final_mobile_banking_100_marks (1).docx

8/13/2019 final_mobile_banking_100_marks (1).docx

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Overview of the banking industry

The Indian Banking industry, which is governed by the Banking Regulation Act ofIndia, 1949 can be broadly classified into two major categories, non-scheduled

banks and scheduled banks. Scheduled banks comprise commercial banks and the

co-operative banks. In terms of ownership, commercial banks can be further grouped

into nationalized banks, the State Bank of India and its group banks, regional rural

banks and private sector banks .These banks have over 67,000 branches spread

over the country.The first phase of financial reforms resulted in the nationalization of

14 major banks in 1969 and resulted in a shift from Class banking to Mass banking.This in turn resulted in a significant growth in the geographical coverage of banks.

Every bank had to earmark a minimum percentage of their loan portfolio to sectors

identified as priority sectors.After the second phase of financial sector reforms and

liberalization of the sector in the early nineties, the Public Sector Banks (PSB) s

found it extremely difficult to compete with the new private sector banks and the

foreign banks. The new private sector banks first made their appearance after the

guidelines permitting them were issued in January 1993. Eight new private sector

banks are presently in operation. These banks due to their late start have access to

state-of-the-art technology, which in turn helps them to save on manpower costs and

provide better services.

Current scenario

The industry is currently in a transition phase. On the one hand, the PSBs, which arethe mainstay of the Indian Banking system, are in the process of shedding their flab

in terms of excessive manpower, excessive non-Performing Assets (Npas) and

excessive governmental equity, while on the other hand the private sector banks are

consolidating themselves through mergers and acquisitions.

Private sector Banks have pioneered internet banking, phone banking, anywhere

banking, and mobile banking, debit cards, Automatic Teller Machines (ATMs) and

combined various other services and integrated them into the mainstream banking


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arena, while the PSBs are still grappling with disgruntled employees in the aftermath

of successful VRS schemes. Also, following Indias commitment to the W To

agreement in respect of the services sector, foreign banks, including both new and

the existing ones, have been permitted to open up to 12 branches a year with effect

from 1998-99 as against the earlier stipulation of 8 branches.

A 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 of

banks. The banking agent is an important part of the mobile banking business model

since customer care, service quality, and cash management 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.

Already, banks such as ICICI Bank and HDFC Bank have forged alliances with

Prudential Life and Standard Life respectively. This is one segment that is likely to

witness a greater deal of action in the future. In the near term, the low interest rate

scenario is likely to affect the spreads of majors. This is likely to result in a greater

focus on better asset-liability management procedures. Consequently, only banksthat strive hard to increase their share of fee-based revenues are likely to do better

in the future.


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CHAPTER 1

Introduction

Mobile banking is a way for the customer to perform banking actions on his or her

cell phone or other mobile device. It is a quite popular method of banking that fits in

well with a busy, technologically oriented lifestyle. It might also be referred to as M-

banking orSMSbanking. The amount of banking one is able to do on their cell phone

varies depending on the banking institution one uses. Some banks offer only the

option of text alerts,which are messages sent to their cell phone that alert them to

do activity on their account such as deposits, withdrawals, and ATM or credit carduse. This is the most basic type of mobile banking.

A more involved type of mobile banking allows the user to log into his or her account

from a cell phone, and then use the phone to make payments, check balances,

transfer money between accounts, 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

transactions. This type of banking is meant to be more convenient for the consumer

than having to physically go into a bank, log on from their home computer, or make aphone call. While all of this is true, some are concerned about the security of mobile

banking.

Most experts advise against performing any large transactions over mobile banking,

which is good advice. However, it is equally important to use an alphanumeric

password and to keep your PIN safe. Change your password often, and do not use

your pets' names, your child's name, or any birthdays. This advice applies to all

passwords, not just those used for mobile banking. Though you are logging on to a

secure server at the bank through your cell phone, you need to do your part to

protect your information. For this reason, many banks are now sending one-time use

passwords for an extra step in security.

A one-time use password might be sent to a cell phone or other device

whencustomerwishes to log into their account. You will then usually need to enter

both the password you have already set, along with the one-time use password,
http://www.wisegeek.com/what-is-sms.htmhttp://www.wisegeek.com/what-are-text-alerts.htmhttp://www.wisegeek.com/what-are-text-alerts.htmhttp://www.wisegeek.com/what-is-sms.htm


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within a certain period of time. The one-time use password expires, naturally, after it

is used once or after a time limit has passed. Using two passwords increases the

security of the account, an important concern with mobile banking.

The kind of banking and financial service that gives a real-time mobile access to

customer on the move is called mobile banking. Mobile banking to the banking

activity that is carried out on mobile (cell) phones that is banking is enabled even

while a person is on the move. In modern times, information exchange takes place at

great speed. The dependence of people on computing devices such as computers,

cellular phone, pager, facsimile machine, e-mail and internet is growing at galloping

rate. Such as growth has made the real time exchange of information a reality. At the

same time it has also thrown challenges to modern enterprises. Which prompt them

to act in a proactive manner so as to stay competitive in the business world. The

constant innovation happening in the realm of electronic banking and financial

services has contributed to a new development called mobile banking this may be

attributed to the forth coming demand from the mobile workforce. The increasingly

growing number of mobile workforce has really given a cutting edge to the progress

of the electronic banking. The information which includes checking of account

balance, request for a Cheque book, stop payment instruction, changing primary

operation account, request for current periods account statement to the mailed and

access summaries of last three transactions performed on the account.

The number of people using mobile banking services has increased. While the trend

is growing, lack of awareness of services, apart from perceived security issues are

inhibiting faster takeoff. It was clear at the start itself that this would be a battle

focused not on technology, but on the mindset of the target audience. Over two

years after the launch of mobile banking services in the country, that bridge has

been reached and many are beginning to walk those cautious steps across it. Yes,

the usage of mobile banking services is increasing, and fast against Dataquests

estimated user base of under 10,000 for mobile banking services in 2000, there are

over 120,000 today who SMS from their banking. Even despite targeting a

respondent profile that would bring in more positive answers than negative, threw up

very low usage numbers. Also,


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E-commerce as a medium of purchasing and transacting has not really caught on,

and the basket of mobile banking offerings is, in itself, very limited. The good news

the technology backbone is in place, and getting better. Theres CDMA, theres

GSM. Forget their battles on the mobile telephony front from the consumers point of

view; he never had it so good. The recent price cuts are also likely to help, say

banking experts, adding that this will lead to increasing willingness to move on to

mobile, and therefore, to the value-added services that most operators offer today

The Internet is revolutionizing the way the financial industry conducts business,

empowering organization with new business model and new ways to interact with

customers.

The ability to perform banking transactions online banks and brokers who offer

personalized services through their web portals. This increased competition is driving

traditional financial institutions to find new ways to add value to their product and

services, gain competitive advantage and increase customer loyalty while also

attracting new, high-value client.

A mobile banking conceptual model:-

In one academic model mobile banking is defined as:

"Mobile Banking refers to provision and an 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."

