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A mobile banking conceptual modelIn one academic model,[1] mobile banking is defined as:
"Mobile Banking refers to provision and availment of banking- and financial services with thehelp 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 customisedinformation."
According to this model Mobile Banking can be said to consist of three inter-related concepts:
• Mobile Accounting
• Mobile Brokerage
• Mobile Financial Information Services
Most services in the categories designated Accounting and Brokerage are transaction-based. Thenon-transaction-based services of an informational nature are however essential for conductingtransactions - for instance, balance inquiries might be needed before committing a moneyremittance. The accounting and brokerage services are therefore offered invariably incombination with information services. Information services, on the other hand, may be offeredas an independent module.
Mobile phone banking may also be used to help in business situations
[edit] Trends in mobile bankingThe advent of the Internet has enabled new ways to conduct banking business, resulting in thecreation of new institutions, such as online banks, online brokers and wealth managers. Suchinstitutions still account for a tiny percentage of the industry.[citation needed ]
Over the last few years, the mobile and wireless market has been one of the fastest growingmarkets 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, andnow[when?] exceeds 2.5 billion (of which more than 2 billion are GSM).[citation needed ]
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 textmessage-only phones do not.
This article appears to contain speculation and unjustified claims. Information must beverifiable and based on reliable published sources. Please remove speculation from thearticle.
According to a study by financial consultancy Celent, 35% of online banking households will be
using mobile banking by 2010, up from less than 1% today. Upwards of 70% of bank center callvolume is projected to come from mobile phones. Mobile banking will eventually allow users tomake payments at the physical point of sale. "Mobile contactless payments” will make up 10%of the contactless market by 2010.[2] Another study from 2010 by Berg Insight forecasts that thenumber of mobile banking users in the US will grow from 12 million in 2009 to 98 million in2015. The same study also predicts that the European market will grow from 7 million mobile banking users in 2009 to 131 million users in 2015.[3]
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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 inEuropean countries, where mobile phone penetration is very high (at least 80% of consumers usea mobile phone), mobile banking is likely to appeal even more.
[edit] Mobile banking business modelsA wide spectrum of Mobile/branchless banking models is evolving. However, no matter what business model, if mobile banking is being used to attract low-income populations in often rurallocations, the business model will depend on banking agents, i.e., retail or postal outlets that process financial transactions on behalf telcos or banks. The banking agent is an important partof the mobile banking business model since customer care, service quality, and cashmanagement will depend on them. Many telcos will work through their local airtime resellers.However, banks in Colombia, Brazil, Peru, and other markets use pharmacies, bakeries, etc.
These models differ primarily on the question that who will establish the relationship (accountopening, deposit taking, lending etc.) to the end customer, the Bank or the Non-
Bank/Telecommunication Company (Telco). Another difference lies in the nature of agencyagreement between bank and the Non-Bank. Models of branchless banking can be classified intothree broad categories - Bank Focused, Bank-Led and Nonbank-Led.
[edit] Bank-focused model
The bank-focused model emerges when a traditional bank uses non-traditional low-cost deliverychannels to provide banking services to its existing customers. Examples range from use of automatic teller machines (ATMs) to internet banking or mobile phone banking to providecertain limited banking services to banks’ customers. This model is additive in nature and may be seen as a modest extension of conventional branch-based banking.
[edit] Bank-led model
The bank-led model offers a distinct alternative to conventional branch-based banking in thatcustomer 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 deliverychannel (retailers/ mobile phones), a different trade partner (telco / chain store) havingexperience 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 usingcorrespondent arrangements or by creating a JV between Bank and Telco/non-bank. In thismodel customer account relationship rests with the bank
[edit] 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.
