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Mobile Banking Project By

Shahnaz Khilji

PROJECT ON: M-Banking

SUBMITTED BY: Shahnaz Khilji

T.Y.B.COM. (BANKING & INSURANCE)

SEMESTER: V

DATE OF SUBMISSION:

PROJECT GUIDE
PROF:

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ACKNOWLEDEMENT

I feel deeply in debted towards people who have guided me in this

project. It would have not have been possible to make such an extensive
report without the help, guidance and inputs from them. Most of my
information source has been from professional books of banking sector

I would firstly like to express my gratitude towards my guide PROF:

KASHYAP GANATRA for having shown so much of flexibility & guiding
in such a way that I was really learning the subject all the time. She helped
me in deciding the project topic. She showed a lot of openness in her
approach and I would like to thank him for his support in a way that has lead
to proper & effective learning.

I would like to thank Mr. ASHOK PATEL, branch manager of HDFC

bank for their kind support in providing primary data and information
regarding Mobile Banking.

Last but not least I am grateful to all my family members & my friends
for being my side always. Without their help and Motivation it would have
been impossible to complete my project.

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Findings

Primary Data:

Various people that included office staff help to collect the

primary data on the basis of interviews, thoughts & suggestion

Secondary Data:

The Main sources of Secondary data were combination of

information from the Internet, periodicals and books of the related topic.

Hypothesis:

To understand about how M-banking activity is carried out and how

it is easy to use.

Limitations:

Lack of information pertaining to the various angles of the report.

The topic is too vast to be covered in this project. These were main problems
encountered by myself.

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Table of Contents

NO. Particulars PageNo

1. Acknowledgement 2
2. Finding 3
3. Table of content 4
4. Executive summery 5
5. Introduction 6-7
6. Mobile Network provide competitive advantages 8
7. Mobile Banking Applications 9-10
8. Mobile payment-An additional role for Mobile phone 11
9. M-Commerce-strategic implications for banks 12-13
10. Terms and conditions governing the use of “SMS”-SIB 14-20
Mobile service,(Push Alerts & Pull request)
11. Customers Requirements for Mobile Banking Application 21
12. Could Mobile Banking go global ? 22
13. M-Banking-No Wires, No Worries, New customers. 23
14. M-Banking use cases 24
15. M-Banking solutions : Best practice 25-26
16. Security for Mobile Banking 27-30
17. Characteristics of Mobile use 31
18. General conditions of Mobile Banking 32
19. Case study of HDFC bank 33-36
20. Conclusion and suggestions 37
21. Application form for Mobile Banking 38
22. Questionnaires 39-45
21. Bibliography and Wibliography 46

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EXECUTIVE SUMMERY

Mobile communication device are revolutionizing banking transaction

over wireless networks & the Internet. To attract & retain customers, banks
need to extend their full range of service across a wide range of mobile,
wireless devices without having an impact on their current infrastructure
& the delivery channels it currently supports. Wireless network, mobile
gateways, WAP (wireless application protocol) & WML (Wireless markup
language) all play an important role in bringing mobile banking strategy to
the market.

For wired customers & businesses, the next phase in this evolution is
wireless-mobile banking that is available anytime-anywhere from ‘always –
on’ mobile device like mobile phones & personal digital assistants (PDAs).
With the proliferation & cost-effectiveness of the mobile delivery channel,
banks have bull-in delivery mechanism that can offer services & 24*7access
regardless of where the customer happens to be. Unlike PC-based e banking,
mobile banking provides banks with the unprecedented opportunity to reach
their customer in an unrestricted environment. The big benefit for banks?
Higher customer satisfaction & loyalty, more transaction-based fee revenue,
lower cost of ownership, & an integrated customers relationship
management channel.

Mobile banking is, of course, still dependent on the Internet as a

delivery network. That said, there are some critical differences between
Internet & mobile banking services. The most notable of these is the Internet
users experiences via mobile interface verses the Internet experiences via
standard device like PCs & laptops. As mobile devices are limited to a tiny
percentage of screen real estate, customers will place less emphasis on
surfing/browsing & become transaction-focused customers responding to
‘push’ messages that reflect proximity as well as buying patterns. Pull-based
customer interaction, such as those conducted via fixed-network devices like
PCs, will ultimately decline in usage as push messaging becomes even more
sophisticated.

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Introduction of Mobile Banking

The Internet is revolutionizing the way the financial industry

conducts business, empowering organizations with new business models and
new ways to interact with customers. The ability to perform banking
transactions online has created new players in the financial industry, such as
online banks and brokers who offer personalized services through their Web
portals. This increased competition is driving traditional financial
institutions to find new ways to add the value to their products and services,
gain competitive advantage and increase customer loyalty while also
attracting new, high-value clients.

Mobile and wireless technology, combined with the wide variety

of portable devices available today, enables new revenue opportunities for
financial services organizations. This provides a new channel that can be
used to refresh and expand the customer base, attract prime customers and
enhance loyalty. With mobile and wireless technology, banks can offer a
wide possibilities of services to their customers, from the freedom of paying
bills while stuck in traffic, to receiving notification of a change in stock
price while having lunch, the convenience and time saving benefits of
wireless financial services are huge. The challenge, then, is how to turn these
possibilities into a reality for the customers.

Benefits

A. Grow new customer base and markets :

Developing wireless applications and services targeted at the mobile
mass market will allow attracting new, high-value customers into mobile
banking portal and expanding the reach to global markets.

B. Increase share of customer wallet :

The convenience of having personalized wireless access to critical
financial information is an invaluable service for customers on the move.
Enabling the execution of time-sensitive financial transactions anywhere,
anytime, provides the opportunity to strengthen the relationships with
existing customers. This ultimately results in an increased share of the
customers' transactions--preventing them from taking a portion of their
financial business elsewhere.

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C. Grow assets, number of transactions and fees :

Granting customers flexible access to financial information and
accounts enables them to perform transactions when it's most convenient for
them. As a result, they have the opportunity to conduct transactions more
frequently, driving increased revenue from fees.

D. Expand and enhance brand presence:

Brand and reputation for convenience, service and innovation will be
strengthened and enhanced each time customers on the move stop to check
their stock portfolio or to pay bills wirelessly. This also offers significant
potential to grow the market.

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MOBILE NETWORKS PROVIDE THE FOLLOWING

COMPETITIVE ADVANTAGES

1.Always – on 24 ×7 access:
Mobile networks will provide the ability for consumers to be
transaction- ready, much in the way cable access has facilitated online pc
access and reduced consumer dial up delays 3555.

2.Advanced penetration of mobile networks:

2G (second generation) networks already cover more than 90
percent of the population in the western world, and this number is growing
steadily.

