Mobile banking

Mobile banking is a service provided by a bank or other financial institution that allows its

customers to conduct financial transactions remotely using a mobile device such as
a smartphone or tablet. Unlike the related internet banking it uses software, usually called an app,
provided by the financial institution for the purpose. Mobile banking is usually available on a 24-hour
basis. Some financial institutions have restrictions on which accounts may be accessed through
mobile banking, as well as a limit on the amount that can be transacted. Mobile banking is
dependent on the availability of an internet or data connection to the mobile device.

Transactions through mobile banking depend on the features of the mobile banking app provided
and typically includes obtaining account balances and lists of latest transactions, electronic bill
payments, remote check deposits, P2P payments, and funds transfers between a customer's or
another's accounts.[1]Some apps also enable copies of statements to be downloaded and sometimes
printed at the customer's premises.

From the bank's point of view, mobile banking reduces the cost of handling transactions by reducing
the need for customers to visit a bank branch for non-cash withdrawal and deposit transactions.
Mobile banking does not handle transactions involving cash, and a customer needs to visit
an ATM or bank branch for cash withdrawals or deposits. Many apps now have a remote
deposit option; using the device's camera to digitally transmit cheques to their financial institution.

Mobile banking differs from mobile payments, which involves the use of a mobile device to pay for
goods or services either at the point of sale or remotely,[2] analogously to the use of a debit or credit
card to effect an EFTPOS payment.

A mobile banking conceptual[edit]

In one academic model,[6] mobile banking is defined as:

Mobile Banking refers to provision and availment of banking- and financial services with the help of
mobile telecommunication devices.The scope of offered services may include facilities to conduct
bank and stock market transactions, to administer accounts and to access customised 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

Mobile banking services[edit]

Typical mobile banking services may include:

Account information[edit]

1. Mini-statements and checking of account history

2. Alerts on account activity or passing of set thresholds

3. Monitoring of term deposits

4. Access to loan statements

5. Access to card statements

6. Mutual funds / equity statements
7. Insurance policy management

Transaction[edit]

1. Funds transfers between the customer's linked accounts

2. Paying third parties, including bill payments and third party fund transfers(see, e.g., FAST)
3. Check Remote Deposit

Investments[edit]

1. Portfolio management services
2. Real-time stock

Support[edit]

1. Status of requests for credit, including mortgage approval, and insurance coverage
2. Check (cheque) book and card requests
 3. Exchange of data messages and email, including complaint submission and tracking
4. ATM Location

Content services[edit]

1. General information such as weather updates, news

2. Loyalty-related offers
3. Location-based services

A report by the US Federal Reserve (March 2012) found that 21 percent of mobile phone owners
had used mobile banking in the past 12 months. [7] 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

Future functionalities in mobile banking[edit]

Based on the 'International Review of Business Research Papers' from World business Institute,
Australia, following are the key functional trends possible in world of Mobile Banking. With the
advent of technology and increasing use of smartphone and tablet based devices, the use of Mobile
Banking functionality would enable customer connect across entire customer life cycle much
comprehensively than before.

Illustration of objective based functionality enrichment In Mobile Banking:

 Communication enrichment: - Video Interaction with agents, advisors.

 Pervasive Transactions capabilities: - Comprehensive "Mobile wallet"
 Customer Education: - "Test drive" for demos of banking services
 Connect with new customer segment: - Connect with Gen Y – Gen Z using games and social
network ambushed to surrogate bank's offerings
 Content monetization: - Micro level revenue themes such as music, e-book download
 Vertical positioning: - Positioning offerings over mobile banking specific industries
 Horizontal positioning: - Positioning offerings over mobile banking across all the industries
 Personalization of corporate banking services: - Personalization experience for multiple roles
and hierarchies in corporate banking as against the vanilla based segment based
enhancements in the current context.
 Build Brand: - Built the bank's brand while enhancing the "Mobile real estate"..
Challenges for a mobile banking solution[edit]
Key challenges in developing a sophisticated mobile banking application are :

Handset accessibility[edit]

There are a large number of different mobile phone devices and it is a big challenge for banks to
offer a mobile banking solution on any type of device. Some of these devices support Java ME and
others support SIM Application Toolkit, a WAP browser, or only SMS.

Initial interoperability issues however have been localized, with countries like India using portals like
"R-World" to enable the limitations of low end java based phones, while focus on areas such as
South Africa have defaulted to the USSD as a basis of communication achievable with any phone.

The desire for interoperability is largely dependent on the banks themselves, where installed
applications(Java based or native) provide better security, are easier to use and allow development
of more complex capabilities similar to those of internet banking while SMS can provide the basics
but becomes difficult to operate with more complex transactions.