According to this model Mobile Banking can be said to consist of three inter-related

concepts:

Mobile Accounting

Mobile Brokerage

Mobile Financial Information Services
http://en.wikipedia.org/w/index.php?title=Mobile_Accounting&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Mobile_Brokerage&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Mobile_Financial_Information_Services&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Mobile_Financial_Information_Services&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Mobile_Brokerage&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Mobile_Accounting&action=edit&redlink=1


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Most services in the categories designated Accounting and Brokerage are

transaction-based. The non-transaction-based services of an informational nature

are however essential for conducting transactions for instance, balance inquiries

might be needed before committing a money remittance. The accounting and

brokerage services are therefore offered invariably in combination with information

services. Information services, on the other hand, may be offered as an independent

module

In simple words: The mobile banking refers to the facility allowed by certain banks in

India whereby the mobile phone holder can undertake certain banking transaction

through their mobile phones. This value added services has very little human

interface and private banks like ICICI, HDFC etc. have started offering this service.

The customer is required to type a text message on the mobile phone which travel

through the server of the cell phone service provider to banks internet service;

information is retrieved and routed back the same way in 15-30 second.To avail the

service, the client has to fill up form at any of banks branches and bank informs the

cellular service provider to activate the module instantly.
http://en.wikipedia.org/wiki/Accountinghttp://en.wikipedia.org/wiki/Brokeragehttp://en.wikipedia.org/wiki/Brokeragehttp://en.wikipedia.org/wiki/Accounting


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History

The first mobile banking and payment initiative was announced during 1999. The firstmajor deployment was made by a company called Pay box (largely supported

financially by Deutsche Bank). The company was founded by two young Germans

(Mathias Entemann and EckartOrtwein) and successfully deployed the solution in

Germany, Austria, Sweden, Spain and the UK. At about 2003 more than a million

people were registered on Pay box and the company were rated by Gartner as the

leader in the field. Unfortunately Deutsche Bank withdraws their financial support

and the company had to reorganise quickly. Another early starter and also identified

as a leader in the field was a Spanish initiative (backed by BBVA and Telephonica),

called Mobi Pago. The name was later changed to Mobi Pay and all banks and

mobile operators in Spain were invited to join. The product was launched in 2003

and many retailers were acquired to accept the special USSD payment confirmation.

Because of the complex shareholding and the constant political challenges of the

different owners, the product never fulfilled the promise that it had.

Many other large players announced initiatives and ran pilots with big fanfare, but

never showed traction and all initiatives were ultimately discontinued. Some of the

early examples are the famous vending machines at the Helsinki airport supported

by a system from Nokia. Siemens made announcements in conjunction with listed

and high-flying German e-commerce company, Brokat. Brokat also won the lucrative

Vodafone contract in 2002, but crashed soon afterwards when it runs out of funds.

OBJECTIVES

Mobile and wireless technology, combined with the wide variety of portable devices

available today, enable new revenue opportunities for financial services

organizations. This provides a new channel that can be used to refresh and expand

the customer base, attract prime customers and enhance loyalty. With mobile and

wireless technology, banks can offer a wide possibility of services to their customers,

from the freedom of paying bills while stuck in traffic, to receiving notification of a


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change in stock price while having lunch, the challenge, then is how to turn these

possibilities into a reality for the customers.

Benefits Description

Grow new

customer

base and

markets

Developing wireless application and services targeted

at the mobile mass market will allow attracting new,

high-value customers into mobile banking portal and

expanding the reach to global.

Increase

share of

customer

wallet

The convenience of having personalized wireless

access to critical financial information is an invaluable

service for customers on the move enabling the

execution of time sensitive financial transaction

anywhere, anytime, provides the opportunity to

strengthen the relationships with existing customers.

This ultimately results in an increased share of

customers transactions preventing them from taking a

person of their financial business elsewhere.

Grow assets

and number

of transaction

and fees.

Granting customer flexible access to financial

information and accounts enables them to perform

transactions when its most convenience for them. As a

result, they have the opportunity to conduct

transactions more frequently, driving increased

revenue from fees.


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CONSIDERATION WHEN IMPLEMENTING MOBILE BANKING

The creation of mobile services is more efficient and effective when financialinstitution enters in alliance with mobile operators. The appropriate choice for

each player depends on their combined customer base and the share of market

each one brings to the alliance.

The choices are then if one bank should establish alliance with one or many

mobile operator. The theories on the evolution of these types of alliances show

that the most usual beginning is from one to one. However, the dominantstrategy will converge in the long term to a many to many alliance model.

For large bank the most convenient strategy is to begin with a closed system; an

alliance with one telecommunication company and initially closed to user outside

the combined customer base This will allow the alliance to lock in big customers

before other players begin to enter the market. At least one or two condition is

needed to maintain the closed system working: a critical mass of customers, or

strategic adventure in the operating area.

Banks with not so large customer base or that do not want to risk being the first

movers in a closed system, would prefer to implement open system alliance and

try to capture a larger market share.

The decision about the most appropriate alliance to choose will depend on the

particular of the bank implementing the mobile services and the availability of

appropriate partners for telecommunication operation.

In the same way when choosing wireless platform the critical consideration

are the connectivity with the backend system and the market several solutions in a


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short period of time. There are currently in the market several solution based upon

different technology and budget requirements.

Banks with not so large customer base or that do not want to risk being the

first movers in a closed system, would prefer to implement open system alliance and

try to capture a larger market share.

The decision about the most appropriate alliance to choose will depend on the

particular of the bank implementing the mobile services and the availability of

appropriate partners for telecommunication operation.

In the same way when choosing wireless platform the critical consideration

are the connectivity with the backend system and the market several solutions in a

short period of time. There are currently in the market several solution based upon

different technology and budget requirements.


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CHAPTER 2

Process

To receive alerts, the customer may select and set or any of the triggers through

Bank phone banking services or by logging into the internet banking account or by

submitting an application in the prescribed format as application or by any other

mode as notified by Bank from time to time. The customer shall be required to

acquaint himself with the detailed process for using mobile alerts and Bank shall not

be responsible for any error made by the customer while setting the triggers.

In setting of the trigger by the customer, the terms and condition as applicable toBank phone banking, Bank shall not be responsible for any error made by the

customer while setting the triggers.The customer acknowledge that alert facility will

be implemented in a phased manner and Bank may at a later stage, at its discretion,

send alerts over email, expand the available trigger or alerts to meet customer

requirements, or may discontinue all or any the facility/feature. Bank may, from time

to time, change the features of any trigger or alert. The customer shall be required to

keep himself informed of the available trigger or alerts, which will be made availableon the respective banks website. The customer may, from time to time, modify the

triggers selected by him, without the necessity of a fresh registration.Any customer

availing the facility will be provided with alert facility and/or request facility as may be

decided by Bank from time to time.Keywords for various information requests shall

be as may be provided for, from time to time, including on the application forms, or

available at Phone banking centers and/or on the website.


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SETTING TRIGGERS AND RECEIVING ALERTS

Bank will not acknowledge receipt of any instruction or triggers nor shall bank be

responsible to verify any instruction or trigger or the customers TPIN or password ormobile phone number. Bank wills Andover to give effect to instruction and trigger on

a best basis and as soon as practically possible for bank.

Bank may, in its discretion, not give effect to any trigger if bank has reason to

believe that the trigger are not genuine or otherwise improper or unclear or raise a

doubt or in case any trigger cannot be put into effect for any reasons whatsoever.

The customer is responsible for intimating to bank any change in his mobile phone

number or email address details and Bank will not be liable for sending alerts or

other information over the customers mobile phone number/email address/fax

number recorded with bank.

