Mobile Banking

MOBILE BANKING

Overview of the banking industry

The Indian Banking industry, which is governed by the Banking Regulation Act of India, 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 are the 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

MOBILE BANKING arena, while the PSBs are still grappling with disgruntled employees in the aftermath of successful VRS schemes. Also, following India‟s 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 Telco‟s 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 banks that 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 or SMSbanking. 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 card use. 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 a phone 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,

MOBILE BANKING 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 Dataquest‟s 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. There‟s CDMA, there‟s GSM. Forget their battles on the mobile telephony front from the consumer‟s 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

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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 bank‟s 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 bank‟s branches and bank informs the cellular service provider to activate the module instantly.

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History The first mobile banking and payment initiative was announced during 1999. The first major deployment was made by a company called Pay box (largely supported financially by Deutsche Bank). The company was founded by two young German‟s (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

MOBILE BANKING 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 Developing wireless application and services targeted customer at the mobile mass market will allow attracting new, base and high-value customers into mobile banking portal and markets expanding the reach to global.

Increase The convenience of having personalized wireless share of access to critical financial information is an invaluable customer service for customers on the move enabling the wallet 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 Granting customer flexible access to financial and number information and accounts enables them to perform of transaction transactions when it‟s most convenience for them. As a and fees. 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 financial institution 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 dominant strategy 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 back –end system and the market several solutions in a

MOBILE BANKING 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.

• In the same way when choosing wireless platform the critical consideration are the connectivity with the back –end 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 to Bank 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 available on 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 customer‟s TPIN or password or mobile 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 customer‟s 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 customer‟s 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 customer‟s 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 simple and 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 being intercepted 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 the bank!”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 time without 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 of disadvantages 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 computer banking 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 only available 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 fund‟s 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 is a more effective way to reach the “unbanked masses”, especially MOBILE SMS in emerging markets. PHONE 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

MOBILE BANKING 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 PDA‟s 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 internet banking while SMS can provide the basics but becomes difficult to operate with more complex transactions. There is a myth that there is a challenge of interoperability between mobile banking 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 bank‟s 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, it‟s 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 bag‟s 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 can‟t 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, it‟s 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 it‟s 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. There will 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,

MOBILE BANKING 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/little access to land lines/internet connections onto the electronic platform – an innovative

MOBILE BANKING 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, China‟s 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

MOBILE BANKING

CHAPER 7

Case study

ICICI BANK Partners with reliance India mobile to launch mobile banking service

ICICI Bank, India‟s second largest bank, in association with Reliance Info-com, India‟s 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-World‟s 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 7 million 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.

MOBILE BANKING

Indian mobile provider partners with bank to offer services INDIA – Are mobile phones a competitor – or a complement – to ATMs?

Maybe a little both, judging from a news release from mobile phone provider reliance info-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 anytime – anywhere banking environment.

Reliance India mobile‟s internet applications, including the new ICICI services, are built upon proprietary java – based R-world suite. According to the release, 7 million subscribers across India use R-world to access information, communication, entertainment and transaction – based application.

VARIOUS METHOD OF USING MOBILE BANKING

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

 Request Facility  Alert Facility

MOBILE BANKING

REQUEST FACILITY:-

ICICI BANK mobile banking requests enable to query for account information or perform bank transactions. Customer can query for teir account balance, request for the last 3 transactions. Order for new cheque book, inquire for a cheque status, issue a stop cheque request, change of primary account and make payment for your bill under this facility. If customer hold an ICICI BANK HPCL Debit Card, tey can also query teir debit card reward points by just sending a SMS request.

ALERT FACILITY: Under ICICI BANK mobile banking alert, you get alerted when the events you have subscribed for get triggered. Can customer subscribed for receiving SMS alert when teir salary gets credited, when teir bank account is debited / credited with Rs.5000/- or more as specified by you, your balance falls below / goes above a specified limit or when a cheque bounces.

Under the alert facility, customer will get alert only when the events they have Subscribed for information as and when tey desire.

