PROJECT TITLE

A FIELD PROJECT REPORT SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

IN THE PARTIAL FULFILMENT OF

THE REQUIREMENT FOR THE DEGREE OF
BACHELOR OF COMMERCE
IN THE COURESE OF

: Project Name:

SUBMITTED BY

Mahek Jagdish Kukreja

Class: S.Y. [Link]

Sem Roll No./Seat No. : 38

UNDER THE GUIDANCE OF

Pro. Prakash Rajale Sir

COLLEGE NAME

Naigaon Education Society’s

Daund Taluka Arts and Commerce College Daund

2025-206
 FIELD PROJECT COMPLETION CERTIFICATE

This is to certify that the project report entitled PROJECT TITLE

……………………………………………in the course Banking was prepared by
………………………………, Class: SY [Link]., Sem-……., , Roll No…….,
University Seat No……………..under my guidance and supervision for the Academic
Year 2025-2026
This Project Report is based on original study / field work carried out by him/her,
Material / Notes obtained from sources has been duly acknowledged in the Field
Project.
This Field Project is submitted to Savitribai Phule Pune University in partial
fulfilment of requirement of SY [Link]. for the Academic Year 2025/2026

Place: Signature
Date: Name of the Field Project Supervisor

Place: Signature
Date: Head of the Department

VIVA-VOCE EXAMINATION

Date of Viva-Voce Exam: University Seat No.

Name & Signature of Internal Examiner Name & Signature of External Examiner
 DECLARATION BY THE CANDIDATE

I declare that the Field Project entitled PROJECT TITLE ………….submitted by me

for the Degree of Bachelor of Commerce in Banking Finance and Insurance is the
record of work carried out by me during the period from 2025 to
2026 under the guidance of [Link]:- …………………………and has not basis for
the award of any degree, diploma, associateship, fellowship, titles in this or any other
University or other Institution of Higher Learning.
I further declare that the material obtained from other sources has been duly
acknowledged in the project.

Place :

Date : Name & Signature of the Student

 CERTIFICATE OF THE FILED PROJECT
SUPERVISOR

CERTIFICATE that the work incorporated in the Field Project PROJECT TITLE
………….submitted by Mr. ………………………………. was carried out by the

candidate under my supervision Such material has been obtained form other sources
has been duly acknowledged in the Field Project.

Place :
Date : Name & Signature of
the Student
 CERTIFICATE FORM THE COMPANY /
ORGANISATION

This is to certify that ………………………………… of S.Y [Link], Sem-….., Roll

No……… of College Name ……………………………..has successfully completed
the Field Project as per the guideline of Savitribai Phule Pune University in our
Organization form 2025 to 2026 During the work the student was sincere hardworking
and showed a keen interest in learning. The involvement and sustained efforts put in
by the student are highly appreciable. I recommend this field Project For Evaluation
and Consideration for the award of credits to the student. We wish him all the best in
the future endeavours.

Place: Authorized Name, Signature and Stamp

Date :
 TABLE OF CONTENTS

Sr. No Title Page No.

1 Title Cover Page ( Specimen- A)

2 Field Project Completion Certificate

3 Declaration by the Candidate

4 Certificate of the Field Project Supervisor

5 Certificate form the Organisation

6 Acknowledgement

7 List of Contents

8 List of Tables

9 List of Figures/ Charts/ Diagrams

10 Chapter

11 Chapter

Chapter
12
13 Chapter

Chapter
14
Chapter
15

16 Appendices

A References/ Bibliography

B Questionnaires
STUDENT-SUPERVISOR INTERACTION DIARY
CERTIFICATE

I, the undersigned …………………………………………….., Roll No………… University Seat No.

studying in the 2025 Year of 2026 of Full time Course is doing
my field project work under the supervision of [Link]:- …………………………………., Wish
to state that I have met my Supervisor on the following dates mentioned below for
field project Guidance and Reporting of progress of the Field Project:

Date Points discussed Signature of the

Supervison

Place : Signature of student Signature of Supervisor

Date :
Index / Contents

1. Introduction
2. Objectives of the Study
3. Scope of the Study
4. Profile of the Organization
5. Research Methodology
6. Data Analysis & Interpretation
7. Findings
8. Recommendations
9. Conclusion
10. References
11. Questionnaire
Abstract

Mobile Banking has been in existence since more than a decade. Mobile banking (also
known as M banking, sms-banking) is a term used for performing balance checks,
account transaction, payments etc. via a mobile device such as a mobile phone.
Mobile banking is an obvious extension of online banking as cell phones get more
powerful and begin to mimic computers. Mobile Banking would be increasingly used
from “Building better customer relations, reducing cost, achieving new revenue
stream” etc to that of “connecting with the new customer segments, enhancing
customer relationships to improve loyalty and reduce attrition, create new ways to
generate lead in the process of prospecting, real time experience of bi-directional
customer experience etc.” And needless to say the technological revolution would
play a major role in days to come. Mobile banking is very convenient in today’s
digital age with many banks offering impressive apps. The ability to deposit a check,
to pay for merchandise, to transfer money to a friend or to find an ATM instantly are
reasons why people choose to use mobile banking. However, establishing a secure
connection before logging into a mobile banking app is important or else a client
might risk personal information being compromised.
INTRODUCTION

In country only banking sector is that sector which works as a channel in attracting
savings and mobilizing them in required areas. It works as a weapon of capital
formation. As, change is the rule of nature. To alter the policies according to
environment fluctuation is known as change and to explore or use new technology for
making change is known as innovation. Today all sectors are working as innovation
acceptor.
Banking sector’s profitability depends on better customer relationship. And nowadays
today’s consumer banking needs are getting more complex and demands are for more
innovative products. So give them better services banks have introduced a new
profitable technology called MOBILE BANKING. And many more like internet
banking, ATM, debit card, credit card etc.
With mobile banking technology, banks can offer a wide range of services to their
customer such as funds transfer while travelling, receiving online updates of stock
price or even performing trading while being stuck in traffic.
M-banking gives ability to customer to control their cash outflows anytime,
anywhere, without having to connect to internet
The use of a mobile phone to make payment and carryout other banking
transaction called m-banking has started taking roots in a number of developing
countries, including India.
M-banking is a service of banks to make available, the facility of banking
wherever the customer is and whenever he needs.
In today’s world every person has personal mobile rather than having computer
at home. Even rural person also have mobile. With mobile banking customer can bank
from anytime and anywhere.
Over the last few years, the mobile and wireless market has been one of the fastest
growing markets in the world and it is still growing at a rapid race. And also spread of
mobile phones across the developing world is one of the most remarkable technology
stories of the past decade.
Mobile banking is enjoying a rapid growth in India. It has successfully crossed the
introduction stage. Mobile banking is different from internet banking and ATMs
anyways.
The internet is not as commonly used as the mobile phones. Further, the internet
requires particular devices such as a desktop or a laptop.
Mobile banking can be said to consist of three interrelated concept viz; Mobile
accounting, Mobile brokerage, Mobile financial information.
ICICI bank pioneered in mobile banking service in India. Among public bank, Union
bank of India was first to introduce mobile banking (Ali et al.2010)
“Mobile banking refers to provision and availment of banking and financial services
with the help of mobile telecommunication devices. “
The term m-banking m- finance refer collectively to a set of application that enables
consumer to use their mobile telephones to request their bank account balance and last
transaction, store value in an account linked to their handsets, transfer funds between
accounts and to make buy and sell orders, for the stock exchange and to receive
portfolio and stock exchange, price information. , or even access credit or insurance
products.
M –banking may prove to be an important innovation in developing world.
The public sector bank realized that if they have to survive, they will have to adopt
modern technology, SBI was first to focus on technology and is constantly at work to
innovate in an attempt to lower costs. Technology will not just help them reach out to
customer better but also help them cut costs and improve efficiency.
Hence by adopting right mobile banking regulation and mobile security standards the
banks can reach whole population which result in economic growth of the country.
Banks have changed from paper-based banking solution provider to the latest of the
technology like online banking, Mobile banking.
Mobile banking should reach to the common man at the remotest location in the
country. Mobile banking reaches from high-end to low-end users and from metros to
middle towns and rural areas.
M –banking system is one which provides all daily banking operations to customer
with one click of the mobile handset with support application.
Growth in the M-banking is driven by various facilities like convenience of banking
operation, greater reach to consumer .in M-banking there is no place restriction. It is
highly penetration coefficient as growth of mobile phones is more than computer. It is
fully personalized and private increasing transaction authenticity and is 100%
available all the time with the users.
Mobile Banking is a service that allows you to do banking transactions through your
mobile phone without making a call, using the SMS / WAP facility. You can check
your balance, stop a cheque payment, or even pay your utility bills. Mobile Banking
service gives your account information and real-time transaction capabilities from the
mobile phones anywhere, anytime.
Objectives of the Study
OBJECTIVES