The customer acknowledges that to receive alerts, his mobile phone number must

be active and accessible. The customer acknowledges that if the customers mobile

phone number remains inaccessible for a continuous period (such period dependent

upon service providers) from the time an alert message is sent by Bank, that

particular message may not be received by the customer.

Trigger will be processed by Bank after the receipt and Bank shall have discretion to

determine the time taken to process such request. The customer acknowledges that

there shall be the triggers and the time that the alerts are sent.

The customer acknowledges that the facilities provided is dependent on the

infrastructure, connectivity and services provided by services providers engaged by

particular Bank. The customer accepts that timelines, accuracy and readability of

alerts sent by Bank and it shall not be liable for transmission of alerts to the

customer.


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Bank shall endeavor to provide the facility on a best effort basis and the customer

shall not hold Bank liable for non- availability of the facility or non-performance by

services providers, if any, engaged by Bank or any loss or damage caused to the

customer as a result of use of the facility (including relying on the alerts for the

customers commercial, investment or business purposes) for causes which are not

attributable to Bank. Bank shall not be liable in any manner to the customer in

connection with the use of the facility.

The customer accepts that each alert may contain certain account information

relating to the customer. The customer authorized the bank to send account related

information, though not specifically, if particular Bank deems that the same is

relevant. ICICI Bank shall not be held responsible for the confidentiality, secrecy and

security of the personal or account information being sent through the facility.


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CHAPTER 3

ADVANTAGES OF MOBILE BANKING

The biggest advantages that mobile banking offers to banks are:

1. Reduce operating costs:

Eliminate the need for costly call centers and customer service help desks by

going mobile. Using a mobile platform such as SMS text messaging for simpleand repetitive tasks such as reminders about payments due or balance requests

can reduce the burden on IT and personnel resources. Using secure and

integrated messaging platforms means that you can reduce the costs and errors

associated with paper-based payments.

2. Reduce risk:

Mobile banking is cost-effective which lowers the financial risk involved in rolling

out new banking initiatives. It is immediate and effective and with two-way

messaging enabled, campaigns can be monitored in real-time affording the

opportunity to change strategy if need be. Mobile banking reduces the potential

for fraud immediately as fraud and account transaction notifications are sent in

real-time empowering customers to take action immediately. Give customers

peace of mind around the accuracy and security of their financial transactions

through SMS authentication PIN codes and transaction text notifications.

3. Purchase of goods and services:

Customers can also purchase goods and services via a mobile banking platform and

the mobile number database can be used for cross-selling purposes - particularly

time and event related options. This could include insurance packages, discounted

holiday packages and premium banking services. Prepaid airtime, electricity

vouchers, coupons etc. can all be purchased via mobile phone.


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4. Security:

Mobile banking with palm handhelds is safe, reliable and secure. All data

between the palm device and royal bank is encrypted, meaning that it is scrambled

into an unreadable format during transmission, preventing the risk of the data beingintercepted by a third party. This is the same state of the art technology used in

online banking. No one can view your information; in fact, no data is ever

permanently stored on your palm device, so if you lend it, no one will be able to find

any of your personal information.

5. No need of physical appearance:

Mobile banking is god send in emergencies; at least no more waiting at thebank!There is a less need to be physically present at banks for balance checking,

tracking debit and credit transactions, transfer of funds, withdraw and deposit money

and viewing statements too.

6. Convenience:

Now-a-days, 99 in 100 people carry mobiles. So banking becomes highly

reachable and user friendly. And multiple transactions can be done at one timewithout wasting any time.

After ATMs, mobile banking is already the in thing. The services are already

available in quite a few numbers of phones. Mobile banking is a way of

transforming cellular into pocket banking.

A customer can also subscribe to alerts- personalized alerts, batch or real time

alerts of transactions alert from multiple back-end systems and alert digest.

Mobile banking is much better and easily accessible than internet banking or

Tele-banking. On one hand, one needs a personal computer and on the other

hand, there is the burden of tackling customer calls.


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Disadvantages of mobile banking

Many consumers use mobile banking on their portable device because it allows them

to quickly access information such as account balance and transaction history. The

benefits of this convenience are undeniable, but there are a number ofdisadvantages that mobile banking users should be aware of. The technology's cost,

compatibility issues and security problems may cause you to think twice about using

it.

1. Security:

Security experts generally agree that mobile banking is safer than computerbanking because very few viruses and Trojans exist for phones. That does not mean

mobile banking is immune to security threats, however.

Mobile users are especially susceptible to a phishing-like scam called "smishing." It

happens when a mobile banking user receives a fake text message asking for bank

account details from a hacker posing as a financial institution. Many people have

fallen for this trick and had money stolen through this scam.

Online banking is usually done through an encrypted connection so that hackers

cannot read transmitted data, but consider the consequences if your mobile device is

stolen. While all banking applications require customer to enter a password or PIN,

many people configure their mobile devices to save passwords, or use insecure

passwords and PINs that are easy to guess.


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2. Compatibility:-

Mobile banking is not available on every device. Some banks do not provide mobile

banking at all. Others require you to use a custom mobile banking application onlyavailable on the most popular smart phones, such as the Apple iPhone and RIM

Blackberry. Third-party mobile banking software is not always supported.

If customers do not own a smart phone, the types of mobile banking they can do are

usually limited. Checking bank account balances via text message is not a problem,

but more advanced features such as account transfers are generally not available to

users of "dumb phones."

3. Cost:-

Network service charges quickly add up.The cost of mobile banking might not

appear significant if customer already has a compatible device, but they still need to

pay data and text messaging fees. Some financial institutions charge an extra fee for

mobile banking service, and they may need to pay a fee for software. These extra

charges quickly add up, especially if one access mobile banking often.


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CHAPTER 4

SERVICES

The services that mobile banking can offer are the following:

Account balance enquiry.

Account statement enquiry.

Cheque status enquiry.

Cheque book requests.

Fund transfer between accounts.

Credit/debit alert.

Minimum balance alerts.

Bill payment alerts.

Recent transaction history request.

Information request like internet rates exchange rates.

One way to classify this service depending on the originator of a service session

is the push/pull nature. Push is when the bank sends out information based upon an

agreed set of rules, for example your banks send out an alert when your account

balance goes below a thousand level. pull when the customer explicitly request a

service or information from the bank so a request for your last five transaction

statement is a pull based offering.


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The other way to categorize the mobile banking services by the nature of the

service, gives us two kind of services:- Transaction based on enquiry based so a

request for your bank statement is an enquiry based service and a request for your

funds transfer to some other account is a transaction based services transaction

based services are also differentiated from enquiry based services in the since that

they require additional security across the channel from the mobile phone to the

banks date servers.

Devices:-

Mobile phone and palm pilot are the most important wireless devices. Even though,

there is solution for both types of devices and some banks use both mechanisms to

deliver their service, mobile phone has more potentially due to its rate of penetration

especially countries.

The following table presents the technology and advantages and disadvantages of

both:


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TECHNOLOGY:-

Device Technology Advantages/Disadvantages

MOBILE

PHONE

SMS

Mobile phone is a more effective way to

reach the unbanked masses, especially

in emerging markets.

Screens and keyboards will limit

functionally SMS is a low cost

mechanism for non-voice communication.

Especially important in countries.

Where communication is still expensive.

Pricing is per message lend it. Texts are

not much user-friendly.