CREDIT CARD SERVICES:-

ICICI BANK mobile banking services for credit card can be divided into two board categories:-

 REQUEST FACILITY:-

The request facility enables you to check your credit card balance, fetch reward points for redemption, view details of last payment, and get payment due date.

On subscription to credit card alerts, you get qalerted when the events you have subscribed for get triggered. You can subscribe for receiving SMS alerts for due date reminders, and when you are approaching your credit limit.

MOBILE BANKING

 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 as and 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.

MOBILE BANKING

 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 entering name 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 its Affiliates. APPLICATION The Customer shall apply to ICICI Bank for use of the

MOBILE BANKING

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 Customer‟s 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

MOBILE BANKING 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 Bank‟s 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.

MOBILE BANKING

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 Customer‟s 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

MOBILE BANKING 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 Customer‟s Mobile Phone numbers The customer agrees that the access of the Facility shall be only through the Mobile Phone 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

MOBILE BANKING network, in compliance with legal directive, for credit rating by recognized credit rating by recognized credit scoring agencies, and for directive, for credit rating by recognized credit scoring agencies, and for fraud prevention. The Customer shall not interfere with or misuse in any manner whatsoever the facility and in the event of any damages to ICICI Bank for the use of the Facility.

ICICI BANK will not be liable for:

(a)Any unauthorized use of the Customer‟s TPIN, icicibank.com password or mobile phone or for fraudulent, duplicate or erroneous instruction given by use of the Customer‟s TPIN, icicibank.com password or mobile phone number; (b) Acting in good faith on any instructions received by ICICI BANK; (c) Error, default, delay or inability of ICICI BANK to act on all or any of the instructions (d) Loss of any information/instructions in transmission; (e) Unauthorized access by any other person to any information /instructions given by the Customer or breach of confidentiality; (f) ICICI BANK will not be concerned with any dispute between the customer and any cellular services provided and / or any third party providing by ICICI BANK. ICICI BANK makes no representative or gives no warranty with respect to the quality of the service provided by any cellular service provider. ICICI BANK shall not be liable for the oversight on part of the Customer to update himself with the addition of services which have been included in the facility and specific services for each product as may be provided on the website of ICICI BANK and as will be available with the authorized call centers of ICICI BANK. FEES:-

ICICI BANK shall have the discretion to charge such fees as it may deem fit from time to time and may at its sole discretion, revise the fees for use of any or all of the Facility, by notice to the customers. The Customer may at any time discontinue or unsubscribe to the said facility. The Customer shall be liable for payment of such airtime or other charges which may be levied by any cellular service provider in connection with availing of the Facility and ICICI BANK is in no way concerned with

MOBILE BANKING 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.

MOBILE BANKING

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 last address 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.

MOBILE BANKING

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.

MOBILE BANKING

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 registered click to register now. You can also register yourself for Mobile Banking at select 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

Credit to your bank account of any amount of Rs.5,000 or more as specified 1. by you. Debit to your bank account of any amount of Rs.5,000 or more as specified 2. by you.

MOBILE BANKING

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

MOBILE BANKING

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?

MOBILE BANKING

 - 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 Bank‟s 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.

MOBILE BANKING

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

33% YES

67%

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 day‟s 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.

MOBILE BANKING

 Are you using mobile banking services offered by banks?  YES  NO  THINKING TO DO SO

10%

YES

23% NO

67% 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 don‟t use these facility are less in number because they are not ready to accept modern banking.

MOBILE BANKING

 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 don‟t need to go bank

anywhere bill payment 27% option 33% stop payment for cheques

money transfer facility

20% saves there time and they don’t need to go bank 20%

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 don‟t require going to bank and wasting their time and effort and generally it‟s easy to work from mobile like transfer of fund and payment of bills and etc. Software developers of banks are trying to make the application user friendly secured and trust worthy.

