UNIVERSITY OF MUMBAI

NCRD’S
 STERLING COLLEGE OF ART, COMMERCE & SCIENCE
NERUL, NAVI MUMBAI

PROJECT REPORT ON

“A STUDENT ON PROSPECTS AND CHALLENGES OF MOBILE

BANKING FOR INDIVIDUALS WITH REFERENCE TO NAVI
MUMBAI “

SUBMITTED BY
(ADARSH MITRA VERMA)
(SEAT NO.)
PROJECT GUIDE
(ADARSH MITRA VERMA)_
IN PARTIAL FULFILLMENT FOR THE COURCE OF
BALCHELOR OF COMMERCE(ACCOUNTING & FINANCE )
T.Y BAF (SEMESTER VI)
ACADEMIC YEAR 2021-22
 ACKNOWLEDGEMENTS

1. AKANKSHA KRISHNA MHAPANKAR (SEAT NO…) am thankful to

STERLING COLLEGE OF ARTS , COMMERCE AND SCIENCE for
giving me an opportunity to work on the project “A STUDY ON PROJECT
AND CHALLENGES OF MOBILE BANKING FOR INDIVIDUALS WITH
REFERAANVE TO NAVI MUMBAI .”

I am highly thankful to my esteemed guide PROF. ADARSH VERMA for

his support throughout the completion of this project.

I am highly thankful to university of Mumbai for his support throughout

the completion of this project.
I am highly thankful to Other Teaching and Non-Teaching staff for
support throughout the completion of this project.

I am highly thankful to College Library for the completion of this project.

 CERTIFICATE
This is to certify that MS. AKANKSHA KRISHNA MHAPANKAR has worked
and duly completed his Project Work for the degree of Bachelor in
Commerce (Accounting & Finance) under the Faculty of commerce in the subject
of --------------------------------------------- and his project is entitled, “A STUDY
ON PROSPECTS AND CHALLENGES OF MOBILE BANKING FOR
INDIVIDUALS WITH REFFERENCE TO NAVI MUMBAI “ under my
supervision.
I further certify that the entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for my Degree or Diploma of
any University.
It is his own work and facts reported by his personal findings and investigations.

Name ana Signature of

Guiding Teacher

Date of submission:
 Declaration by learner

I the undersigned Miss AKANKSHA KRISHNA MHAPANKAR here by,

Declare that the work embodied in this project work titled “ A STUDY
ON PROSPECTS AND CHALLENGS OF MOBILE BANKING FOR
INDIVIDUALS WITH REFERENCE TO NAVI MUMBAI “, forms my won
contribution to the research work carried out under the guidance of
ADARSH MITRA VERMA is a result of my own research work
and has not been previously submitted to any other University
for any other Degree to this or any other University.
Wherever reference has been made to previous work of other,
it has been clearly indicated as such and included in the
bibliography.
I, here by further declare that all information of this
document has been obtained and presented in accordance with
academic rules and ethical conduct.