 To understand what is mobile banking?

 To study the conceptual model of mobile banking.
 To explain the services and procedure of Mobile Banking.
 To understand difference between traditional banking and mobile banking
 To study about the risk associated and precautionary measures of M-Banking
 To study mobile banking in India, world and global scenario of the current state
of mobile banking.
 To study the advantages and disadvantages of mobile banking.
 To study mobile banking in the State Bank of India.
Scope of the Study
REVIEW OF LITERATURE (Introduction)

Mobile banking is a term used to refer to systems that allow customers of a financial
institution to conduct a number of financial transactions through a mobile device such
as a mobile phone or tablet.
Mobile banking differs from mobile payments, which involve the use of a mobile
device to pay for goods or services either at the point of sale or remotely, analogously
to the use of a debit or credit card to effect an EFTPOS payment.
The earlier mobile banking services were offered over SMS, as service known as SMS
banking. With the introduction of smart phones with WAP support enabling the use of
the mobile web in 1999, the first European banks started to offer mobile banking on
this platform to their customers.
Mobile banking has until recently (2010) most often performed vis SMS or the mobile
web. Apple’s initial success with iPhone and the rapid growth of phones based on
Google’s Android (operating system) have led to increasing use of special client
programs, called apps, downloaded to the mobile device. With that said,
advancements in web technologies such as HTML5, CSS3 and JavaScript have seen
more Banks launching mobile web based service to complement native applications.
A recent study (May 2012) by Mapa Research suggests that over a third of banks have
mobile device detection upon visiting the banks’ main website. A number of things
can happen on mobile banking specific website or providing a menu of mobile
banking options for the user to choose from.

Meaning of mobile banking and mobile banking services

The Federal Reserve survey defines mobile banking as “using a mobile phone to
access your bank account, credit card account, or other financial account. Mobile
banking can be done either by accessing your bank’s web page through the web
browser on your mobile phone, via text messaging, or by using an application
downloaded to your mobile phone.” Mobile banking services defined as the wireless
access to banking services or facilities via mobile devices. Promises to users access to
tremendous amount of information and products (here banking services) available on
the mobile phone, anywhere and anytime. Mobile banking services means providing
all banking services or facilities to users through mobile device by bankers.
Recent innovations in telecommunications have enabled the launch of new access
methods for banking services, one of these is mobile banking; whereby a customer
interacts with a bank via mobile phone while one almost always carries a mobile
phone, one does not carry one’s PC or laptop if one can look at overall context the
number of cell phone users is four and half times the total number of bank accounts in
this country, so mobile banking is being looked at as an option for providing transfer
across the length and breath. Thus mobile banking is the usage of mobile phone as a
platform for banking transactions. The high penetration of mobile phones in India is
the biggest driver for mobile banking in India. SMS, interactive voice response and
wireless internet protocol are few modes available to Indian users for mobile banking.
Mobile phone facility is an easy and faster means of communication and one
communicates with family and friends, and transacts the business anywhere, anytime
at a reasonable cost. It means the mobile phone is no doubt a communication tool but
it has enormous potentials to aid other value added services especially financial
services. In Japan and Korea, mobile banking has taken the bank into mobile phone,
but in India, mobile banking is in a budding stage and act like win –win situation for
both the banks and the bank’s customers due to the fact that mobile banking services
are innovative, intangible and employing high technology.
Mobile phone provides many of the services in banking sector such as request for
accounts balance, business from accounts, transfer funds, trading or buying and
selling, price information etc. It should be very clear that from mobiles phones it is not
necessary to have net access on phone because now banks are offering wireless
service connection with or without mediating internet on phones have mobile banking
refers to any kind of banking services through phone. On the other hand internet
banking refers to have a desktop arrangements with proper land line connection.
The mobile banking service is among the recent innovations that use the mobile
devices such as smart phone, cell phone or personal digital assistant (PDA) in banking
service; and currently mobile banking services enable consumers, for example, to
request their account balance and the latest transactions of their accounts, to transfer
funds between accounts, to make buy and sell others for the stock exchange and to
receive portfolio and price information.
These are referred mobile banking services. Mobile banking services means providing
all banking services or facilities to users through mobile device by bankers.
Mobile banking services means providing all banking services or facilities to users
through mobile device by bankers. Mobile banking services includes making
various/payments, paying bills, various enquiries, checking various accounts, selling
and purchasing of financial instruments, money transfer/remittances, making fixed
deposits, setting various information like product, foreign exchange, domestic
exchange, stock market/commodity prices enquiries and reports, enquiry on ATM
branches, balances, sms services, etc. In short sms alerts, account inquiries, fund
transfer, bill payment, payment and stock exchange services, loan request and deposit
services are called mobile banking services. The following chart help to know various
services provided bankers through mobile to customers/users.
Thus banks offering mobile access for the following services:
 Account Balance Enquiry
 Account Statement Enquiries.
 Cheque Status Enquiry.
 Cheque Book Requests.
 Fund Transfer between Accounts.
 Credit/Debit Alerts.
 Minimum Balance Alerts.
 Bill Payment Alerts.
 Bill Payment.
 Recent Transaction History Requests.
 Information Requests like Interest Rates/Exchange Rates.
One way to classify these services depending on the originator of a service session is
the ‘Push/Pull' nature. ‘Push' is when the bank sends out information based upon an
agreed set of rules, for example your banks sends out an alert when your account
balance goes below a threshold level. ‘Pull' is when the customer explicitly requests a
service or information from the bank, so a request for your last five transactions
statement is a Pull based offering.
The other way to categorize the mobile banking services, by the nature of the service,
gives us two kind of services – Transaction based and Enquiry Based. So a request for
your bank statement is an enquiry based service and a request for your fund's transfer
to some other account is a transaction-based service. Transaction based services are
also differentiated from enquiry based services in the sense that they require additional
security across the channel from the mobile phone to the banks data servers.
Based upon the above classifications, the following taxonomy of the services can be
listed,

