Mobile Banking System of Siddhartha Bank Ltd.

, Swoyambhu Branch

Semester Project of E-commerce

Sixth Semester
Bachelor in Business Administration 2074-2078

Sainik Awasiya Mahavidhyala

Affiliated to Tribhuvan University
Sallaghari, Bhaktapur

Under the Guidance of: Submitted by:

Sushil Upreti Alit Man Bhuju
Project Supervisor University Enrollment No.:
Bijay Shahi
University Enrollment No.:
Baneeta Neupane
University Enrollment No.:
Sweta Sah
University Enrollment No.:7-2-1013-59-2017
Swostika Khatri
University Enrollment No.:
 STUDENT DECLARATION

This is to certify that we have completed the Semester Project titled “Mobile Banking System in
Siddartha Bank Ltd., Swoyambhu” under the guidance of supervisor Sushil Upreti in partial
fulfillment of the requirement for the award of Degree of Bachelor of Business
Administration(BBA) at Sainik Awasiya Mahavidhyalaya, Sallaghari, Bhaktapur. This is an
original piece of work and we have not submitted it earlier elsewhere.

Date: Signature:___________
Place: Name: Alit Man Bhuju
University Enrollment No.:
Signature:___________
Name: Bijay Shahi
University Enrollment No.:
Signature:___________
Name: Baneeta Neupane
University Enrollment No.:
Signature:___________
Name: Sweta Sah
University Enrollment No.:7-2-1013-59-2017
Signature:___________
Name: Swostika Khatri
University Enrollment No.:
 CERTIFICATE FROM THE INSTITUTE GUIDE

This is to certify that the semester project titled “Mobile Banking System in Siddartha Bank Ltd.,
Swoyambhu” is an academic work done by Alit Man Bhuju, Bijay Shahi, Baneeta Neupane,
Sweta Sah, and Swostika Khatri submitted in the partial fulfillment of the requirement for the
award of the Degree of Bachelor of Business Administration (BBA) at Sainik Awasiya
Mahavidhyala, Sallaghari, Bhaktapur, under my guidance & direction.

To the best of my knowledge and belief the data & information presented by them in the project
has not been submitted earlier.

Signature:
Name of the Faculty:
Designation:
 ACKNOWLEDGEMENT

This semester project entitled “Mobile Banking System in Siddartha Bank Ltd., Swoyambhu”

has been prepared in partial fulfillment for the degree of Bachelor in Business Administration

(BBA) under the course designed by the Faculty of Management, T.U.. At the time of preparing

this study, we have consulted with various personalities. So we would like to extend our sincere

thanks to all whose works and ideas helped us in conducting the study. Sincerely, we would like

to pay our sincere gratitude to our semester project advisor Sushil Upreti of Sainik Awasiya

Mahavidhayalaya, Sallaghari Bhaktapur who guided through research work with providing

valuable suggestions, supports and supervision.

Finally, we would like to offer our profound gratitude to our family members, our friends,

colleagues, well wishers for their encouragement and support during the entire period of our

study.

Sincerely,

Alit Man Bhuju

Bijay Shahi
Baneeta Neupane
Sweta Sah
Swostika Khatri
 EXECUTIVE SUMMARY

This research is based on “Mobile banking system of Siddhartha Bank Ltd., Swoyambhu
Branch” The main objective of this research is to analyze the no. of customer who use mobile
banking. Similarly, this research is to find out the no. of customers who are satisfied with the
banking system of Siddhartha Bank ltd.

The study used descriptive research design. The data has been generated by primary sources. For
collecting the data through primary sources, questionnaire method has been used.

Data has been presented in descriptive and tabular form as per requirement and clear
interpretation on it. To make the research report simple and easily understandable, the charts and
diagrams are used. The collected data was in unorganized form. So, they were organized
properly to save time and prevent mistakes. The appropriate data was converted into tabular and
graphical form with the help of MS-Excel. Pie-chart and bar diagrams have been used on the
basis of data as per required.

