m-banking....

Chapter 1INTRODUCTION

INTRODUCTION TO MOBILE BANKING

Internet Banking helped give the customer's anytime access to their banks. Customer's could check out their account details, get their bank statements, perform transactions like transferring money to other accounts and pay their bills sitting in the comfort of their homes and offices. However the biggest limitation of Internet banking is the requirement of a PC with an Internet connection, not a big obstacle if we look at the US and the European countries, but definitely a big barrier if we consider most of the developing countries of Asia like China and India. Mobile banking addresses this fundamental limitation of Internet Banking, as it reduces the customer requirement to just a mobile phone. Mobile usage has seen an explosive growth in most of the Asian economies like India, China and Korea. The main reason that Mobile Banking scores over Internet Banking is that it enables Anywhere Anytime Banking'. Customers don't need access to a computer terminal to access their bank accounts, now the can do so on-the-go while waiting for the bus to work, traveling or when they are waiting for their orders to come through in a restaurant. The scale at which Mobile banking has the potential to grow can be gauged by looking at the pace users are getting mobile in these big Asian economies. According to the Cellular Operators' Association of India (COAI) the mobile subscriber base in India hit 40.6 million in the August 2004. In September 2004 it added about 1.85 million more. The explosion as most analysts say, is yet to come as India has about one of the biggest untapped markets. China, which already witnessed the mobile boom, is expected to have about 300 million mobile users by the end of 2004. All of these countries have seen gradual roll-out of mobile banking services, the most aggressive being Korea which is now witnessing the roll-out of some of the most advanced services like using mobile phones to pay bills in shops and restaurants.Mobile banking (m-banking) involves the use of a mobile phone or another mobile device to undertake financial transactions linked to a clients account. Mbanking is one of the newest approaches to the provision of financial services through ICT, made possible by the widespread adoption of mobile phones even in low income countries. The roll out of mobile telephony has been rapid, and has extended access well beyond already connected customers in developing countries. There is mounting evidence of positive social impact on poorer people and communities as a result. There are sound reasons for the hope that m-banking could have similar impact. A mobile network offers a high technology platform onto which other services can be often provided at very low cost to deliver an eff ective result. Mobile data channels are often under-used and therefore may be offered at low cost by the network operator. M-banking services which use channels such as text messaging/ SMS can be carried at a cost of less than US1c per message. The low cost of using existing infrastructure makes such channels more amenable to use by low income customers. M-banking is new in most countries, and there has been limited donor support in the sector to date. This report considers the case for donors to support mbanking as a sector, by assessing:1. The likely impact on the lives of poor people in theory and practicethe why of donor intervention(Section 2);2. The needs and gaps arising from the development of the sector to date, in the light of what donorfunded programs are already doing (Section 3).In the light of this assessment, the report goes on in Section 4 to consider strategies and particular initiatives which donors may take to respond concretely to the needs and gaps identified.

The Internet is revolutionizing the way the financial industry conducts business, empowering organizations with new business models and new ways to interact with customers. The ability to perform banking transactions online has created new players in the financial industry, such as 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 the value to their products and services, gain competitive advantage and increase customer loyalty while also attracting new, high-value clients.

HISTORY

Mobile banking customers now enjoy a more user-friendly service compared with the service's beginnings in the early 2000s. The decade has been a time of trial and error, as financial institutions struggle to meet consumer preferences for mobile banking features.Early 2000s Banks faced mobile banking challenges in the early part of the decade. Consumers found it difficult to view their financial information on the small cell phone screens that were common at the time. Some banks offered the service, only to soon discontinue it; in 2002, Wells Fargo developed a mobile banking service and only 2,500 customers enrolled in it. Because of the poor response, they soon withdrew the offering.

Mid-2000s As the size and capabilities of mobile devices increased, so did the effectiveness of mobile banking. Banks introduced services that accommodated more types of cell phones and mobile devices, including smart phones. Consumers preferred the easier navigation and improved images and graphics offered by updated, technologically advanced mobile services.

2008 and Beyond In 2008, smaller banks began to offer mobile banking. More customers of large banks were also using the service. As of February 2009, over 1.9 million customers were using Bank of America's mobile service in the U.S. Other industry players also entered the market; AT&T offers a mobile banking application that allows customers from different banks, with different types of mobile devices, to more easily conduct transactions.

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 amobile phoneor Personal Digital Assistant (PDA). The earliest mobile banking services were offered overSMS. With the introduction of the first primitivesmart phoneswithWAPsupport enabling the use of themobile webin 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'sinitial success withiPhoneand the rapid growth of phones based onGoogle'sAndroid (operating system)have led to increasing use of special client programs, called apps, downloaded to the mobile device.Mobile Banking refers to provision and availment 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.