[edit] Mobile Banking ServicesMobile banking can offer services such as the following:
[edit] Account Information
1. Mini-statements and checking of account history
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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 statements7. Insurance policy management
8. Pension plan management
9. Status on cheque, stop payment on cheque
10. Ordering check books
11. Balance checking in the account
12. Recent transactions
13. Due date of payment (functionality for stop, change and deleting of payments)
14. PIN provision, Change of PIN and reminder over the Internet
15. Blocking of (lost, stolen) cards
[edit] Payments, Deposits, Withdrawals, and 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
7. Withdrawal at banking agent
8. Deposit at banking agent
Especially for clients in remote locations, it will be important to help them deposit and withdrawfunds at banking agents, i.e., retail and postal outlets that turn cash into electronic funds and viceversa. The feasibility of such banking agents depends on local regulation which enables retailoutlets to take deposits or not.
A specific sequence of SMS messages will enable the system to verify if the client has sufficientfunds in his or her wallet and authorize a deposit or withdrawal transaction at the agent. Whendepositing money, the merchant receives cash and the system credits the client's bank account or mobile wallet. In the same way the client can also withdraw money at the merchant: through
exchanging sms to provide authorization, the merchant hands the client cash and debits themerchant's account.
[edit] Investments
1. Portfolio management services
2. Real-time stock quotes
3. Personalized alerts and notifications on security prices
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4. mobile banking
[edit] 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
[edit] 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 theyounger, more "tech-savvy" customer segment. A third of mobile phone users say that they mayconsider 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 andmaking bill payment.
[edit] Challenges for a Mobile Banking SolutionKey challenges in developing a sophisticated mobile banking application are :
[edit] Handset operability
There are a large number of different mobile phone devices and it is a big challenge for banks tooffer mobile banking solution on any type of device. Some of these devices support Java ME andothers support SIM Application Toolkit, a WAP browser, or only SMS.
Initial interoperability issues however have been localized, with countries like India using portals
like R-World to enable the limitations of low end java based phones, while focus on areas suchas 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 installedapplications(Java based or native) provide better security, are easier to use and allowdevelopment of more complex capabilities similar to those of internet banking while SMS can provide the basics but becomes difficult to operate with more complex transactions.
There is a myth that there is a challenge of interoperability between mobile banking applicationsdue to perceived lack of common technology standards for mobile banking. In practice it is tooearly in the service lifecycle for interoperability to be addressed within an individual country, asvery few countries have more than one mobile banking service provider. In practice, banking
interfaces are well defined and money movements between banks follow the IS0-8583 standard.As mobile banking matures, money movements between service providers will naturally adoptthe same standards as in the banking world.
[edit] Security
Security of financial transactions, being executed from some remote location and transmission of financial information over the air, are the most complicated challenges that need to be addressed
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jointly by mobile application developers, wireless network service providers and the banks' ITdepartments.
The following aspects need to be addressed to offer a secure infrastructure for financialtransaction over wireless network :
1. Physical part of the hand-held device. If the bank is offering smart-card based security,
the physical security of the device is more important.
2. Security of any thick-client application running on the device. In case the device is stolen,the hacker should require at least an ID/Password to access the application.
3. Authentication of the device with service provider before initiating a transaction. Thiswould ensure that unauthorized devices are not connected to perform financialtransactions.
4. User ID / Password authentication of bank’s customer.
5. Encryption of the data being transmitted over the air.
6. Encryption of the data that will be stored in device for later / off-line analysis by the
customer.[edit] Scalability & Reliability
Another challenge for the CIOs and CTOs of the banks is to scale-up the mobile bankinginfrastructure to handle exponential growth of the customer base. With mobile banking, thecustomer may be sitting in any part of the world (true anytime, anywhere banking) and hence banks need to ensure that the systems are up and running in a true 24 x 7 fashion. As customerswill find mobile banking more and more useful, their expectations from the solution willincrease. Banks unable to meet the performance and reliability expectations may lose customer confidence. There are systems such as Mobile Transaction Platform which allow quick andsecure mobile enabling of various banking services. Recently in India there has been a phenomenal growth in the use of Mobile Banking applications, with leading banks adopting
Mobile Transaction Platform and the Central Bank publishing guidelines for mobile bankingoperations.
[edit] Application distribution
Due to the nature of the connectivity between bank and its customers, it would be impractical toexpect customers to regularly visit banks or connect to a web site for regular upgrade of their mobile banking application. It will be expected that the mobile application itself check theupgrades 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.