There is a myth that there is a challenge of interoperability between mobile banking applications due
to perceived lack of common technology standards for mobile banking. In practice it is too early in
the service lifecycle for interoperability to be addressed within an individual country, as very few
countries have more than one mobile banking service provider. In practice, banking interfaces are
well defined and money movements between banks follow the IS0-8583 standard. As mobile
banking matures, money movements between service providers will naturally adopt the same
standards as in the banking world.

In January 2009, Mobile Marketing Association (MMA) Banking Sub-Committee, chaired by

CellTrust and VeriSign Inc., published the Mobile Banking Overview for financial institutions in which
it discussed the advantages and disadvantages of Mobile Channel Platforms such as Short
Message Services (SMS), Mobile Web, Mobile Client Applications, SMS with Mobile Web and
Secure SMS.[8]

Security[edit]

As with most internet-connected devices, as well as mobile-telephony devices, cybercrime rates are

escalating year-on-year. The types of cybercrimes which may affect mobile-banking might range
from unauthorized use while the owner is using the mobile banking, to remote-hacking, or even
jamming or interference via the internet or telephone network data streams. This is demonstrated by
the malware called SMSZombie.A, which infected Chinese Android devices. It was embedded in
wallpaper apps and installed itself so it can exploit the weaknesses of China Mobile SMS Payment
system, stealing banks credit card numbers and information linked to financial transactions.[9] One of
the most advanced malwares discovered recently was the Trojan called Bankbot. It went past
Google's protections in its Android app marketplace and targeted Wells Fargo, Chase,
and Citibank customers on Android devices worldwide before its removal by Google in September
2017.[10] This malicious app was activated when users opened a banking app, overlaying it so it can
steal banking credentials.[11]

In the banking world, currency rates may change by the millisecond.

Security of financial transactions, being executed from some remote location and transmission of
financial information over the air, are the most complicated challenges that need to be addressed
jointly by mobile application developers, wireless network service providers and the banks' IT
departments.

The following aspects need to be addressed to offer a secure infrastructure for financial transaction
over wireless network :

1. 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.
2. 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.

3. Authentication of the device with service provider before initiating a transaction. This would
ensure that unauthorized devices are not connected to perform financial transactions.

4. User ID / Password authentication of bank's customer.

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

One-time password (OTPs) are the latest tool used by financial and banking service providers in the
fight against cyber fraud.[12] 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.

Scalability and reliability[edit]

Another challenge for the CIOs and CTOs of the banks is to scale-up the mobile banking
infrastructure to handle exponential growth of the customer base. With mobile banking, the customer
may be sitting in any part of the world (true anytime, anywhere banking) and hence banks need to
ensure that the systems are up and running in a true 24 x 7 fashion. As customers will find mobile
banking more and more useful, their expectations from the solution will increase. Banks unable to
meet the performance and reliability expectations may lose customer confidence. There are systems
such as Mobile Transaction Platform which allow quick and secure mobile enabling of various
banking services. Recently in India there has been a phenomenal growth in the use of Mobile
Banking applications, with leading banks adopting Mobile Transaction Platform and the Central
Bank publishing guidelines for mobile banking operations.

Application distribution[edit]

Due to the nature of the connectivity between bank and its customers, it would be impractical to
expect customers to regularly visit banks or connect to a web site for regular upgrade of their mobile
banking application. It will be expected that the mobile application itself check the upgrades and
updates and download necessary patches (so called "Over The Air" updates). However, there could
be many issues to implement this approach such as upgrade / synchronization of other dependent
components.

Studies have shown that a huge concerning factor of having mobile banking more widely used, is a
banking customer's unwillingness to adapt. Many consumers, whether they are misinformed or not,
do not want to begin using mobile banking for several reasons. These can include the learning curve
associated with new technology, having fears about possible security compromises, just simply not
wanting to start using technology, etc.

Personalization[edit]

It would be expected from the mobile application to support personalization such as :

1. Preferred Language
2. Date / Time format
3. Amount format
4. Default transactions
5. Standard Beneficiary list
6. Alerts
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OBC SERVICES

The oriental Bank of Commerce is a public sector bank which offers a range of banking services
to its customers in the form of saving accounts, current accounts, fixed deposit accounts, loans,
credit cards, debit cards etc.