OBJECTIVES:

Mobile and wireless technology, combined with the wide variety ofportable devices available today, enable new revenue opportunities forfinancial services organizations. This provides a new channel that can beused to refresh and expand the customer base, attract prime customersand enhance loyalty. With mobile and wireless technology, banks canoffer a wide possibility of services to their customers, from the freedomof paying bills while stuckin traffic, toreceiving notification of achangein stock price while having lunch, the challenge, then is how to turn these possibilities into a reality for the customers.

1. Always on 24 7 access: Mobile networks will provide the ability for consumers to be transaction- ready, much in the way cable access has facilitated online pc access and reduced consumer dial up delays 3555.2. Advanced penetration of mobile networks: 2G (second generation) networks already cover more than 90 percent of the population in the western world, and this number is growing steadily.3.Personalization: Through SIM (Subscriber Identity Module) cards, mobile customers have a specific profile that enables customized functionality that directly reflects the way they want to transact business over mobile devices. Through the convenient addition of a multi-application relationship card, mobile customers will also have a built in platform for a host of other application services, including security keys, virtual credits cards, and other customized payment instruments.4. Rapid evolution of global protocols such as WAP (wireless application protocol): This enables the communication channel between computers and mobile devices. The WAP component essentially provides the facility for reformatting data for display on wireless hands.5. Faster Data Processing Speeds: Increases in bandwidth and data transmission a speed makes mobile data services efficient and cost - effective in a real time environment.6. Security: Effectively, the mobile banking transaction can be protected by a private key stored on SIM card and hence mobile phone can become a wireless wallet to protect proprietary and financial information

IMPORTANCE:

Mobile customers: -Those who use mobile telephony use mobile banking service. Mobile telephony is used through mobile phones. Mcommerce: -mcommerce whereby business and trade takes place through mobile on-line. Those mobile users who became on line internet users do m commerce.

Technologybased:-Mobile banking are based on technology ofdevelopment. Mobile banking makes use of internet for transmission, transaction & delivery of banking services. The network provider the required software support.

Services: -Mobile banking offers the entire internet-based banking services such as on-line account opening, account verification, funds transfer etc.

Eligibility: individual customer having account with any branch of a particularbank that offers internet banking facility. Further, it is also required that the customer is registered as on internet banking customer.

Application: -An application duly filled is to be submitted to the bank. The application is invariably made available in the official website of the bank.

FUNCTIONS:Examined applicationsIn the following, the main types of existing mobile banking applications are introduced. These build standard types as each of them is representative for a series of comparable applications. While WAP-banking and mobile banking via PDA are generic, SMS-banking and mobile banking with SIM Toolkit use specialties of the GSM standard.WAP-bankingThe most widespread solution for mobile banking is based on micro-websites following the WAP standard (Wireless Application Protocol). The function of WAP banking is in many ways similar to the function of Electronic banking using http. The client sends a request and gets a response with page content, which is stored on or dynamically generated by a standard web server. The main difference is in the usage of a WAP gateway for the conversion of the protocols. At banks must be considered that very sensitive data is processed. While a normal content provider doesnt has to observe special security precautions, and in some cases can even use the services of extern providers, has to secure its web server and WAP Gateway especially against unauthorized access. This is especially necessary because of the fact that inside the WAP Gateway the encryption protocol is converted from SSL/TLS to WTLS with the effect that data is not encrypted while it is processed. While authentication is assured via a PIN (personal identification number) of the user, authorization for transactions is realized via transaction numbers (TAN). This concept, known from the electronic banking, forces the user to carry a TAN lists with him in order to make transactions.SMS-bankingThe Short Message Service (SMS) is a GSM service to exchange text messages up to 140 byte (or 160 characters of 7 bits). The transmission of mobile-originated short messages is carried out by the short message service center (SMSC) of the particular network operator. The SMSC is receiving the message from the mobile device and routing it to the destination device. For generating mobile-terminated short messages, it is possible that a company or a special service provider runs an own SMSC. Thus, a bank could generate SMS from bank data like account balance or account movements and send it to the mobile device of the customer. This technique is used at SMS-banking: The customer sends an SMS with a request to the bank, and gets the desired data as an answer.The customer has to include a PIN for authorization in every SMS he sends to his bank. Alike the WAP banking, one should pay special attention on the security of the location of the SMSC. Many service providers offer the operation of SMSC as a service. The usage of such a service is out of question for banks, because of the high sensitive character of the transmitted data. For this reason it is mandatory for banks to run their own SMS-Gateway and secure it from unauthorized access. The main problem with this kind of transmission is the missing encryption of the data during the on-the air transmission between the service center and the mobile phone. An encryption of pure text-SMS is not possible (unless an application on the mobile device would be able to decrypt the information).