Name and Signature of the learner

Certified by
Name and signature of the Guiding Teacher
CONTENTS

CHAPTER INDEX PAGE

NO.
1 INTRODUCTION

2 RESEARCH METHODOLOGY

3 REVIEW OF LITERATURE

4 DATA ANALYSIS & INTERPETATION

5 FINDING AND RECOMMENDATIONS

6 CONCLUSION

7 BIBLIOGRAPHY

8 ANNEXURE
 EXECUTIVE SUMMARY
Banking is playing a dynamic role in affecting field of industry; funding
is one of affecting largest service provider's forms several decades. Today
the banking industry welcomes a wireless and mobile knowledge in to the
boardroom to offer their customer for making payments , balance checking
and then fund transfer. Here are both positive and negative factors effect
while acceptance of mobile banking.
Nowadays new automation is increasing rapidly which is also promoting
the funding industry. In India there are 1.012 billion active mobile
connections in January 2018 out of 460 million internet users are there…
by 2021 there will be more than 635.8 million internet users in India.
. This Is a major increase from previous years. The global report found
that mobile banking adopts by new users and largest in emerging
countries. It ensures that customer in clearing and settlement of transaction
through nationwide and real fund transfer in any bank account and
operates of any operator.
The present study has been focused to identify the usage of mobile
funding in a selected area. It does not involve cash transaction, so customer
visits an ATM of a branch of the bank to deposit or withdrawal.
Service to meet their banking needs can be accessed thought various
alternative banking channel, like ATM. Internet banking and mobile .
Mobile banking also has broad potential in developing countries, where
many customer can banking service though their mobile phone. In Indian,
of its population of 1.22 billion , 961+ million people are mobile
subscribers , while only 59 percentage of household had access to banking
service.
In India, we have mor e than 900 million mobile users but still mobile
banking is used by 40 million customers approximately. There can be
various reasons behind this, such as need of active collaboration between
banks and Telecom Company, lack of accessibility to customers, cost,
awareness about the mobile banking app etc.
Banks have to work on creating mobile banking awareness among the
customers. They need to promote the benefits of mobile banking and its
effectiveness. In this paper, we aim to determine customer perception about
mobile banking services of banks.
Customer has different views on mobile banking services provided by
their service providers. We examine the expectations of customers from
banks towards mobile banking system.
In this paper we also evaluate the impact of mobile banking on
customer experience after using mobile banking. This paper reflects the
change in transactions mode of customers through mobile banking. This
paper also shares the initiatives taken by customers in their banking usage
after switching to mobile banking.
For the survey, we have selected ten banks (five public sector and five
private sector banks) and tried to identify the characteristics of mobile
banking system of these banks.
However given the advantage of mobile banking , only a few percentage
of customers actually use the service. Current , the adoption of mobile
banking is in a nascent stage , but it is expected to increase or surpass
the rate of adoption of internet banking .In India , despite its many
advantage , when compared with developed countries like the United state,
the UK, and Finland , the adoption of mobile banking is in its infancy.
There are very few and limited research studies related to the adoption of
mobile banking in India, which indicate there is a need for further research in
order to understand the motivators and inhibitors of mobile-banking adoption.
 CHAPTER NO.1
INTRODUCTION
MOBILE BANKING (also known as M-Banking, SMS banking etc.)is a term used
for performing balance checks , account transaction , payment etc. via mobile device
such as a mobile phone. A bank is a financial institution that provide banking and
other financial service to their customer. Mobile banking was first introduced in
India in 2002. Transactions were also carried out via SMS. Almost all banking
transactions, such as checking account statements, paying credit bills, utility bills, and
transferring funds, can now be completed using a computer, laptop, or smartphone. A
bank is generally understood as an institution, which provides fundamental banking
service such as accepting deposits and providing loans. There are also non-banking
institution that provide certain banking service without meeting the legal definition of
a bank. Almost all banks have a mobile phone application in 2018. It allows
customers to transfer funds by simply downloading the mobile banking app to their
Android or smartphone, after which they can begin online banking transactions at
their leisure. In the year 2008, ICICI Bank was the first bank in India to launch mobile
banking. Almost every bank has since followed suit.
The earliest mobile banking services used SMS, a service known as SMS banking
With the introduction of Smart phone with WAP support enabling the use of
the Mobile phone  in 1999, the first European banks started to offer mobile banking
on this platform to their customers.[3]
Mobile banking before 2010 was most often performed via SMS or the Mobile web.
Apple’s  initial success with iPhone and the rapid growth of phones based
on Google’s Android  have led to increasing use of special mobile apps ,downloaded
to the mobile device. With that said, advancements in web technologies such
asHTMT5, CSS3 and JavaScript have seen more banks launching mobile Web based
services to complement native applications. These applications are consisted of Web
application module in JPS such as J2EE and functions of another module J2EM [4]A
recent study (May 2012) by Mapa Research suggests that over a third of banks[5] have
mobile device detection upon visiting the banks' main website. A number of things
can happen on mobile detection such as redirecting to an app store, redirection to a
mobile banking specific website or providing a menu of mobile banking options for
the user to choose from.
Mobile banking allows the user to log his or her account from a cell phone, and then
use the phone to make payments, check balance, transfer money between account ,
notify the bank of a lost or stolen credit card, stop payment on a check , receive a new
PIN, or view a monthly statement, among other transaction. Banks are a subset of the
financial services industry. A banking system also referred as a system provided by
the bank that offers cash management service for customer, reporting the transactions
of their account and portfolios, throughout the day. The banking system in India
should not only be hassle free but it should be able to meet the new challenges posed
by the technology and any other external and internal factor. For the past three
decades, India’s banking system has several outstanding achievement to its credit.
The success story of M-PESA in Kenya and other few countries became instrumental
for bank in other countries to explore the opportunity and adopt Mobile Banking. The
main advantage of Mobile Banking is that the people in remote area can also access
the banking service at ease. This has become possible with the reach of mobile device
in the rural area where the device can be purchased starting from few hundreds. The
penetration of mobile in India has made rapid change in communication system.
Apart from the reach of communication device; revolution in mobile technology like
2G, 3G, and 4G are created more market where the potential people are adopting the
latest technology
The banks are the main participants of the financial system in India. The banking
sector offers several facilities and opportunities to their customer. All the banks
Safeguards the money and valuables and provide loans, credit, and payment services,
such as checking account, money orders, and cashier’s cheques. The bank also Offer
investment and insurance product. As a variety of models for cooperation and
integration among finance industries product. As a variety of models for cooperation
and integration among finance industries have emerged, some of the traditional
distinction between Bank, insurance company and securities firms have diminished.
In spite of these changes, banks continue to maintain and perform their primary role is
accepting deposits and lending funds from these deposits.
Mobile usage has seen an explosive growth in most in most of the Asian economies
like India, China and korea. In fact korea boasts about a 70% mobile penetration rate
and with its tech-savvy populace has seen one of the most aggressive rollouts of
mobile services.
Still, the main reason that Mobile Banking scores over Internet Banking is that it
enables ‘Anyway Banking’. Customers now don’t need access to a computer terminal
to access their banks, they can now do so on the go- when they are waiting for their to
work, when they are travelling or when they are waiting for their orders to come
though in a restaurant.
 ORIGIN
Mobile Banking refers to the use of a smartphone or other cellular device to
perform online transactions. The service is provided by the bank and unlike internet
banking, it uses the software, called an application. Mobile banking, unlike physical
banks, is open for the entire 24 hours. It is dependent on the availability of an internet
or data connection to the mobile device. Mobile banking requires very basic stuff such
as a smartphone, the availability of internet, an app that is meant for mobile banking,
a platform to perform the transaction, linking the bank with the app and obviously
having money in the bank. The earliest mobile banking service used SMS which was
then known as SMS banking. After smartphones were introduced with WAP
(Wireless application protocol) support allowing the use of the mobile web in 1999,
the first European banks started offering mobile banking on this very platform to their
customers .Any mobile banking is done before 2010 was mostly SMS banking or
done via mobile web. In 2009, RBS launched two free services, a quick statement
through a text on demand and a mobile iPhone banking app that was available on the
app store. The app allowed the users to check their account balances and recent
transactions while on the go. Customer could check out their account details, get their
bank statement, perform transfer transaction like transferring money to other account
and pay their bills siting in the comfort of their homes and office. 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 Mobile Banking
– The Future white paper Overview Abstract This paper describes the basic concept,
service offered, market survey and technology which enable Mobile Banking. 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 pace. This opens up huge
markets for financial institutions interested in offering value added services. With
mobile technology, banks can offer a wide range of services to their customers such
as doing funds transfer while traveling, receiving online updates of stock price or even
performing stock trading while being stuck in traffic. Mobile devices, especially
smart-phones, are the most promising way to reach the masses and to create
“stickiness” among current customers, due to their ability to provide services anytime,
anywhere, with high rate of penetration and potential to grow. Document Audience
This document is primarily intended for Marketing, Sales, Product Support, Internet
Services Group, Project Engineering and anyone who is interested in Mobile
banking. Mobile banking addresses this fundamental limitation of Internet banking,
as it reduces the customer requirement to just a mobile phone. Mobile usage has seen
an explosive growth in most of the Asian economies like India, China and Korea. The
main reason that Mobile banking scores over Internet banking is that it enables
‘Anywhere Anytime banking'. Customers don't need access to a computer
terminal to access their bank accounts, now the can do so on-the-go while waiting for
the bus to work, traveling or when they are waiting for their orders to come through in
a restaurant. The scale at which Mobile banking has the potential to grow can be
gauged by looking at the pace users are getting mobile in these big Asian economies.
According to the Cellular Operators' Association of India (COAI) the mobile
subscriber base in India hit 40.6 million in the August 2004. In September 2004 it
added about 1.85million more. The explosion as most analysts say, is yet to come as
India has about one of the biggest untapped markets. China, which already witnessed
the mobile boom, is expected to have about 300 million mobile users by the end of
2004. All of these countries have seen gradual roll-out of mobile banking services, the
most aggressive being Korea which is now witnessing the roll-out of some of the most
advanced services like using mobile phones to pay bills in shops and restaurants.