3.Personalization:
Through SIM (Subscriber Identity Module) cards, mobile customers
have a specific profile that enables customized functionality that directly
reflects the way they want to transact business over mobile devices. Through
the convenient addition of a multi-application relationship card, mobile
customers will also have a built in platform for a host of other application
services, including security keys, virtual credits cards, and other customized
payment instruments.

4.Rapid evolution of global protocols such as WAP (wireless application

protocol):
This enables the communication channel between computers and
mobile devices. The WAP component essentially provides the facility for
reformatting data for display on wireless hands.

5. Faster Data Processing Speeds:

Increases in bandwidth and data transmission a speed makes mobile
data services efficient and cost - effective in a real time environment.

6. Security
Effectively, the mobile banking transaction can be protected by a
private key stored on SIM card and hence mobile phone can become a
wireless wallet to protect proprietary and financial information.

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Mobile banking applications

Examined applications

In the following, the main types of existing mobile banking applications are
introduced. These build standard types as each of them is representative for a
series of comparable applications. While WAP-banking and mobile banking
via PDA are generic, SMS-banking and mobile banking with SIM Toolkit
use specialties of the GSM standard.

WAP-banking

The most widespread solution for mobile banking is based on micro-

websites following the WAP standard (Wireless Application Protocol). The
function of WAP banking is in many ways similar to the function of
Electronic banking using http. The client sends a request and gets a response
with page content, which is stored on or dynamically generated by a
standard web server. The main difference is in the usage of a WAP gateway
for the conversion of the protocols. At banks must be considered that very
sensitive data is processed. While a normal content provider doesn’t has to
observe special security precautions, and in some cases can even use the
services of extern providers, has to secure its web server and WAP Gateway
especially against unauthorized access. This is especially necessary because
of the fact that inside the WAP Gateway the encryption protocol is
converted from SSL/TLS to WTLS with the effect that data is not encrypted
while it is processed. While authentication is assured via a PIN (personal
identification number) of the user, authorization for transactions is realized
via transaction numbers (TAN). This concept, known from the electronic
banking, forces the user to carry a TAN lists with him in order to make
transactions.

SMS-banking

The Short Message Service (SMS) is a GSM service to exchange text

messages up to 140 byte (or 160 characters of 7 bits). The transmission of
mobile-originated short messages is carried out by the short message service
center (SMSC) of the particular network operator. The SMSC is receiving
the message from the mobile device and routing it to the destination device.

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For generating mobile-terminated short messages, it is possible that a

company or a special service provider runs an own SMSC. Thus, a bank
could generate SMS from bank data like account balance or account
movements and send it to the mobile device of the customer. This technique
is used at SMS-banking: The customer sends an SMS with a request to the
bank, and gets the desired data as an answer.
The customer has to include a PIN for authorization in every SMS he sends
to his bank. Alike the WAP banking, one should pay special attention on the
security of the location of the SMSC. Many service providers offer the
operation of SMSC as a service. The usage of such a service is out of
question for banks, because of the high sensitive character of the transmitted
data. For this reason it is mandatory for banks to run their own SMS-
Gateway and secure it from unauthorized access. The main problem with
this kind of transmission is the missing encryption of the data during the on-
the air transmission between the service center and the mobile phone. An
encryption of pure text-SMS is not possible (unless an application on the
mobile device would be able to decrypt the information).

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Mobile Payment: An Additional Role For the Mobile Phone?

The existing payment methods are dominated by cash and cards, because
they are convenient and secure and moreover, there are no better
alternatives. The articles opines that paying for goods and services through a
mobile phone could offer significant advantages over existing payment
method, both in shop and online. However, it says that problems related to
convenience and security, for both buyers and sellers, still need to be
resolved.

Mobile payment – the way forward?

Mobile payment means:

Executing a payment transaction using a wireless device, e.g. mobile

phone or personal digital assistant.

Mobile device becomes an electronic payment device. Its “Mobility” is its

big advantage: it enables payments to be transected regardless of place and
times, and for both “bricks and morter”and Internet purchases.

Announcements about new mobile payment solution appear regularly at

the moment. Potential players form partnership and fight to win a place in
“Mobile Payment”. This player includes mobile operators, banks credit card
companies, mobile device manufactures, smart card manufacturer and a
whole range of mobile payment start-ups.

Existing mobile payment solutions are based on one of three distinct

payment options:

• Prepaid
• Direct from credit card or current account
• Paid through phone bill

The three payment options vary in what is required before the payment, the
Payment process itself, and technology is used.

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Mobile commerce –

STRATEGIC IMPLICATIONS FOR BANKS

Just When Financial institutions began to consolidate their E-

Commerce activities, A new challenges has emerged-Mobile Commerce.
This article attempts to clarify what Banks are currently doing, what
additional opportunities and risks exist, and what should be done to extract
maximum from the M-Commerce markets.

1. Today, banks across the world are delivering a wide range of core banking
services through the mobile channel.

a) In Singapore, users can check balances, pay bills and transfer funds. They
can also view the latest deposit and foreign exchange rates, get the latest
stock market information as well as their personal watch. Banks also use
mobile technology to transfer important financial information to their
customers (e.g., Home loan application approval, fixed deposit Maturity
Reminder, IPO Application Results and IPO Share financing and Allotment
Results).

b) In the US, Charles Schwab offers trades, quotes, alerts and notification
both through the mobile phone display, and by means of an interactive voice
quote.

c) MeritaNordbanken of Scandinavia has established Solo, a WAP-Based

payment system, which enables customers to purchase from 700 virtual
stores and pay directly from their bank account by entering username,
password and transaction number.

d) Banks are exploring the potential of mobile phones as an

on- the-spot payment device, which incorporates both debit and credit card.
Functionally.

2. In addition to being a new distribution channel for financial services,

M-commerce presents the opportunity for banks to significantly expand
their customer relationships.

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3. Challenges lifestyles and an increasing preference for speed and

convenience are eroding the traditional affinity between customers and
branch offices. As new technology disinter mediates traditional channel, the
core value proposition of a bank becomes fulfilling customer needs.
Delivering this value proposition hinges on owning or earning the customer
interface, through understanding individual customer needs and preferences,
and bringing the customer a complete solution which satisfies his financial
needs and gives him maximum conveniences.

Instant access to customers through a user-specific device

enables the delivery of targeted personalized services – the very nature
of mobile access devices ( i.e., input/output constraints) encourages
tailoring and bundling of services. For example: A middle –income
consumer would not want to receive an advertisement to buy a BMW.
On other and, a high income banking customer might wish to receive
the offer to buy the BMW at a special price, bundled with car loan,
insurance, and the option of a monthly garage maintenance services.

4.Banks can transcend their traditional role as a channel for

banking/financial services and become providers of personalized and
localized information, which facilitates the purchase of a wide range of
goods and services.