[edit] 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
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6. Alerts
[edit] Mobile banking in the world
This article may require copy editing for grammar, style, cohesion, tone or spelling.You can assist by editing it. (December 2009)
Mobile banking has come in handy in many parts of the world with little or no Infrastructuredevelopment, 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 bankscan 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 Colombia was released with Redeban.In Iran banks like Parsian, Tejarat, Mellat, Saderat, Sepah, edbi and bankmelli offer this service.
Guatemala have the support of Banco industrial.Mexico released the mobile commerce with Omnilife, Bancomer and a privatecompany(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 beenincreasingly used to pay utility bills. Zain in 2009 launched their own mobile money transfer business known as ZAP in Kenya and other African countries.
[edit] See also• Mobile content
• Mobile Marketing
• Mobile payments
• SMS Banking
[edit] Notes1. ^ Tiwari and Buse, 2007, p. 73-74
2. ^ Celent Report: According to figures published by Celent 17 May 2007.
3. ^ Berginsight.com
[edit] References• Tiwari, Rajnish and Buse, Stephan(2007): The Mobile Commerce Prospects: A Strategic
Analysis of Opportunities in the Banking Sector , Hamburg University Press (E-Book asPDF to be downloaded)
• Tiwari, Rajnish; Buse, Stephan and Herstatt, Cornelius (2007): Mobile Services in Banking Sector: The Role of Innovative Business Solutions in Generating Competitive Advantage, in: Proceedings of the International Research Conference on Quality,Innovation and Knowledge Management, New Delhi, pp. 886–894.
• Tiwari, Rajnish; Buse, Stephan and Herstatt, Cornelius (2006): Customer on the Move:Strategic Implications of Mobile Banking for Banks and Financial Enterprises, in:
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CEC/EEE 2006, Proceedings of The 8th IEEE International Conference on E-CommerceTechnology and The 3rd IEEE International Conference on Enterprise Computing, E-Commerce, and E-Services (CEC/EEE'06), San Francisco, pp. 522–529.
• Tiwari, Rajnish; Buse, Stephan and Herstatt, Cornelius (2006): Mobile Banking as Business Strategy: Impact of Mobile Technologies on Customer Behaviour and its
Implications for Banks, in: Technology Management for the Global Future - Proceedingsof PICMET '06.
• Owens, John and Anna Bantug-Herrera (2006): Catching the Technology Wave: MobilePhone Banking and Text-A-Payment in the Philippines
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Mobile phone tracking
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Mobile phone tracking tracks the current position of a mobile phone even on the move. Tolocate the phone, it must emit at least the roaming signal to contact the next nearby antennatower, but the process does not require an active call. GSM localisation is then done bymultilateration based on the signal strength to nearby antenna masts.[1]
Mobile positioning, i.e. location based service that discloses the actual coordinates of a mobile phone bearer, is a technology used by telecommunication companies to approximate where amobile phone, and thereby also its user (bearer), temporarily resides. The more properly appliedterm locating refers to the purpose rather than a positioning process. Such service is offered as anoption of the class of location-based services (LBS)[2].
Contents[hide]
• 1 Technology
○ 1.1 Network Based
○ 1.2 Handset Based
○ 1.3 Hybrid
• 2 Examples of LBS technologies
• 3 Operational purpose
• 4 Bearer interest
• 5 Privacy
• 6 See also
• 7 References
• 8 External links
[edit] TechnologyThe technology of locating is based on measuring power levels and antenna patterns and uses theconcept that a mobile phone always communicates wirelessly with one of the closest base
stations, so if you know which base station the phone communicates with, you know that the phone is close to the respective base station.
Advanced systems determine the sector in which the mobile phone resides and roughly estimatealso the distance to the base station. Further approximation can be done by interpolating signals between adjacent antenna towers. Qualified services may achieve a precision of down to 50meters in urban areas where mobile traffic and density of antenna towers (base stations) issufficiently high. Rural and desolate areas may see miles between base stations and thereforedetermine locations less precisely.