Definition of Mobile Banking:

Mobile banking is defined as:
"Mobile Banking refers to provision and ailment
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."
 1.1 MOBILE BANKING CONCEPT MODEL

According to this model MOBILE BANKING can be said to consist of three

interrelated concept:

1. MOBILE ACCOUNTING.
2. MOBILE BROKERAGE.
3. MOBILE FINANCIAL INFORMATION SERVICE.

Mobile Banking refers to provision and a ailment of banking- and financial services
with the help of mobile telecommunication devices. 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 independent module.
Mobile phone banking may also be used to help in business situations.

1.2Trends in mobile banking

Mobile banking is set to take over all other banking channels put together. The
convenience of banking anywhere anytime has given mobile banking a competitive
edge. According to Juniper Research, mobile banking users will surpass 2 billion in
2020, making it roughly one in four people worldwide. Among other factors, the
surge in mobile banking has been driven by convenience and solving pain points.
As mobile banking technology continues to grow and expand, let's look at the top
global mobile banking trends to look out for in 2020. The advent of the Internet has
enabled new ways to conduct banking business, resulting in the creation of new
institutions, such as online banks, online brokers and wealth managers. Such
institutions still account for a tiny percentage of the industry.
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 pace. According to
the GSM Association and Ovum the number of mobile subscribers exceeded 2
billion in September 2005, and now exceeds 2.5 billion (of which more than 2
billion are GSM). With mobile technology, banks can offer services to their customers
such as doing funds transfer while travelling, receiving online updates of stock price
or even performing stock trading while being stuck in traffic. Smartphones and
3G connectivity provide some capabilities that older text message-only phones do not
According to a study by financial consultancy Calment , 35% of online banking
households will be using mobile banking by 2010, up from less than 1% today.
Upwards of 70% of bank center call volume is projected to come from mobile
phones. Mobile banking will eventually allow users to make payments at the
physical point of sale ,"Mobile contactless payments ” will make up 10% of the
contactless market by 2010. Another study from 2010 by Berg Insight forecasts
that the number of mobile banking users in the US will grow from 12 million in
2009 to 86 million in 2015. The same study also predicts that the European market
will grow from 7 million mobile banking users in 2009 to 115 million users in
2015. Many believe that mobile users have just started to fully utilize the data
capabilities in their mobile phones. In Asian countries like India, China,
Bangladesh ,Indonesia and Philippines, where mobile infrastructure is comparatively
better than the fixed-line infrastructure, and in European countries, where mobile
phone penetration is very high (at least 80% of consumers use a mobile phone),
mobile
banking is likely to appeal even more.

1.3 Mobile banking business model

The business model of banks is based upon generating revenues via interests,
financial advice, and other transactional fees. These banks are just like the companies
which can be normally listed in the way in the place of the stock market. These banks
are owned by the stakeholders. A wide spectrum of Mobile/branchless banking
models is evolving. These models differ primarily on the question that who will
establish the relationship (account opening, deposit taking, lending etc.) to the end
customer, the bank or the Non-bank /Telecommunication Company (Telco). Another
difference lies in the nature of agency agreement between bank and the Non- bank.
Models of branchless banking can be classified into three broad categories – bank
Focused, bank -Led and Non-bank -Led

1. Bank -focused model

:
The bank -focused model emerges when a traditional bank uses non-traditional
low-cost delivery channels to provide banking services to its existing customers.
Example range from use of automatic teller machines (ATMs) to internet banking or
mobile phone banking to provide certain limited banking services to bank’s’
customers. This model is additive in nature and may be seen as a modest
extension of conventional branch-based banking.