Banks, which successfully leverage M-commerce can,

 Increase customer loyalty, in terms of acquisition, retention and

cross-selling, by providing tailored bundles of products and
services to specific customers.

 Exploit additional sources of revenue from subscription,

transaction and third party referrals.

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Terms and conditions governing the use of “SMS”- SIB Mobile Service,
the Mobile Banking Service (Push Alerts & Pull Requests)

1.Definitions:

"Customer" shall mean a Customer of Mobile Banking.

Pull Request facility means the facility granted by the Bank of access to
information relating to the savings/current account/overdraft/cash credit
account (or any other type of account, that the Bank may permit later), of the
customer and usage of products and/or services as may be made available on
mobile phone by the Bank from time to time.

Push Alert facility means the facility provided by the Bank whereby a
customer can obtain specific information pertaining to his account/s on his
mobile phone number.

"Alert(s)" means the customized messages sent to the customer over his
mobile phone as short messaging service ("SMS") in response to the
Triggers set by the customer.

"Triggers" means the customized triggers that are required to be set or

placed by the user with the Bank, which shall enable the Bank to send the
corresponding Alerts to the user for specific event/transactions relating to his
Account.

Mobile phone means the handset and SIM card along with the accessories
and necessary software for GSM phones and handsets and software for
CDMA phones, which is owned by the mobile subscriber.

“Mobile Banking” or “Facility” or “service” shall mean the “Push Alert”

and/or “Pull Request” facilities offered by the Bank as SMS.
User means the customer of the Bank having registered for the Mobile
Banking facility and authorized by the Bank to use the Mobile Banking
facility.

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Primary account means the main Savings/Current/Overdraft/Cash Credit

account of the customer, from which the Bank may deduct any service
charges related to the service.

"Personal Information" shall mean the information about the user obtained
in connection with the Facility.

“System” refers to the Centralized Banking system, Mobile Banking system

or any other automated system/s deployed by the Bank.

In this document all reference to user in masculine gender shall be deemed

to include the feminine gender also.

2.Eligibility

1. Any customer having a (resident/NRE) Savings /Current /Cash

Credit/Overdraft account with any branch of the Bank with Centralized
Banking facility is eligible to avail the Mobile Banking/Alert facility,
subject to all conditions mentioned in this Section (Eligibility). The Bank
may extend the facility (partially or completely) to other accounts including
term deposits and loan accounts if the customer has at least one
Savings/Current /Overdraft/Cash Credit account.

2. The Customer desirous of using the Facility should both be the account
holder and sole signatory or be authorized to act independently. In case of
joint accounts, the facility shall be provided to the account holder/s only if
the mode of operations is “Either or Survivor”, “Former or Survivor”. Each
applicant will have to register separately for availing the facility. All the
joint account holders would have to sign in the Declaration authorizing the
Bank to provide the facility to the applicant. In such cases, instructions of all
the joint account holder/s authorizing the user to use the Facility would be
required. All or any transactions arising from the use of the Facility in the
joint account shall be binding on all the joint account holders, jointly and
severally. An account in the name of the minor, in which a minor is a joint
account holder or any account where the mode of operation is “jointly”, is
not eligible for the Facility.

3. The Bank shall extend the facility to the guardians of “Guardian Operated
Minor Accounts”.

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4. The final discretion to offer this Mobile Banking facility to a customer

rests with the bank and if the bank decides, may withdraw such a facility at
any time without notice and without giving any reasons.

3. Mobile Banking facility

A. Pull Request Facility
1. The Bank reserves the right to decide on the services to be offered to a
particular user and different services may be offered to different users
through mobile Banking.

2. The Bank also reserves the right to make any additions or deletions or
revisions in the services offered through Mobile Banking at any time.

3. The user shall, as a matter of customer protection, use a 4-digit code

number (PIN-Personal Identification Number) in addition to the keyword to
access the mobile Banking service. At present, the User has the option to
choose any four-digit number/character as his PIN for the Mobile Banking
service.

4. The User shall not disclose his PIN, if any allotted by Bank, to any person
or write / record it at any place whereby some other person can come to
know his PIN. In case the User fails to follow / adhere to this, he shall be
solely responsible for consequences arising thereon.

5.The Bank may, at its discretion, allow the customers to send instructions
through Mobile Banking, which would have to be executed. The instructions
of the User shall be effected only after confirming the authenticity of the
User by means of validation of the mobile number of the User and/or
through verification of PIN/ password allotted by Bank to the User or
through any other mode of verification as may be stipulated at the discretion
of the Bank.

6. Bank shall endeavour to carry out the instructions promptly, but the Bank,
shall not be responsible for the delay in carrying out the instructions or not
carrying out the instructions, due to any reason whatsoever including failure
of operational system or due to any requirement of law.

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7. The User is also responsible for the accuracy and authenticity of the
instructions provided to the Bank and the same shall be considered to be
sufficient for availing of the services under the Facility. Where Bank
considers the instructions to be inconsistent or contradictory it may seek
clarification from the User before acting on any instruction of the User or act
upon any such instruction as it may deem fit, or not carry out the
instructions. The User and Bank shall have the right to suspend the services
under the Facility if Bank has reason to believe that the User's instructions
may lead to direct or indirect loss or may require an indemnity from the User
before continuing to operate the Facility.

8. Bank reserves the right to offer the Facility for those Users, who are
availing the services of specific cellular service providers only.

9.The access of the User to the Facility shall be restricted to User availing of
the Facility on the specific Mobile Phone Number registered with Bank for
the Facility.

B. Mobile Banking Alert facility

1. The last updated mobile number in the records of the Bank would be
used to send the Alerts. Alerts are presently not available for two Mobile
numbers for the same account. However, more than one account may be set
on a particular mobile number.

2.The Alerts will be available to the users only if the user is within the
cellular service range of the particular cellular service provider or within
such area, which forms part of the roaming network of such cellular service
provider providing services to the User.

3. Alert shall be available only when the system of the Bank is available.
Every day the push alerts shall not be available for atleast 10 hours or more,
during which the system will be used for backups and shall not be available
for inquiry. However the Bank shall endeavour to provide pull requests
during this period also.

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4. Registration for Mobile Banking/Alert facility.

1. Eligible customers of the Bank desirous of availing the services should

submit an application in the specified form, duly completed, at the branch of
the Bank, where the customer has his primary account.

2.Customers of the Bank shall be allowed to use the facilities only after
his/her/their application has been processed and the information
furnished registered with the Bank. The processing of the application form
shall require a minimum of 10 days from the date of submission of the
application.

3.Customer will have to activate the service after the Bank sends the
necessary instruction/user guide to the customer. Unless activated, the
customer shall not receive any alerts or request pull services.

