan#ial #ommunity to #ome toget er and de%elop #ustomiGed I2 solution to make t e Indian "anking se#tor glo"ally #ompetiti%e$ I2 adoption in t e "anking se#tor will pro%ide real time a%aila"ility o! transa#tion pro#essing t roug multiple # annels$ It would en an#e a "ankIs a"ility to #ross sell produ#ts, ensure "etter management and se#urity and sa!ety o! !unds and in#rease e!!i#iently t roug integration o! systems a#ross %arious lo#ations$ It would also ensure e!!i#ient management o! *on &er!orming )ssets .*&)s1, minimiGe transa#tions #osts, en an#e a"ility to #ondu#t in/dept !inan#ial analysis and gat er "usiness intelligen#e$ En an#ed use o! I2 would also en#ourage t e use

o! Internet to pro%ide a##ess !or online "ill payments, !und trans!ers and e/ statements in addition to en#ouraging wireless mo"ile "anking and e/#ommer#e$ 3it growing #ompetition !a#ed "y !oreign "ank s and !inan#ial institutions, t e pu"li# se#tors "ank s in #o/operation wit t e Indian I2 industry would need to e;uip t emsel%es !or t e next p ase o! introdu#ing t e "ene!its o! I2 to t eir #ustomers "y pro%iding a #entraliGed "anking solution$ Opportunity !or Indian "anking se#tor in "ran# #omputeriGation 4$ I2 *etworking @$ 0ystem Relations ip Management B$ Customer Relations ip Management .CRM1 )ppli#ations 6$ -a#k O!!i#e pro#essing and Call Centers 8$ +ata ware ousingH+ata mining 7$ Mo"ile "anking and e/ "anking$

)ifferent uses of Information TechnologyC a1 2ele -anking "1 )ny 2ime -anking #1 )utomated 2eller ma# ine d1 0 ared &ayment *etwork 0ystem e1 Customer 0er%i#e !1 Mo"ile "anking g1 ,ome -anking 1 Ele#troni# Fund 2rans!er i1 &lasti# Cards as Media !or &ayment 4$ Credit Card @$ +e"it Card B$ 0mart Card 6$ )2M Card

SURVEY & FINDINGS

From t e sur%ey #ondu#ted on t e Mo"ile "anking !rom Customers

1. Do you know about the mobile banking facility provided by banks?

30 25 20 15 10 5 0 es !o

2 is grap

represents t e amount o! #ustomers w o are aware o! t e mo"ile

"anking !a#ility$ From t is grap we #an see t at Indians are well aware o! t e ser%i#es su# as mo"ile "anking w i# are pro%ided "y "ank s to t em$ ) ser%i#e su# as mo"ile "anking is de!initely not a new #on#ept to t e Indian people$ 2 ey are responsi%e and are appre#iati%e o! t e "ank e!!orts to lig ten t e load on "ran# es and su"sidiaries$

2. "re you aware whether your bank provides the mobile banking facility?

20 15 es# it does 10 5 0 !o# it doesn$t % don&t know

2 is grap represents t e amount o! #ustomers w o pre!er to "ank using mo"ile "anking ser%i#es or traditional "anking met ods$ From t is grap it is ;uite #lear t at people are still wary a"out mo"ile "anking$ 2 ey still pre!er to "ank using traditional met ods o! "anking "e#ause t ey a%e !ull #on!iden#e is su# met ods$ 2 e main reason !or t e !all o! mo"ile "anking grap is t at people "elie%e t at "anking t roug mo"ile p one is risky and t at it #an lead to in!ormation !alling into t e wrong ands$ ,owe%er wit new and impro%ed se#urity measures like en#ryption, and password prote#ted ser%i#es all t e risks and worries #an "e wiped away$

3. %s mobile banking one of the criteria you are looking for in a bank ?
1( 15.5 15 1'.5 1' 13.5 13 es !o

2 is grap represents t e amount o! people t at re;uire mo"ile "anking ser%i#es and "ank wit only t ose t at pro%ides su# a !a#ility, 2 is s ows t at t e Indian people are #onstantly on t e mo%e and re;uire some met od to "ank w ile on t e mo%e$ 2 ere!ore mo"ile "anking is de!initely demanded "y t em so t at t ey #an opt !or it w ene%er t ey re;uire$ E%en t oug t ey may pre!er t e traditional met od o! "anking to t e mo"ile "anking !a#ility, t e people want to keep t eir options open at t e time o! need, and en#e pre!er a "ank t at pro%ides mo"ile "anking !rom one t at does not$
'. Do you have confidence in the mobile banking facility?