2. Bank -led model

The bank -led model offers a distinct alternative to conventional branch-

based banking in that customer conducts financial transactions at a whole range
of retail agents (or through mobile phone) instead of at bank branches or through
bank employees. This model promises the potential to substantially increase the
financial services outreach by using a different delivery channel (retailers/ mobile
phones), a different trade partner (telco / chain store) having experience and target
market distinct from traditional banks, and may be significantly cheaper than the
bank -based alternatives. The bank -led model may be implemented by either using
correspondent arrangements or by creating a JV between bank and Telco/non-
bank. In this model customer account relationship rests with the n bank 3 Non-bank
led model The non- bank -led model is where a bank does not come into the picture
(except possibly as a safe-keeper of surplus funds) and the non- bank (e.g.Telco)
performs all the functions.

The mobile phone is the mode of communication technology to have more users in
developing countries
like India. Nowadays mobile banking is common in developed and emerging
countries, mobile banking is
also called M-banking and SMS banking in terms of Balance check, money
transfer, payment of bills,
Donations. The banking industry in India as found technology advancement. Mobile
banking is usually
available on a 24/7 hours in all the days. Some banks and some financial institutions
limit the amount for
the transaction.
This study has been conducted to identify the usage factor of mobile banking in the
some part of region
selected. Mobile banking is the largest banking transaction accepted worldwide
including India. Some
consumer is hesitated to adopt mobile banking due to unaware of it. Mobile
banking is giving some
facility by a bank to their customer to make financial transactions. India is
present one of the fastest
emerging countries in terms of mobile using country. Mobile phones are not only a
medium of voice
communication it provides services at anywhere any time. Now a day’s mobile
banking services create a
social effect happening, the area of education, agriculture, healthcare, and
governance. Mobile banking
people are appreciating various m-services’ such as M-shopping, M-
agriculture, M-banking, and M
The mobile phone is the mode of communication technology to have more users in
developing countries
like India. Nowadays mobile banking is common in developed and emerging
countries, mobile banking is
also called M-banking and SMS banking in terms of Balance check, money
transfer, payment of bills,
Donations. The banking industry in India as found technology advancement. Mobile
banking is usually
available on a 24/7 hours in all the days. Some banks and some financial institutions
limit the amount for
the transaction.
This study has been conducted to identify the usage factor of mobile banking in the
some part of region
selected. Mobile banking is the largest banking transaction accepted worldwide
including India. Some
consumer is hesitated to adopt mobile banking due to unaware of it. Mobile
banking is giving some
facility by a bank to their customer to make financial transactions. India is
present one of the fastest
emerging countries in terms of mobile using country. Mobile phones are not only a
medium of voice
communication it provides services at anywhere any time. Now a day’s mobile
banking services create a
social effect happening, the area of education, agriculture, healthcare, and
governance. Mobile banking
people are appreciating various m-services’ such as M-shopping, M-
agriculture, M-banking, and M
The mobile phone is the mode of communication technology to have more users in
developing countries
like India. Nowadays mobile banking is common in developed and emerging
countries, mobile banking is
also called M-banking and SMS banking in terms of Balance check, money
transfer, payment of bills,
Donations. The banking industry in India as found technology advancement. Mobile
banking is usually
available on a 24/7 hours in all the days. Some banks and some financial institutions
limit the amount for
the transaction.
This study has been conducted to identify the usage factor of mobile banking in the
some part of region
selected. Mobile banking is the largest banking transaction accepted worldwide
including India. Some
consumer is hesitated to adopt mobile banking due to unaware of it. Mobile
banking is giving some
facility by a bank to their customer to make financial transactions. India is
present one of the fastest
emerging countries in terms of mobile using country. Mobile phones are not only a
medium of voice
communication it provides services at anywhere any time. Now a day’s mobile
banking services create a
social effect happening, the area of education, agriculture, healthcare, and
governance. Mobile banking
people are appreciating various m-services’ such as M-shopping, M-
agriculture, M-banking, and M
The mobile phone is the mode of communication technology to have more users in
developing countries
like India. Nowadays mobile banking is common in developed and emerging
countries, mobile banking is
also called M-banking and SMS banking in terms of Balance check, money
transfer, payment of bills,
Donations. The banking industry in India as found technology advancement. Mobile
banking is usually
available on a 24/7 hours in all the days. Some banks and some financial institutions
limit the amount for
the transaction.
This study has been conducted to identify the usage factor of mobile banking in the
some part of region
selected. Mobile banking is the largest banking transaction accepted worldwide
including India. Some
consumer is hesitated to adopt mobile banking due to unaware of it. Mobile
banking is giving some
facility by a bank to their customer to make financial transactions. India is
present one of the fastest
emerging countries in terms of mobile using country. Mobile phones are not only a
medium of voice
communication it provides services at anywhere any time. Now a day’s mobile
banking services create a
social effect happening, the area of education, agriculture, healthcare, and
governance. Mobile banking
people are appreciating various m-services’ such as M-shopping, M-
agriculture, M-banking,
The mobile phone is the mode of communication technology to have more users in
developing countries
like India. Nowadays mobile banking is common in developed and emerging
countries, mobile banking is
also called M-banking and SMS banking in terms of Balance check, money
transfer, payment of bills,
Donations. The banking industry in India as found technology advancement. Mobile
banking is usually
available on a 24/7 hours in all the days. Some banks and some financial institutions
limit the amount for
the transaction.
This study has been conducted to identify the usage factor of mobile banking in the
some part of region
selected. Mobile banking is the largest banking transaction accepted worldwide
including India. Some
consumer is hesitated to adopt mobile banking due to unaware of it. Mobile
banking is giving some
facility by a bank to their customer to make financial transactions. India is
present one of the fastest
emerging countries in terms of mobile using country. Mobile phones are not only a
medium of voice
communication it provides services at anywhere any time. Now a day’s mobile