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GSM localization is the use of multilateration to determine the location of GSM mobile phones, usually with the intent to locate the user [3] .
Localization-Based Systems can be broadly divided into:
• Network based
• Handset based
• Hybrid
[edit] Network Based
Network-based techniques utilize the service provider's network infrastructure to identify thelocation of the handset. The advantage of network-based techniques (from mobile operator's point of view) is that they can be implemented non-intrusively, without affecting the handsets.
The accuracy of network-based techniques varies, with cell identification as the least accurateand triangulation as the most accurate. The accuracy of network-based techniques is closelydependent on the concentration of base station cells, with urban environments achieving thehighest possible accuracy.
One of the key challenges of network-based techniques is the requirement to work closely withthe service provider, as it entails the installation of hardware and software within the operator'sinfrastructure. Often, a legislative framework, such as E911, would need to be in place to compelthe cooperation of the service provider as well as to safeguard the privacy of the information.
[edit] Handset Based
Handset-based technology requires the installation of client software on the handset to determineits location. This technique determines the location of the handset by computing its location bycell identification, signal strengths of the home and neighboring cells or the latitude andlongitude, if the handset is equipped with a GPS module. The calculated location is then sentfrom the handset to a location server.
The key disadvantage of this technique (from mobile operator's point of view) is the necessity of installing software on the handset. It requires the active cooperation of the mobile subscriber aswell as software that must be able to handle the different operating systems of the handsets.Typically, smart phones, such as one based on Symbian, Windows Mobile, iPhone / iPhone OS,or Android, would be able to run such software.
One proposed work-around is the installation of embedded hardware or software on the handset by the manufacturers. This avenue has not made significant headway, due to the difficulty of convincing different manufacturers to cooperate on a common mechanism and to address thecost issue. Another difficulty would be to address the issue of foreign handsets that are roamingin the network.
Well, let us find an example to demonstrate the Network based location tracking algorithm:
According to global GSM structure and ETSI, the GSM service providers information flowsthrough the control channel and the control channel is free to access. Interestingly, all the presentGSM modem/mobiles (Telit, SIMCOM, HTC, Nokia etc.) are coming with some extra feature tomonitor the neighbouring cells and its RSSI value. Theoretically you should get 1+6=7 cellinformation (1 home cell ID, 7 BCCH info+ 7 RSSI). If you know the location of 7 cells, it is possible to get a mobile phone location with very high accuracy (<100 meters).
[edit] Hybrid
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Hybrid positioning systems use a combination of network-based and handset-based technologiesfor location determination. One example would be Assisted GPS, which uses both GPS andnetwork information to compute the location. Hybrid-based techniques give the best accuracy of the three but inherit the limitations and challenges of network-based and handset-basedtechnologies.
[edit] Examples of LBS technologies• Cell Identification - The accuracy of this method can be as good as a few
hundred meters in urban areas, but as poor as 35 km[4] in suburban areas andrural zones. The accuracy depends on the known range of the particularnetwork base station serving the handset at the time of positioning.
• Enhanced Cell Identification - With this method, one can get a precisionsimilar to Cell Identification, but for rural areas, with circular sectors of 550meters.
• U-TDOA - Uplink-Time difference of arrival - The network determines thetime difference and therefore the distance from each base station to the
mobile phone.• TOA - Time of arrival - Same as U-TDOA, but this technology uses the
absolute time of arrival at a certain base station rather than the differencebetween two stations.
• AOA - Angle of arrival - AOA mechanism locates the mobile phone at thepoint where the lines along the angles from each base station intersect.
• E-OTD - E-OTD is similar to U-TDOA, but the position is estimated by themobile phone, not by the base station. The precision of this method dependson the number of available LMUs in the networks, varying from 50 to 200 m.
• Assisted-GPS - A largely GPS-based technology, which uses an operator-maintained ground station to correct for GPS errors caused by the
atmosphere/topography. Assisted-GPS positioning technology typically fallsback to cell-based positioning methods when indoors or in an urban canyon environment.