4.These terms and conditions together with the application made by the
Customer and as accepted by the Bank shall form the contract between the
Customer and Bank, and shall be further subject to such terms as Bank may
agree with any other third party providing such services to Bank which shall
facilitate providing of the Facility by Bank to the User. These terms and
conditions shall be in addition to and not in derogation of the terms and
conditions governing any Account of the user and /or any other
product/services provided by the Bank to him.

5.The Customer undertakes that the Customer shall provide accurate

information wherever required and shall be responsible for the correctness of
information provided by him to Bank at all times including for the purposes
of availing of the Facility. Bank shall not be liable for consequences arising
out of erroneous information supplied by the Customer. If the Customer
suspects that there is an error in the information supplied by Bank to him, he
shall advise Bank as soon as possible. Bank will endeavour to correct the
error wherever possible on a best effort basis.

6. The Bank shall have the right to reject the application of any person
without assigning any reasons.

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5. Authorization

1. The user expressly authorizes the Bank to disclose to the mobile service
provider / ASP all user information in its possession, as may be required by
them to provide the services to the user.

2. The Customer irrevocably and unconditionally authorizes Bank to access

all his Accounts for effecting Banking or other transactions of the Customer
through the Facility.

3. All records of Bank generated by the transactions arising out of use of the
Facility, including the time of the transaction recorded shall be conclusive
proof of the genuineness and accuracy of the transactions. The authority to
record the transaction details is hereby expressly granted by the User to
Bank.

4. The user authorizes the Bank to add, remove or change any service in
mobile Banking, partly or wholly, at Bank’s discretion.

5. User authorizes Bank to send any message such as promotional, greeting

or any other message that the Bank may consider appropriate to the user.

6. The User authorizes Bank to send any rejection message, if it finds that
the request sent by the User is not as per the Bank’s format/requirement.

7. The Bank shall make all reasonable efforts to ensure that the user
information is kept confidential. The Bank however shall not be responsible
for any divulgence or leakage of confidential user information.

8. The user expressly authorizes the Bank to carry out all request(s) or
transaction(s) for and/or at the request of the user as are available to the user
through mobile Banking facilities without the Bank having to verify the
authenticity of any request or transaction purporting to have been received
from the user through Mobile Banking.

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6. Setting Triggers and Receiving Alerts

1. The user can enter his choice of alerts (as listed by the Bank) in the
Mobile Banking registration form. For any change in these parameters, he
can separately request in writing. At a later stage, Bank may provide this
facility through Internet Banking screen.

2. The User shall notify the Bank, in writing, if he desires to change his
Primary account.

3. If the facility has been suspended for a particular user, the Bank in its sole
discretion may re-activate the service. In such cases, a written request may
also be insisted from the User.

4. The Bank will not acknowledge receipt of any instructions or Triggers nor
shall the Bank be responsible to verify any instructions or Triggers or the
user PIN or password or mobile phone number. The Bank will endeavour to
give effect to instructions and Triggers, on a best effort basis and as soon as
practically possible for the Bank. The Bank shall not be responsible for any
deficiency or delay in effecting the service or in effecting modification
of the triggers.

5. The Bank may, in its discretion, not give effect to any Triggers if the
Bank has reason to believe (which decision of the Bank shall be binding on
the user) that the triggers are not genuine or otherwise improper or unclear
or raise a doubt or in case any Triggers cannot be put into effect for any
reasons whatsoever.

6. The user acknowledges that to receive alerts, his mobile phone number
must be active and accessible. The user acknowledges that if the user’s
mobile phone number is inaccessible or inactive continuously the user may
not receive the Alert message sent by the Bank.

7. The Bank will process Triggers/Modification of triggers after receipt

and the Bank shall have the discretion to determine the time taken to process
such request. The user acknowledges that there shall be an intervening
period between receipt of Triggers by the Bank, process of the Triggers
and the time that the Alerts are sent.

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Customer requirements for mobile banking applications

Set of customer requirements

 Technical requirements
 Usage is possible with both kinds of devices
 Adaptation to device
 Usage regardless of network operator
 Small amount of transmitted data

 Usability requirements
 Possibility to work offline
 Simple data input method
 Resumption of usage at the same point
 One-Click-Request

 Design requirements
 Possibility to personalize the application
 Possibility to scale the application
 Announcement of events
 Wide range of functionality

 Security requirements
 Encrypted data transmission
 Authorization of access
 Simple Authorization

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Could Mobile Banking Go Global

People who have never had a bank account could enjoy basic banking
facilities for the first time due to mobile financial services. Basic mobile
financial services are already available in developed countries. However, the
article explains that it makes more sense for mobile financial service
providers to target emerging markets where mobile devices will make more
impact since this markets have limited wire networks. The services are
cheaper to build and offer customer have fewer alternatives. To cash full
potential of emerging markets, requires a right kind of alliance with leading
financial firms and telecom companies including merchants and retail
chains.

Emerging markets: The greater opportunities

Mobile financial services are just that: financial service delivered through
the medium of mobile handset. Users can make basic inquiries about their
balances or, in a more complicated maneuver, their Payments. Basic services
are already widely available in developed countries and in the more
sophisticated emerging markets, such as Hong Kong and South Korea. So
far, though, user in this market remains unimpressed by the services, and
providers haven’t been able to charge anywhere near what they cost to
deliver.

Consumers and business in emerging markets are likely to find mobile

financial services more attractive than do their counterparts in developed
markets, because they have fewer alternatives. For many remote or low
income consumers, mobile handsets and mobile internet could first times,
provide access to financial service such as basic banking and electronic
payment; otherwise financial providers find such segment impossible to
serve cost- effectively. Mobile networks are cheaper to build than fixed lines
networks, and mobile services are generally to roll out than their precursors;
a mobile payment network, for example, can cost less to create and operate
than an electronic point- of- sale (pos) merchant networks. This means that
some countries will be able to leapfrog over intermediate technologies and
move directly from a paper based payments systems to a mobile one,
without ever having to build an extensive wired POS or Automated –teller-
machine network.

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Mobile Banking: No wires, No worries, New Customers

Mobile communication devices are revolutionizing banking

transactions over wireless network and the Internet. To attract and retain
customers, bank need to exchange their full range of services across a wide
range of Mobile, wireless devices without having an impact on their current
infrastructure and the delivery channels it currently supports. Wireless
Networks, Mobile Gateways, Wireless Application Protocol (WAP) &
Wireless Markup Language (WML) all play an important role in bringing
mobile banking strategy to the market.

