ENACTMENT AND RECENT ADVANCEMENT OF

MOBILE FINANCIAL SERVICES

Author: Mrs.K.J.Ambili Assistant Professor, Department Of Commerce

Sri Krishna Arts and Science College, Coimbatore, Tamil Nadu

Co-Author: Anusha.R, Thangavignesh.C

Mail id: thangavignesh401@gmail.com Mobile:9500740584

ABSTRACT:
Mobile Financial Services have become an integral part of modern banking, allowing
customers to access their accounts, make transactions, and manage their finances anytime and
anywhere This abstract provides an overview of a project that explores the adoption trends and
recent advancements in bank mobile financial services. The project aims to analyse the factors
influencing the adoption of these services and to highlight the innovations that have reshaped
the landscape of mobile banking. The adoption of mobile financial services has witnessed
remarkable growth over the past decade, driven by factors such as increasing smartphone
penetration, improved internet connectivity, and changing consumer preferences for digital
banking. This project will explore the drivers of mobile banking adoption, including the impact
of mobile financial services and customer satisfaction. Furthermore, the project dives into the
recent advancements that are reshaping the landscape of bank mobile financial services. The
project also delves into the ways in which banks are responding to changing regulatory
frameworks, adhering to data protection and security requirements while providing cutting-
edge mobile financial services. The goal of this research was to get a sense of how customers
feel about financial services outside of the idea of mobile banking, and also to see how financial
services influence people's decisions to buy other companies products.
Keywords: Mobile Banking, Digital technology, Contactless payments, Customers Buying
Decisions.

INTRODUCTION:
Abbreviation of MFS is Mobile Financial Services. Mobile phone is one of the greatest
inventions of new technology. It has already gained widespread acceptance all over the world.
It brings a new use that offers the possibility to get involved in the financial system by providing
various financial services without any hassle. The financial services offered through mobile
phone are called Mobile Financial Services. It is totally different from the traditional SMS
banking concept because it uses a new procedure to carry out various services.
 The financial services sector is at a turning point in the modern era, where the speed of
life is accelerating and technology is omnipresent. In the past, banking was a process that
required a physical visit to a branch; however, nowadays, banking is accessible through the
convenience of a smartphone or a mobile device. This transformation has been achieved
through the adoption and ongoing development of bank mobile financial solutions.

Mobile financial services have revolutionized the way people, companies, and
institutions manage their money. The ease, accessibility, and effectiveness of mobile financial
services have not only changed the customer experience, but they’ve also revolutionized the
banking industry. This project aims to explore two crucial aspects of the mobile financial
services revolution: the adoption patterns and the recent innovations that are driving the
industry and their impact on consumers.

Recent research has demonstrated that consumers respond positively to prompt

financial incentives and emotional appeals. Additionally, some consumers perceive mobile
payments as both time-saving and convenient, while also providing them with increased access
to and control over their finances. Despite these positive attributes and perceptions, consumers
remain concerned about the associated costs and security risks associated with mobile financial
transactions.

Objectives
✓ To analyse convenience and ease of the usage of Mobile Financial Service.
✓ To investigate about the customer satisfaction of the users of Mobile Financial Services
✓ To determine the awareness of Mobile Financial Service.

Scope
✓ This research includes the various mobile banking services and MFS’s financial
inclusion.
✓ This research provides now MFS has enhanced a shift from cash-based transaction
digital transaction.
✓ This research includes how the MFS’s adoptability and its deliverance of financial
education among users.
Limitations
✓ Some of the views expressed by the respondents are biased; hence it may affect the
findings
✓ This study mainly focused on the bank mobile financial services therefore other mobile
financial services are not considered.

REVIEW OF LITERATURE:
CitationShaikh, A.A., Alamoudi, H., Alharthi, M. and Glavee-Geo, R. (2023), "Advances in
mobile financial services: a review of the literature and future research directions",
International Journal of Bank Marketing, Vol. 41 No. 1, pp. 1-33. Studies like have emphasized
the importance of understanding cultural differences in adopting and using mobile financial
services. They found that cultural norms and attitudes towards technology play a significant
role in shaping users' perceptions and behaviors.
Researchers such as [Layne-Farrar et al. (2019)] have explored the potential of blockchain
technology to enhance security and transparency in mobile financial services. Moreover,
[Hassan et al. (2021)] discussed the integration of artificial intelligence and chatbots to provide
personalized financial advice and assistance through mobile platforms.

Despite the benefits, challenges related to security and privacy have been raised. [Sey et al.
(2020)] pointed out that concerns over data privacy and security could hinder the adoption of
MFS. In addition, [Kshetri (2018)] emphasized the importance of regulatory frameworks to
address issues related to fraud and cyber threats.

the evolution of MFS continues with innovations such as mobile lending and micro-insurance.
[Jain and Singh (2020)] discussed how mobile lending platforms are filling the credit gap for
underserved populations, leveraging alternative credit assessment methods. Additionally,
[Aterido et al. (2019)] examined the potential of mobile-based micro-insurance platforms to
provide affordable insurance coverage to low-income individuals.

Research by [Sethuraman et al. (2019)] explored the factors influencing the adoption of mobile
financial services. They found that convenience, ease of use, and perceived benefits
significantly impacted users' adoption decisions. Additionally, [Hughes et al. (2016)]
highlighted the positive relationship between technology readiness and MFS adoption among
individuals.