It was found that the major people are aware about mobile banking system still they prefer to use
traditional banking system due to lack of trust on mobile banking.
Table of Contents
STUDENT DECLARATION..............................................................................................................................2
CERTIFICATE FROM THE INSTITUTE GUIDE..................................................................................................3
ACKNOWLEDGEMENT.................................................................................................................................4
EXECUTIVE SUMMARY.................................................................................................................................5
CHAPTER 1...................................................................................................................................................8
INTRODUCTION...........................................................................................................................................8
1.1 INTRODUCTION.................................................................................................................................8
1.2 INTRODUCTION TO SIDDHATHA BANK LTD..........................................................................8
1.3 MOBILE BANKING SYSTEM IN SIDDHARTHA BANK LIMITED..............................................................9
1.4 Objectives of SBL...............................................................................................................................9
1.5 RESEARCH QUESTIONS.............................................................................................................10
1.6 PROBLEM OF STATEMENTS......................................................................................................10
1.7 THEORETICAL FRAMEWORK...................................................................................................10
1.8 LIMITATIONS OF THE STUDY...................................................................................................11
CHAPTER 2.................................................................................................................................................12
METHODOLOGY.........................................................................................................................................12
2.1 RESEARCH METHODOLOGY.....................................................................................................12
2.2 RESEARCH DESIGN.....................................................................................................................12
2.3 DATA COLLECTION....................................................................................................................12
2.4 DATA PROCESSING PROCEDURE............................................................................................13
2.5 METHOD OF DATA ANALYSIS..................................................................................................13
CHAPTER 3.................................................................................................................................................14
FINDINGS AND ANALYSIS...........................................................................................................................14
3.1 MOBILE BANKING SYSTEM TYPES:........................................................................................14
3.1.1 SMS OR MMS BASED MOBILE BANKING........................................................................14
3.1.2 MOBILE BANKING OVER MOBILE APPLIATIONS..........................................................15
3.2 PRESENT INVOLVEMENT OF CUSTOMER..............................................................................15
3.3 SBL MOBILE BANKING FEES, CHARGES & LIMITS.............................................................................17
SECURITY ISSUES....................................................................................................................................18
CHAPTER 4.................................................................................................................................................20
CONCLUSIONS...........................................................................................................................................20
4.1 CONCLUSION...................................................................................................................................20
CHAPTER 5.................................................................................................................................................21
RECOMMENDATIONS/ SUGGESTION.........................................................................................................21
Chapter 6...................................................................................................................................................22
LIMITATIONS OF THE STUDY......................................................................................................................22
BIBLIOGRAPHY...........................................................................................................................................23
APPENDIX..................................................................................................................................................24
QUESTIONNAIRE........................................................................................................................................24
 CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION

Mobile banking is the emerging system that has changed the previous traditional banking
method. It is also known as M- Banking. The use of mobile banking is in increasing trend. With
the initiation of mobile banking, people’s life has been completely changed in sense of financial
activities. Almost everyone carries mobile in their pocket wherever they go. Thus financial
activities and different transaction can be done from any party of world through internet
connection or SMS.

1.2 INTRODUCTION TO SIDDHATHA BANK LTD.

Siddhartha Bank Limited is an ‘A’ class commercial bank licensed by Nepal Rastra Bank and
has branches all across the nation with its head office in Hattisar Sadak, Kathmandu which
provides entire commercial banking services. It is one of the largest private commercial bank in
Nepal. It was established in 2002 AD. The bank's shares are publicly traded as an 'A' category
company in the Nepal Stock Exchange.

The Bank desires to be one of the leading banks of the industry by fulfilling the interest of the
stakeholders and also aims to provide total customer satisfaction by way of offering innovative
products and by developing and retaining highly motivated and committed staff. It directs all its
efforts to move ahead with increased profits.

Siddhatha Bank has been able to gain significant trust of the customer and all other stakeholder.
Total customer satisfaction has been designed as the core value of the bank along with other
attributes. Siddhartha bank desires to be one of the leading banks of the industry by fulfilling the
interest of the stakeholders and also aims to provide total customer satisfaction by way of
offering innovative products.
1.3 MOBILE BANKING SYSTEM IN SIDDHARTHA BANK LIMITED

Mobile banking by Siddhartha Bank Limited (SBL) is an improved mobile banking application
that enables anywhere banking from a mobile device with features such as instant access to
customer’s account(s), fund transfers, viewing mini statements, and balance inquiry among many
others.

Siddhartha Bank aims to improve customer satisfaction to a higher degree by providing different
services through mobile banking. SBL has allowed customers to make financial transactions up
to Rs 10,000, with a maximum limit of Rs 25,000 per day. A maximum of 5 transactions per day
has been set. The annual charge to subscribe to mobile banking is Rs 100 and registration fee is
also Rs 100 and Rs 10 is charged per fund transfer from SBL mobile banking.

The features offered by SBL mobile banking are:

 Inquiry: Balance and Mini Statement Inquiry

 Account Fund Transfer: Transfer of fund within various accounts of SBL.
 Merchant Payment: Payment to various SBL Authorized merchants.
 Utility Payment: Payment of various utility bills like GSM Post-paid, PSTN Landline etc.
 Electronic Top Ups: To gets recharge Top Ups of various entities like NTC, NCELL etc.
 General Information: To receives various information of SBL like Branch & ATM Location,
Deposit & Loan Products details and their features etc.
 Card Services: To get solution for various card related issues.