WAP It is friendlier due to its web enabled

capacity. It will be expensive for the

customer.

SERVICES OFFERED

For Example: - RELIANCE MOBILE

Step 1 Go to R World

Step 2 Go to More Services Option

Step 3 Select Finance option

Step 4 Select mobile bank option

Step 5 select ICICI BANK Option


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LIST OF BANKS PROVIDING MOBILE BANKING

ICICI BANK

HDFC BANK

PUNJAB NATIONAL BANK

BANK OF BARODA

UNIT TRUST OF INDIA

DENA BANK

KOTAK MAHINDRA BANK

Security issue:-

The security for the use of mobile banking is ensured by the use of password.

Password is nothing but the secret code of identification of a uses. The customer

user is given a login ID and a password on the registration for internet banking.

The login ID and the password need to be changed by the internet banking

registration.In the case of WAP banking, one should use the same user

Login ID and transaction password with which access to the internet banking service

is made. However, your user ID needs to be enabled by the bank for WAP banking

on the basis of the application submitted for the same. This is essential for availing

the WAP banking. Accessing SMS banking through internet login password is not

allowed. A customer can access SMS banking only through SMS password. Which

is exclusive however, with internet login password, one can access the domain of the

banking company through internet banking or WAP banking using the WAP enable

mobile phone.For the first time, one can choose the SMS password only in the


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relevant domain of the bank by accessing through internet. Subsequently SMS

password can be changed through an SMS on the mobile phone also however; it is

not possible to change the WAP Password separately.Password. Registration is

required for mobile banking when the cell. Number is changed from the one already

registered. Before the change of the cell number, it is possible for the customer to

withdraw from SMS Banking, using the necessary option. The customer need to take

up with the bank, after getting the new cell number, duly informing the internet

banking ID and the new cell number. Bank will accordingly register the new cell

number.

Currently, there is not a security standard; companies have implemented many

solutions even though the trend is to use smart cards as the utmost security

technology. The solutions currently implemented are the following:

Limit in the type of transaction in order to reduce the risk of theCardholder.

For example, funds transfer to third parties.

Secure network architecture. The more common security used isPKI (public

key infrastructure) an encryption used for PDAs and smart phones, PKI

consist of two keys, a public key and a private key, used to authenticated the

user and encrypt the data.

Smart cards as a digital identification and mobile phone (card

Readers are the highest technology in the terms of security)


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CHAPTER 5

Challenges for a Mobile Banking Solution

Key challenges in developing a sophisticated mobile banking application are:

Handset operability:

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.

Initial interoperability issues however have been localized, with countries like India

using portals like R-World to enable the limitations of low end java based phones,

while focus on areas such as South Africa have defaulted to the USSD as a basis of

communication achievable with any phone.

The desire for interoperability is largely dependent on the banks themselves, where

installed applications(Java based or native) provide better security, are easier to use

and allow development of more complex capabilities similar to those of internetbanking while SMS can provide the basics but becomes difficult to operate with more

complex transactions.

There is a myth that there is a challenge of interoperability between mobile banking

applications due to perceived lack of common technology standards for mobile

banking. In practice it is too early in the service lifecycle for interoperability to be

addressed within an individual country, as very few countries have more than one

mobile banking service provider. In practice, banking interfaces are well defined and

money movements between banks follow the IS0-8583 standard. As mobile banking

matures, money movements between service providers will naturally adopt the same

standards as in the banking world.

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' IT departments.


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The following aspects need to be addressed to offer a secure infrastructure for

financial transaction over wireless network:-

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.

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.

Authentication of the device with service provider before initiating a

transaction. This would ensure that unauthorized devices are not connected

to

Perform financial transactions.

User ID / Password authentication of banks customer.

Encryption of the data being transmitted over the air.

Encryption of the data that will be stored in device for later / off-line analysis

by the customer.

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 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.

Personalization:

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

Preferred Language

Date / Time format

Amount format

Default transactions


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CHAPTER 6

Trends in mobile banking

Considering that most people would rather lose their wallet than misplace their cell

phone, its fitting that the mobile world is quickly becoming a new hub for business.For many of us, our cell phone never leaves our side. It holds a place at the dinner

table, is easily accessible in your bags front pocket, and often, somehow it even

manages to end up sharing your pillow at night. Busy schedules mean people are

often on the move and when marketers and companies cant reach consumers at

their computers, on TV, before the previews at the movies, with billboards, or

magazine and newspaper ads, they must feel assured that they can still reach them

on their cell phones.Mobile commerce, or m-commerce, is simply the ability to conduct business

transactions through a mobile device. With smartphone sales rising 49% in the first

quarter of 2010, never before has it been so easy to shop, anywhere, anytime from

the palm of your hand. There is an enormous amount of ongoing market research,

and though there has been a variety of numbers estimated and reported, they all

conclude that mobile commerce is a profitable and rapidly growing market.By 2015,

its estimated that shoppers from around the world will spend about $119 billion on

goods and services bought via their mobile phones, In the United States.alone,

mobile shopping rose from $396 million in 2008 to $1.2 billion in 2009, and mobile

campaign spending also increased by 25 to 30% over the past year, with companies

shelling out just under $313 million according to the same study.

Here are a few mobile commerce trends observed this year:-

1. Bargain Hunting:-Scanning the barcode of the product with an inbuilt mobile sensor and hunting

for bargains on the internet with different vendors.

2. Mobile Ticketing: -

Buying movie, concert, and sports event tickets on the phone.

3. Core Banking:-

Checking balance in accounts, transferring funds etc.

4. Tangible Goods:-


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According to eBay, one item is purchased every two seconds using eBay

mobile app, with apparel, auto parts, cell phones/accessories, sporting goods

and collectibles ranking as the top five categories of purchased items.

5. Marketing:-

Text message marketing, where customers opt-in to receive news about

deals or offer coupons, has been a widely adopted practice as its a direct way

to engage with consumers that has a high likelihood of being read

Hindrance to overcome:-

Faster mobile broadband, higher bandwidth enables more services

As with previous years, mobile broadband speeds can only get faster. Therewill be more bandwidth for consuming content and data packages will become

even more affordable. Enabling these will allow consumers to experience

more online services without worrying about the cost.

Internet telephony and mobile banking are two areas that will benefit the most,

and cloud computing won't be simply a dream. However, these services also

bring about security concerns and battery consumption issues. These should

hopefully be addressed more urgently this year. As we move forward, users

will become more conscious of the need to protect their devices and data,

while companies will experiment with more "green" components and

manufacturing processes.

Mobile banking in India

Mobile banking is poised to grow rapidly in India.

ATM and internet banking have been around in India for a while. While both modes

have had some success, penetration and use levels have been moderate.

While ATMs offer convenience, they pose a perceived security threat in India given

instances of mugging around them. Senior citizens and women appear reluctant to

use ATMs if they have a choice to go to a branch and withdraw money in safety. The

security situation in India shows little sign of improvement and therefore a large scale

proliferation of ATMs will remain a challenge. Internet banking, on the other hand,


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relies on PC and internet penetration. Estimates suggest that there are approx 40

million internet users which is expected to rise to 100 million soon despite this

growth, penetration and use levels remain low, especially in non-metro areas.

