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Prospect of Mobile Banking

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AbstractMobile banking is one of the latest tools for easy and convenient banking in the current world. Day to day mobile payment and banking has become popular in Bangladesh. The main objective of the study is to find out the problem and prospect of mobile banking in Bangladesh and also a fresh look at the current M-Banking situation in Bangladesh and highlight some recommendations for rendering M-banking services effectively. Mobile Banking is a Banking process without bank branch which provides financial services to unbanked communities efficiently and at affordable cost. To provide banking and financial services, such as cash-in, cash out, merchant payment, utility payment, salary disbursement, foreign remittance, government allowance disbursement, ATM money withdrawal through mobile technology devices, i.e. Mobile Phone, is called Mobile Banking. Dutch Bangla Bank Limited (DBBL) has for the first time introduced its mobile banking service expanding the banking service from cities to remote areas. Currently many banks are providing this service and some banks are going to lunch this M-banking service. Among them BRAC Bank Limited mobile banking service named Bkash, Banglalink, Dhaka Bank and Western Union, Dutch Bangla Bank Limited services are most popular. Bangladesh Post Office, also provide mobile money services seems like m-banking. Mobile banking is not available on every device and still some popular bank does not provide mobile banking at all. The most potential customer of mobile banking is rural people. About 35% of mobile banking consumers are highly satisfied with present mobile banking service. After analyzing collected data eventually put some recommendation that may be proposed for further improvement of Mobile Banking in Bangladesh. In recommendation to reduced M-Banking limitation all banks should provide this opportunity, Government should provide help about mobile banking. Banks can use all mobile operators to make more available in all over the country. Also they should provide User guide to make easier the use of b-banking to all intended customers.

Introduction

E-banking has revolutionized the way business is transacted by globalizing the business enterprise. Mobile banking is one of the parts of E-banking. Mobile banking (also known as M-Banking, mbanking, SMS Banking) is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA). Mobile Banking is also refers to provision and availment of banking and financial services with the help of mobile telecommunication devices. The earliest mobile banking services were offered over SMS. Mobile Banking is one of the latest tools for easy and convenient banking in the current world. With the introduction of the first primitive smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers. Mobile banking has until recently (2010) most often been performed via SMS or the Mobile Web. Apple's initial success with i-Phone and the rapid growth of phones based on Google's Android (operating system) have led to increasing use of special client programs, called apps, downloaded to the mobile device. Day by day mobile payment has become popular and its fulfilling consumers demand. But in Bangladesh Mobile Banking hasnt improved rapidly. The large numbers of Bangladeshi people are facing much harassment due to the lack of modern banking facilities. For paying utilities bill, money transfer and doing banking activities people need to go to the bank by physically and waiting in big queue. This is due to the fact that Bangladesh has more than 40 banks but still now banks couldnt introduced fully internet and mobile banking services. Another problem is that 46% of the population lives below the poverty line and wretched transportation system overall the country. Bearing this in mind, banks are trying to provide a novel service which gives retail customers account information and real-time transaction capabilities from their mobile phones. Mobile Banking can be said to consist of three inter-related concepts: Mobile Accounting Mobile Brokerage Mobile Financial Information Services

Most services in the Accounting and Brokerage categories are transaction-based. The nontransaction-based services 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. Electronic banking has got tremendous importance in banking sector and banking customer as well. This is why, the researcher find some interest to explore something regarding Mobile banking in some extent.

Objectives of the studyThe main purpose of the study is to highlight the mobile banking prospects and services as banks apply to our country. In order to materialize the objectives, the following specific objectives have been considered: To provide precise knowledge about Mobile banking and its infrastructure. To narrate the present scenario of Mobile banking in Bangladesh. To focus on the prospects of Mobile banking in Bangladesh. To focus on the problem of Mobile banking improvement in Bangladesh. To highlight some recommendations for proper implementing and improving Mobile

banking services effectively.

Methodology of the StudyMethodology is a system of broad principle or rule from which specific methods or procedures may be derived to interpret or solve different problems within the scope of a particular discipline. Methodology is not a formula but set of practices. The present study is a part of academic curriculum. The collected data and information have been processed and analyzed carefully. It has

been prepared in present from to make the study more informative and useful. The study was conducted to identify the problems and prospects of mobile banking in Bangladesh. There are two sources of data have been used to collect data. The sources are1. Primary Sources: Interviewing method with proper questionnaire. 2. Secondary Sources: Website Books and related journals Different seminar papers Other manual information

Literature ReviewMobile banking is growing at a remarkable speed around the world. In the process it is creating considerable uncertainty about the appropriate regulatory response to this newly emerging service. Researcher sets out a framework for considering the design of regulation of mobile banking. Since it lies at the interface between financial services and telecoms, mobile banking also raises competition policy and interoperability issues that are discussed in his paper. Finally, by unbundling payments services into its component parts, mobile banking provides important lessons for the design of financial regulation more generally in developed as well as developing economies.( Klein, 2011). I think I should clarify some of the suggestions you gave. 1. I agree that GP should have an option to link to bank accounts. But until now they have refused to allow such a link. 8 Banks already have this technology but GP has prevented them from serving GP customers. Banks have taken the initiative but GP has stopped it just because they can and thinking that their proposal will pass.

2. Yes GP will not pay interest. But that doesn't stop GP from earning interest on this money (the simply put it together and put it in a FDR) 3. As much as GP wants you to believe, Bangladesh isn't the only country where there are more mobile users than bank users. (I will get into that in another article). None of those countries are considering GP's version of mobile banking. 4. Short term deposits are more crucial to the banking industry than what you estimate. Nowhere in the world has a mobile company been put in charge of short term deposits. GP clearly didn't have good intentions. Otherwise all the foreign banks wouldn't group with local banks to oppose this outlandish proposal. Again this is not only me that feel this way. The entire world acted in opposition to GP's Mobile Banking Thesis. GP's Mobile Banking is not the same as 'Mobile Banking'. Ahmed Ali said... (2010). Due to the widespread use of computer technologies in almost all aspects of life, organizations that are connected to the Internet started extending their services to their customers to include new applications and services that satisfy their customers desires to make better businesses. One of these emerging applications is mobile banking. The term mobile banking (or m-banking) describes the banking services that the user can perform via a mobile device ubiquitously at anytime and from anywhere. In order for users to access their accounts, they need a mobile device and network connectivity. Therefore, sitting in front of a computer is not a requirement anymore; accessing accounts can occur while users are waiting their turn at the dentist clinic or relaxing at the beach! (Al-Akhras and Qwasmi, 2011). Investigated the customers' perspectives of mobile banking, their perceived importance for it, usage patterns and problems rising on its utilization. The paper discussed the strategic implications of the research findings. Empirical data were gathered from bank customers in Kuwait to achieve the research objectives. All bank customers in Kuwait were considered as population of research interest. The results showed the perceived importance of internet banking services by customers, current and potential use of MB services in Kuwait and problems perceived by bank customers in using MB. The researchers' main hypothesis tested that top five service