ROLES:The overall mobile space is hot, and mobile banking has enjoyed basking in the heat. 20 of the top 50 financial institutions in the U.S. had already implemented mobile banking by 2008.In 2009, this number grew by 25 percent (to 25 banks), and as of January 2010, no remaining large banks had launched mobile banking. From a top 50 bank implementation perspective, it would appear that a plateau has been reached.Top 50 financial institutions with mobile banking in place account for 80 percent of the deposits in their peer group.In the context of all the commercial banks, savings institutions, and credit unions in the US, top 50 financial institutions with mobile banking constitute 45 percent of the U.S. deposit base.Banks and vendors share a belief in the growth potential of mobile banking, including the acquisition of high-cost, offline customers.Both parties are nearly unanimous in their views that certain front end functionalities, such as real time alerts and person-to-person (P2P) payments, will be important in the near future.Both sides also recognize that mobile banking has to be a channel of its own, not an appendage of online banking; as such, the two industries feel that greater integration with back end core banking systems is required.Both banks and vendors feel that mobile channel monetization will eventually occur, either in the form of direct monetization (e.g., fee revenue from expedited payments, remote deposit capture) or indirect monetization (e.g., increased use of cards resulting from mobile marketing). However, many of their hopes for monetization appear to be out of line with early adopter, in-market solutions.Banks and vendors face differences of approach. This is especially true within the context of scope and detail. Banks tend to take a broader approach, having to worry about multiple channels, systems, and organizational units. On the other hand, vendors are mainly concerned with a narrower approach, because mobile technology is their field of expertise.This difference in approach translates into contrasting outlooks and expectations, as well as some frustrations. Examples of this can be found in views of front end functionality. Banks worry that P2P payments have to be cross-channel (i.e., including online, ATM), while mobile tech vendors stress the importance of the mobile use case. Banks are looking for corporate mobile banking solutions, but vendors are focused on meeting the needs of the much larger retail user base.Near field communication (NFC) payments and downloadable apps represent other front end functionalities where the two industries do not always see eye to eye.

Chapter 2RESEARCH OBJECTIVES AND METHODOLOGY

RESEARCH OBJECTIVES AND METHODOLOGY:

Parameters of Research Product range offered. Service quality. Network Benefit offered to customers

RESEARCH METHODOLOGY

TYPE OF RESEARCH - Exploratory research conclusive primary data : through observation as well as personal interview secondary data : through journal, research paper, monthly reports and financial reports.

SAMPLING METHOD- through judgment and convenience method

SAMPLING UNIT- New Delhi

SAMPLING ELEMENTS Existing and potential customers in delhi.

SAMPLE SIZE- 100

DATA COLLECTION AND METHODOLOGYThe task of data collection begins after a research problem has been defined and research design is chalked out. While deciding about the method of data collection to be used for the study; the researchers should keep in mind two types of data i.e. Primary and Secondary data.The primary data are those which are collected afresh and for the first time, and thus happen to be original in character. The secondary data on other hand are those which have already been collected by someone else and which have already been passed through the statistical process. The data used for the present research is primary data. Data collection was done through sample, survey method involving the questionnaire to be filled in by the investigator. This was chosen because most of the facts and data where of the nature of primary data. For study like this time framework is not significant. However, for cross sectional analysis, both the insurance and customers were interviewed to find out real state of the affairs of the problem understudy. We had been close to the data obtaining through questionnaire and percentage as well as trend analysis have used to interpret the data.Over all study is based on the findings through survey of 100 persons belonging to varied age groups, as follows:Age groups no. of customers18-262126-353335-453445-5506Above 55 06Total 100The different methods that are used for collecting primary data are as follows:A) Contact Method:The 'contact method ' considering the short coming was selected to personal interview. This method being versatile was arranged interviewing as it made concerned approach to the respondent.

B) Observation Method:The present investigation was done on the basis of making note of behavior and gestures of the target customers

C) Questionnaire Method:The method of data collection is quite popular and is being adopted by researchers, private individuals and organization.

D) Schedule Method:The method of data collection is very much like the collection of data through questionnaire, with little difference which lies in the fact that schedules are being filled in by the enumerates who are specially appointed for the purpose, these enumerators go to the respondents along with the schedule and put up the question. Inferences are drawn on the answers given by them.

Chapter 3Data processing, Analysis & Interpretation

Customer requirements for mobile banking applicationsSet of customer requirements Technical requirements Usage is possible with both kinds of devices Adaptation to device Usage regardless of network operator Small amount of transmitted data Usability requirements Possibility to work offline Simple data input method Resumption of usage at the same point One-Click-Request

Design requirements Possibility to personalize the application Possibility to scale the application Announcement of events Wide range of functionality

Security requirements Encrypted data transmission Authorization of access Simple Authorization

Could Mobile Banking Go Global

People who have never had a bank account could enjoy basic banking facilities for the first time due to mobile financial services. Basic mobile financial services are already available in developed countries. However, the article explains that it makes more sense for mobile financial service providers to target emerging markets where mobile devices will make more impact since this markets have limited wire networks. The services are cheaper to build and offer customer have fewer alternatives. To cash full potential of emerging markets, requires a right kind of alliance with leading financial firms and telecom companies including merchants and retail chains.