Research also suggests that internet banking is picking up amongst the target user

group.While internet penetration and use in India is relatively low, mobile phone

penetration is much higher and growing rapidly. There are over 200 million mobile

phone subscribers in India and the number continues to explode. Financial services

companies are now working with mobile payment players like mChek to offer

innovative mobile phone solutions to urban and rural Indian population. Reserve

Bank of India has restrictions on non-bank involvement in money transfer. Therefore,

development of mobile financial services applications is being sponsored primarily by

banks in India.

Economic Times reports that Citigroup has tested a proposition which allows

brokerage to respond to margin calls or enhance credit limits, by authorising

transactions over the mobile phone. Once the customer and broker sign up for the

application, the process is carried out by PIN validations. A one-time PIN is

generated for each transaction, which is verified by the customer, after which the

bank validates the transaction and sends it to the broker. Once the transaction is

completed, the customer is intimated on his mobile phone again. Citi and m-Check

are also exploring the possibility of a similar offer for mutual funds. They have also

launched a mobile application which enables farmers to receive money for sale of

produce through their mobile phones. These payments take the form of intent to

pay information that can be cashed at partner banks.

The paper also reports that Visa recently announced the launch of its Visa Money

Transfer on Mobile service, which will enable money transfer via the mobile phone.

Initially, this service will be a pilot program available to Visa cardholders of

Corporation Bank, HDFC Bank and ICICI Bank. The recipient can be a Visa

cardholder of any bank in India and the money can be transferred to his/her mobile

phone or visa card.

Mobile banking has the potential to bring a whole host of people that have no/littleaccess to land lines/internet connections onto the electronic platform an innovative


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way to generate financial inclusion. To do so successfully will require customer

training, technology stabilization and managing carefully the know your customer.

STATISTICS

Cell phone Tele-density is still very low in India at around 6%, In comparison,

Chinas cell phone density is at around 35%, while some of the European and

Asia-Pacific countries have 100% Tele-density or more in mobile telephony.

In the past two years, the number of people using mobiles has increased

three times.

India is all set to be among the top four countries in mobile phone subscriber

numbers by the end of year 2008, according to industry analysts.

As on August 31, 2008, there were 62.57 million mobile subscribers in India,

according to data provided by the TRAI. Fixed Phone users already lag

behind by 47.44 million


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CHAPER 7

Case study

ICICI BANK Partners with reliance India mobile to launch mobile

banking service

ICICI Bank, Indias second largest bank, in association with Reliance Info-com,

Indias largest mobile service provider, today launched a truly interactive mobile

banking service in India.

July 14, 2004, Mumbai ICICI Bank customers through their reliance mobile

handsets can now avail of a gamut of banking services free of charge. The services

can be accessed directly from R World on the handset. A customer can view their

ICICI Bank account balance, get mini statement and make requests for Cheque

books. Apart from viewing presented bills, a customer can also pay bills by direct

debit to the bank account. The service also enables a customer to locate an ATM or

bank branch. On selecting any of these, the customer is connected directly to the

bank and the result is displayed instantly on the handset. To avail the mobile banking

service, a customer can register at any of the ICICI Bank branches, dial the call

center or through internet banking.

With Reliance ICICI Bank leveraged technology to synergies the benefits of a

mobile phone with ICICI Banking services. This will improved the customer with a

convenient anytime-anywhere banking environment R-Worlds menu driven process

offers the convenience of banking, while being on the move. The highly advanced

and intuitive user- interface features of the R-World, available to the more than 7million RIM users, makes mobile banking practical and user-friendly. R- World

ensures the subscriber receives answer to request immediately within the same

session. The java-based R-World suite of reliance India mobile internet application

unique in India and the world. Around 7 million subscribers all over India currently

use R-World., which offers a range of innovation services on reliance India mobile

that helps its customer to access information, communication, entertainment, and

transaction based application on the move.


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Indian mobile provider partners with bank to offer services

INDIAAre mobile phones a competitoror a complementto ATMs?

Maybe a little both, judging from a news release from mobile phone provider relianceinfo-com limited. According to the release, ICICI Bank, in a partnership with reliance,

on July 21 launched an interactive mobile banking service in India.

Using their reliance India mobile handsets, ICICI Bank customers can access

several banking services; including viewing their account balance, getting mini

statements and making request for check books. Customers can also view

presented bills and make payments via a direct debit to their bank accounts. There is

no charge for the services.However, the service also enables a customer to locate

an ATM or bank branch. With this option, the customer is connected directly to the

bank and the result is displayed instantly on the handset. Customer can sign up for

the service at any ICICI Bank branch, or through the call center or the internet.

With this alliance, we have leveraged technology to synergize the benefits of a

mobile phone with our banking services, which will provide the customer with a

convenient anytimeanywhere banking environment.

Reliance India mobiles internet applications, including the new ICICI services, are

built upon proprietary javabased R-world suite. According to the release, 7 million

subscribers across India use R-world to access information, communication,

entertainment and transactionbased application.

VARIOUS METHOD OF USING MOBILE BANKING

ICICI BANK Mobile banking can be divided into two broad categories:-

Request Facility

Alert Facility


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ALERT FACILITY:-

Under the alert facility, you will get alerts only when the events you have subscribed

for gets triggered unlike the request facility where you can request for information asand when desired.

Banking requests that can be made:-

Balance:-

To see the balance, select the account (primary or non primary). In case of

non- primary, provide the last 6 digits of the account number.

Last 3 Transactions:

To see the last three transactions, selectthe Account (primary or non-

primary). In case of non-primary,provide the last 6 digit of the account

number.

Cheque status:

To check the status, select the account (primarynon-primary), and then

provide the cheque number. In case of non-primary, provide the last 6 digits

of the account number.

Stop cheque:

To stop the cheque, select the account (primary ornon-primary), and then

provide the cheque number. In case of non-primary, provide the last 6 digits

of the account number.

Cheque book request:

To request a cheque book, select theaccount (primary or non-primary). In

case of non-primary, providethe last 6 digits of the account number.

Hange primary account:

To change the primary accountnumber, you have to provide the account

number, which has to be made the account.


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View bill:

Selecting this option and entering the biller name will display the presented

bills only of that presentment mode biller.clicking on OK without enteringname will display all presented bills.

Pay present bill:

To pay the bill presented, first the account to be debited has to be selected.

Biller name has to be entered. The bill will be paid instantly.

Pay payment bill:

(Pay bill of payment mode biller) Biller name, last six digits of the account

number and the amount (without paise) have to be entered to pay a bill of a

payment mode biller. The bill will be paid instantly.

Find ATM / Find branch:

Pin code of the desired area has to be entered to get the nearest ATM /

Branch. For e.g. :- if you wish to find an ICICI Bank ATM in Andheri, Mumbai,

you would have to select Find ATM & enter the pin code of Andheri(e) 400058

APPLICABILITY OF TERMS AND CONDITIONS

These terms and conditions together with the application made by the Customers

and as accepted by ICICI Bank shall form the contract between the Customers and

ICICI Bank, and shall be further subject to such terms as ICICI Bank may agree with

the other service providers. These terms and conditions shall be in addition to and

not in derogation of the terms and conditions governing ICICI Bank Phone banking,

ICICI Bank Internet banking and relating to any account of the Customer and /or any

other product/services provided by ICICI Bank and its Affiliates between the

Customers and ICICI Bank, and shall be further subject to such terms as ICICI Bank

may agree with the other service providers. These terms and conditions shall be in

addition to and not in derogation of the terms and conditions governing ICICI Bank

Phone banking, ICICI Bank Internet banking and relating to any account of the

Customer and / or any other product/services provided by ICICI Bank and itsAffiliates. APPLICATION The Customer shall apply to ICICI Bank for use of the


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Facility (and/or for any changes to the option available under the Facility) by use of

ICICI Bank phone banking or ICICI Bank internet banking services or by any other

method as provided by ICICI Bank from time to time including application through

forms as prescribed by ICICI Bank from time to time for use of the Facility.