• Hybrid - As mentioned above, hybrid positioning systems use differentmethods depending on which signals are locally available.
[edit] Operational purposeIn order to route calls to a phone the cell towers listen for a signal sent from the phone andnegotiate which tower is best able to communicate with the phone. As the phone changeslocation, the antenna towers monitor the signal and the phone is roamed to an adjacent tower asappropriate.
By comparing the relative signal strength from multiple antenna towers a general location of a phone can be roughly determined. Other means is the antenna pattern that supports angular determination and phase discrimination.
Newer phones may also allow the tracking of the phone even when turned on and not active in atelephone call-. This results from the roaming procedures that perform hand over of the phonefrom one base station to another.[5]
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[edit] Bearer interestA phone's location can be uploaded to a common web site where one's "friends and family" canview one's last reported position. Newer phones may have built-in GPS receivers which could beused in a similar fashion, but with much higher accuracy.
[edit] PrivacyLocating or positioning touches upon delicate privacy issues, since it enables someone to check where a person is without the person's consent. Strict ethics and security measures are stronglyrecommended for services that employ positioning, and the user must give an informed, explicitconsent to a service provider before the service provider can compute positioning data from theuser's mobile phone.
In Europe, where most countries have a constitutional guarantee on the secrecy of correspondence, location data obtained from mobile phone networks is usually given the same protection as the communication itself. The United States however has no explicit constitutionalguarantee on the privacy of telecommunications, so use of location data is limited by law.
With tolling systems, as in Germany, the locating of vehicles is equally sensitive to theconstitutional guarantee on the secrecy of correspondence and thus any further use of tollinginformation beyond deducting the road fee is prohibited. That leads to the strange situation thateven obviously criminal intent may not be interfered by such yet available technical means.
Officially, the authorities (like the police) can obtain permission to position phones in emergencycases where people (including criminals) are missing.
The FBI appears to have begun using a novel form of electronic surveillance in criminalinvestigations: remotely activating a mobile phone's microphone and using it to eavesdrop onnearby conversations. This works with or without locating. The technique is called a "roving bug," and was approved by top U.S. Department of Justice.[6] A judge ruled that police use of such tracking in the USA will require a warrant showing probable cause.[7]
The Electronic Frontier Foundation is tracking some cases, including USA v. Pen Register ,regarding government tracking of individuals such as pedophiles and political activists.[8]
Some "Free" tracking services allow the cellular telephone number being tracked to be added totelemarketers' lists.
[edit] See also• Assisted GPS
• Base station
• Cell site
•
Global Positioning System• Google Latitude
• GPS Phone
• Locating
• Location-based service
• Mobile dating
• Mobile phone
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• Multilateration
• Positioning (telecommunications)
• Real Time Locating
• Secure telephone
[edit] References1. ^ "Tracking a suspect by mobile phone: Tracking SIM and handset". BBC
News. 2005-08-03. http://news.bbc.co.uk/1/hi/technology/4738219.stm.Retrieved 2010-01-02.
2. ^ "Location Based Services for Mobiles: Technologies and Standards“, ShuWang, Jungwon Min and Byung K. Yi, IEEE International Conference onCommunication (ICC) 2008, Beijing, China
3. ^ "Location Based Services for Mobiles: Technologies and Standards“, ShuWang, Jungwon Min and Byung K. Yi, IEEE International Conference onCommunication (ICC) 2008, Beijing, China
4. ^ Gsm#Cellular_radio_network5. ^ "Roving Bug in Cell Phones Used By FBI to Eavesdrop on Syndicate". The
Chicago Syndicate. http://www.thechicagosyndicate.com/2006/12/roving-bug-in-cell-phones-used-by-fbi.html.
6. ^ "FBI taps cell phone mic as eavesdropping tool". ZDNet.http://news.zdnet.com/2100-1035_22-6140191.html.