Thus mobile banking service defined as the wireless access to banking

services/facilities via mobile devices, promises to users access to tremendous amount
of information and products (here banking services) available on the mobile phone,
anywhere and anytime.
A Mobile Banking Conceptual Model
Mobile Banking refers to provision and availment of banking and financial services
with the help of mobile telecommunication devices. The scope of offered services
may include facilities to conduct bank and stock market transactions, to administer
accounts and to access customized information.
According to this model mobile banking can be said to consist of three inter-related
concepts:
 Mobile accounting
 Mobile brokerage
 Mobile financial information services

Most services in the categories designated accounting and brokerage are transaction
based. The non-transaction-based services of an informational nature are however
essential for conducting transactions – for instance, balance inquiries might be needed
before committing a money remittance. The accounting and brokerage services are
therefore offered invariably in combination with information services. Information
services, on the other hand, may be offered as an independent module.
Mobile banking may also be used to help in business situations as well as financial.
As per Reserve Bank of India guidelines u/s 18 of payments and settlements system
Act, 2007; RBI defines ‘mobile banking’ as – “Undertaking banking transactions
using mobile phones by bank customers that involve credit/debit to their accounts.” It
also covers accessing the bank accounts by customers for non-monetary transactions
like balance enquiry etc.
In today’s world Mobile Banking is a popular term. Mobile Banking means a financial
transaction conducted by logging on to a bank's website using a cell phone, such as
viewing account balances, making transfers between accounts, or paying bills. It is a
term used for performing balance checks, account transactions, payments etc. via a
mobile device such as a mobile phone. In recent time Mobile banking is most often
performed via SMS or the Mobile Internet but can also use special programs called
clients downloaded to the mobile device. In other words Mobile banking can be a
system that allows, customers of a financial institution, to conduct a number of
financial transactions through a mobile device such as a mobile phone or personal
digital assistant.

Characteristics/ features of Mobile Banking

Mobile banking has become increasingly popular over the years. Banks offer mobile
banking to their clients as a convenience, but also because mobile banking saves these
institutions considerable money. Here are some characteristic/features to consider with
mobile banking:
1) Saving money: Many banks use the savings generated from online transactions
to offer clients better interest rates, or other rewards, for maintaining online
accounts.
2) Saving the environment: Mobile banking reduces the number of paper
transactions that would normally occur if a client walked into or called a bank.
Reduced paper use helps preserve natural resources and is better for the
environment.
3) Cross-selling: Banks often use mobile banking as a platform for cross-selling
or up-selling other financial services, such as credit cards, vehicle loans, etc.
Because the client is not being pressured to consider such services, he or she is
more likely to research them while conducting an online banking transaction.
4) Convenience: Mobile banking is certainly more convenient when compared to
calling a bank or physically visiting it. Financial transactions can be performed
at any time, day or night, and during holidays.
5) Larger client base: Because mobile banking can be performed from any
computer, clients that would otherwise need to find a more local bank are no
longer required to do so. This provides the bank with a geographically wider,
and thus larger, client base.
6) Security: Mobile banking can be plagued with security concerns. Though it is
rare, hackers have been known to gain access to client accounts. Banks have
become increasingly vigilant about securing mobile banking access points and
requiring additional passwords or answers to security questions.
7) Information: Clients who perform mobile banking have a better grasp of their
day-to-day balances and financial transactions. They are more likely to have a
balanced check-book and to catch incorrect or even fraudulent transactions.
8) Simplicity: Clients can set up instant bill payment and automate other tasks via
mobile banking. This simplifies bill payment and frees the client from spending
time on writing checks and mailing envelopes. Automated bill payment is also
 invaluable when the client is out of the country and cannot physically pick up
the mail.
9) Account notification: Most banks will e-mail notifications to their clients
when a bill is due or when an account statement is available. This helps the
client remember bill payment and other such items before they are overdue.
10) Devices: Mobile banking was first made available over the Internet via
personal computer. It later became available on other (and smaller) devices,
such as smart phones and PDAs. This means that clients no longer need to
carry around a laptop or stay at their desktop computers in order to check their
bank accounts.

Mobile Banking Services and Procedure

Typical mobile banking services may include:

Account Information
 Mini-statements and checking of account history.
 Alerts on account activity or passing offset thresholds.
 Monitoring of terms deposits.
 Access to loan statements.
 Access to card statements.
 Mutual funds/ Equity statements.
 Insurance policy management.
Transaction
 Funds transfer between the customer’s linked accounts.
 Paying third parties, including Funds bill payments and third party fund
transfers.
 Check remote
 Deposit
Investments
 Portfolio management services.
 Real-time stock quotes.
 Personalized alerts and notifications on security prices.
Support
 Status of requests for credit, including mortgage approval, and insurance
coverage.
 Check (cheque) book and card requests.
 Exchange of data messages and email, including complaint submission and
tracking.
 ATM
 Location
Content Services
 General information such as weather updates, news.
 Loyalty-related offers.
 Location-based services.

A reporter by the US Federal Reserve (March 2012) found that 21% of mobile phone
owners had used mobile banking in the past 12 months. Based on a survey conducted
by Forrester, mobile banking will be attractive mainly to the younger, more “tech-
savvy” customer segment. A third of mobile phone users say that they may consider
performing some kind of financial transaction through their mobile phone. But most
of the users are interested in performing basic transactions such as querying for
account balance and making bill payment.
Simple Procedure of using Mobile Banking

Customers must be a subscriber of any of the Cellular Service Providers which have
tie up with their Bank. Customers have to Apply for Mobile Banking through an
appropriate Application Form with their bank .Most of the Banks offer Mobile
Banking service absolutely FREE. Although SMS Charges for outgoing messages
would be charged as usual by their mobile phone Service Provider.
Differences b/w traditional banking and mobile banking:
TRADITIONAL BANKING MOBILE BANKING

Doing traditional banking from bank With help of M-banking customers do

customer going physically to bank not need to go bank. Mobile banking
whenever they have bank need. enables anytime anywhere
banking .customer can access their
banking a/c while travelling, waiting
for bus or in traffic, in queue etc.

Traditional banking needs papers. M-banking save paper &that save

tree. It is a part of green banking.

Traditional banking facility is not M –banking services provide anytime

possible to do anytime banking banking.

Branches are (ATMs and computers) Mobile banking is not location

are location specific. specific. Customer need not be
worried if the branch is not at a
convenient location.

In traditional banking customer spent M-banking save time. They need not
their precious and valuable time in stand in the queue.
standing in queue.

In traditional banking whenever In mobile banking customer need not

customer wants information about face the employee whom do not.
their a/c they face employee attitude.

Traditional banking not available all Mobile banking or mobile phones are
the time. Its time is fixed as office 100% available all the time with
hours. users. It is available 24*7.