MOBILE BANKING

 Reason for not using mobile banking services offered by the banks?  Not aware about the service properly  Don‟t think Mobile banking services are secured  Other reason

10%

40% not aware don’t think its safe other reason

50%

According to the survey conducted 4 people are not aware about the service properly, 5 of them do not feel safe whereas 1 have other reasons for opinion.

My opinion

People don‟t use mobile banking service because they feel that it is not safe and they can be cheated or their account details would get disclosed or hacked by the hackers. Others are not properly aware about the service so they don‟t use these services offered by the bank.

MOBILE BANKING

 What do you think about the balance enquiry facility provided by the banking system?  Good  Average  Poor

10%

40%

50%

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 don‟t need to go to bank to keep a constant 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.

MOBILE BANKING

 What do you think about the bill payment system services offered by the bank through mobile banking?

 Good  Average  Poor

25% 25%

50%

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 day‟s 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.

MOBILE BANKING

 What do you think about the money transfer facility about by bank through mobile banking?

 Good  Average  Poor

25%

Good 50% Average Poor

25%

According to the survey conducted 10 feel service is good, 5 feel it is average and 5 feel it is very poor.

My Opinion

Because of money transfer service through mobiles customers don‟t need to go to bank to transfer money. It can all be done through mobile banking. People who use mobile banking enjoy the benefits as it saves a lot of time whereas there are people who don‟t feel it secured and do not trust transferring funds over mobile.

MOBILE BANKING

 Which bank do you prefer for your mobile banking services?  Private bank  Public sector bank

75%

According to the survey conducted 15 prefer private bank and 5 prefer public sector bank.

My opinion

Private sector banks spend a lot of money on software development and make it safe and secured where as public sector banks do not bring about necessary changes in the software once developed.

MOBILE BANKING

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

 Services are fast and better  Security reason  Other

10% faster security 53% 37% other

According to the survey conducted 10 feel that the services are fast and better, 7 feel 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.

MOBILE BANKING

 Why do you choose public sector bank for you mobile banking?  Trust  Services  Other

17%

50%

33%

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.

MOBILE BANKING

 Do you think mobile banking system is safe?  Yes  No  Can‟t say

yes no

70%

According to the survey conducted 14 feel it is very much secured whereas 6 feel it is unsecured.

My opinion

Mobile banking is safe and secured. Banks help them to understand these services and keeps on guiding them time to time and make necessary changes in the software.

MOBILE BANKING

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

 Highly satisfactory  Satisfied  Average  Dissatisfactory  Bad

25% 30% Highly satisfactory Satisfied

20% Average 15% 10% 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.

MOBILE BANKING

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.

MOBILE BANKING

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 more secure 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 are taking 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.

MOBILE BANKING

Webliography

BOOKS

 "Portfolios of the Poor”:- Daryl Collins; Jonathan Murduor

 “You can hear me now”:- Nicholas P Sullivan

INTERNET

 www.wikipedia.com/mobilebanking  www.investopedia.com/mobilebanking

MOBILE BANKING

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 ?

MOBILE BANKING

Questionnaire to customer

 Are u aware about the mobile banking services offered by BANK?  YES  NO

 Are you using mobile banking services offered by banks?  YES  NO

 Reason for not using mobile banking services offered by the banks?  Not aware about the service properly  Don‟t think Mobile banking services are secured  Other reason

 What do you think about the balance enquiry facility provided by the banking system?  Good  Average  Poor

 What do you think about the bill payment system services offered by the bank through mobile banking ?  Good  Average  Poor

MOBILE BANKING

 What do you think about the money transfer facility about by bank through mobile banking?

 Good  Average  Poor

 Which bank do you prefer for your mobile bankingservices?  Private bank  Public sector bank

 Why do you choose private sector bank for your mobile banking services?  Services are fast and better  Security reason  Other

 Why do you choose public sector bank for you mobile banking ?  Trust  Services  Other

 Do you think mobile banking system is safe ?  Yes  No  Can‟t say

 Rate the overall satisfaction with mobile banking system of your bank?  Highly satisfactory  Satisfied  Average  Dissatisfactory  Bad