Application for the Facility made by use of ICICI Bank phone banking or ICICI Bank

internet banking services shall be accepted only after authentication of the

Customers through any mode of verification as may be discretion of ICICI Bank. The

Facility shall be activated after a minimum of 2 working days from the date of receipt

of the application on the Website or at the call center. In case of application

submitted on the printed format as may be prescribed by ICICI Bank, the Facility

shall be activated after a minimum of 7 working days from the date of receipt of the

application at operation cell, Mumbai.

ELIGIBLE CUSTOMERS:-

The customers desirous of using the Facility should be either a sole Account holder

or authorized to act independently. In case of joint account, the written mandate of

other account holders authorizing the Customers to use the Facility would be

required. All or any transaction arising from the use of the Facility in the joint account

shall be binding on all the joint account holders, jointly and severally. An Account in

the name of the minor, in which a minor is a joint account holder or any account

where the mode of operation is joint, is not eligible for Facility.

AVAILABILITY & DISCLOSURE

ICICI Bank shall endeavor to the Customer through the facility, such services as

ICICI Bank may decide from time to time. ICICI Bank reserves the right to decide

what services may be offered to a Customer on each Account and such offers may

differ from Customer to customer. ICICI Bank May also make addition / deletion to

the services offered through the Facility at its sole discretion. Only those Account

opened with the Affiliates of ICICI Bank and attached to the respective Customers

ID will be accessible through the Facility.

The Facility is made available to the request, at the sole discretion of ICICI Bank and

may be discontinued by ICICI Bank at any time, without notice. ICICI Bank reserves


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the right to offer the Facility for those Customers who are availing the services of

specific cellular services providers only. The Facility is currently to only to the

Customers holding Accounts with ICICI Banks branches in India. ICICI Bank shall

have the discretion to offer the facility to Non Resident Indians subject to application

law.

The access of the Customers to the Facility shall be restricted to Customer availing

the Facility through the Mobile Phone Number. The instruction of the customer by

means of the Customer shall be effected only after authentication of the Customer by

means of verification of the Mobile Phone Numbers and/or through verification of

TPIN/password allotted ICICI Bank to the Customer or through any other mode of

verification as may be stipulated at the discretion of ICICI Bank.

ICICI Bank shall endeavor to carry out the instruction promptly provided that ICICI

Bank shall not be responsible for the delay in carrying out the instructions due to any

reason whatsoever including failure of operational system or due to any requirement

of law.

AUTHORITY TO ICICI BANK:-

The Customers irrevocably and unconditionally authorizes ICICI Bank to access all

his Accounts for effecting or other transaction of the Customer through the Facility.

The Customer further authorizes ICICI Bank accepting/executing request of the

Customers.

RECORDS:-

All records of ICICI Bank generates by the transaction arising out of use of the

Facility, including the time of the transaction recorded shall be conclusive proof of

the genuineness and accuracy of the transactions. The authority to record the

transaction details is hereby expressly granted by the customers to ICICI Bank.

INSTRUCTIONS:-

All instruction for availing the services under the Facility shall be provided through

the Mobile Phone Number in the manner indicated by ICICI Bank. The Customers is

also responsible for the accuracy and authenticity of the instruction provided to ICICI

Bank and the same shall be considered to be sufficient for availing of the services

under the Facility.


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Where ICICI Bank considers the instruction to be inconsistent or contradictory it may

seek clarification from the Customers before acting on any instruction of the

Customers or act upon any such instruction as it may deem fit. The Customers and

ICICI Bank shall have the right to suspend the services under the Facility if ICICI

Bank has reason to believe that the Customers instruction may lead to direct or

indirect loss or may require an indemnity from the Customers before continuing to

operate the Facility.

The Customers accepts that all information / instruction will be transmitted to and / or

stored at various locations and be accessed by personal of ICICI Bank (and its

Affiliates). ICICI Bank is authorized to provide any information or details relating to

the Customers or to third party to Facilitate

The providing of the Facility and so far as is necessary to give effect to any

instructions. Accuracy of Information the Customers undertakes to provide accurate

information wherever required and shall be responsible for the correctness of

information provided by him to ICICI Bank at all times including for the purposes of

availing of the facility. ICICI Bank shall not be liable for consequences arising out of

erroneous information. Applied by the Customer. If the Customer suspects that there

is an error in the information supplied by Bank to him, he shall advise ICICI Bank as

soon as possible on a best effort basis. While ICICI Bank and its Affiliates will take all

reasonable steps to ensure the accuracy of the information supplied to the

Customer, ICICI Bank and its Affiliates shall not be liable for any inadvertent error,

which results in the providing of inaccurate information. The Customer shall hold

ICICI Bank harmless against any loss, damages etc. that may incurred / suffered by

the customer if the information supplied to the Customer turns out be inaccurate /

incorrect.

DISCLAIMER OF LIABILITY:-

ICICI Bank shall not be responsible for any failure on the part of the Customer to

utilize the Facility due to the Customer not being within the geographical range within

which the Facility is offered; If the Customer has reason to believe that his mobile

phone number is / has been allotted to another person and / or there has been an


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unauthorized transaction in his account ICICI and / or his mobile phone is lost, he

shall immediately inform ICICI Bank under acknowledgment about the same.

The Customer agrees that ICICI Bank shall not be liable if:(a) The Customer has breached any of the terms and condition herein or

(b) The Customer has contributed to or the loss is a result of failure on part of the

Customer to advise ICICI Bank within a reasonable time about unauthorized access

of or erroneous transaction in the Account, or

c) As a result of failure on part of the customer to advise ICICI Bank of a change in

or termination of the Customers Mobile Phone numbers

The customer agrees that the access of the Facility shall be only through the MobilePhone Number and the Customer or not, shall be deemed to have originated from

the customer. Under no Circumstance, ICICI Bank shall be held liable if the Facility is

not available for reasons including but not limited to natural calamities, legal

restraints, faults in the telecomm nation network or natural failure, or any other

reason beyond the control of ICICI Bank. ICICI Bank shall not be liable under any

circumstance for any damages whatsoever Whether such damages are direct ,

indirect, incidental consequential and irrespective of whether any claim is based on

loss of revenue, interruption of business or any loss of any character or nature

whatsoever and Whether sustained by the Customer or by any other person. Illegal

or improper use of the Facility shall render the Customer liable for payment of

financial charges as decided by ICICI Bank or will result in suspension of the Facility

to the Customer. ICICI Bank is in no way liable for any error or omission in the

services provided by any cellular or any third party services provider (whether

appointed by ICICI Bank in that behalf or otherwise) to the Customer, Which may

affect the Facility.