Branches are not fully personalized Mobile phones are fully personalized
and private and private
Benefits of Mobile banking;
To the customer-
 Customer need not stand in the bank counters/offices for various enquiries
about his account.
 Customer can save his valuable time in banking transaction and save in travel
cost reaching the bank branch.
 It is the mobile banking to have information of all the 365 days at anytime,
anywhere about his account.
 Customer can pay his utility bills in time and save paying penalties, since alerts
are received from bank.
 Cheque book request can be send sitting in his work place.
 Give information at anytime and anywhere.
 Plane funding his accounts for the cheque issued to various customer
 For customers mobile banking reduces cost and save their precious time.

To the bankers-

 M –banking helps banks in saving crores of rupees by way of reduced

transaction cost.
 Banks can utilize the time saved for expansion of business, marketing and sales
activity by channel migration of customers to mobile banking.
 Banks can take advantage of profit by way of commission for cellular
companies by selling prepaid talk time through ATMs.
 Banks providing mobile banking services can have competitive advantage on
those banks, which are not providing these services.
 Mobile banking enables banks to reduce costs of courier, communication and
paper works etc.
 M-banking can increase banks outreach to rural areas while reducing costs.

RBI guidelines for Mobile banking-

The RBI issued operating guidelines under section18nof the payment and settlement
system Act, 2008 and they have partially been modified in December, 2009. So, far 32
banks have been accorded approval by RBI to started providing these services.
 Banks, wishing to provide mobile banking services, shall seek prior one-time
approval of the RBI by furnishing full details of the proposal.
 Only banks which are licensed and supervised in India will be permitted to
offer mobile banking services.
  The services shall be restricted only to customers of banks and holders of
debit/credit card issued as per the extent RBI guidelines.
 Only Indian rupee-based domestic services shall be provided. Use of mobile
banking services for cross border transfers in strictly prohibited.
 Banks offering mobile banking service must ensure that customer with mobile
phone of any network operator is in a position to avail themselves of the
services and this facility should be interred operable between mobile banking
service providers and banks.
 Only banks who have implemented core banking solution would be permitted
to provide mobile banking services. g. Banks shall file suspected transaction
report (STR) to financial intelligence unit India for mobile banking transaction
as in the case of normal banking transaction.

Challenges and issues of Mobile banking-

 Security-security here refers to the security of the confidential information
about customer bank account. There should be any chance for information
leakage. Transaction is done by mistake there should be option to undo. The
physical security of device is more important. User id /password authentication
of banks customer.
 Encryption of the data that will be stored in device for later.
 Handset operability-there is large number of different mobile phones and it is
a big challenge for banks to offer mobile banking solution
 Scalability and reliability-The customer may be sitting in any part of the
world and these banks need to ensure that the system are up and running in a
true. Customer will find m-banking more and more useful. Banks unable to
meet the performance and reliability expectation may lose customer
confidence.

Mobile Banking in India

History and evolution of mobile banking in India:

Union bank of India, the first state – owned bank which introduced mobile banking
services in India, has so far added only 1700 customers in mobile banking. SBI has so
far received only 10,000 registration for mobile banking, while ICICI bank has 80
lakh customers registered so far for mobile banking while HDFC bank has 40 lakh
registered clients as against Kotak Mahindra bank has around 52000 clients under the
mobile banking fold. 15 The Bosten – based financial regional and consulting firm
reports that 84percent of India households were unbanked in 2005 and that mobile
banking in India has grown 94 percent since 2002.16 In this context Patel17 projected
that India’s mobile banking active user base may reach to 25 million by 2012.
COAI Annual Report shown that were 752 million mobile phone users in Dec, 2010
as against less than 200 million bank accounts holders18; a great opportunity for
tapping financial inclusion. According to RBI projection, the penetration of mobile
phone banking active use base is anticipated to increase to 53 million in 2013 as
compared to 10 million in 2009 which represents a compound annual growth rate of
51.8percent.
The two business drives namely customer experience and cost savings and two
technology drivers such as security and customer experience to adopt technology
which contributed to the evolution of mobile banking

Growth of mobile banking in India:

The business drivers contributed to the growth of mobile banking over various modes
of operation which is shown in chart:

 SMS alerts:
 One of the key concerns banks were facing was that of customers did several
inquiry transactions on ATMs and this was adding to the burden on the ATM
infrastructure. This traffic was particularly heavy during salary days. Banks
adopted a solution of proactively communicating account balances and important
transactional activity on accounts to customers through a simple SMS. Customers
stopped queuing up in front of ATMs for inquiry transactions.

 Account inquiries:
The SMS technology proved simple enough for banks to adopt this as a self-
service channel. This model of operation involved customers sending an SMS to a
published number of the Bank with a key word and identification information. The
customer experience for SMS-based inquiries was not very good and this led to the
introduction of real-time communication channels such as WAP and USSD
recently.

 Funds transfer and bill payment:

As customers experience from mobile banking improved and the penetration
improved, banks began to realize the potential of offering financial transactions
through the mobile device. The first set of transactions to be offered were funds
transfer between the customers own accounts and payments to pre-designated
billers such as utility companies. These facilities vastly reduced the use of cheques,
hence contributing to the cost benefit for banks.

 Payment services:
Mobile phones had caught on much faster than all previous technology delivery
channels and banks were being forced to offer new facilities. The mobile phone
was unique in that it was a personal device which had computation power, storage
ability and occupied a greater mindshare of the customer than the traditional
money wallet. This triggered new thoughts among bankers who wanted to leverage
these capabilities to offer newer set of transactions on the mobile phone. This came
in the form of enabling payment transactions through the mobile phone. The
mobile-based payment comes in two basic forms (i) proximity payments and non –
proximity payments

 Loan requests and service requests:

As mobile phones evolve into smart phones and the usability is improving, banks
are finding it easier to offer more complex services on the mobile phone. The latest
trends include offering loans through requests placed from the mobile phone where
pre-registered customers can provide details about the loan and avail instant
approval of loans. The mobile device technology progressed at a rapid pace and
 consumer expectations on usability of began to progress. Mobile banking
progressed to offer enhanced customer experience and adopt the latest technology
trends in communication to offer real time exchange of data. These technology
driven progress of mobile banking can be depicted as in the following chart.

1) SMS banking:
The early generations of mobile banking were powered by SMS
communication. Using SMS banking, banks could alert customers about
activities on their bank accounts and customers could request for information
by sending an SMS to a published number. This mode of banking was quite
popular but had the following limitations:
o SMS communication was not real time and customer experience started
deteriorating
o Security issues around SMS transmission was another bugbear
2) WAP banking:
In time mobile banking progressed to WAP banking which allowed customers
to access their bank accounts using a real time data communication mode. This
improved the customer experience as information access was now real time and
secure.
3) USSD:
WAP banking, while quite popular, was restricted to a specific set of devices
and the use of Unstructured Supplementary Service Data (USSD) came into
practice which permitted a realtime interactive access to bank accounts on basic
handsets.
4) Mobile web:
The mobile communication technology progressed and mobile devices began
supporting fullfledged web pages. This vastly enhanced customer experience
on smart phones and sophisticated handsets which provided an almost desktop
like experience. Mobile banking began progressing in this direction by
providing an almost Internet banking kind of experience on the mobile phone.