1.4 Objectives of SBL

The Bank desires to be one of the leading banks of the industry by fulfilling the interest of the
stakeholders and also aims to provide total customer satisfaction by way of offering innovative
products and by developing and retaining highly motivated and committed staff. It directs all its
efforts to move ahead with increased profits. The following mission statement is a guide to meet
the Vision of the Bank:
  Be one of the leading banks of the industry in terms of profitability, productivity and
innovation.
 Aim at total customer satisfaction by rendering efficient and diversified financial services
through improved technology.
 Build a highly motivated and committed team of staff by nurturing a good work culture
to achieve superior individual performance aiming to enhance organizational
effectiveness.
 Be the place of pride to all its stakeholders.

1.5 RESEARCH QUESTIONS


 What are the different mobile banking services provided by SBL?
 What is the mobile banking system of SBL?

1.6 PROBLEM OF STATEMENTS

Siddhartha bank’s Mobile banking system has been a significant step in using information
technology to provide banking services to its customers in a convenient and reliable manner.
However, only 5.6% of the total no. of account holders in Siddhartha bank use mobile banking
services. Due to increasing technological advances, the no. of users of mobile banking is
increasing. Covid-19 pandemic has brought great changes in the no. of users of mobile banking.

1.7 THEORETICAL FRAMEWORK

Perceived usefulness

Perceived ease of use Intention to use

Perceived cost

Security Trust
1.8 LIMITATIONS OF THE STUDY
There are various limitations for the study:

 The sample size was limited. This may not represent the entire customers.
 The research was carried out in a short period of time.
 The research was limited to particular branch.
 CHAPTER 2

METHODOLOGY
2.1 RESEARCH METHODOLOGY

Research methodology refers to various systematic steps to study the identified and defined
research problem or subject by a research

her stating certain objectives. This section will deal with the methodology used in the study to
collect primary and secondary data. The primary data was collected with the help of self-
developed questionnaires and the secondary data has been collected from the bank’s website,
magazines, journals, newspapers and internet. The secondary data have been used in this
research but to a limited extent.

2.2 RESEARCH DESIGN

The Descriptive research design and explanatory research design are used to carry out the overall

process.

2.3 DATA COLLECTION

Collection of information is done using Primary and Secondary data. The firsthand information
is gathered using primary sources of information. The primary sources include:

i. Unstructured Interview
ii. Observation and Analysis

The secondary sources include:

i. Articles
ii. Journals
iii. Websites and other relevant sources of internet

The information was collected through interview following by emails and phone calls in the
office setting.
2.4 DATA PROCESSING PROCEDURE
The data collected from questionnaire were in unorganized form so to make it organized data has
been divided among the age group, gender and occupation of the respondents. It was entered in
the MS-excel for the better analyzing and obtaining the desire outcome. Different tables and
figures were prepared for the processing of data.

2.5 METHOD OF DATA ANALYSIS

This research presents the data in descriptive and tabular from as per requirement and with clear
interpretation on it. To make report simple and easily understandable, charts and diagrams have
been used. The collected data were organized properly on the basis of primary sources to save
time and prevent mistakes. This study analyse the data by using (Statistical Package for the
Social Sciences) SPSS. The appropriate data is converted into tabular and graphical form with
the help of MS Excel. Pie-charts and bar diagram is designed on the basis of data as per required.
 CHAPTER 3

FINDINGS AND ANALYSIS

This chapter consist presentation, analysis and interpretation of the data. It includes of various
graphs, diagrams and figures that describe the data related to mobile banking system of
Siddhartha Bank limited.

3.1 MOBILE BANKING SYSTEM TYPES:

Mobile banking is a facility that enables customers to initiate and/or perform banking tasks on
their mobile phones. This is facility is provided by Siddhartha bank limited. Customers can use
mobile banking to view their account balance, make instant fund transfers and pay bills, etc.
Different types of mobile banking system of Siddhartha bank are:

3.1.1 SMS OR MMS BASED MOBILE BANKING

Along with mobile apps, SBL offer mobile banking services over SMS. This service is useful for
those who do not have smartphones and/or internet connection. Customers need to register their
mobile number with their bank in order to avail SMS banking. Services Offered by SMS
Banking Balance Enquiry Get mini-statement Transfer of funds to/from self-accounts.
3.1.2 MOBILE BANKING OVER MOBILE APPLIATIONS

Mobile banking is a facility that enables customers to initiate and/or perform banking tasks on

their mobile phones. Customers can use mobile banking to view their account balance, make

instant fund transfers and pay bills, etc.