The Customer agrees that ICICI Bank and / or its Affiliates may hold and process his

personal information concerning his Accounts on computer or otherwise in

connection with the Facility as well as for analysis, credit scoring and marketing. The

Customer also agrees ICICI Bank may disclose, in strict confidence, to other

institution, such information as may be reasonably necessary for reasons inclusive of

but not limited to the participation in any telecommunication or electronic clearing


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the same. The charges payable by the Customer is exclusive of the amount payable

to any cellular service provider and would be debited from the account of the

Customer on a monthly basis. The Customer shall be required to refer to the

schedule of fees put up on the Website from time to time.

MODIFICATION:-

ICICI BANK has the absolute discretion to amend or supplement any of the

terms and conditions at any time and will endeavor to give prior notice of fifteen days

by email or by displaying on the Website depending upon the discretion of ICICI

BANK, whichever feasible, and such amended terms and condition will thereupon

apply to and be binding on the Customer.

TERMINATION:-

The Customer may request for termination of the Facility any time by giving a

written notice of at least 15 days to ICICI BANK. He Customer will remain

responsible for any transaction made through his mobile phone number through the

facility prior to the of such cancellation of facility ICICI BANK may, at its discretion,

withdraw temporarily or terminate the facility, either wholly or in part, at any time

without giving prior notice to the Customer. ICICI BANK may, without prior notice,

suspend the facility at any time during which any maintenance work or repair is

required to be carried out or in case of any emergency or for Security reasons, which

require the suspension of the Facility.ICICI BANK, shall endeavor to give a

reasonable notice for withdrawal or termination of the Facility. The closure of all

Account of the Customer will automatically terminate the facility.ICICI BANK may

suspend or terminate facility without prior notice if the Customer has breached these

terms and conditions or ICICI BANK learns of the death, bankruptcy or lack of legal

capacity of the customer.


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NOTICES:-

ICICI BANK and the customer may give notice under these terms and condition

electronically to the mailbox of the Customer (which will be regarded as being in

writing) or in writing by delivering them by hand or sending them by post to the lastaddress given by the Customer and in to ICICI BANK at its office at 3rd floor, south

tower, ICICI BANK towers, Bandra-Kurla complex, Mumbai 400 051. In addition,

ICICI bank shall also provide notice of general nature regarding the facility and terms

and conditions, which are application to all customers of the Facility, on its website

and/ or also by means the customized messages sent to the Customer over his

mobile phone as short messaging service (SMS).such notice will be deemed to

have been served individually to each Customer.


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CHAPTER 8

RELIANCE INFOCOM, INDIA

When Reliance Info-com, India rolled out its CDMA network (at the time the mobile

market in India was still in its infancy, and data services were almost never heard off)

it made sure that all handsets supported java. The reliance application platform, also

known as R- world brought java compatibility even to the lower end phones.

Reliance used a novel way to overcome the memory limitation of lower end mobile

phones, which hampered deploying of multiple standalone. J2ME based clients.

Instead of storing application statically on their cell phones, users access a single

menu based application called R- world, which connects them menu based user

interface, mobile users select the application which they want to run and download

them over the air to their cell phone. These applications are then executed locally on

the mobile.Frommid-2004 reliance tied up with two of the popular private sector

banks HDFC and ICICI to provide a host of their enquiry and transaction based

mobile banking services through its R-world environment.


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Questionnaire TO Manager

1. Whatis ICICI mobile banking? Why should customer apply for same?

ICICI bank MOBILE BANKING allows you to bank anytime anywhere through

your mobile phone .you can access your banking information and make

transaction on your saving account, Demit account, and loan, recharge your

mobile phone and book movie ticket

2. Can I avail ICICI banking mobile facility?

If you are an ICICI Bank customer having a Savings Account, Loan account,

Demat account or Credit Card, you can avail of this Mobile Banking Facility,

by registering with us. If not registeredclick to register now. You can also

register yourself for Mobile Banking atselect ICICI Bank ATMs.Click here to

view demo.

3. What are ICICI mobile banking alerts?

Mobile Banking Alerts from ICICI Bank allows you to receive regular and

instant updates on your mobile phone through SMS sent directly from the

bank. These alerts will be sent to you whenever an event occurs on the alert

type you have opted.The balance shown is based on the available

balance in your account. In case of any discrepancy please SMS IBAL >> last

6 digits of account >> to 5676766 or 9215676766.

OR login to your Internet Banking account and check your bank statement

online OR call Customer Care

4. What are the Banking alerts that a customer can subscribe?

ICICI Bank Mobile Banking enables you to receive a list of alerts for your

ICICI Bank accounts.

Banking Alerts

1.Credit to your bank account of any amount of Rs.5,000 or more as specified

by you.

2.

Debit to your bank account of any amount of Rs.5,000 or more as specified

by you.
http://www.icicibank.com/mobile-banking/register.htmlhttp://www.icicibank.com/Personal-Banking/onlineservice/mobile-banking/select-register-mobile-atm.htmlhttp://www.icicibank.com/online-safe-banking/register-mobile-atm.htmlhttp://www.icicibank.com/online-safe-banking/register-mobile-atm.htmlhttp://www.icicibank.com/Personal-Banking/onlineservice/mobile-banking/select-register-mobile-atm.htmlhttp://www.icicibank.com/mobile-banking/register.html


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3. Salary Credit to the bank account*.

4. Cheque deposited in your bank account but returned.

5. Account balance above a specified amount.

6. Account balance below a specified amount.

7.ATM Cash withdrawal - Whenever you withdraw cash at ATM, irrespective

of amount.

* Subject to the appearance of the word 'salary' in the narration of salary credit.

Credit Card Alerts

1. Payment due date reminder on your next Credit Card bill.

2. Approaching credit limit.

Demat Alerts

1. Demat account getting credited.

2. Demat account getting debited.

3. Pledge creation and closure.

4. Rejection of submitted instructions.

Bill Payment

Bill presented to your account for payment.

5) Do I need to be subscribed to any particular service provider to receive mobile

alerts?

Mobile Alerts are not restricted to any service provider. These alerts are sent

via SMS directly to your phone. If your service provider supports the SMS

facility, you can avail of this service.

6) How can a customer subscribe to Mobile banking service?

A customer can visit to any of the branches of ICICI bank nad ask for the form

which is used to avail mobile banking service from the staff n fill it up correctly

with the proper identity proof and account number of the customer and should

pay the fees for the sevices and the customer can use the mobile banking

service


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7) Do I need a special phone for mobile alerts?

ICICI Bank Mobile Alerts can be received on GSM or CDMA phones, provided

the SMS facility is activated by the service provider or it can also b used on

smart mobile phones like on android ,Blackberry,I-phone

8) How will a customer comes to know about mobile alerts he has received from

ICICI bank?

ICICI Bank sends mobile alerts via SMS directly to your registered mobile

number

9) How much time does it take for a customer to receive an alerts about his

transaction?

ICICI Bank sends an instant alert on successful completion of the transaction.

The exact time for delivery of the alert will depend on the condition of the

telecom operator network.

10) What are the benefits of mobile banking service?

Mobile Banking helps you bank while on move directly through your mobile

phone. You can access information and conduct transactions on any of your

ICICI bank accounts with the help of your mobile phone.

List or transaction that can be carried out

Account information

Mini statement

Alerts on account activity or passing of set threshold

Monitoring of term deposit

Access to card statement

Status of cheques

Domestic fund transfer

Mobile recharge and etc.

11) What kind of alerts a customer receives from ICICI bank mobile banking?