5) Application on mobile phone:

The mobile devices became advanced and it was possible to have applications
installed on the mobile phone to provide a rich user interface. The new
generation mobile banking applications offer several comprehensive features
such as:
 Pre-stored customer relationship information to improve response times
and customer experience
 Enhanced communication layer security through use of encryption
algorithms
 Richer user interface and mobile device specific user interface
enhancing customer experience
 Richer user experience leads to more comprehensive features being
offered on mobile banking.
In 2010, SBI recorded a y –o – y growth of 1865 percent in transaction values,
ICICI recorded a growth of 532 percent and HDFC recoded 512 percent
growth.
Mobile banking in the world
This is a list of countries by mobile banking usage as measured by the percentage of
people who had non-SMS mobile banking transactions in the previous three months.
The data is sourced from Bain, Research Now and Bain along with GMI NPS surveys
in 2012.
Rank Country/ Terittory Usage in 2012 (in %)
1. South Korea 47
2. China 42
3. Hongkong 41
4 Singapore 38
5 India 37
6 Spain 34
7 United State 32
8 Mexico 30
9 Australia 27
10 France 26
11 United Kingdom 26
12 Thailand 24
13 Canada 22
14 Germany 14

Mobile banking is used in many parts of the world with little or no infrastructure,
especially remote and rural areas. This aspect of mobile commerce is also popular in
countries where most of their population is unbanked. In most of these places, banks
can only be found in big cities, and customers have to travel hundreds of miles to the
nearest bank.
In Iran, banks such as Parsian, Tejarat, Pasargad Bank, Mellat, Saderat, Sepah, Edbi,
and Bankmelli offer the service. Banco Industrial provides the service in Guatemala.
Citizens of Mexico can access mobile banking with Omnilife, Bancomer and MPower
Venture. Kenya's Safaricom (part of the Vodafone Group) has the M-Pesa Service,
which is mainly used to transfer limited amounts of money, but increasingly used to
pay utility bills as well. In 2009, Zain launched their own mobile money transfer
business, known as ZAP, in Kenya and other African countries. Several other players
in Kenya such as Tangerine, MobiKash and Funtrench Limited also have network-
independent mobile money transfer. In Somalia, the many telecom companies provide
mobile banking, the most prominent being Hormuud Telecom and its ZAAD service.
Telenor Pakistan has also launched a mobile banking solution, in coordination with
Taameer Bank, under the label Easy Paisa, which was begun in Q4 2009. Eko India
Financial Services, the business correspondent of State Bank of India (SBI) and ICICI
Bank, provides bank accounts, deposit, withdrawal and remittance services, micro-
insurance, and microfinance facilities to its customers (nearly 80% of whom are
migrants or the unbanked section of the population) through mobile banking.
In a year of 2010, mobile banking users soared over 100% in Kenya, China, Brazil
and USA with 200%, 150%, 110% and 100% respectively.
Dutch Bangla Bank launched the very first mobile banking service in Bangladesh on
31st March 2011. This service is launched with ‘Agent’ and ‘Network’ support from
mobile operators, Banglalink and Citycell. Sybase 365, a subsidiary of Sybase, Inc.
has provided software solution with their local partner Neurosoft Technologies Ltd.
There are around 160 million people in Bangladesh, of which, only 13 per cent have
bank accounts. With this solution, Dutch-Bangla Bank can now reach out to the rural
and unbanked population, of which, 45 per cent are mobile phone users. Under the
service, any mobile handset with subscription to any of the six existing mobile
operators of Bangladesh would be able to utilize the service. Under the mobile
banking services, bank-nominated ‘Agents’ perform banking activities on behalf of
the banks, like opening mobile banking account, providing cash services (receipts and
payments) and dealing with small credits. Cash withdrawal from a mobile account can
also be done from an ATM validating each transaction by ‘mobile phone & PIN’
instead of ‘card & PIN’. Other services that are being delivered through mobile
banking system are person-to-person (e.g. fund transfer), person-to-business (e.g.
merchant payment, utility bill payment), business-to-person (e.g. salary/commission
disbursement), government-to-person (disbursement of government allowance)
transactions.
In May 2012, Laxmi Bank Limited launched the very first mobile banking in Nepal
with its product Mobile Khata. Mobile Khata currently runs on a third-party platform
called Hello Paisa that is interoperable with all the telecoms in Nepal viz. Nepal
Telecom, NCell, Smart Tel and UTL, and is also interoperable with various banks in
the country. The initial joining members to the platform after Laxmi Bank Limited
were Siddartha Bank, Bank of
Kathmandu, Commerz and Trust Bank Nepal and International Leasing and Finance
Company.
Brief global scenerio of the current state of mobile banking:

 Adoption barriers: Globally, the mobile banking user base is expected to

grow at 18 percent annually to over 1 billion users by 2017. It's estimated that
590 million consumers will use mobile banking by year-end 2013. But, on the
consumer side, there is still some resistance to mobile banking, reflected in
relatively low adoption rates. We look at the five main barriers currently
limiting adoption.
 The app race and platforms: In the highly competitive retail banking sector,
any service or feature that helps a bank differentiate can lead to a greater
 market share, larger deposit base, and an edge on the competition. That's why
banks have begun to invest heavily to integrate the latest and greatest features
into their smart-phone apps and mobile sites. We look at a few banking app
pioneers, and explore the newest cutting-edge features. We also take a peek at
the technologies that power mobile banking on the backend, and the deal
making that has surrounded these platforms in recent months.
 Bottom-up: Unlike past consumer finance technologies first adopted by the
wealthy in developed countries (e.g., credit cards), mobile banking has caught
on in poorer countries, and could expand bank and credit access worldwide. In
emerging markets, many lack basic financial infrastructure and limited access
to credit is a huge economic bottleneck. But even in the United States, where
credit and financial markets are highly evolved, an estimated one-fifth of the
adult population have limited access to banks.
 A mobile-first bank?: If the legacy banks don't succeed in redefining their
services for the mobile age, they risk losing out to upstarts like Simple with
innovative mobile-first banking formulas.
Advantages and Disadvantages of Mobile Banking
Advantages of the Mobile Banking:

➢ It utilizes the mobile connectivity of telecom operators and therefore

does not require an internet connection.
➢ With mobile banking, users of mobile phones can perform several
financial functions conveniently and securely from their mobile.
➢ You can check your account balance, review recent transaction, transfer
funds, pay bills, locate ATMs, deposit cheques, manage investments, etc.
➢ Mobile banking is available round the clock 24/7/365, it is easy and
convenient and an ideal choice for accessing financial services for most mobile
phone owners I the rural areas.
➢ Mobile banking is said to be even more secure than online/internet
banking

Disadvantages of the Mobile Banking:

➢ Mobile banking users are at risk of receiving fake and scams.