banking services create a
social effect happening, the area of education, agriculture, healthcare, and
governance. Mobile banking
people are appreciating various m-services’ such as M-shopping, M-
agriculture, M-banking,
The mobile phone is the mode of communication technology to have more users in
developing countries
like India. Nowadays mobile banking is common in developed and emerging
countries, mobile banking is
also called M-banking and SMS banking in terms of Balance check, money
transfer, payment of bills,
Donations. The banking industry in India as found technology advancement. Mobile
banking is usually
available on a 24/7 hours in all the days. Some banks and some financial institutions
limit the amount for
the transaction.
This study has been conducted to identify the usage factor of mobile banking in the
some part of region
selected. Mobile banking is the largest banking transaction accepted worldwide
including India. Some
consumer is hesitated to adopt mobile banking due to unaware of it. Mobile
banking is giving some
facility by a bank to their customer to make financial transactions. India is
present one of the fastest
emerging countries in terms of mobile using country. Mobile phones are not only a
medium of voice
communication it provides services at anywhere any time. Now a day’s mobile
banking services create a
social effect happening, the area of education, agriculture, healthcare, and
governance. Mobile banking
people are appreciating various m-services’ such as M-shopping, M-
agriculture, M-banking,
The mobile phone is the mode of communication technology to have more users in
developing countries
like India. Nowadays mobile banking is common in developed and emerging
countries, mobile banking is
also called M-banking and SMS banking in terms of Balance check, money
transfer, payment of bills,
Donations. The banking industry in India as found technology advancement. Mobile
banking is usually
available on a 24/7 hours in all the days. Some banks and some financial institutions
limit the amount for
the transaction.
This study has been conducted to identify the usage factor of mobile banking in the
some part of region
selected. Mobile banking is the largest banking transaction accepted worldwide
including India. Some
consumer is hesitated to adopt mobile banking due to unaware of it. Mobile
banking is giving some
facility by a bank to their customer to make financial transactions. India is
present one of the fastest
emerging countries in terms of mobile using country. Mobile phones are not only a
medium of voice
communication it provides services at anywhere any time. Now a day’s mobile
banking services create a
social effect happening, the area of education, agriculture, healthcare, and
governance. Mobile banking
people are appreciating various m-services’ such as M-shopping, M-
agriculture, M-banking,
The mobile phone is the mode of communication technology to have more users in
developing countries
like India. Nowadays mobile banking is common in developed and emerging
countries, mobile banking is
also called M-banking and SMS banking in terms of Balance check, money
transfer, payment of bills,
Donations. The banking industry in India as found technology advancement. Mobile
banking is usually
available on a 24/7 hours in all the days. Some banks and some financial institutions
limit the amount for
the transaction.
This study has been conducted to identify the usage factor of mobile banking in the
some part of region
selected. Mobile banking is the largest banking transaction accepted worldwide
including India. Some
consumer is hesitated to adopt mobile banking due to unaware of it. Mobile
banking is giving some
facility by a bank to their customer to make financial transactions. India is
present one of the fastest
emerging countries in terms of mobile using country. Mobile phones are not only a
medium of voice
communication it provides services at anywhere any time. Now a day’s mobile
banking services create a
social effect happening, the area of education, agriculture, healthcare, and
governance. Mobile banking
people are appreciating various m-services’ such as M-shopping, M-
agriculture, M-banking,
The mobile phone is the mode of communication technology to have more users in
developing countries
like India. Nowadays mobile banking is common in developed and emerging
countries, mobile banking is
also called M-banking and SMS banking in terms of Balance check, money
transfer, payment of bills,
Donations. The banking industry in India as found technology advancement. Mobile
banking is usually
available on a 24/7 hours in all the days. Some banks and some financial institutions
limit the amount for
the transaction.
This study has been conducted to identify the usage factor of mobile banking in the
some part of region
selected. Mobile banking is the largest banking transaction accepted worldwide
including India. Some
consumer is hesitated to adopt mobile banking due to unaware of it. Mobile
banking is giving some
facility by a bank to their customer to make financial transactions. India is
present one of the fastest
emerging countries in terms of mobile using country. Mobile phones are not only a
medium of voice
communication it provides services at anywhere any time. Now a day’s mobile
banking services create a
social effect happening, the area of education, agriculture, healthcare, and
governance. Mobile banking
people are appreciating various m-services’ such as M-shopping, M-
agriculture, M-banking,
The mobile phone is the mode of communication technology to have more users in
developing countries
like India. Nowadays mobile banking is common in developed and emerging
countries, mobile banking is
also called M-banking and SMS banking in terms of Balance check, money
transfer, payment of bills,
Donations. The banking industry in India as found technology advancement. Mobile
banking is usually
available on a 24/7 hours in all the days. Some banks and some financial institutions
limit the amount for
the transaction.
This study has been conducted to identify the usage factor of mobile banking in the
some part of region
selected. Mobile banking is the largest banking transaction accepted worldwide
including India. Some
consumer is hesitated to adopt mobile banking due to unaware of it. Mobile
banking is giving some
facility by a bank to their customer to make financial transactions. India is
present one of the fastest
emerging countries in terms of mobile using country. Mobile phones are not only a
medium of voice
communication it provides services at anywhere any time. Now a day’s mobile
banking services create a
social effect happening, the area of education, agriculture, healthcare, and
governance. Mobile banking
people are appreciating various m-services’ such as M-shopping, M-
agriculture, M-banking,
The mobile phone is the mode of communication technology to have more users in
developing countries
like India. Nowadays mobile banking is common in developed and emerging
countries, mobile banking is
also called M-banking and SMS banking in terms of Balance check, money
transfer, payment of bills,
Donations. The banking industry in India as found technology advancement. Mobile
banking is usually
available on a 24/7 hours in all the days. Some banks and some financial institutions
limit the amount for
the transaction.