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- Salary Credit.

-Account getting debited - When your bank account is debited Rs.5,000 or

more, as specified by you.

-Account getting credited - When your bank account is credited Rs.5,000

or more, as specified by you.

- Cheque return.

-ATM Cash withdrawal - Whenever you withdraw cash at ATM, irrespective

of amount

-When your balance rises above or falls below a limit.

12) What should a customer do if he changes his number?

ICICI Banks Mobile Banking requires you to register your mobile number with

the Bank. If you are an Indian resident customer kindly visit your nearest ICICI

Bank Branch to register yourself for Mobile Banking. You will be required to

carry along any identity proof to complete the registration process. To know

about the identity proofs accepted for Mobile Banking registration

13) Are there any charges for these service ?

ICICI Bank offers Mobile Banking facility free to all its customers.

If there are any revised charges ICICI Bank will inform all the customers.


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FINDINGS

A survey was conducted on 30 people and following results were interpreted

Are you aware about the mobile banking services offered by bank?

YES

NO

According to the survey 20 people are aware about mobile banking services

whereas 10 people were not too sure about it.

My Opinion

According to me now a days people are aware about mobile banking.

Banks distribute pamphlets and make people aware about the new facilities

added up. They also make those people aware who are not aware about it

and explain the benefits regarding the same.

67%

33% YES

NO


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Are you using mobile banking services offered by banks?

YES

NO

THINKING TO DO SO

According to the survey 20 people are use the mobile banking services 7

do not use and 3 are wanting to do so.

My opinion

The people are getting attracted towards the various services offered by the bank

and most people are using these facility and taking the benefits regarding the same

people who dont use these facility are less in number because they are not ready to

accept modern banking.

67%

23%

10%

YES

NO

THINKING TO DO

SO


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Reason for using mobile banking services offered by banks?

Mobile banking provides anywhere bill payment option

Mobile banking provides stop payment for cheques Mobile banking money transfer facility

Because it saves there time and they dont need to go bank

According to the survey conducted 8 people feel they can pay their bill from

anywhere 6 feel that they can stop payment for cheques .6 of them can transfer

funds from mobile and 10 feel that it saves time.

My opinion

Most of the people use mobile banking so they dont require going to bank and

wasting their time and effort and generally itseasy to work from mobile like transferof fund and payment of bills and etc. Software developers of banks are trying to

make the application user friendly secured and trust worthy.

27%

20%

20%

33%

anywhere bill payment

option

stop payment for cheques

money transfer facility

saves there time and they

dont need to go bank


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What do you think about the balance enquiry facility provided by the banking

system?

Good

Average Poor

According to the survey conducted 6 feel that balance service enquiry is good 10 feel

that the service is average whereas 4 feel it is very poor.

My opinion

According to me these is one of the best service which the banks provide because

they dont need to go to bank to keep aconstant check on their account even after

doing any kind of transaction through atm or swiping their card. They immediately

get the transaction details and account balance detail on their mobile.

40%

50%

10%


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What do you think about the bill payment system services offered by the

bank through mobile banking?

Good

Average

Poor

According to the survey conducted 5 feel banking payment service is good, 10

feel its average and 5 feel it is poor

My opinion

Bill payment system through mobile is one of the most creative ideas generated

by banks. People now a days pay all kind of bill through mobile from anywhere

at any time. Others are not really aware about the mobile banking services and

they do not feel it is safe and secured to make payments through mobile.

25%

50%

25%


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Why do you choose private sector bank for your mobile banking services?

Services are fast and better

Security reason Other

According to the survey conducted 10 feel that the services are fast and better, 7feel private banks are secured and 3 feel there are other reasons.

My opinion

Most people trust private bank because they provide fast and secured service.Customers in private bank can afford to spend more if they get necessary

services.

53%37%

10%fastersecurity

other


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Why do you choose public sector bank for you mobile banking?

Trust

Services

Other

According to the survey conducted 3 feel that they trust public sector bank 2 feel

they are better in services and 1 feel other reason for the same.

My Opinion

People who prefer public sector banking feel they are cost effective. They feel its

okay even if the service is not properly developed.

50%

33%

17%


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Rate the overall satisfaction with mobile banking system of your bank?

Highly satisfactory

Satisfied Average

Dissatisfactory

Bad

According to the survey conducted 6 are highly satisfied, 3 of them are just satisfied.

2 of them feel that the services are average 4 feel that it is dissatisfactory and 5 feel

its bad.

My Opinion

Mobile banking service is excellent and most of the customers are satisfied from

these services they just need to make people believe that it is secured. Some banks

need to take more efforts to promote these services among the people so it would be

more beneficial to all.

30%

15%

10%

20%

25% Highly satisfactory

Satisfied

Average

Dissatisfactory

Bad


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Recommendations

There is no awareness of mobile banking facility so the banks should ensure

more awareness through drives like camps, counters and walk in briefings.

Mobile banking services are provided by the banks but security and password

should be given more emphasis so that it should not be misused by unknown

persons.

There should be strong anti-virus software built for mobiles.

Government should introduce mobile banking services in rural areas so that

people should be aware of mobile banking and they can also be benefited by

this service.

It is suggested that even every bank should provide mobile services which

has the largest customer base in India.

As the cost of mobile banking is high; the banks and financial institutions

should decrease the cost of mobile banking so that everyone could access

the mobile banking for efficient services.


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CONCLUSION

By completing this project, I came to conclusion that mobile banking is a

tangible product and would become a necessity in future. Mobile banking

refers to the facility allowed by certain banks in India and not all. The phone

banking customer can perform transaction through mobile phone at any

convenient time unlike conventional banking and hence is a sure time saving

entity.

After talking to a number of mobile and security experts, I've come to the

conclusion that far from being less secure, mobile banking may even be moresecure than logging on to your bank Web site over your PC. And the

consensus is that it's probably less risky than using checks, which can be

forged, and credit cards, which can be stolen or skimmed at ATM machines

for clones to be made.

Credit card companies in the US have zero liability policies that apply

regardless of channel which means that they will cover all your losses if it is

through mobile banking which means banks and financial institutions aretaking liability for the risk a layman is undertaking to reap the benefits or use

mobile banking of the particular banks.

The success of mobile banking as an industry is completely dependent on the

ability of the industry players to create strong collaborative relationships that

benefit the industry as a whole. This includes the banks, the mobile operators

and the regulators. Ongoing conversations between all stakeholders are

required to take the mobile to the next level.


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Questionnaire to Manager

1) What is ICICI mobile banking? Why should customer apply for same?

2) Can I avail ICICI banking mobile facility?3) What are ICICI mobile banking alerts?

4) What are the Banking alerts that a customer can subscribe?

5) Do I need to be subscribed to any particular service provider to receive

mobile alerts?

6) How can a customer subscribe to Mobile banking service?

7) Do I need a special phone for mobile alerts?

8) How will a customer comes to know about mobile alerts he has received from

ICICI bank?

9) How much time does it take for a customer to receive an alerts about his

transaction?

10) What are the benefits of mobile banking service?

11)What kind of alerts a customer receives from ICICI bank mobile banking?

12) What should a customer do if he changes his number?

13) Are there any charges for these service ?


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Questionnaire to customer

Are u aware about the mobile banking services offered

Documents

final_mobile_banking_100_marks (1).docx