7. ^ http://www.washingtonpost.com/wp-dyn/content/article/2008/09/11/AR2008091103292.html
8. ^ http://www.eff.org/issues/cell-tracking
[edit] External links• [1] - Locate lost/misplaced mobile phone on a map by sending a text
message or Instant Message
• privacyrights.org - Protecting Your Privacy in the Age of the Super-Phone
• Cell Reception - Google maps API to locate cell towers in the United States
• Cellphone Tracking Powers on Request, washingtonpost.com
• GeoLocME : Free GPS and Tower Based tracking for BlackBerry Smart Phones
• GSM Localization on Mobile Phones
• OpenCellID : An OpenSource CellID database
•
CellSpotting : A Global Cell Id-Based Information Service• J2ME and Location-Based Services
• LBS, the ingredients and the alternatives
• Location API for J2ME
• openBmap : Map and tools for a free and open Cell ID database in GPL andCreative Common Licence
• Free GPS emulator which is using cellular triangulation
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Mobile banking business modelsA wide spectrum of Mobile/branchless banking models is evolving. However, no matter what business model, if mobile banking is being used to attract low-income populations in often rural
locations, the business model will depend on banking agents, i.e., retail or postal outlets that process financial transactions on behalf telcos or banks. The banking agent is an important partof the mobile banking business model since customer care, service quality, and cashmanagement will depend on them. Many telcos will work through their local airtime resellers.However, banks in Colombia, Brazil, Peru, and other markets use pharmacies, bakeries, etc.
These models differ primarily on the question that who will establish the relationship (accountopening, deposit taking, lending etc.) to the end customer, the Bank or the Non-Bank/Telecommunication Company (Telco). Another difference lies in the nature of agencyagreement between bank and the Non-Bank. Models of branchless banking can be classified intothree broad categories - Bank Focused, Bank-Led and Nonbank-Led.
[edit] Bank-focused model
The bank-focused model emerges when a traditional bank uses non-traditional low-cost deliverychannels to provide banking services to its existing customers. Examples range from use of automatic teller machines (ATMs) to internet banking or mobile phone banking to providecertain limited banking services to banks’ customers. This model is additive in nature and may be seen as a modest extension of conventional branch-based banking.
[edit] Bank-led model
The bank-led model offers a distinct alternative to conventional branch-based banking in thatcustomer 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) havingexperience 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 usingcorrespondent arrangements or by creating a JV between Bank and Telco/non-bank. In thismodel customer account relationship rests with the bank
[edit] Non-bank-led model
The non-bank-led model is where a bank does not come into the picture (except possibly as asafe-keeper of surplus funds) and the non-bank (e.g. telco) performs all the functions.
[edit] Mobile Banking ServicesMobile banking can offer services such as the following:
[edit] 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
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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 cheque10. Ordering check books
11. Balance checking in the account
12. Recent transactions
13. Due date of payment (functionality for stop, change and deleting of payments)
14. PIN provision, Change of PIN and reminder over the Internet
15. Blocking of (lost, stolen) cards
[edit] Payments, Deposits, Withdrawals, and Transfers
1. Domestic and international fund transfers2. Micro-payment handling
3. Mobile recharging
4. Commercial payment processing
5. Bill payment processing
6. Peer to Peer payments
7. Withdrawal at banking agent
8. Deposit at banking agent
Especially for clients in remote locations, it will be important to help them deposit and withdraw
funds at banking agents, i.e., retail and postal outlets that turn cash into electronic funds and viceversa. The feasibility of such banking agents depends on local regulation which enables retailoutlets to take deposits or not.
A specific sequence of SMS messages will enable the system to verify if the client has sufficientfunds in his or her wallet and authorize a deposit or withdrawal transaction at the agent. Whendepositing money, the merchant receives cash and the system credits the client's bank account or mobile wallet. In the same way the client can also withdraw money at the merchant: throughexchanging sms to provide authorization, the merchant hands the client cash and debits themerchant's account.