This study has been conducted to identify the usage factor of mobile banking in the
some part of region
selected. Mobile banking is the largest banking transaction accepted worldwide
including India. Some
consumer is hesitated to adopt mobile banking due to unaware of it. Mobile
banking is giving some
facility by a bank to their customer to make financial transactions. India is
present one of the fastest
emerging countries in terms of mobile using country. Mobile phones are not only a
medium of voice
communication it provides services at anywhere any time. Now a day’s mobile
banking services create a
social effect happening, the area of education, agriculture, healthcare, and
governance. Mobile banking
people are appreciating various m-services’ such as M-shopping, M-
agriculture, M-banking,
The mobile phone is the mode of communication technology to have more users in
developing countries
like India. Nowadays mobile banking is common in developed and emerging
countries, mobile banking is
also called M-banking and SMS banking in terms of Balance check, money
transfer, payment of bills,
Donations. The banking industry in India as found technology advancement. Mobile
banking is usually
available on a 24/7 hours in all the days. Some banks and some financial institutions
limit the amount for
the transaction.
This study has been conducted to identify the usage factor of mobile banking in the
some part of region
selected. Mobile banking is the largest banking transaction accepted worldwide
including India. Some
consumer is hesitated to adopt mobile banking due to unaware of it. Mobile
banking is giving some
facility by a bank to their customer to make financial transactions. India is
present one of the fastest
emerging countries in terms of mobile using country. Mobile phones are not only a
medium of voice
communication it provides services at anywhere any time. Now a day’s mobile
banking services create a
social effect happening, the area of education, agriculture, healthcare, and
governance. Mobile banking
people are appreciating various m-services’ such as M-shopping, M-
agriculture, M-banking,
The mobile phone is the mode of communication technology to have more users in
developing countries
like India. Nowadays mobile banking is common in developed and emerging
countries, mobile banking is
also called M-banking and SMS banking in terms of Balance check, money
transfer, payment of bills,
Donations. The banking industry in India as found technology advancement. Mobile
banking is usually
available on a 24/7 hours in all the days. Some banks and some financial institutions
limit the amount for
the transaction.
This study has been conducted to identify the usage factor of mobile banking in the
some part of region
selected. Mobile banking is the largest banking transaction accepted worldwide
including India. Some
consumer is hesitated to adopt mobile banking due to unaware of it. Mobile
banking is giving some
facility by a bank to their customer to make financial transactions. India is
present one of the fastest
emerging countries in terms of mobile using country. Mobile phones are not only a
medium of voice
communication it provides services at anywhere any time. Now a day’s mobile
banking services create a
social effect happening, the area of education, agriculture, healthcare, and
governance. Mobile banking
people are appreciating various m-services’ such as M-shopping, M-
agriculture, M-banking,
The mobile phone is the mode of communication technology to have more users in
developing countries
like India. Nowadays mobile banking is common in developed and emerging
countries, mobile banking is
also called M-banking and SMS banking in terms of Balance check, money
transfer, payment of bills,
Donations. The banking industry in India as found technology advancement. Mobile
banking is usually
available on a 24/7 hours in all the days. Some banks and some financial institutions
limit the amount for
the transaction.
This study has been conducted to identify the usage factor of mobile banking in the
some part of region
selected. Mobile banking is the largest banking transaction accepted worldwide
including India. Some
consumer is hesitated to adopt mobile banking due to unaware of it. Mobile
banking is giving some
facility by a bank to their customer to make financial transactions. India is
present one of the fastest
emerging countries in terms of mobile using country. Mobile phones are not only a
medium of voice
communication it provides services at anywhere any time. Now a day’s mobile
banking services create a
social effect happening, the area of education, agriculture, healthcare, and
governance. Mobile banking
people are appreciating various m-services’ such as M-shopping, M-
agriculture, M-banking,
The mobile phone is the mode of communication technology to have more users in
developing countries
like India. Nowadays mobile banking is common in developed and emerging
countries, mobile banking is
also called M-banking and SMS banking in terms of Balance check, money
transfer, payment of bills,
Donations. The banking industry in India as found technology advancement. Mobile
banking is usually
available on a 24/7 hours in all the days. Some banks and some financial institutions
limit the amount for
the transaction.
This study has been conducted to identify the usage factor of mobile banking in the
some part of region
selected. Mobile banking is the largest banking transaction accepted worldwide
including India. Some
consumer is hesitated to adopt mobile banking due to unaware of it. Mobile
banking is giving some
facility by a bank to their customer to make financial transactions. India is
present one of the fastest
emerging countries in terms of mobile using country. Mobile phones are not only a
medium of voice
communication it provides services at anywhere any time. Now a day’s mobile
banking services create a
social effect happening, the area of education, agriculture, healthcare, and
governance. Mobile banking
people are appreciating various m-services’ such as M-shopping, M-
agriculture, M-banking,
The mobile phone is the mode of communication technology to have more users in
developing countries
like India. Nowadays mobile banking is common in developed and emerging
countries, mobile banking is
also called M-banking and SMS banking in terms of Balance check, money
transfer, payment of bills,
Donations. The banking industry in India as found technology advancement. Mobile
banking is usually
available on a 24/7 hours in all the days. Some banks and some financial institutions
limit the amount for
the transaction.
This study has been conducted to identify the usage factor of mobile banking in the
some part of region
selected. Mobile banking is the largest banking transaction accepted worldwide
including India. Some
consumer is hesitated to adopt mobile banking due to unaware of it. Mobile
banking is giving some
facility by a bank to their customer to make financial transactions. India is
present one of the fastest
emerging countries in terms of mobile using country. Mobile phones are not only a
medium of voice
communication it provides services at anywhere any time. Now a day’s mobile
banking services create a
social effect happening, the area of education, agriculture, healthcare, and
governance. Mobile banking
people are appreciating various m-services’ such as M-shopping, M-
agriculture, M-banking,
 Mobile Banking Services