Emerging markets: The greater opportunities

Mobile financial services are just that: financial service delivered through the medium of mobile handset. Users can make basic inquiries about their balances or, in a more complicated maneuver, their Payments. Basic services are already widely available in developed countries and in the more sophisticated emerging markets, such as Hong Kong and South Korea. So far, though, user in this market remains unimpressed by the services, and providers havent been able to charge anywhere near what they cost to deliver. Consumers and business in emerging markets are likely to find mobile financial services more attractive than do their counterparts in developed markets, because they have fewer alternatives. For many remote or low income consumers, mobile handsets and mobile internet could first times, provide access to financial service such as basic banking and electronic payment; otherwise financial providers find such segment impossible to serve cost- effectively. Mobile networks are cheaper to build than fixed lines networks, and mobile services are generally to roll out than their precursors; a mobile payment network, for example, can cost less to create and operate than an electronic point- of- sale (pos) merchant networks. This means that some countries will be able to leapfrog over intermediate technologies and move directly from a paper based payments systems to a mobile one, without ever having to build an extensive wired POS or Automated teller-machine network. Mobile Banking: No wires, No worries, New CustomersMobile communication devices are revolutionizing banking transactions over wireless network and the Internet. To attract and retain customers, bank need to exchange their full range of services across a wide range of Mobile, wireless devices without having an impact on their current infrastructure and the delivery channels it currently supports. Wireless Networks, Mobile Gateways, Wireless Application Protocol (WAP) & Wireless Markup Language (WML) all play an important role in bringing mobile banking strategy to the market.

In addition to established traditional channels, including branch banking and ATM banking, most major banks in today market now offers e-banking as an extension to their existing array of services & conveniences of wired consumers & businesses, the next phase in the revolution is wireless-mobile-banking that is available anytime anywhere from always-on mobile devices like mobile phones and personal digital assistant (PDA). With the proliferation & cost effectiveness of mobile delivery channel, banks have a built-in delivery mechanism that can offer services & 247 access regardless of where the customer happens to be. Unlike PC-Based E-banking, M-banking provides banks with the unprecedented opportunity to reach their customers in an unrestricted environment. The big benefits for banks? Higher customer satisfaction & loyalty, no transaction-based fee revenue, lower cost of ownership and integrated customer relationship management channels.

General considerationsA mobile banking application is, first of all, a mobile application. To conceptualize a mobile application, additional informational added values have to be targeted, using mobile added values [14]. In other words, it is far from sufficiency to just porting an existing Internet application on a mobile device. Mobile applications have to be specifically made-to-measure on the one hand side to the needs and expectations of the mobile user and on the other hand side to the specific restrictions of mobile communication techniques and mobile devices. In order to derive a set of requirements to mobile banking applications we pursue two steps: Firstly we identify general characteristics of the mobile use, which are relevant. Secondly we closely watch the user and his context when wanting to use mobile banking.

Mobile banking use casesA mobile user has to be seen from his context when using the application. Needs and expectations are not generic, but bound to this context.As a typical mobile banking user, we consider someone who already is an electronic banking user shows significant affinity to technology and often finds himself in situations where he can not (or does not want to) rely an infrastructure necessary for electronic banking.In the following, we introduce four use cases. These have been developed in the course of two group discussions; each group consisted of mobile banking users and mobile commerce experts. The groups focused on identifying real-life situations in which the use of mobile banking provides an informational added value. The resulting situations have been aggregated to the use cases The use cases are not exhaustive, but representative: Each case stands for a series of cases, which are similar in the depth of the desired information and/or the conditions of the usage. For each use case we identify the most important, concrete need that the user has in this particular situation.

Use case 1: Request of account balance. The user is in a mobile situation (e.g. in a department store) and intends to know his account balance, e.g. to verify his account before realizing a spontaneous purchase. Resulting need: Quick obtainment of account balance.Use case 2: Control of account movements The user is waiting for an important cash receipt on his account. He intends to have the exact details of the cash receipt. Resulting need: Continuous control over movements on the account.

Use case 3: Instant payment. The user is in a mobile situation and intends to make a payment by bank transfer from his account. Resulting need: Instant execution of a bank transfer.

Use case 4: Administration of the account. The user intends to use spare time (e.g. using a train or waiting on the airport) to administrate his account. Resulting need: Quick and easy-to-use execution of transactions and administration is possible.)