Credit cards

The bank has two variants of credit cards which are both co-branded cards offered in association
with the State Bank of India. The cards include:

 Oriental Bank of Commerce – SBI Platinum Card – like other credit cards, this
card offers discounts and reward point earnings on shopping, dining and other
expenses of an individual’s lifestyle.
 Oriental Bank of Commerce – SBI Gold Card-  this is also a credit card offered as
a co-branded card offering discounts and benefits on expenses charged on the card.
Debit cards 
The bank has in its kitty, two forms of debit cards. One is issued in partnership with RuPay while
the other one is affiliated with VISA. The cards are:

 RuPay Debit Card

 VISA Debit Card

These cards are offered to the accountholders of the bank so that they can withdraw cash from
any ATM or make cashless transactions across multiple outlets without any hassles.

Loans

The bank offers a huge variety in its loan category by offering both specialized and general
loans. Let us take a look at the various forms of loans the bank has to offer:

 Housing Loan – this loan is granted to individuals for the purpose of purchasing or
constructing a house for residential purposes. The loan amount can also be used for
renovation or refurbishing of an existing home.
 Education Loan – loans which are specifically granted to students so that they can
enroll themselves for higher studies.
 Vehicle Loan – if an individual wants to purchase a two-wheeler or a four-wheeler,
he can avail of this loan for funding the same
 Personal Loan – this loan is granted to fund the personal expenses of an individual
 Loan against Property – any residential or commercial property can be mortgaged
with the bank to avail of a loan against the value of the property which can then be
put to any personal or business use.
 Oriental UttamVyapari Scheme – this loan is specifically granted to traders to fund
their business expenses
 Financing Autos and Taxis – individuals looking to purchase an auto, taxi or a small
cargo vehicle for business can avail of this loan
 Loan to Doctors – this loan is given to doctors and medical professionals to fund the
expenses of their profession
 Loan to other Professionals – any other professionals beside doctors can avail of a
loan from the bank under this category
 Finance against Government Securities – if an individual holds government
securities, a loan can be availed against such securities in the form of an overdraft or a
demand loan
 Loan against Gold Ornaments – this is a gold loan which provides funds against the
value of pledged gold ornaments and jewelry.
 Earnest Money Scheme – loan provided to individuals who desire to purchase plots
or flats under the schemes offered by State Housing Boards
  Loan against Deposits – loans can be taken against deposits held by applicants
 Oriental Loan to women – loans specially granted to women to meet their personal
or business expenses
 Oriental Reverse Mortgage Scheme – a loan scheme which provides lifelong
annuity for retirement planning

Savings Account

Oriental Bank of Commerce currently offers only two types of Savings Account which are:

 Unnati Deposit Scheme–a savings account which can be opened with as little as
Rs.500 and is available also for minors
 Basic Savings Bank Deposit Accounts – an account designed for low income people
where they do not have to maintain any minimum balance to keep the account active.

Term Deposit Accounts

Contrary to the range of saving accounts, the bank has multiple types of fixed deposit accounts
with varied features and varied suitability. The deposit accounts are:

 Oriental Double deposit Scheme – a deposit scheme which doubles the investment
made in the account within a specified period
 Flexi Fixed Deposit Scheme – a fixed deposit account which offers the facility of
liquidity to individuals in the form of a saving account
 Tax Saving Term Deposit – a deposit account where the money is held for a
minimum of 5 years to be eligible for tax exemption under Section 80C
 VarishthaSanman – a term deposit account meant for the senior citizens which
offers them an increased rate of interest
 OBC Aadhar – a recurring deposit scheme where the amount can be deposited
monthly and subsequent deposits can also be increased if required.

NRI Banking

Oriental Bank of Commerce provides NRI banking facilities to both NRIs (non-Resident
Indians) and PIOs Persons of Indian Origin) so that they may transact business in India without
any problem. The list of services rendered includes:

 Forex remittance facility

  Premium deposit accounts for NRIs
 Facility of four types of accounts which are Non-Resident External Account, Non-
Resident Ordinary Account, Foreign Currency Non-Resident Account and Resident
Foreign Currency Account
 Facility of foreign remittances through a tie-up with Western Union Money Transfer
 Speed credit services to enable remittances from abroad

Internet Banking

The bank offers banking ease by allowing transactions to be carried out online by way of internet
banking. Customers can carry out a range of transactions online which include:

 Fund transfer to any third party

 Fund transfer to own linked account
 Payment of loan instalments
 Creation of online deposit accounts
 Facility of online trading in stocks and shares
 Operating and maintaining a Demat Account
 Payment of electricity or other related bills
 Generating a request for a cheque book
 Payment of taxes

The list is not exhaustive as multiple transactions are allowed online

Scope of Bank Market
Marketing activities of firms begin with determination of the market that they offer their
services or goods. Firms must find out the features of the market that it anging market
condition. While marketing manager is arranging the variables under firm’s control, she/he
should also adopt the external variables. We could call the factors that affect banks’ market
as technological developments, legal arrangements and competition.