➢ The loss of a person’s mobile devise often means that criminals can gain
access to your mobile banking PIN and other sensitive information.
➢ Modern mobile devices like Smart-phone and tablets are better suited
for mobile banking than old models of mobile phones and devices.
➢ Regular users of mobile banking over time can accumulate significant
charges from their banks.
Mobile Banking in State Bank of India
The State Bank of India (SBI) has emerged a surprise market leader in mobile
banking, accounting for half of all mobile transactions in the country. Although
traditionally new generation private banks and foreign banks have been the early
adopters of alternative platforms, the 208-year-old Indian bank is preparing to
leapfrog its customers directly from branches to mobiles as part of its strategy to reach
out to the unbanked and decongest branches.
The bank has over 1.15 crore mobile banking users, which is larger than the mobile
banking customer base of large banks in the West. Only a couple of Chinese banks
have more mobile banking customers. The number is expected to rise dramatically as
the ratio of mobile banking customers rises from 4.5% at present to 12% in two years
and possibly 60% after three years as the bank completes its channel integration.
"Message-based banking, where you don't even need smartphones, has just been
launched (in India). I do believe that once this is understood by people, there will be
an explosion of activity in the mobile space. This is what the future holds," said SBI
Chairman Arundhati Bhattacharya. She said mobile banking will also play a large part
in the role of the yet-to-be-launched payment banks with which SBI plans to have tie-
ups. The aggressive promotion of alternative channels is part of the bank's strategy to
decongest branches, which are expected to come under even more pressure as the
bank opens over 1.5 crore new accounts under the Prime Minister's Jan Dhan Yojana .
At present, customers can access the bank through "State Bank Anywhere" - the
bank's Smartphone app which is integrated with Internet banking. The service which
is expected to be used by the masses is "State Bank Freedom", which can be accessed
by all kinds of phones. "We see a business opportunity in payment banks as they can
dovetail into the main bank by acting as a customer touch point for us. As to
promoting a payment bank ourselves, we will see what the opportunities and
regulations are like. If you are a promoter, there is a restriction on how much you can
use it," said Bhattacharya.
"A lot of it is also for small value remittances. We are offering regular remitters a
'green remit card', which enables him to swipe his card in a cash deposit machine,
deposit the cash and send money instantly," said Bhattacharya.

SBI FREEDOM” MOBLE BANKING SERVICES BY STATE BANK OF

INDIA
Features:
 Enquiry of balance in account(s)
 Mini Statement – last five transactions
 Transfer of Funds to accounts with SBI & other Banks)
 Requests for issue of Cheque Book
 Enquiry regarding Demat account
  Pay utility bills (Electricity bill, Telephone bill etc.,)
 Merchandise payments
 Mobile Top up
 Payment of SBI Life Insurance premium

Additional services are expected in the future and include booking of air tickets,
movie tickets, and others.

Registration for MBS

SBI has made available mobile banking services to account holders with the bank. The
initial restrictions due to JAVA enabled handsets requirement have been taken care of
by providing the MBS through USSD platform. Now, even a lower end handset can be
used for Mobile banking. This is a major step towards expanding the reach of the bank
to the unbanked sections of the society, a step towards financial inclusion.
An individual can download the application through the internet directly on the phone,
via a data-cable or a Bluetooth. Registration of MBS can be done at the ATM (for
debit card holders) and at the home branch.
State bank offers MBS free of charge and ensures utmost safety for the transactions
taking place through this platform. Use of MPIN, 128 bit AES encryption, one time
password makes MBS a secure option.

Reach of State Bank Freedom

SBI has the biggest customer base in India and hence has a bigger role to play in
attaining financial inclusion. As the largest bank in India, with a history of 200 years
of excellent services it holds a favorable position to influence the masses to take up
MBS as a means to bank. Though SBI can boast about its reach in far flung areas of
the country, its share in the customer base actually using mobile banking is
comparatively low. Private Banks like ICICI and HDFC have managed much better
than us.
SBI has taken many steps in ensuring wider usage of MBS like introduction of USSD,
a bouquet of services for everyone, incentives to employees for mass enrolment, so on
and so forth. However it needs to take an aggressive approach to train the employees
regarding the new developments on MBS, undertaking programs to increase
awareness about MBS amongst masses, and improving the MBS platform through
continuous R&D to offer more facilities on it.
CASE STUDY
“For India, mobile banking - is not convenience; but access.”

In 2009, India's nominal GDP stood at US$1.243 trillion, which makes it the eleventh
largest economy in the world. If PPP (purchasing power parity) is taken into account,
India's economy is the fourth largest in the world at US$3.561 trillion, corresponding
to a per capita income of US$3,100. The country ranks 139th in nominal GDP per
capita and 128th in GDP per capita at PPP. With an average annual GDP growth rate
of 5.8% for the past two decades, India is one of the fastest growing economies in the
world. The country’s demographic development is also playing a part in improving
banking penetration and adoption of new channels. This is a country earning
demographic dividend, with 65% of its population still below the age of 30. Urban
middle class and rural folk make up a bulk of the working age population. With rapid
urbanization, when migrants from rural areas start to adapt to city life, they create
demand for goods such as TVs and mobile phones. They emerge potential mobile
banking customers, a fact that banks have been quick to spot. Since alternate channels
enable customers to transact on their own confidently and reliably, without the need to
face a banking staffer, they break the barrier of hesitancy.

The rates of Communication in India were one of the highest in the world, till a few
years back. The rates could not be justified by the fact that rupee is cheaper. In fact the
Indian sub-continent had shown a calm tolerance towards the high rate in even in
telecom. The rates were also justified as the government has to feel the high cost
involved in the one-time developments like satellite and telephone tower related
charges. But now owing to better technologies the telecom rates in India are on the
verge of becoming cheaper. The time may not be far when India will have the
cheapest communication.
MOBILE PHONE PENETRATION:

 Telephony Subscribers (Wireless and Landline): 688.38 million (July 2010)

  Land Lines: 35.96 million (July 2010)
 Cell phones: 652.42 million (July 2010)
 Yearly Cell phone Addition: 178.25 million (Jan-Dec 2009)
 Monthly Cell phone Addition: 16.92 million (July 2010)
 Tele-density: 58.17 %% (July 2010)
 Projected Tele-density: 1.159 billion 75% of population - 2013.

Despite the phenomenal growth in numbers, the telephone density in India hovers
around the 58 % mark. This means that only one out of every two Indians has a
telephone connection. At this moment, the density of mobile phone users in India is of
58 at every 100 people. By year 2013, it is expected to reach 75 percent of the
population. Where the developed world has witnessed little more than a doubling of
penetration, from 50 phones per 100 people in 2000 to 115 in 2009, developing
countries have scored over a tenfold jump. The arrival of 3G and broadband wireless
access (BWA) technologies will not only fuel further adoption but also widen
acceptance of mobile gaming, transactions, banking and commerce. Clearly, Indian
banks have much to look forward to. A comparison between banking and mobile
phone penetration in emerging markets is an eye-opener. According to a McKinsey
report in March 2010, in a country where more than 65% of the population has limited
or no access to a bank, one out of two persons owns a mobile phone or a TV! Here,
10,000 people share one bank branch and ATM, but collectively own 5,100 mobile
phones. The one billion numbers that today represents mobile phone owners in
emerging markets without a bank account will grow to 1.7 billion by 2012. Similarly,
unbanked users of mobile money will grow almost tenfold to 360 million from 45
million today.
From the banks’ perspective, there’s an annual business worth $8 billion for the
taking: $5 billion to be earned through direct fees for financial services rendered
whenever someone uses the mobile phone to make a purchase or P2P payment, and
another $3 billion in indirect revenues arising from the usage of voice, network and
other services over mobile. With the expectation that the number of deposit account
holders will double from its current 400 million to 800 million by 2019, banks need to
find innovative ways of on-boarding new customers and servicing existing ones
It was inevitable that channels would become the vehicle of growth in India, as
elsewhere. In the US, for example, the 9.9% CAGR in banking transactions is
accounted for by a 27.2% growth in Internet transactions, 7.1% growth in call centre
transactions and 1.4% and 0.5% growth from the branch and ATM networks
respectively. US banking customers conduct 31 billion transactions over the Internet
each year, 17.8 billion through call centres and about 14 billion each using branches
and ATMs.
It is obvious that a business of this scale can only be supported by automated channels
and, thus, Indian banks, which also handle transactions of the order of billions, are
faced with the decision of what and how much to push out of their physical branches.
One possibility was to emulate a leading foreign bank’s approach of entertaining only
those transactions in the branch that were not enabled by the ATM.