Mobilizing Banking Solutions : Best PracticesSecurity in the Wireless world is complex and different from tethered network security models. Greater demand to share information is putting stress on companies to prevent information from falling into wrong hands. With the growth of Wireless phones, the demand for Mobile banking services is escalating. To stay competitive, banks are deploying compelling Wireless applications.

Mobile Banking Solutions:Wireless applications offer the opportunity to provide secure, actionable, real-time data through a highly personalized service. Some of the services are:Offer account services: These applications allow banks customer to apply for new banking services, choose features of existing banking services, and personalize banking services.Provide account information: Customer-driven on-demand request for a variety of account information including account balances, stock portfolios and billing information.Execute transactions: Transactional applications enable customer to wirelessly transfer balances, pay bills and conduct foreign exchange orders.Provide transaction history and aggregate banking information: Customers can review banking events for a number of accounts and wirelessly retrieve banking and non-banking information.Transmit banking alerts and reminder messages : Customer-controlled alert profile enable rapid response to news and banking events, Banking advice may also be distributed through these applications.

Enable Wireless messaging: Wireless messaging, including SMS, e-mail and instant messaging, allows customers to interact with portfolios managers, bank officials and other customers.Extend banking portals: Banking portals provide useful content for customer and provide the banks the opportunity to cross-sell other products or services.Offer location-based banking services: These applications enable subscribers to access services that are tailored to their geographic location, such as the location of nearby offices, branches, agents and ATMs.

Mobile Platform Selection Criteria :To successfully support banking applications, mobile platform must support a number of standards to allow banks to leverage existing technologies for the subscribers that access them. A number of standards are provided below: Transactional interface with back-end data: Mobile banking applications are not simple extension of internet. The procedure of scraping Web-based information and transmitting it to wireless devices produces very fragile and unreliable banking applications. Mobile platforms should connect directly to back-end data sources and use open standard to support transactional applications.Security : Mobile platform should support extremely high level of end-to-end security including support for privacy, encryption, two-factor authentication, data integrity, and non-repudiation. Different levels of security will vary based on requirement that change for the size of transaction, the parties involved, and the type of information exchanged.

Security for Mobile banking

It is clear that for the mobile phone to become a transactional device, the security of all personal data transmitted through the wireless handset will be critical. Just as e-commerce over fixed- line Internet device can hardly be expected to flourish if frauds or theft is easy. Business and consumer subscribers, commercial entitles and industries are unlikely to make full use of the potential of the new mobile communications media if they are insecure. Although security is mainly a matter of technology, there are two other important aspects, legal protection and consumer perception.

Technology:Within the next few months some real improvements will appear in the security of mobile payment technology platform. When analyzing the security of a mobile payment transaction, we have to consider three distinct areas: the buyer, the medium between the buyer and seller.

Security on the buyers side implies security of the access device. Because mobile device belongs to an individual, it is inherently more secure then a shared device. Solutions such as PKI (public key infrastructure) and SIM2 (second ID Module) will be introduced to the market early in 2001,which will significantly improve security for buyers.

Real improvement in the security of the medium between buyer and seller will occur when 3G networks becomes operational. These 3G networks are based on technology (already used in current networks in the US, Japan and Korea) that using complex encoding and decoding algorithms, originally developed by the military. On the sellers side, acceptable level of security will also be available in early 2001,when wireless Transport Layer Security (WTLS) will be introduced. WTLS Is an Encryption technology, which makes sure that everything sent by the buyer, is received by the seller.

Legal issues:There are two legal issues for mobile payment- customer protection and non-repudiation. To build consumer confidence, customer protection against fraudulent usage has to be well established and clear. To introduce new laws, or adjust existing legislation, for a new payment method takes times, as unanticipated issues can crop up. This is the main non-technological reason why the security of a payment method improves over time. The second issue is on-repudiation of a transaction. While accepting credit cards, the seller uses the buyers signature to prevent repudiation. Legalising digital signatures, as proof of purchase in the virtual world, will prevent buyers from disputing their online transactions.

Perception:The public perception of the security of a new payment medium is less manageable than the technology and legal aspects, yet can make or break it. Both sender and recipients must have confidence that the information they transfer will arrive securely and in confidence. There can be huge differences in the perception of security between different cultures, which make the issue even more complex and less predictable. For example, in the US the credit card is perceived as much more secure than in Europe a major reason that the credit card took much longer to be accepted in Europe, and still is not as successful there as in the US.