3.2 PRESENT INVOLVEMENT OF CUSTOMER

Only 10% of customers are involved in mobile banking in Siddhartha bank limited. Mobile

banking is new emerging concept in Nepal. Most of the people are not aware of this facilities,

whereas some customer doesn’t know how to use it. Most of the mobile banking users are either

students or job holders. According to our survey, only 10% of total customers use mobile

banking services. Among those 10% of total customer 90% are students and others are job

holders.
 CUSTOMERS OF SBL

No. of customer using mobile

banking services
no. of customer not using
mobile banking services

Figure 3.1 represents the no. of customers who use mobile banking service and who doesn’t use
mobile banking service. Here, 10% of customer’s use mobile banking services where as other
90% are still deprieved of this service.

60
50
40
30
20
10
0 students
g g job holders
nkin nkin senior citizen
ba ba
ile ile
ob ob
gm gm
in sin
us u
er
not
m
sto er
u m
ofc u
ts o
. fc
No .o
No
The above Figure represents the no. of customers who use mobile banking service and who
doesn’t use mobile banking service and it also shows what percentage of students, job holders
and senior citizen uses this service. Here, 10% of customer’s use mobile banking services where
as other 90% are still deprived of this service. Among those 10%, 4% students, 6% job holder
and 1% senior citizen use mobile banking service. Similarly, 15% students, 20% job holders and
remaining 55% senior citizen doesn’t use mobile banking service in SBL.

3.3 SBL MOBILE BANKING FEES, CHARGES & LIMITS

Description Charges
Registration Fee NPR 250 Per Account

Renewal Period 1 Year

Renewal Fee NPR 250 Per Account

PIN Reset Charge NPR 50

Payment  

  - Per transaction maximum limit amount NPR 100,000

  - Per day transaction limit amount NPR 2,00,000

  - Per day transaction count 100

Send Money  

  - Per transaction maximum limit amount NPR 50,000

  - Per day transaction limit amount NPR 1,00,000

  - Transaction count 10

Inter Bank Transfer  

  - Per transaction maximum limit amount NPR 25,000

  - Per day transaction limit amount NPR 1,00,000

  - Transaction count 10

Wallet Transfer  

  - Per transaction maximum limit amount NPR 25,000

   - Per day transaction limit amount NPR 100,000

  - Transaction count 10

SECURITY ISSUES

One of the vital aspects of Siddhartha Bank Smart is to provide the best security possible by
modern technology, thus making the application safe, secure and reliable. Siddhartha Bank
Smart consists of the following security features that make it a safe and a secure way to bank
through your mobile.
 Two Factor Authentication (GPRS Channel)
Bank Smart registers the device ID when you log into the system for the first time for
securing connections while using the GPRS channel. The system then checks the device
ID as well as the username and password for you on every login attempt. This allows you
to log into the system using your device as a part of account security. Only requests
originating from your registered device with the correct username and password are
processed. If you change the mobile set or upgrade the version you need to contact
nearest Siddhartha Bank service network to reset your device ID so as to start using the
app again.
 Two Factor Authentication (SMS Channel)
The first level of security is your own mobile number itself. You need to register your
mobile number with us in our systems to access your accounts through your mobile
phones using the SMS channel. In addition, all requests are identified by a MPIN
number. Only requests originating from your registered mobile numbers with the correct
MPIN are entertained and processed by the system.
 Password Policies
Bank Smart uses different password policies as follows to enhance and ensure that
security standards are met from your end as well.
 Forced Password Change Upon first login and upon password age expiry; the password
expires every 90 days.
 Password Format
A combination of alphabets, numbers and symbols
 Password History
Bank Smart also restricts you to use the same password until a certain number of
different passwords are used.
 Encryption & Masking
All SMS originating from your mobile are encrypted while in public network and are
only decrypted by the Bank Smart server before the execution of the request. Besides
this, critical data like MPIN which may be compromised through human tampering are
stored in an encrypted format using Standard Encryption Mechanism. Sensitive
information like your Account Number and Card Numbers are masked in the SMS text
received by the customer with only a few characters visible.
 Service Block
 Bank Smart system automatically and immediately blocks the service for:
 Maximum number of incorrect login attempts (username/password); and
 Maximum number of incorrect MPIN attempts
 CHAPTER 4

CONCLUSIONS

The purpose of this chapter is to tie together, or integrate the various issues covered under the

body of this report. Basically, this chapter draws conclusion on the basis of major findings and

pinpoints the implications of the findings.