However, most opt to take a softer approach, choosing to incentivize alternate channel
usage rather than penalize the branch banking habit. A comparison between ATM
density in the two countries shows that the US, which has a third of India’s
population, has 3,95,000
ATMs compared to India’s 44,000. But considering the Indian market’s need and
growth potential, it is to be expected that the ATM number will multiply in the
coming years.
Industry observers expect to see substantial market growth over the next years, with
projections of almost $ 150billion in total transaction volume by 2012. That would
translate into an impressive increase of more than 60% annually. Mobile contactless
payments are expected to account for one-third of the growth as adoption rates rise in
America and Europe. Money transfers will contribute nearly 40% with emerging
nations such as Africa, China, India and Southeast Asian countries grabbing a large
market share. And 27% will come from mobile shopping, with Japanese consumers
still dominating the segment in 2012.
Market Report:

Mobile Banking in India used by 40 Million Urban Indians Mobile banking in India is
set to explode - approximately 43 million urban Indians used their mobile phones to
access banking services during quarter ending August, 2009, a reach of 15% among
urban Most Popular Banking Service on Mobile In countries like Korea, two SIM
Card is used in mobile phones. One for the telephonic purpose and the other for
banking. Bank account data is encrypted on a smart-card chip. About 3.3 million
transactions were reported by Bank of Korea in 2004.

Usage Unique Users (In millions)

Used mobile banking 43.70
Checking account balance 39.97
View last three transactions 28.15
Status of cheques 21.06
Payment reminders 20.92
Request a cheque book 19.11

Checking account balances is the most popular banking service used by urban Indians
with almost 40 million users followed by checking last three transactions, 28 million
and status of cheques with 21 million users.
Mobile banking is popular among the Rs.1 to 5 lakhs per year income group with
almost 60% of mobile banking users falling in the income bracket, an indicator of
adoption of this service by younger generation.
 Cell phone teledensity is still very low in India at around 6%, In comparison,
China’s cell phone density is at around 35%, while some of the European and
Asia-Pacific countries have 100% teledensity or more in mobile telephony.
 In the past two years, the number of people using mobiles has increased three
times
 Indian cellular services market is projected to reach $24 billion by the end of
2009, a CAGR of 35.6%, Gartner said. Indian cellular services market had
recorded the highest growth in Asia Pacific and Japan region in 2004 with a
CAGR of 67%.
 India is all set to be among the top four countries in mobile phone subscriber
numbers by the end of year 2008, according to industry analysts
 As on August 31, 2008, There were 62.57 million mobile subscribers in India,
according to data provided by the TRAI. Fixed Phone users already lag behind
by 47.44 million.
SURVEY
A short survey was conducted on Mobile Banking whose results are represented as
follows:
1. In which of the following bank, do you have your account?

2. Do you have knowledge of facilities offered by M-banking?

3. Which of the following barriers you suffer while operating M-

banking?
4. For what utility do you use Mobile banking service?