ConvenienceConvenience for buyers:

To make mobile payment an attractive substitute for existing payment methods in the bricks and mortar world requires completely new shopping concepts. For example, to make mobile payments more convenient than, say, the smart card, the customer should be able to pay wherever he or she is in the shop. In the e-commerce world a shortage of content is currently the main inconvenience for buyers: both the choice of vendors and choice of products and services is limited. Convenience for sellers:The new shopping concepts required in bricks and mortar if buyers are to make mobile payments at the sellers end, which may not be sufficiently attractive as yet. An additional factor, which discourages and seller from investing, is the current lack of standards, which makes investment very risky. However, industry standards for mobile payment are now under development, and more are expected in the near future. These standards will give direction to the (further) development of mobile payment systems. An example of a recently introduced standard is Electronic Commerce Modeling Language (ECML), which addresses the issue of general payment protocol combined with the ability for enders and brands to individualise the mobile e-wallet options they provide for their own customers.

Security in the WAP Environments:Just as security continues to be a barrier for Internet purchase and online financial management, so too is it a foremost concern in a wireless environment. To ensure success as a transactional device- which is exactly how the latest generation of mobile handsets are positioned in the industry-security standards will continue to play the leading role in swaying consumer confidence and downplaying the omnipresent fear of fraud. The senders and recipient must both have confidence that the information they transfer arise securely and in confidence.PKI (public key infrastructure) technology provides a security solution that is superior to standard SSL in that is protects both the integrity of the data stream in addition to verifying the participates engaging in a private, confidential transaction. In simplest terms, PKI involves private and public keys shared between two parties engaging in a secure transaction. A third-party certificate authority signs a third element, the digital certificate. In this scenario, if the users handset is equipped with a smart card reader (which is an increasing trend), the private key could be downloaded from the smart card on to the mobile phone. This obviates any potential security risk that could be introduced when a public key is distributed online. Multi-application relationship cards/smart card are also efficient storage centers for virtual credit cards, debit cards, and other payment instructions, providing a more tightly integrated personal device.

The potential for success:Mobile payment has the potential to become successful as convenient and secure payment method after the barriers described above have been removed probably over the next two years. It seems certain that the main security will be overcome by the end of 2001,when new technologies are available and and when the legal issues have been resolved in most countries.

In the Internet world, selling should take off quite soon after the security issues have been resolved. At the moment there is a lack of content, but if open standards are established soon, a lot of start-ups will probably appear to deliver this content. In bricks and mortar the take-off of mobile payment is expected to be slower, because of the huge investments required. So most sellers will probably wait until standards are clearly defined and mobile payment has proved successful in e-commerce.Introducing the mobile delivery channel into an integrated multi-channel strategy is a challenge that will have lasting benefits in the future, providing financial institution with a channel readiness that enables quick repose to emerging consumer trends. As In most successful initiatives in the worlds of e-commerce and m-commerce, partnership with the right technology players is critical. These relationships will help to bring the mobile banking channel to maturity, as the solution that best combines convenience, security, portability, application richness, and the flexibility required to bring new products and services to market quickly.As global financial institutions are discovering today, the infrastructure requirements can be challenging, but not nearly so challenging as tiring to retain banking customers that are moving into the wireless age, with or without their trusted service providers.

Characteristics of the mobile use

The use of mobile applications underlies several specific restrictions. We consider five characteristics of the mobile use to be particularly relevant as they greatly influence the design of mobile banking applications and the suitability of certain technical solutions. A mobile application is used via a mobile device. For these devices (currently either a mobile phone or a PDA), special limitations are valid .For the mobile banking context; above all, these are the limited input and display capabilities. The connection is provided by a mobile network operator (MNO). This is especially important if applications need to access certain parts of the infrastructure, which are under control of the MNO (e.g. the SIM card). In the case of negotiations, these have to be pursued with all MNO on the designated market. The use of mobile data transmission is expensive. In the case of circuit-switched data transmission.

(E.g. GSMCSD or HSCSD) this extends to the connection time, in the case of packet-switched data transmission (e.g.GPRS) this extends to the transferred data volume.Sensitive data is transmitted. This implicates the use of adequate security measures. A disruption of the usage is possible at any time. This is principally already true for electronic banking as well (the connection may e.g. be disrupted by a breakdown of the transmission or of the operating system of the client Computer) and provides a special necessity to avoid incomplete transactions.

General conditions of mobile banking

Electronic banking is one of the most successful business- to-consumer applications in electronic commerce (EC). Banks greatly support this not only because they could meet their customers need for convenience but also because of the enormous economic impacts in replacing a high-cost channel (bank clerks) through a low-cost channel (a central web server) for simple transactions, with the additional benefit of eliminating the necessity for a media conversion.Since users considered their mobile phone as a personal trusted device making it to an integral part of their lives and more and more of these devices became Internet- enabled, the regular conclusion was the transformation of banking applications to mobile devices as the next step of electronic banking development.For mobile banking, the advantages even go much further than for electronic banking: The high penetration of mobile phones reaches all social levels; mobile applications disband the limitations of electronic banking as they allow for a use anytime-anywhere and the subjective and objective security of the device is higher than that of a personal computer. Despite all of this, more than four years after the start of the first mobile banking applications customers simply do not use them and utilization figures stay very far behind all expectations. Mobile banking as an established channel still seems to be a distant prospect.