4.1 CONCLUSION
From both literature and research methodology, it can be concluded that the mobile banking user
of Siddhartha Bank Ltd. will increase in coming future. The number of mobile banking users are
increasing every year with different figures in Kathmandu valley where people are more
educated and technology are developing in quick manner. , 10% of customer’s use mobile
banking services where as other 90% are still deprived of this service. Among those 10%, 4%
students, 6% job holder and 1% senior citizen use mobile banking service. Similarly, 15%
students, 20% job holders and remaining 55% senior citizen doesn’t use mobile banking service
in SBL.

Development in technology has taken Nepalese traditional banking system into modern banking
system. Modern banking system involves services like ATMs, internet banking, mobile banking
and many other services. One of the vital aspects of Siddhartha Bank Smart is to provide the best
security possible by modern technology, thus making the application safe, secure and reliable.
 CHAPTER 5

RECOMMENDATIONS/ SUGGESTION

 It is recommended to hire trained ad skilled staff that can attract customer to use mobile

banking system.

 It is recommended to increase the reliability and scalability.

 It is recommended to upgrade the technology frequently in order to avoid fraud.

 It is recommended to set different security measures on mobile banking system.

 Steps should be formulated to make customers aware of mobile banking service provided

by bank.

 Advertising on social media such as facebook, twitter, instagram, etc where we find more

no. of youth to attract them towards mobile banking system.

 As more no. of customers is students and job holders so bank should target them.

 It is recommended to use various collaborative tools so as to strengthen the relationship

with customers.

 It is recommended to add more features to attract more customers.

 It is recommended to collaborate with other organizations so the customer can pay

different bill with mobile bank app.

 Chapter 6

LIMITATIONS OF THE STUDY

In research process, there are some limitations as well. During the research process, time

consumption, cost and major pandemic prevention measures were the major challenges. Looking

at the infrastructure of Nepal, it is not easy to get electricity every time so we had to wait for

their response for longer time. Due to this covid-19 pandemic, the survey was done through

online and it was very difficult to get accurate data. But somehow we managed to get responses

from few customer through questionnaires. Due to this pandemic we had to wait for many days

for the response of Siddhartha bank ltd as we were not able to visit bank physically. Due to

above mentioned limitations the survey had to be conducted online.

The above mentioned limitations were carefully analyzed and studied during the research process

in order to find accurate outcomes for our research report.

 BIBLIOGRAPHY

https://en.wikipedia.org/wiki/Mobile_banking

https://english.onlinekhabar.com/how-to-use-mobile-and-internet-banking-services-of-major-

banks-in-nepal.html

https://play.google.com/store/apps/details?id=com.f1soft.banksmart.siddhartha&hl=en

https://www.siddharthabank.com/

https://www.siddharthabank.com/userfiles/STC.pdf

https://www.siddharthabank.com/userfiles/FAQs-Siddhartha_Bank_Smart.pdf
 APPENDIX

QUESTIONNAIRE

Respected Sir/Madam,

We, the students of BBA in Tribhuvan university, are conducting study on “Mobile Banking

System in Siddhartha Bank Ltd., Swoyambhu Branch” to fulfill the academic requirements. You

are kindly requested to favour us by the following questionnaire developed for the same purpose.

The answer to the questions and information provided by you will be kept confidential.

Name:__________________________
Age:
15-25 26-35
36-45 46 above

Gender:
Male Female

Occupation:_______________________
Contact details:____________________

Survey Questionnaire

1.Do you have smart phone?

Yes No

2. Do you use your mobile for banking services? If not, proceed to question no. 7 and 8.

Yes No

3. How long have you been using mobile banking services?

________________________________________________________________________

4. Do you find mobile banking easier than traditional banking?

 Yes No

5. Are you happy with the services? If not, what is the area to be improved?

Yes No

________________________________________________________________________

6. Which mobile banking service you mostly use?

Account transactions Mobile top up( Ncell,NTC,Smart)

Bill payment ( Nepal Telecom Landline, water, electricity)

7. Do you have idea about mobile banking?

Yes No

8. Would you use mobile banking if you could get more information about it?

Yes No

9. Will you recommend mobile banking to your friends and family? If not, then why?

Yes No

__________________________________________________________________________

10. Rank mobile banking system of Siddhartha Bank ltd. And give reason

__________________________________________________________________________

Please tell us what the bank can do to increase your satisfaction level as customer

______________________________________________________________________________
_____________________________________________

Thank you!