5. How much service charge is applicable on your Mobile banking services?

6. Do you have knowledge about the daily limit of M-banking services?

DISCUSSION
Out of the total respondents, 8% used Apex Bank, 14% used Axis Bank, 1% used
BOI, 2% used HDFC, 0% used IDBI, 0% used Kotak Bank and 75% used SBI. One of
the major hurdles to overcome for successful consumer acceptance of mobile banking
is the network problems and system security. The customers must be made to
understand the systems and explain its safety and overcome their fear and problems. If
this is done in future, there is a possibility that the usage of mobile banking will go up
to 100%. Out of the total respondents, 17% have problems in Insufficient Operating
Guidance, 40% have problems in Network Problems, 13% have problems in Cost of
Transaction and 9% have problems in Difficulty in Handling Mobile Phone. The
respondent were not fully informed about the variety of the services & facilities
provided by M banking. They were not aware of the enquiry regarding Demat
account, merchandise payments & utility bill payments etc. They were mostly aware
of some common facilities only specially in the rural & semi urban area. Out of the
total respondents, 28% used mobile banking to check balance, 7% used it to review
recent transaction, 10% used it for alert on account activity, 19% used it for funds
transferring, 15% used it for mobile recharging, 2% used it for accessing to loan
statements, 1% used it for managing loan account, 12% used it for online shopping
and 6% used it for payments of bills. The respondent were not aware of the daily
limits for the transanctions for M banking. Some were not able to tell the updated
transaction limit of Rs 50000/ cutomers with daily calender month limit of Rs
250000/- They were not aware about the differentiated limits for USSD applications.
The customers are indeed with the advantages of mobile banking but reluctant to used
it for want of security. If steps are taken on the part of the bank to eradicate this fear,
decrease network problems and provide proper operational guidance. Majority of the
mobile users could be deviated from traditional banking to mobile banking.
With the advent of technology and increasing use of smart-phone and tablet based
devices, the use of Mobile Banking functionality would enable customer connect
across entire customer life cycle much comprehensively than before. With this
scenario, current mobile banking objectives of say building relationships reducing
cost, achieving new revenue stream will transform to enable new objectives targeting
higher level goals such as building brand of the banking organization. Emerging
technologies and functionalities would enable to create new ways of lead generation,
prospecting as well as developing deep customer relationship and mobile banking
world would achieve superior customer experience with bi-directional
communications. Among digital channels, mobile banking is a clear IT investment
priority in 2013 as retail banks attempt to capitalize on the features unique to mobile,
such as locationbased services.
Mobile Banking Services provides a huge potential of growth for State Bank of India.
Mobile banking is offering several benefits and added value to consumers for handling
their financial matters. There lies a mammoth task ahead for both State Bank of India
and the Government of India to enrol the masses, especially the unbanked ones to
bring about a favourable change in both the economy and the lifestyle. There lies a
huge untapped market for MBS which provides various scopes for bank to focus its
efforts for increasing awareness among both the staff as well as the customers.
STAFF:
 There lies lack of awareness among the staff in SBI itself regarding the MBS
product SBI Freedom & doubt as relating it to freedom home loan product.
 The staff is not informed about the variety of applications that can be offered
through MBS platform.
 There is also lack of knowledge regarding the registration process especially
among the rural staff.
 The staff members were not completely aware of the different transaction
limits for USSD & java enabled cells & the MBS application available for P
segment customers only.
 The average number of customers applying for MBS facility was very low
mostly 2-5 customers per day & almost zero in rural & semi urban branches.
CUSTOMERS:
 Mobile banking is popular among the Rs.1 to 5 lakhs per year income group
with almost 60% of mobile banking users falling in the income bracket, an
indicator of adoption of this service by younger generation.
 The MBS services are mostly used for the purpose of mobile recharge, funds
transfer & cheque balance only amounting to 70%.
 Even though the customers have registered for MBS the frequency of usage of
MBS for banking transactions is very low around 25%.
 The frequency of usage is low as lack of flexibility & complexity of banking
transactions through MB & one of the major reasons of lack of preference of M
Banking is due to security reasons.
 The preference of banking transactions through MB is very less approx. 5% as
compared to INB & ATMs.
 The customers mostly prefer private banks as Axis, HDFC & ICICI for M
Banking transactions faculties.
 The customers of SBI Freedom find it easy to use & mostly the experience has
been good.
Recommendation
Mobile banking is not necessarily a panacea for all customer needs. Like any
technology format it is a tool that can enhance existing services. Customers are keen
to be kept abreast of any changes to the nano-economy and it appears that existing
mobile provisioning could capitalize on this opportunity and better capture the
imagination of mobile users. Innovation and cost management are critical tenets for
commercial success in the financial sector and mobile banking services are capable of
delivering against both of these objectives if appropriately executed. The usage &
popularity of MBS & facilities that can be increased by adopting following measures:
 Build up a database with high-quality and detailed information about customers
in their target group to focus on them for M banking.
 Aggressive & comprehensive training among the front end staff for promotion
& marketing of MBS.
 Launching of various marketing campaigns to create more & more awareness
of M Banking & various facilities provided by it.
 Low value transactions are recommended (< Rs.1000) & low charges are
recommended to encourage high volume usage especially for rural customers
for purpose of Financial Inclusion
 Enhanced security measures to be in place such as authentication of the device
with service provider before initiating a transaction. This would ensure that
unauthorized devices are not connected to perform financial transactions &
encryption of the data being transmitted over the air.
 It would be expected from the mobile application to support personalization
such as preferred language date / time format, amount format default
transactions, standard beneficiary list, alerts etc for standardized & ease of
operations among M Banking users.
NEWER AVENUES
Mobile ticketing is the process whereby customers can order, pay for, obtain and
validate tickets from any location and at any time using mobile phones or other mobile
handsets. Mobile tickets reduce the production and distribution costs connected with
traditional paper-based ticketing channels and increase customer convenience by
providing new and simple ways to purchase tickets. Mass transit. Airline check-in.
 Cinema ticketing.
 Concert/Event ticketing.
 Trade shows
 Consumer voucher distribution
➢ Mobile brokerage
➢ Trading (Investments, quotes, statements, e.g. Info services)
➢ Stock and Shares (Investments, quotes, statements, e.g. Stock market )
✓ Portfolio management.
➢ Mobile marketing
➢ Advertising Campaigns (New products, Subscription Services)
➢ Charity Campaigns
➢ Politics (Voting Tool)
➢ Support
➢ Status of requests for credit, including mortgage approval, and insurance
coverage
➢ Check (cheque) book and card requests o Exchange of data messages
and email, including complaint submission and tracking ✓ ATM Location
➢ Content Services
➢ General information such as weather updates, news etc.
➢ Loyalty-related offers o Location-based services
➢ The following aspects need to be addressed to offer a secure
infrastructure for financial transaction over wireless network:
➢ Physical part of the hand-held device. If the bank is offering smart-card
based security, the physical security of the device is more important.
➢ Security of any thick-client application running on the device. In case
the device is stolen, the hacker should require at least an ID/Password to access
the application.
➢ Authentication of the device with service provider before initiating a
transaction. This would ensure that unauthorized devices are not connected to
perform financial transactions.
➢ User ID / Password authentication of bank’s customer. ✓ Encryption of
the data being transmitted over the air.
➢ Encryption of the data that will be stored in device for later / off-line
analysis by the customer.
➢ One-time Password (OTPs) is the latest tool used by financial and
banking service providers in the fight against cyber fraud. Instead of
relying on traditional memorized passwords, OTPs are requested by
consumers each time they want to perform transactions using the online
or mobile banking interface. When the request is received the password
is sent to the consumer’s phone via SMS. The password is expired once
it has been used or once its scheduled life-cycle has expired. Because of
the concerns made explicit above, it is extremely important that SMS
gateway providers can provide a decent quality of service for banks and
financial institutions in regards to SMS services.
Therefore, the provision of Service Level Agreements (SLAs) is a requirement for this
industry; it is necessary to give the bank customer delivery guarantees of all messages,
as well as measurements on the speed of delivery, throughput, etc. SLAs give the
service parameters in which a messaging solution is guaranteed to perform.
CONCLUSION
In the present day information technology based era, consumers (mobile phone users)
and business are coming to realizing the value of mobile phone/device and its use in
their daily business and non – business activities. They have shift their perception of
the mobile handset (phone) from that of a voice telephone device to that of a personal
e – commerce, e- marketing, e- management, e- social – cultural activities device, it is
because of the advancement in mobile phone devices (GPRS, UMTS, etc) and its
applications (usage) in various areas, viz., personal activities and movement, mobile
banking, mobile ticketing, mobile – vouchers, mobile brokerage, mobile marketing,
mobile bills payments, money transfer and so on. Around more than 80 percent of
world’s populations have mobile phone coverage as of 2006. And this figure is
accepted to increase to more than 90 percent during end of this year (2013).
India is the biggest growth market adding about 6 million cell phones every month
and it is expected to be 1061 million in 2016. The emergence of e-banking channels
has changed the way banking is perceived by the customers. Banking sector has
stepped into the wireless age mobile banking is the latest addition to the list and is all
set to make banking more comfortable to the customers. It has been effectively used in
various countries as a channel for providing banking product and services. It has
gained popularity among service providers, customers and bankers as it is cost and
time effective. On the other end, it allows customers (here mobile phone users as
customers) to carry out banking operations irrespective increased geographical reach.
The high penetration of mobile phones in India is the biggest driver to mobile banking
in India through sms, interactive voice response and wireless internet protocol modes
by using push and pull based services.
Mobile banking in India has evolved from its early stage of being just an information
provider for services such as a checking bank balances and setting payment reminders
to transaction – based functions like bill payment, remittances and banking tickets for
movies, and for travel and so on. Therefore mobile services are became truly
innovative, intangible and high technology oriented. Specifically, the present study
attempts to study and assess:
✓ awareness and perceptions of mobile phone users on mobile banking services,
✓ willingness of mobile phone users on utility of mobile banking services,
✓ The mobile phone users perceived movement and decision making styles and
✓ Relationship between demographic variables and use of mobile banking services.
One must be fascinated by the massive growth in mobile phone penetration globally.
This must be one of the biggest social changes that humans were ever submitted to.
This social phenomena, will eventually impact the way that we trade and pay as well
and it will contribute to the business activity and its movement on a large scale. The
last time that technology had a major impact in helping banks service their customers
was with the introduction of the Internet banking. Internet Banking helped give the
customer's anytime access to their banks.
Customer's could check out their account details, get their bank statements, perform
transactions like transferring money to other accounts and pay their bills sitting in the
comfort of their homes and offices. However the biggest limitation of Internet banking
is the requirement of a PC with an Internet connection, not a big obstacle if we look at
the US and the European countries, but definitely a big barrier if we consider most of
the developing countries of Asia like China and India. Mobile banking addresses this
fundamental limitation of Internet Banking, as it reduces the customer requirement to
just a mobile phone. Mobile banking may also be used to help in business situations as
well as financial, long with to know the business activities and movement of mobile
banking..
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