In addition to established traditional channels, including branch

banking and ATM banking, most major banks in today market now offers e-
banking as an extension to their existing array of services & conveniences of
wired consumers & businesses, the next phase in the revolution is wireless-
mobile-banking that is available anytime anywhere from ‘always-on’ mobile
devices like mobile phones and personal digital assistant (PDA). With the
proliferation & cost effectiveness of mobile delivery channel, banks have a
built-in delivery mechanism that can offer services & 24×7 access regardless
of where the customer happens to be. Unlike PC-Based E-banking, M-
banking provides banks with the unprecedented opportunity to reach their
customers in an unrestricted environment. The big benefits for banks?
Higher customer satisfaction & loyalty, no transaction-based fee revenue,
lower cost of ownership and integrated customer relationship management
channels.
General considerations

A mobile banking application is, first of all, a mobile application. To

conceptualize a mobile application, additional informational added values
have to be targeted, using mobile added values [14]. In other words, it is far
from sufficiency to just porting an existing Internet application on a mobile
device. Mobile applications have to be specifically made-to-measure on the
one hand side to the needs and expectations of the mobile user and on the
other hand side to the specific restrictions of mobile communication
techniques and mobile devices. In order to derive a set of requirements to
mobile banking applications we pursue two steps: Firstly we identify general
characteristics of the mobile use, which are relevant. Secondly we closely
watch the user and his context when wanting to use mobile banking.

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Mobile banking use cases

A mobile user has to be seen from his context when using the application.
Needs and expectations are not generic, but bound to this context.
As a typical mobile banking user, we consider someone who already is an
electronic banking user shows significant affinity to technology and often
finds himself in situations where he can not (or does not want to) rely an
infrastructure necessary for electronic banking.
In the following, we introduce four use cases. These have been developed in
the course of two group discussions; each group consisted of mobile banking
users and mobile commerce experts. The groups focused on identifying real-
life situations in which the use of mobile banking provides an informational
added value. The resulting situations have been aggregated to the use cases
The use cases are not exhaustive, but representative: Each case stands for a
series of cases, which are similar in the depth of the desired information
and/or the conditions of the usage. For each use case we identify the most
important, concrete need that the user has in this particular situation.

Use case 1: Request of account balance.

The user is in a mobile situation (e.g. in a department store) and intends
to know his account balance, e.g. to verify his account before realizing a
spontaneous purchase. Resulting need: Quick obtainment of account
balance.
Use case 2: Control of account movements
The user is waiting for an important cash receipt on his account. He
intends to have the exact details of the cash receipt. Resulting need:
Continuous control over movements on the account.

Use case 3: Instant payment.

The user is in a mobile situation and intends to make a payment by bank
transfer from his account. Resulting need: Instant execution of a bank
transfer.

Use case 4: Administration of the account.

The user intends to use spare time (e.g. using a train or waiting on the
airport) to administrate his account. Resulting need: Quick and easy-to-use
execution of transactions and administration is possible.)

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Mobilizing Banking Solutions : Best Practices

Security in the Wireless world is complex and different from tethered

network security models. Greater demand to share information is
putting stress on companies to prevent information from falling into
wrong hands. With the growth of Wireless phones, the demand for
Mobile banking services is escalating. To stay competitive, banks are
deploying compelling Wireless applications.

Mobile Banking Solutions:

Wireless applications offer the opportunity to provide secure,

actionable, real-time data through a highly personalized service. Some
of the services are:

Offer account services: These applications allow bank’s customer to

apply for new banking services, choose features of existing banking
services, and personalize banking services.

Provide account information: Customer-driven ‘on-demand’ request for

a variety of account information including account balances, stock
portfolios and billing information.

Execute transactions: Transactional applications enable customer to

wirelessly transfer balances, pay bills and conduct foreign exchange
orders.

Provide transaction history and aggregate banking information:

Customers can review banking events for a number of accounts and
wirelessly retrieve banking and non-banking information.

Transmit banking alerts and reminder messages : Customer-controlled

alert profile enable rapid response to news and banking events,
Banking advice may also be distributed through these applications.

Enable Wireless messaging: Wireless messaging, including SMS, e-mail

and instant messaging, allows customers to interact with portfolios
managers, bank officials and other customers.

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Extend banking portals: Banking portals provide useful content for

customer and provide the banks the opportunity to cross-sell other
products or services.

Offer location-based banking services: These applications enable

subscribers to access services that are tailored to their geographic
location, such as the location of nearby offices, branches, agents and
ATMs.

Mobile Platform Selection Criteria :

To successfully support banking applications, mobile platform must

support a number of standards to allow banks to leverage existing
technologies for the subscribers that access them. A number of
standards are provided below:

Transactional interface with back-end data: Mobile banking

applications are not simple extension of internet. The procedure of
‘scraping’ Web-based information and transmitting it to wireless
devices produces very fragile and unreliable banking applications.
Mobile platforms should connect directly to back-end data sources and
use open standard to support transactional applications.

Security : Mobile platform should support extremely high level of end-

to-end security including support for privacy, encryption, two-factor
authentication, data integrity, and non-repudiation. Different levels of
security will vary based on requirement that change for the size of
transaction, the parties involved, and the type of information
exchanged.

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Security for Mobile banking

It is clear that for the mobile phone to become a transactional device, the
security of all personal data transmitted through the wireless handset will be
critical. Just as e-commerce over fixed- line Internet device can hardly be
expected to flourish if frauds or theft is easy. Business and consumer
subscribers, commercial entitles and industries are unlikely to make full use
of the potential of the new mobile communications media if they are
insecure.
Although security is mainly a matter of technology, there are two other
important aspects, legal protection and consumer perception.

Technology:

Within the next few months some real improvements will appear in the
security of mobile payment technology platform. When analyzing the
security of a mobile payment transaction, we have to consider three distinct
areas: the buyer, the medium between the buyer and seller.

Security on the buyer’s side implies security of the access device. Because
mobile device belongs to an individual, it is inherently more secure then a
shared device. Solutions such as PKI (public key infrastructure) and SIM2
(second ID Module) will be introduced to the market early in 2001,which
will significantly improve security for buyers.

 Real improvement in the security of the medium between buyer

and seller will occur when 3G networks becomes operational.
These 3G networks are based on technology (already used in
current networks in the US, Japan and Korea) that using complex
encoding and decoding algorithms, originally developed by the
military.
 On the seller’s side, acceptable level of security will also be
available in early 2001,when wireless Transport Layer Security
(WTLS) will be introduced. WTLS Is an Encryption technology,
which makes sure that everything sent by the buyer, is received by
the seller.

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Legal issues:

There are two legal issues for mobile payment- customer protection and
non-repudiation. To build consumer confidence, customer protection against
fraudulent usage has to be well established and clear. To introduce new
laws, or adjust existing legislation, for a new payment method takes times,
as unanticipated issues can crop up. This is the main non-technological
reason why the security of a payment method improves over time. The
second issue is on-repudiation of a transaction. While accepting credit cards,
the seller uses the buyer’s signature to prevent repudiation. Legalising
digital signatures, as proof of purchase in the virtual world, will prevent
buyers from disputing their online transactions.