DATA ANALYSIS & INTERPRETATION

DATA ANALYSIS & INTERPRETATION

Data is the very important aspect of a research report because the data is the only thing from which the analysis and findings could be made; this is the reason why the data is being collected for the purpose of the research study. The study can be made easier through the collection of data and while collecting it the data can be reformed and furnished like this so that meaningful information can be withdrawn from it.The question are framed as according to the respondents, the information gathered from the questionnaire is being used in the forms of pictorial representation and in tabular form thus the data representation is done in the form of pie chart, and graphs.

A) Banking point of view :1) Whether Mobile Banking is more convenient then Traditional Banking?

Explanation :Mobile Banking is more better then Traditional Banking because it offers more facility like Alert facility,SMS facility and customer can access to their bank blance at any time.No,Mobile Banking is not convenient then Traditional Banking as it involve more formalities and middle class, lower class customers can not affored to Mobile Banking.Not yet experience, As some customers are totally unaware of Mobile Banking. I conclde that, most of the customers of bank are feel thet Mobile Banking is more convenient.

1

2) According to you, which category of community are relay on M-Banking?

Explanation :As per chart, 60% of Businessmen relay on Mobile Banking because, they mostly involved in stock exchange so they required each and every update of stock market which the get easily on their mobile by availing Mobile Banking.Only 10% of common customers of bank are availing Mobile Banking service because they are interested in depositing and lending of their money in their account.Professionals like Lawyer, Doctor, Engineers, are availing Mobile Banking only up to 20%.We conclude that, most of Business customers of bank are using and relay on Mobile Banking.

B) Customers point of view :

1) With which facilities of banking you are most satisfied?

Explanation :

As per chart, there is equal percentage for Mobile Banking and Internet Banking because both offer wide services. Through Mobile Banking customer can chack their account details on Mobile, whereas in Internet Banking customers have to visit to cyber to check.On other hand Traditional Banking is a used 10%of customer.Conclusion is that, Mobile Banking and Internet Banking both are satisfying customers.

2) Are you satisfied with the facilities provided in Mobile Banking?

Explanation:Yes, 70% of customers of bank are satisfied with Mobile Banking because of its latest facility.20% of customers are not satisfied because they are not comfortable with formalities of Mobile Banking.10% customers have no idea about Mobile Banking so there is no question of satisfaction.

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3) Which feature of Mobile Banking you like more?

Explanation : In todays modern world every customer has value of Time, so they acquire latest facility which is time saving. There is 40% of customers are availing Mobile Banking system for the sake of time saving.30% of customers used this facility as flexibility offered by this system, its easy for them to access any information on mobile like latest updatation of stock market, bank balance checking, Reminder facility etc. Mobile Banking can be easily accessible and is Durable in nature.

4) Do you feel Mobile Banking is Costlier then other modes of Banking?

Explanation :Yes, Mobile Banking is costlier because this facility is availed by only those customers of bank, which has,1) Saving A/C of same bank2) Demate A/C of same bank3) Credit card of same bank So middle class and lower class customers need not to have demate A/C and Credit card & it also charge for Alert and SMS facility. Some customers of bank required Mobile Banking and they deal in lakes so they not feel that Mobile Banking is costlier.9% of customers are not familiar with Mobile Banking and they are happy with the Traditional Banking.After taking into account all factors I conclude that Mobile Banking is Costlier.5) Whether you are facing any problems, while using M-Banking Systems?

Explanation :

Yes, there is problem in Mobile Banking regarding lack of security, lack of personal touch, lack of efficiency& some times problem in accessibility.No, there is no problem in Mobile Banking. Everything is up to the satisfaction level.I conclude that, in spite of various problems in Mobile Banking is best.

6) Would you like to give any suggestions to prevent problems of M-Banking?

Explanation:Yes, there should be personal touch i.e. instead of sending message, if there is facility that we can solve our problems with bankers personally. SMS facility is good but need to grow.No, there are no suggestions regarding Mobile Banking, as everything is perfect.Some personnel didnt have knowledge about Mobile Banking so there are no suggestions from their point of view.At last I would like to conclude that with some innovations, Mobile Banking can become popular in middle class and lower class customers.

The reasons for this great disappointment are to be analyzed. Doing so in the following sections, we do not intend to start with current applications (which could mean biased) but from scratch, with an analysis of the customer requirements to such applications.