User experience and satisfaction are crucial for the success of MFS. [Laukkanen et al. (2017)]
conducted a study and found that user satisfaction with mobile banking services was influenced
by ease of use, system quality, and information quality. [Kumar and Aggarwal (2018)]
highlighted the role of perceived service quality in driving customer satisfaction and loyalty
towards mobile wallets.

A significant aspect of MFS is its potential to drive financial inclusion, especially in

underserved regions. [Suri and Jack (2016)] conducted a study in Kenya and found that access
to mobile money services increased households' access to financial services, reduced
transaction costs, and improved risk management. Similarly, [Donou-Adonsou et al. (2018)]
observed that MFS played a vital role in expanding financial access in rural communities in
Benin.

OVERVIEW OF THE STUDY:

The term “Mobile Financial Services” refers to a variety of financial transactions and
activities that can be carried out on a smartphone or tablet device. Mobile financial services
take advantage of the ease and accessibility of mobile technology to offer individuals and
businesses a variety of financial products and services to their customers. In recent years,
mobile financial services have grown in popularity and are changing the way people handle
their money, pay bills, and access financial data. Here are some of the main features of mobile
financial services.
Mobile banking provides customers with access to their bank accounts via a mobile
application provided by the bank, enabling them to view bank account balances, transaction
history, account transfers, bill payments, and deposit checks.The use of mobile financial
services has the potential to expand access to financial services to underprivileged and
unbanked individuals, thereby contributing to financial inclusion by extending banking and
payment facilities to a wider population.

Mobile financial services have become increasingly popular in recent years due to the
development of technology, the increasing use of smartphones, and the evolving preferences
of consumers for digital banking and payment services. As technology advances, mobile
financial services are expected to become increasingly integrated into people's day-to-day
financial activities. Customers can now deposit checks via mobile apps by simply taking a
photo of the check and depositing it at a bank branch. This feature has become more important
due to the restrictions on physical banking during COVID-19.

Banks have put in place comprehensive security protocols to safeguard mobile financial
services. These protocols include biometric authentication, which involves the use of
biometrics such as fingerprints and facial recognition, as well as multisensory authentication.
Additionally, encrypted communication channels and secured servers are employed to protect
customer data.

DATA ANALYSIS:

Methodology of the study is percentage analysis the data chosen in this study is primary
data and respondents are bank account holders and their count is 110.

AGE OF THE RESPONDENTS

45 Above

35 to 45
13%
18 to 25
50%

26 to 35
23%

MOST OF THE SERVICES USED BY THE RESPONDENTS

To get account
balance update
Above all 23%
32%

Buy goods and To transfer money

services 30%
15%

RECENT ADOPT
Free demo by the Improved user
banks interface
17% 20%

Reduced risk Increase Awarness

involved in my 26%
transaction
37%
 PROBLEMS FACED BY RESPONDENTS BY USING MFS
Problem in understanding To find risky to
the functions mobile share my private
Financial services information to
18% bank
31%

I feel mobile services

provider might not
perform well and process
payment incorrectly
51%

SOURCES THAT HELPED TO KNOW ABOUT MFS TO

RESPONDENTS
Internet
21% Friend
34%

Bank
45%

SATISFACTION LEVEL OF MFS

Very dissatisfied
Dissatisfied
11% 1%
Neutral Very satisfied
12% 34%

Satisfied
42%

FINDINGS:

✓ Majority of respondents are about 18 to 25 and least is 45% and above.

✓ Majority of respondents use all the services of Mobile Financial Services and least use
23% to get the balance update
✓ Majority of respondents adopt Mobile Financial Services because of their reduced risk
involved in the transaction.
 ✓ Majority of respondents faced problems that Mobile financial Services might not
perform well and process payment incorrectly.
✓ Majority of respondents know Mobile Financial Services through bank.
✓ Majority of respondents are satisfied with overall services of Mobile Financial Services.

SUGGESTIONS:

✓ Security is always top priority to the users so secure authentication is needed so

biometrics and passwords should be added for every transaction made.
✓ Proper demo should be given to the customers of the bank about usage of Mobile
Financial Services.
✓ Transaction details of the transferor should be saved and restored quickly
for future payments.

CONCLUSION:

This study concluded that the level of MFS adoption demonstrates the acceptance and
adoption of the technology by consumers. It also suggests that the range of options available
to consumers is not taking full advantage of the potential of MFS, as consumers who are
transitioning from traditional banking to more modern ways of managing financial matters
would be able to gain a better understanding of the technology, offering a balance between the
two. A major obstacle to the uptake of MFS is the perception that the interface is too complex,
however, MFS providers are able to adjust the mobile app interface to provide a seamless
experience, which will encourage consumers to take advantage of this service. Ultimately, the
adoption of and recent progress in mobile financial services marks a significant turning point
in the financial industry, as digital transformation has enabled individuals to become more
empowered, access to financial services has increased, and innovation has led to further
positive disruptions in the financial landscape.

REFERENCE:

CitationShaikh, A.A., Alamoudi, H., Alharthi, M. and Glavee-Geo, R. (2023), "Advances in

mobile financial services: a review of the literature and future research directions",
International Journal of Bank Marketing, Vol. 41 No. 1, pp. 1-33.