Perception:

The public perception of the security of a new payment medium is less

manageable than the technology and legal aspects, yet can make or break it.
Both sender and recipients must have confidence that the information they
transfer will arrive securely and in confidence. There can be huge
differences in the perception of security between different cultures, which
make the issue even more complex and less predictable. For example, in the
US the credit card is perceived as much more secure than in Europe – a
major reason that the credit card took much longer to be accepted in Europe,
and still is not as successful there as in the US.

Convenience

Convenience for buyers:

To make mobile payment an attractive substitute for existing

payment methods in the “bricks and mortar” world requires completely new
shopping concepts. For example, to make mobile payments more convenient
than, say, the smart card, the customer should be able to pay wherever he or
she is in the shop. In the e-commerce world a shortage of content is currently
the main inconvenience for buyers: both the choice of vendors and choice of
products and services is limited.

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Convenience for sellers:

The new shopping concepts required in “bricks and mortar” if buyers

are to make mobile payments at the sellers end, which may not be
sufficiently attractive as yet. An additional factor, which discourages and
seller from investing, is the current lack of standards, which makes
investment very risky. However, industry standards for mobile payment are
now under development, and more are expected in the near future. These
standards will give direction to the (further) development of mobile payment
systems. An example of a recently introduced standard is Electronic
Commerce Modeling Language (ECML), which addresses the issue of
general payment protocol combined with the ability for enders and brands to
individualise the mobile e-wallet options they provide for their own
customers.

Security in the WAP Environments:

Just as security continues to be a barrier for Internet purchase and online

financial management, so too is it a foremost concern in a wireless
environment. To ensure success as a transactional device- which is exactly
how the latest generation of mobile handsets are positioned in the industry-
security standards will continue to play the leading role in swaying
consumer confidence and downplaying the omnipresent fear of fraud. The
senders and recipient must both have confidence that the information they
transfer arise securely and in confidence.

PKI (public key infrastructure) technology provides a security solution

that is superior to standard SSL in that is protects both the integrity of the
data stream in addition to verifying the participates engaging in a private,
confidential transaction. In simplest terms, PKI involves private and public
keys shared between two parties engaging in a secure transaction. A third-
party certificate authority signs a third element, the digital certificate.

In this scenario, if the user’s handset is equipped with a smart card

reader (which is an increasing trend), the private key could be downloaded
from the smart card on to the mobile phone. This obviates any potential
security risk that could be introduced when a public key is distributed
online.

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Multi-application relationship cards/smart card are also efficient storage

centers for virtual credit cards, debit cards, and other payment instructions,
providing a more tightly integrated personal device.
The potential for success:

Mobile payment has the potential to become successful as convenient and

secure payment method after the barriers described above have been
removed – probably over the next two years. It seems certain that the main
security will be overcome by the end of 2001,when new technologies are
available and and when the legal issues have been resolved in most
countries.

In the Internet world, selling should take off quite soon after the
security issues have been resolved. At the moment there is a lack of content,
but if open standards are established soon, a lot of start-ups will probably
appear to deliver this content. In “bricks and mortar” the take-off of mobile
payment is expected to be slower, because of the huge investments required.
So most sellers will probably wait until standards are clearly defined and
mobile payment has proved successful in e-commerce.

Introducing the mobile delivery channel into an integrated multi-

channel strategy is a challenge that will have lasting benefits in the future,
providing financial institution with a ‘channel readiness’ that enables quick
repose to emerging consumer trends. As In most successful initiatives in the
worlds of e-commerce and m-commerce, partnership with the right
technology players is critical. These relationships will help to bring the
mobile banking channel to maturity, as the solution that best combines
convenience, security, portability, application richness, and the flexibility
required to bring new products and services to market quickly.

As global financial institutions are discovering today, the

infrastructure requirements can be challenging, but not nearly so challenging
as tiring to retain banking customers that are moving into the wireless age,
with or without their trusted service providers.

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Characteristics of the mobile use

The use of mobile applications underlies several specific restrictions. We

consider five characteristics of the mobile use to be particularly relevant as
they greatly influence the design of mobile banking applications and the
suitability of certain technical solutions. A mobile application is used via a
mobile device. For these devices (currently either a mobile phone or a PDA),
special limitations are valid .For the mobile banking context; above all, these
are the limited input and display capabilities. The connection is provided by
a mobile network operator (MNO). This is especially important if
applications need to access certain parts of the infrastructure, which are
under control of the MNO (e.g. the SIM card). In the case of negotiations,
these have to be pursued with all MNO on the designated market. The use of
mobile data transmission is expensive. In the case of circuit-switched data
transmission.

(E.g. GSMCSD or HSCSD) this extends to the connection time, in the

case of packet-switched data transmission (e.g.GPRS) this extends to the
transferred data volume.
Sensitive data is transmitted. This implicates the use of adequate security
measures. A disruption of the usage is possible at any time. This is
principally already true for electronic banking as well (the connection may
e.g. be disrupted by a breakdown of the transmission or of the operating
system of the client Computer) and provides a special necessity to avoid
incomplete transactions.

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General conditions of mobile banking

Electronic banking is one of the most successful business- to-

consumer applications in electronic commerce (EC).

Banks greatly support this not only because they could meet their
customers’ need for convenience but also because of the enormous
economic impacts in replacing a high-cost channel (bank clerks) through a
low-cost channel (a central web server) for simple transactions, with the
additional benefit of eliminating the necessity for a media conversion.

Since users considered their mobile phone as a personal trusted device

making it to an integral part of their lives and more and more of these
devices became Internet- enabled, the regular conclusion was the
transformation of banking applications to mobile devices as the next step of
electronic banking development.

For mobile banking, the advantages even go much further than for
electronic banking: The high penetration of mobile phones reaches all social
levels; mobile applications disband the limitations of electronic banking as
they allow for a use anytime-anywhere and the subjective and objective
security of the device is higher than that of a personal computer. Despite all
of this, more than four years after the start of the first mobile banking
applications customers simply do not use them and utilization figures stay
very far behind all expectations (e.g. [1]). Mobile banking as an established
channel still seems to be a distant prospect.

The reasons for this great disappointment are to be analyzed. Doing so

in the following sections, we do not intend to start with current applications
(which could mean biased) but from scratch, with an analysis of the
customer requirements to such applications.