Mobile banking is the act of making financial transactions on a mobile device (cell
phone, tablet, etc.). This activity can be as simple as a bank sending fraud or usage
activity to a client's cell phone or as complex as a client paying bills or sending
money abroad.

Mobile banking can offer services such as the following:

I. Account Information
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
8.Pension plan management
9.Status on cheque, stop payment on cheque

II. Payments & Transfers

1.Domestic and international fund transfers

2.Micro-payment handling
3.Mobile recharging
4.Commercial payment processing
5.Bill payment processing
6.Peer to Peer payments

III. Investments
1.Portfolio management services
2.Real-time stock quotes
3.Personalized alerts and notifications on security prices

IV. Support
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

V. Content Services

1.General information such as weather updates, news

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

VI. Transaction
1. Funds Transfers between the customer's linked accounts.
2. Paying third parties, including bill payment and third party fund transfers
(see, e.g., FAST)
3. Check Remote Deposit
 Challenges for a Mobile banking Solution

Key challenges in developing a sophisticated mobile banking application are.

1) Interoperability:

There is a lack of common technology standards for mobile banking. Many protocols
are being used for mobile banking – HTML, WAP, SOAP, XML to
name a few. It would be a wise idea for the vendor to develop a mobile banking
application that can connect multiple banks. It would require either the application
to support multiple protocols or use of a common and widely acceptable set of
protocols for data exchange. There are a large number of different mobile phone
devices and it is a big challenge for banks to offer mobile banking solution on any
type of device. Some of these devices support J2ME and others support WAP browser
or only SMS.

Overcoming 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.

II. Scalability & Reliability :

Another challenge for the CIO’s 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 bank’s 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. Bank’s
unable to meet the performance and reliability expectations may lose customer
confidence.

III. Application distribution :

Due to the nature of the connectivity between bank and its customers, it would be
impractical to expect customers to regularly visit bank s 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.

IV. Personalization :
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
 Mobile banking in the world

Mobile banking has come in handy in many parts of the world with little or no
Infrastructure development, especially in remote and rural areas. This part of the
mobile commerce is also very 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. Countries like
Sudan, Ghana and South Africa received this new commerce very well. In Latin
America countries like Uruguay, Paraguay, Argentina, Brazil, Venezuela,
Colombia, Guatemala and recently Mexico started with a huge success. In Iran
banks like Parsian, Tejarat , Mellat, Saderat, Sepah, edbi and bankmelli offer this
service. Guatemala has the support of Banco industrial. Mexico released the mobile
commerce with Omnilife, Bancomer and a private company (MPower Ventures).
Kenya's Safaricom (Part of the Vodafone Group) has had the very popular M-Pesa
Service - mainly used to transfer limited amounts of money, but has been increasingly
used to pay utility bills. Zain in 2009 launched their own mobile money transfer
business known as ZAP in Kenya and other African countries.
 Technologies Behind Mobile Banking

Technically speaking most of these services can be deployed using more than one
channel. Presently, Mobile Banking is being deployed using mobile applications
developed on one of the following four channels.
1. IVR (Interactive Voice Response)
2. SMS (Short Messaging Service)
3. WAP (Wireless Access Protocol)
4. Standalone Mobile Application Clients

I. IVR- Interactive Voice Response:

IVR or Interactive Voice Response service operates through pre-specified numbers

that banks advertise to their customers. Customer's make a call at the IVR number
and are usually greeted by a stored electronic message followed by a menu of
different options. Customers can choose options by pressing the corresponding
number in their keypads, and are then read out the corresponding information,
mostly using a text to speech program.
Mobile banking based on IVR has some major limitations that they can be used
only for Enquiry based services. Also, IVR is more expensive as compared to other
channels as it involves making a voice call which is generally more expensive than
sending an SMS or making data transfer (as in WAP or Standalone clients).
One way to enable IVR is by deploying a PBX system that can host IVR dial plans.
Banks looking to go the low cost way should consider evaluating Asterisk, which
is an open source Linux PBX system..

II. SMS – Short Messaging Service:

SMS uses the popular text-messaging standard to enable mobile application based
banking. The way this works is that the customer requests for information by
sending an SMS containing a service command to a pre-specified number. The
bank responds with a reply SMS containing the specific information.
For example, customers of the HDFC Bank in India can get their account balance
details by sending the keyword ‘HDFCBAL' and receive their balance information
again by SMS. .However there have been few instances where even transaction-based
services have been made available to customer using SMS. For instance, customers of
the Centurion Bank of Punjab can make fund transfer by sending the SMS ‘TRN (A/c
No) (PIN No) (Amount)'.One of the major reasons that transaction based services
have not taken of on SMS is because of concerns about security. The main advantage
of deploying mobile applications over SMS is that almost all mobile phones are SMS
enabled. n SMS based service is hosted on a SMS gateway that further connects to the
Mobile service providers SMS Centre. There are a couple of hosted IP based SMS
gateways available in the market and also some open source ones like Kannel.