2 is grap represents t e amount o! #ustomers w o a%e #on!iden#e in mo"ile "anking$ 2 is grap s ows us t at t e Indian people are still unsure and are not #on!ident enoug to %enture into "anking using mo"ile p ones$ 2 ey "elie%e t at t reading on unknown territory #an "e arm!ul and #an lead to uge losses due to !raud or t e!t$

2o get o%er t is notion t e Indian pu"li# needs some e%iden#e to pro%e t at mo"ile "anking is sa!e and se#ure and t e only e%iden#e are t e people w o #onstantly use su# a !a#ility$

5. )ould you recommend such a facility to others?

2 is grap represents t e amount o! #ustomers t at would %ou# and re#ommend

20 15 10 5 0 es !o

t e mo"ile

"anking !a#ility to ot ers$ I! a #ustomer, w o as used t e mo"ile

"anking !a#ility in t e past, re#ommends su# a !a#ility to ot ers it means t at it as ad a good impa#t on im, ot erwise e would not "e doing so$ Moreo%er, it works out well !or mo"ile "anking "e#ause word o! mout pu"li#ity is t e "est pu"li#ity e%er$ ) point to "e noted is t at e%en t oug t e Indian people are not !ully #on!ident a"out mo"ile "anking$ "anking, t ey are willing to experiment wit new ideas and inno%ations "ut at a slow and #autious pa#e, w i# is a good turno%er !or mo"ile

(. )hy do you feel mobile banking is beneficial to society?

1' 12 10 * ( ' 2 0 +ost effective for banks ,aves +ustom ers$ tim e and energy -educes dependency on bank branches "ll of the above

2 e grap represents w y mo"ile "anking is "ene!i#ial to t e so#iety$ )s it #an "e #learly seen, a ma'or segment o! t e sur%ey grap points out t at mo"ile "anking sa%es time and energy o! t e #ustomers as well as is "ene!i#ial in all t ree ways, t at is, #ost e!!e#ti%e !or "anks, sa%es #ustomers time and energy and redu#es dependen#y on "ank "ran# es$ 2 is s ows t at mo"ile "anking is not only "ene!i#ial to t e #ustomer "ut also to t e "ank t at pro%ides t em as t e "ank #an redu#e its #ost "y iring !ewer personnel to take post in %arious "ank "ran# es, it #an redu#e #rowding in "ank "ran# es "e#ause transa#tions #an "e taken #are o!! or dealt wit wit out a%ing to enter a "ank "ran# $

S-,?19 R1+o,*4
2 e !irst and !oremost reason !or #ondu#ting a sur%ey is to "etter understand t e "asi# !un#tionality o! mo"ile so!tware in a "anking$ 2 e working o! t e mo"ile "anking "anking en%ironment, t e pro#edure in%ol%ed in adopting t is

ser%i#e and t e type, #lass and amount o! people t at it #aters to, #an "est "e expressed and understood "y #ondu#ting a sur%ey on t e "ank s t at pro%ide t em$

Co!7 -4$o!
3it t e rapid de%elopment o! transport and #ommuni#ation, people and ser%i#es are #oming toget er as i! t ey were 'ust around t e #orner$ I! t is is t e #ase !or many ser%i#es, t en w y s ould t e "anking industry lag "e indP Internet "anking, p one "anking, e/"anking and now mo"ile "anking all ena"le t e "ank to "e "etter #onne#ted wit t e #ustomer and %i#e %ersa$ ) #ustomer w o is pro%ided wit a %ariety o! additional ser%i#es !eels appre#iated and is more likely to "e loyal to t at "ank, w i# is always a good sign !or a "ank$ In t e end mo"ile "anking not only elps a "ank to redu#e #osts "ut also

elps it to retain its %alua"le #ustomers$ )nd as !ar as #ustomers are #on#erned, t is !a#ility ena"les t e #ustomer to "ank anyw ere, at anytime and in any #ondition, de!initely a "oon i! a #ustomer is stu#k in t e middle o! now ere and re;uires "anking ser%i#es as soon as possi"le$ 2 us mo"ile "anking elps "ot , t e #ustomer as well as t e "ank, to

lig ten t e "urden o! todayIs world and to sa%e time, money and energy w i# is greatly re;uired and appre#iated$ In a #ompetiti%e world w ere e%eryone is waiting to outdo t e ot er, a elping and, in w ate%er !orms and !rom w ate%er sour#e, is de!initely god sent and s ould not go unre#ogniGed$

B$/ $o6,%+)9
3e"sitesC 4$ www$wikipedia$#om @$ www$googleimages$#om
B$ www$google$#om

-ooksC 4$ En%ironment o! !inan#ial ser%i#es, O$&$)garwal$ @$ -anking 0er%i#e R In!ormation 2e# nology, R$K$Uppal$ 0ur%ey sour#esC CU02OMER0 OF G,)2KO&)R