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Case study-HDFC bank

HDFC Bank Limited, a private sector bank, provides financial services to

corporations, and middle and upper-income individuals in India. It has three
divisions: Wholesale Banking, Retail Banking, and Treasury Operations.
The Wholesale Banking division provides loans, deposit products,
documentary credits, guarantees, bullion trading, and foreign exchange and
derivative products. It also offers cash management services, clearing and
settlement services for stock exchanges, tax and other collections for the
government, custody services for mutual funds, and correspondent banking
services. The Retail Banking division provides various deposit products, as
well as loans, bill payment services, gold and silver credit cards, debit cards,
third party distribution, investment advisory services, card and automated
teller machine (ATM) acquiring transactions, and depositary services. The
Treasury Operations division offers foreign exchange and derivative
products for its clients. In addition, the bank provides telephone, Internet,
and mobile telephone banking services. As of March 31, 2005, it operated
467 branches and 1,147 ATMs in 211 cities. The company was incorporated
in 1994 and is headquartered in Mumbai, India.

Products :

All of our products support over 2,500 mobile devices across North
America, Europe, and Asia so no need to worry about compatibility
problems!
HDFC Bank offers organization fast, easy, robust solutions for enterprises
looking to streamline and integrate business operations onto mobile devices.
Our solutions are compatible with all mobile devices on the market.
Customers, employees and business partners can use their existing mobile
devices, which reduces application development costs and improve your
company's time to deployment.

Mobile Banker :

Mobile Banker enables a bank's account holders to directly interact with the
bank through their mobile phone, PDA or PC. It is a web-based service that

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enables account holders to re-order checks, stop check payments, and make
account corrections. Through the SMS generator, customers can receive
instant alerts for items such as rates for mortgage, CDs, and auto loans. This
is an extremely powerful application when combined with our Mobile
Marketing Campaign component. Banks can now directly target their
customers with new promotional offers right to their mobile phones. Mobile
marketing campaigns typically enjoy a 15% to 20% response rate so the
payback is instant.
Customers can use their mobile handset to resolve a number of customer
service issues such as account corrections or transaction errors. Each service
request is tracked through real time updates in the work flow. Customers can
track the status of their service request right from their mobile phone, PDA,
or PC. When the service request has been resolved an email or SMS alert
can be automatically sent to your customer right from the application. This
application can also be integrated with the mobile web site component
which allows banks to market their services to the growing mobile Internet
audience.

Mobile Workflow Manager - Issue tracker & workflow manager for mobile
users

Mobile Workflow Manager is a powerful web-based tool that allows

customers, employees, and business partners the ability to submit and track
issues right from their mobile phone. Through simple and intuitive forms,
customers can conveniently make service requests right from their mobile
phones. The application is flexible and can be customized for a variety of
industries. Using our Work Flow Engine, service requests will be
automatically tracked and routed to the correct department or person within
your organization. Email or SMS alerts can be set up in the process flow to
notify customers, employees or business partners of the status of their issue.
Using SMS short codes (text messaging), your targeted users can enroll,
subscribe or even be directed to WAP (web) page for additional information
or data collection.
Mobile Workflow Manager is a web-based mobile platform that provides:

 Tracking - Tracking issues, services requests, claims, orders from

your PC and / or mobile device.
 Workflow - Automatic routing and notification to get issues resolved.
 Process Management - Managing your company's process for
Resolving issue.

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 Status - Real time status updates of issues for PC and mobile users.
Accountability - History and audit trail.
 Mobility - Your customers can submit issue, service request, or claim
from anywhere in the world using any mobile device.
 Compatibility - Over 2,500 Internet ready mobile devices are
supported across North America, Europe, and Asia.

This solution supports customers in a broad range of industries such as

pharmaceutical, insurance, retail, hotel & restaurants, travel, airlines,
transportation, consumer electronics, publishing, broadcast, entertainment,
government and education.

Mobile Patient Recruiter –

Now you can integrate mobile messaging (SMS / text messaging) with
other advertising efforts to accelerate the recruitment process. Our solution
can be easily integrated with your current print, radio, and TV
advertisements. A simple short code placed in your advertisement
instructing your audience to send a text message is all that is required. This
capitalizes on mobile marketing's greatest attribute, the ability to instantly
respond and receive timely information. Upon submission of the text
message, respondents can be sent a web link where they can privately read
more information about your study. Potential patients can then be prompted
to answer questions to pre-qualify them based on your requirements. When a
potential patient matches your criteria, their information will be forwarded to
the nearest investigator site for follow up. The collected data is instantly
available via the web for all project team members. Results can be analyzed
on daily basis to determine the most effective advertising medium such as
print or radio. Patient retention can also be improved by sending SMS alerts
to their mobile phones for appointment reminders. Our platform supports all
Internet ready mobile device types and can be used across North America,
Europe, and Asia . When compared to traditional advertising alone, we have
seen mobile marketing response rates up to 5 times higher.

Mobile Patient Recruiter provides:

 Message delivery is supported for mobile subscribers in over 180
countries.
 All major wireless carriers are supported.
 Short code acquisition & management.
 Interactive 2-way messaging.

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 Real time web based reports to manage recruitment and analyze

media purchases.

Mobile Delivery Management

Track-It-Stat -is a web based delivery management solution that integrates

Internet ready hand-held PDAs and mobile phones to monitor and track
shipments through any number of internal departments, branch offices, or
external locations. The solution is ideal for banks, couriers, transportation &
logistics companies and any organization with a need to track shipments.

Mobile Video Portal :

The mobile video converter component can be combined with the Mobile
Content Management System (Mobile CMS) and provide a complete
storefront with mobile device download capabilities. The mobile CMS is a
pre-configured Internet portal with video download and streaming
capabilities. Customers can log on to your web site, browse video titles and
download them directly to their mobile device.

Mobile Banking Alerts

Some banks also provide the facility of Mobile Banking Alerts where you
can get regular updates of transactions in your account as they happen.
These include:
 Credits to your account ( you choose a threshold credit amount,
above which you'd like to be alerted ).
 Debits to your account ( you choose a threshold debit amount,
above which you'd like to be alerted ).
 Cheque returned ( Get to know every time a cheque deposited in
your account is returned ) .

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Conclusions and Outlook

In the preceding sections we analyzed the relevant customer

requirements to mobile banking. We examined general M-banking
conditions and identified relevant M- banking use cases as well as special
characteristics of the mobile use of an application. Based on these results we
derived a set of requirements, which we employed later to assess four state-
of-the-art standard types of M-banking applications in order to identify their
major shortcomings, show opportunities for their improvement and discuss
the upcoming new technology along with their possible impact. and an
explanation of major failure reasons along with opportunities for their
improvement.

The major goal of the banks is to repeat – and if possible expand – the
big success of Mobile banking. But the banks have to keep in mind that the
usage of M-banking is taking place under completely different
circumstances - under the application of mobile commerce rules. None of
the technologies can provide a M-banking solution that works completely
without problems and satisfies the customer.