I.WAP – Wireless Access Protocol:

WAP uses a concept similar to that used in Internet banking. Banks maintain WAP
sites which customer's access using a WAP compatible browser on their mobile
phones. WAP sites offer the familiar form based interface and can also implement
security quite effectively. Bank of America offers a WAP based service channel to its
customers in Hong Kong. The banks customers can now have an anytime, anywhere
access to a secure reliable service that allows them to access all enquiry and
transaction based services and also more complex transaction like trade in securities
through their phone A WAP based service requires hosting a WAP gateway. Mobile
Application users access the bank's site through the WAP gateway to carry out
transactions, much like internet users access a web portal for accessing the banks
services. The following figure demonstrates the framework for enabling mobile
applications over WAP. The actually forms that go into a mobile application are
stored on a WAP server, and served on demand. The WAP Gateway forms an access
point to the internet from the mobile network.
 WAP Network Architecture for Mobile Applications

IV. Standalone Mobile Application Clients:

Standalone mobile applications are the ones that hold out the most promise as they
are most suitable to implement complex banking transactions like trading
insecurities. They can be easily customized according to the user interface
complexity supported by the mobile. In addition, mobile applications enable the
implementation of a very secure and reliable channel of communication.
One requirement of mobile applications clients is that they require to be
downloaded on the client device before they can be used, which further requires
the mobile device to support one of the many development environments like
J2ME or Qualcomm's BREW. J2ME is fast becoming an industry standard to
deploy mobile applications and requires the mobile phone to support Java. The
major disadvantage of mobile application clients is that the applications needs to
be customized to each mobile phone on which it might finally run.
 Advantage & Disadvantage of Mobile Banking

Advantages:

1. The biggest advantage that mobile banking offers to banks is that it drastically
cuts down the costs of providing service to the customers. For example, an average
teller or phone transaction costs about $2.36 each, whereas an electronic
transaction costs only about $0.10 each.
2. Additionally, this new channel gives the bank ability to cross-sell up-sell their
other complex banking products and services such as vehicle loans, credit cards
etc.
3. For service providers, Mobile banking offers the next surest way to achieve
growth. Countries like Korea where mobile penetration is nearing saturation,
mobile banking is helping service providers increase revenues from the now static
subscribers use. Service providers are increasingly using the complexity of their,
supported mobile banking services to attract new customers and retain old ones.
4. A very effective way of improving customer service could be to
inform
customers better. Credit card fraud is one such area.
5. A bank could, through the use of mobile technology, inform owners each time
purchases above a certain value have been made on their card. This way the owner
is always informed when their card is used, and how much money was taken for
each transaction. Similarly, the bank could remind customers of outstanding loan
repayment dates for the payment of monthly installments or simply tell them that a
bill has been presented and is up for payment. The customers can then check their,
balance on the phone and authorize the required amounts for payment.
6. The customers can also request for additional information. They can
automatically view deposits and withdrawals as they occur and also pre- schedule
payments to be made or cheques to be issued.
7. Similarly, one could also request for services like stop cheque or issue of a
cheque book over one’s mobile phone.
8. There are number of reasons that should persuade banks in favor of mobile
phones.
9. They are set to become a crucial part of the total banking services experience for
the customers.
10. Also, they have the potential to bring down costs for the bank itself. Through
mobile messaging and other such interfaces, banks provides value added services
to the customer at marginal costs.
11. Such messages also bear the virtue of being targeted and personal making the
services offered more effective. They will also carry better results on account of
better customer profiling.
12. Yet another benefit is the anywhere/anytime characteristics of mobile services.
A mobile is almost always with the customer. As such it can be used over a vast
geographical area. The customer does not have to visit the bank ATM or a branch
to avail of the bank’s services. Research indicates that the number of footfalls at a
bank’s branch has fallen down drastically after the installation of ATMs.
13. As such with mobile services, a bank will need to hire even less employees as
people will no longer need to visit bank branches apart from certain occasions.
14. With Indian telecom operators working on offering services like
money transaction. Over a mobile, it may soon be possible for a bank to offer phone-
based credit systems.
15. This will make credit cards redundant and also aid in checking credit card.
Fraud apart from offering enhanced customer convenience. The use of mobile
Technologies is thus a win-win proposition for both the bank s and the bank’s
Customers.
16. The banks add to this personalized communication through the process of
Automation. For instance, if the customer asks for his account or card balance after
conducting a transaction, the installed software can send him an automated reply
informing of the same. These automated replies thus save the bank the need to hire
Additional employees for servicing customer needs.
17. Use banking facilities anywhere, even far away from a banks Easy operation –
access accounts from a cell phone. Lower operational costs (for banks) than
setting up ATM machines.
 Disadvantage:

1. Back in days when Internet was introduced, it was a boon to the financial
industry as it reduced all volumes by opening another self-service channel for
servicing customers.
2. With mobile that advantage is not there as already investments are made to
reduce call volumes using Internet and Internet is one of the technologies that is
ever spreading in customer community.
3. Almost 80% of the people in US already have internet connection. Mobile
banking would be another value, added service that can be provided by financial
institutions, it may only bring good will.
4. Depending on the technological direction for enabling Mobile companies either
has to spend enormous amount of money in matching customer’s expectation or
maintaining another stream of technology applications. Technology still has
security issues and software distribution issues.
Uses
1) Pay bills
2) Transfer funds
3) Take mini-statements, conduct balance enquiries
4) Set alerts for movement in accounts – change in balance, payments of bills set
on auto payment mode etc.
5) Regular uses of mobile banking over time can accumulate significant change from
their banks. Even though there are 1.5 billion computers on the Internet and 4.5
billion people using mobile phone, there’s currently no significant operating system
supporting the mobile space.
“Hackers want to do the least amount of work for the biggest grin.”
6) Most mobile banking apps need an internet connection to be able to operate, so if
you live in a rural area or experience problem with your internet connection , then you
won’t be able to access your account. The same applies if your mobile phone runs out
of battery. Every device does not have the facility for mobile banking. Some banks
even do not provide users the facility of mobile banking. Of the banks that is available
only on a few phone like Apple’s iPhone and Blackberry phones. Software from third
parties for mobile banking is not supported.
If a user does not have a smart phone, mobile banking is limited. You can check your
bank account balance through text message, but advanced features like account
transfer are not available on regular phones.
7)