[edit] Investments
1. Portfolio management services2. Real-time stock quotes
3. Personalized alerts and notifications on security prices
4. mobile banking
[edit] Support
1. Status of requests for credit, including mortgage approval, and insurance coverage
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2. Check (cheque) book and card requests
3. Exchange of data messages and email, including complaint submission and tracking
4. ATM Location
[edit] 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 theyounger, more "tech-savvy" customer segment. A third of mobile phone users say that they mayconsider 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 andmaking bill payment.
[edit] Challenges for a Mobile Banking Solution
Key challenges in developing a sophisticated mobile banking application are :
[edit] Handset operability
There are a large number of different mobile phone devices and it is a big challenge for banks tooffer mobile banking solution on any type of device. Some of these devices support Java ME andothers support SIM Application Toolkit, a WAP browser, or only SMS.
Initial interoperability issues however have been localized, with countries like India using portalslike R-World to enable the limitations of low end java based phones, while focus on areas suchas 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 allowdevelopment of more complex capabilities similar to those of internet banking while SMS can provide the basics but becomes difficult to operate with more complex transactions.
There is a myth that there is a challenge of interoperability between mobile banking applicationsdue to perceived lack of common technology standards for mobile banking. In practice it is tooearly in the service lifecycle for interoperability to be addressed within an individual country, asvery few countries have more than one mobile banking service provider. In practice, bankinginterfaces are well defined and money movements between banks follow the IS0-8583 standard.As mobile banking matures, money movements between service providers will naturally adoptthe same standards as in the banking world.
[edit] Security
Security of financial transactions, being executed from some remote location and transmission of financial information over the air, are the most complicated challenges that need to be addressed jointly by mobile application developers, wireless network service providers and the banks' ITdepartments.
The following aspects need to be addressed to offer a secure infrastructure for financialtransaction over wireless network :
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1. Physical part of the hand-held device. If the bank is offering smart-card based security,the physical security of the device is more important.
2. Security of any thick-client application running on the device. In case the device is stolen,the hacker should require at least an ID/Password to access the application.
3. Authentication of the device with service provider before initiating a transaction. This
would ensure that unauthorized devices are not connected to perform financialtransactions.
4. User ID / Password authentication of bank’s customer.
5. Encryption of the data being transmitted over the air.
6. Encryption of the data that will be stored in device for later / off-line analysis by thecustomer.
[edit] Scalability & Reliability
Another challenge for the CIOs and CTOs of the banks is to scale-up the mobile bankinginfrastructure to handle exponential growth of the customer base. With mobile banking, the
customer may be sitting in any part of the world (true anytime, anywhere banking) and hence banks need to ensure that the systems are up and running in a true 24 x 7 fashion. As customerswill find mobile banking more and more useful, their expectations from the solution willincrease. Banks unable to meet the performance and reliability expectations may lose customer confidence. There are systems such as Mobile Transaction Platform which allow quick andsecure mobile enabling of various banking services. Recently in India there has been a phenomenal growth in the use of Mobile Banking applications, with leading banks adoptingMobile Transaction Platform and the Central Bank publishing guidelines for mobile bankingoperations.
[edit] Application distribution
Due to the nature of the connectivity between bank and its customers, it would be impractical to
expect customers to regularly visit banks or connect to a web site for regular upgrade of their mobile banking application. It will be expected that the mobile application itself check theupgrades 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.
[edit] Personalization
It would be expected from the mobile application to support personalization such as :
1. Preferred Language
2. Date / Time format
3. Amount format4. Default transactions
5. Standard Beneficiary list
6. Alerts
[edit] Mobile banking in the world
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This article may require copy editing for grammar, style, cohesion, tone or spelling.You can assist by editing it. (December 2009)
Mobile banking has come in handy in many parts of the world with little or no Infrastructuredevelopment, 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 bankscan 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 Colombia was released with Redeban.In Iran banks like Parsian, Tejarat, Mellat, Saderat, Sepah, edbi and bankmelli offer this service.Guatemala have the support of Banco industrial.Mexico released the mobile commerce with Omnilife, Bancomer and a privatecompany(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 beenincreasingly used to pay utility bills. Zain in 2009 launched their own mobile money transfer
business known as ZAP in Kenya and other African countries.edit
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