The recommendation to the banks should be not to focus on one

technology only, but to use the advantages of different technologies. Only
with a respective combination of new technologies it will be possible for
banks to achieve success in mobile banking in the long run.

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Application for Internet Banking, Phone Banking and Mobile Banking

(All fields with * are mandatory to be filled.)

Name of the applicant: Mr. /Ms. /Mrs. ___________________

_____________________ ______________________________________
First Name * Middle Name * Surname*

Address*______________________________________________________
__________________________________________________________

City *: ____________________ Pin Code:

Email Address *: ____________________ @_______________ Phone No.

Mobile No. : ________________________

Mother's Maiden Name *:

Date of birth *: _______/ _______/ ______

dd mm yy

I) In case of joint accounts, the applicant is required to obtain the attached

mandate from the joint account holder(s).

II) HDFC Bank accountholders can access their bank accounts through
HDFC Bank Internet Banking only where the mode of operation of HDFC
Bank account is Single/Either or Survivor/Anyone or Survivor.
Please tick one of the following:

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Questionnaires
A) Banking point of view :

1) Whether Mobile Banking is more convenient then Traditional

Banking?
a) Yes b) No c) Not yet experience

2) According to you, which category of community are relay on

M-Banking?
a) Businessmen b) Common people c) Professional d) Other

B) Customers point of view :

1) With which facilities of banking you are most satisfied?

a) Traditional Banking
b) Internet Banking
c) Mobile Banking
d) Other

2) Are you satisfied with the facilities provided in Mobile Banking?

a) Yes b) No c) Not yet experience

3) Which feature of Mobile Banking you like more?

a) Flexibility
b) Time saving
c) Durability
d) Easy accessibility

4) Do you feel Mobile Banking is Costlier then other modes of

Banking?
a) Yes b) No c) Not yet experience

5) Whether you are facing any problems, while using M-Banking

Systems?
a) Yes b) No c) Not yet experience

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6) Would you like to give any suggestions to prevent problems of

M-Banking?
a) Yes b) No c) No Suggestion
Answers:

A) Banking point of view :

1) Whether Mobile Banking is more convenient then Traditional

Banking?

10%

Yes

30% No

60% Not
experience

Explanation :

Mobile Banking is more better then Traditional Banking because it

offers more facility like Alert facility,SMS facility and customer can
access to their bank blance at any time.
No,Mobile Banking is not convenient then Traditional Banking as it
involve more formalities and middle class, lower class customers can not
affored to Mobile Banking.
Not yet experience, As some customers are totally unaware of Mobile
Banking.

I conclde that, most of the customers of bank are feel thet Mobile
Banking is more convenient.

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2) According to you, which category of community are relay on

M-Banking?

10%

20% Bussinessmen
Common
Professional
60% Other
10%

Explanation :

As per chart, 60% of Businessmen relay on Mobile Banking because, they

mostly involved in stock exchange so they required each and every update of
stock market which the get easily on their mobile by availing Mobile
Banking.

Only 10% of common customers of bank are availing Mobile Banking

service because they are interested in depositing and lending of their money
in their account.

Professionals like Lawyer, Doctor, Engineers, are availing Mobile Banking

only up to 20%.

We conclude that, most of Business customers of bank are using and relay
on Mobile Banking.

B) Customers point of view :

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1) With which facilities of banking you are most satisfied?

10% 10%

Traditional
Mobile
Internet
40% 40% Other

Explanation :

As per chart, there is equal percentage for Mobile Banking and Internet
Banking because both offer wide services. Through Mobile Banking
customer can chack their account details on Mobile, whereas in Internet
Banking customers have to visit to cyber to check.

On other hand Traditional Banking is a used 10%of customer.

Conclusion is that, Mobile Banking and Internet Banking both are satisfying
customers.
2) Are you satisfied with the facilities provided in Mobile Banking?

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70
60
50
40
30
20
10
0
Yes No Can't say

Explanation:

Yes, 70% of customers of bank are satisfied with Mobile Banking because
of its latest facility.

20% of customers are not satisfied because they are not comfortable with
formalities of Mobile Banking.

10% customers have no idea about Mobile Banking so there is no question

of satisfaction.

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3) Which feature of Mobile Banking you like more?

15%
30%
Flexibility
15%
Time saving
Durability
Accessability

40%

Explanation :

In today’s modern world every customer has value of Time, so they

acquire latest facility which is time saving. There is 40% of customers are
availing Mobile Banking system for the sake of time saving.

30% of customers used this facility as flexibility offered by this system,

it’s easy for them to access any information on mobile like latest updatation
of stock market, bank balance checking, Reminder facility etc. Mobile
Banking can be easily accessible and is Durable in nature.

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4) Do you feel Mobile Banking is Costlier then other modes of

Banking?

9%

Yes
No
50%
Can't say
41%

Explanation :

Yes, Mobile Banking is costlier because this facility is availed by only those
customers of bank, which has,
1) Saving A/C of same bank
2) Demate A/C of same bank
3) Credit card of same bank
So middle class and lower class customers need not to have demate A/C and
Credit card & it also charge for Alert and SMS facility.

Some customers of bank required Mobile Banking and they deal in lakes so
they not feel that Mobile Banking is costlier.

9% of customers are not familiar with Mobile Banking and they are happy
with the Traditional Banking.

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After taking into account all factors I conclude that Mobile Banking is
Costlier.

5) Whether you are facing any problems, while using M-Banking

Systems?

50

40

30

20

10

0
Yes No Can't say

Explanation :

Yes, there is problem in Mobile Banking regarding lack of security, lack of

personal touch, lack of efficiency& some times problem in accessibility.

No, there is no problem in Mobile Banking. Everything is up to the

satisfaction level.

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I conclude that, in spite of various problems in Mobile Banking is best.

6) Would you like to give any suggestions to prevent problems of

M-Banking?

35%

Yes
5% 5% No
Can't say

60%

Explanation:

Yes, there should be personal touch i.e. instead of sending message, if there
is facility that we can solve our problems with bankers personally. SMS
facility is good but need to grow.

No, there are no suggestions regarding Mobile Banking, as everything is

perfect.

Some personnel didn’t have knowledge about Mobile Banking so there are
no suggestions from their point of view.

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At last I would like to conclude that with some innovations, Mobile Banking
can become popular in middle class and lower class customers.

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Bibliography

1. E-banking: the global perspective –Gupta Vivek

2. E-Commerce in Indian banking – Bhasin
3. Banking and Finance – C.M.Chaudhary
4. IT in Banks - Katury Nageshwara Rao.
5. Visiting HDFC branch at Andheri (west)

webiblography

www.google.com

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