Bank A/C holder 80%

Non Bank A/C holder 20%

Percentage number of account holders in city

Popular banks of city according to respondents are

Popular banks

SBI & Subsidiary 45%

UBI & Subsidiary 25%

OBC 05%

Others 25%

Awareness level for Mobile banking in City is

Awareness Level

Aware40%

Unaware60%

Awareness level for SBI Mobile Banking in city is

SBI Mobile Banking

Aware 60%

Unaware40%

Percentage number of users of Mobile Banking in city is

Mobile Banking users

User45%

Non- user55%

Current preference level for Banking system in city is Preference

Counter Banking 50%

Internet Banking 25%

Mobile Banking 20%

Cant say 05%

Helpfulness of Mobile Banking in Profession of the users in city is

Professional helpfulness

Helpful60%

Unhelpful30%

Cant say10%

Satisfaction level of Mobile Banking in city.

Satisfaction

Satisfied 80%

Dissatisfied 15%

Cant say 05%

FINDINGS

FindingsThe following information can be withdrawn from the data collected which has been shown above in the form of table and pie charts.1. 80% citizens of city are having a bank account while the rest didnt.2. 45% citizens of city are associated with State Bank of India and its subsidiaries for their banking requirements.3. Only 40% people of the total population of city is aware of Mobile Banking.4. 60% of the Mobile Banking aware people are known to SBIs Mobile Banking facility.5. From people who are aware of Mobile banking only 45% are using it for their banking needs. 6. The 50% of banking users are still relying on counter banking, 25% of them are relying on internet banking and only 20% of people are relying on Mobile banking.7. 60% of people are agreed that mobile banking is helpful for their profession in city.8. 80% people are satisfied with the service which they are getting in SBI Mobile Banking.

LIMITATION

Limitation1. The certain no of people had been contacted for data collection so it cannot be treated for the whole population.2. The respondents can be biased.3. Time was the major constraint.4. To gather the data from the various sources is difficult task.5. Respondent may not take interest in the study.

CONCLUSION

ConclusionWhile analyzing the various aspects of the Mobile Banking of SBI it could be concluded that the Mobile Banking is getting a greater amount of success which is unique in its kind. Still some of the fields are yet to be improved and rethink due to which the organization could improve the performance of its services in delhi city, its utmost impossible for a pure service based organization like banks to launch a service on a very greater aspect and The State Bank of India has proved this wrong by its own performance.Particularly talking about the Mobile banking in delhi city is one of the major preference of youngsters they are having almost craze about a facility through which bank could be managed and accessed through mobile phones only, it has also been the preference of those professionals who have to travel a lot for their job and cant manage the banking from counter and through internet. This is worth for the importance given to it in the delhi city.

BIBLIOGRAPHY

BIBLIOGRAPHY1. Kotler. PhilipMarketing Management,2003 revised edition2. Compilation of Service Marketingprovided by DBA.3. Kothari, C.R.Research Methodology,20071. E-banking: the global perspective Gupta Vivek2. E-Commerce in Indian banking Bhasin3. Banking and Finance C.M.Chaudhary4. IT in Banks - Katury Nageshwara Rao.5. Visiting HDFC branch at Andheri (west)

4. www.sbi.org5. www.google.co.in6. www.wikkipidea.com

ANNEXURES

QUESTIONNAIRENameE mail .Age ..Profession.A) Banking point of view :

1) Whether Mobile Banking is more convenient then Traditional Banking? a) Yes b) No c) Not yet experience 2) According to you, which category of community are relay on M-Banking?a) Businessmen b) Common people c) Professional d) Other

B) Customers point of view :

1) With which facilities of banking you are most satisfied? a) Traditional Banking b) Internet Banking c) Mobile Banking d) Other 2) Are you satisfied with the facilities provided in Mobile Banking? a) Yes b) No c) Not yet experience

3) Which feature of Mobile Banking you like more?a) Flexibilityb) Time savingc) Durabilityd) Easy accessibility

4) Do you feel Mobile Banking is Costlier then other modes of Banking?a) Yes b) No c) Not yet experience 5) Whether you are facing any problems, while using M-Banking Systems?a) Yes b) No c) Not yet experience

6) Would you like to give any suggestions to prevent problems of M-Banking?a) Yes b) No c) No Suggestion 7) What do you think about the Balance Enquiry Facility Provided by Mobile Banking System? a. Good b. Average c. Poor 8) What do you think about the bill payment services offered by Bank through Mobile Banking System? a. Good b. Average c. Poor

9) What do you think about the Money transfer facility offered by Mobile Banking system of Bank? a. Good b. Average c. Poor 10) Do you think mobile banking system is safe? a. Yes b. No

This questionnaire is for the purpose of data collection for the project report on Mobile Banking facility in delhi city, for the partial fulfillment of the degree of Bachelor of Business Administration, of IP University, every of the above mentioned detail would be confined to me only any information as individual will not be published or made public.

Arun Dhingra

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