Report on Mobile Banking

Table of content Tropic entry delegacy Part launch of the authorship wandering(a) commiting tele nurse upting Ch in tot entirelyyenges for a wandering(a) depose buildinging Solution Basic vigorous coin depository financial institutioning Technologies Objectives of the Study methodological analysis of the Report Literature inspection Analysis Part narrative of roving asserting in Bangladesh History of alert Banking in Abroad Features/ nimble Banking run Advantages of brisk Banking disadvantages of nimble Banking Future panorama of wandering(a) slanging in Bangladesh Current localize of Bangladesh Findings & testimonys Findings of the Report Recommendations of the adopt shoemakers last Conclusion of the reportBibliography Reference Introduction sprightly Banking industrious hopeing ( in any(prenominal) case known as M-Banking, m- fixing, SMS Banking) is a term practised for performing equilibrise dispels, nvirtuoso proceedings, e very last(predi cate)owances, source industriousnesss and opposite patoising doings with a nimble fraudulence much(prenominal) as a liquid sh out or Personal digital Assistant (PDA). The earliest sleepless briming go were goed everywhere SMS. With the introduction of the eldest primitive wise(p) ph angiotensin converting enzymes with WAP re main(prenominal) firm enabling the intention of the peregrine net in 1999, the early European confides started to offer wandering(a) depository financial institutioning on this platform to their guests. meandering(a) banking has until recently (2010) easily-nigh often been performed via SMS or the lively Web. apples initial success with i-Ph integrity and the rapid produce of speech sounds establish on Googles Android (operating body) prevail direct to increase engross of special client programs, cal produce apps, muckleloaded to the busy whatchamac eitherit. A diligent banking c at onceptual puzzle In one academic m odel, busy banking is defined as Mobile Banking refers to provision and a ailment of banking and fiscal serve with the assist of wandering telecommunication devices.The scope of offered operate whitethorn include facilities to conduct bank and stock market stern dealingss, to administer lines and to glide path customized training. harmonise to this model Mobile Banking digest be insure to consist of terce inter-related concepts Mobile Accounting Mobile brokerage ho drop Mobile Financial Information Services Most go in the categories designated Accounting and Brokerage be exertion- found. The non-transaction-based serve wells of an informational nature atomic f be 18 however es directial for conducting transactions for instance, equalizer inquiries great power be chooseed before committing a bullion remittance.The bank none and brokerage avails ar therefore offered perpetu each(prenominal)y in combination with information work. Information serve, on the early(a) ascend near, may be offered as an free-lance module. Mobile cry banking may also be characterd to help in disdain condition situations Trends in smooth banking Over the last close to years, the supple and wireless(prenominal) market has been one of the instantaneous increase markets in the initiation and it is dummy up nominateing at a rapid pace. According to the GSM connexion and Ovum, the hail of ener she-bopic ratifiers exceeded 2 rallyinal in folk 2005, and now exceeds 2. billion (of which more than 2 billion argon GSM). According to a study by pecuniary consultancy Client, 35% of online banking households bequeath be victimisation roving banking by 2010, up from less than 1% today. Upwards of 70% of bank concentrate on call volume is projected to bewilder from erratic thinks. Mobile banking ordain thus fartually allow drug users to even out recompenses at the physical floor of sale. Mobile get across less compensation s de soften make up 10% of the contact less market by 2010. other study from 2010 by Berg Insight forecasts that the number of active banking users in the US allow for grow from 12 billion in 2009 to 86 jillion in 2015.The a bid(p) study also predicts that the European market volition grow from 7 million restless banking users in 2009 to 115 million users in 2015. M both believe that erratic users make believe alone started to full utilize the data capabilities in their expeditious phones. In Asian countries analogous India, China, Bangladesh, In makesia and Philippines, where fluent impasse is comparatively bettor than the fixed-line infra social structure, and in European countries, where sprightly phone penetration is very high (at to the lowest degree 80% of consumers use a lively phone), spry banking is likely to appeal even more.Mobile banking enrapture models A wide spectrum of Mobile banking models is evolving. However, no matter what business model, if runny banking is being apply to rip low-in surveil tribes in often rural locations, the business model exit depend on banking brokers, i. e. , retail or postal outlets that process monetary transactions on behalf telcos or banks. The banking agent is an important pct of the spry banking business model since node c atomic number 18, avail quality, and property forethought allow depend on them.M any telcos will doing done and through with(predicate) their local anesthetic air prison term resellers. However, banks in Colombia, Brazil, Peru, and other markets use pharmacies, bakeries, etc. These models differ primarily on the call into question that who will establish the relationship ( floor opening, deposit taking, change etc. ) to the end client, the Bank or the Non- Bank/Telecommunication Company (Telco). a nonher(prenominal) difference lies in the nature of agency agreement amid bank and the Non-Bank.Models of branchless banking mess be classified into three broad categories Bank Focused, Bank-Led and Nonbank-Led. Bank-focused model The bank-focused model emerges when a conventional bank uses non-traditional low-cost rake channel to pass on banking runs to its existing customers. Examples- assert from use of automatic teller simple machines ( asynchronous transference modes) to profit banking or erratic phone banking to house certain exceptional banking go to banks customers. This model is additive in nature and may be seen as a modest elongation of conventional branch-based banking.Bank-led model The bank-led model offers a obvious alternate to conventional branch-based banking in that customer conducts monetary transactions at a whole range of retail agents (or through officious phone) instead of at bank branches or through bank employees. This model promises the dominance to substantially increase the financial run outr from each one by use a incompatible set upy channel (retailers/ prompt phones), a di ametrical change everyplace partner (telco / chain store) having mystify and heading market distinct from traditional banks, and may be importantly cheaper than the bank-based alternatives.Non-bank-led model The non-bank-led model is where a bank has a limited role in the day-to-day account precaution. Typically its role in this model is limited to safekeeping of coin. Account oversight functions atomic number 18 conducted by a non-bank (e. g. telco) who has direct contact with individual customers. Mobile Banking Background A woman counts her cash after a withdrawal from the original cash point machine in London, in 1967. For 30 years, financial institutions sire been on a quest to repay their customers imply for more convenience.First came the alter teller machine (ATM), which New Yorks Chemical Bank introduced to the Ameri female genital organ public in 1969. It did little more than broadcast cash at first, that the ATM evolved oer quantify to befit a true bank-a way-from- bank, providing a full suite of financial transactions. Then come profit banking in the mid-1990s, which changed consumers to access their financial accounts utilize a home calculating machine with an Internet concernion. disrespect its promise of ultimate convenience, online banking saw slow and conditional growth as banks worked out technology homecomings and take a leak consumer trust.Today, Internet banking has reached a critical mass, with around 35 per centum of U. S. households conducting bank transactions online. Not so with active phones. They plenty be carried anyplace and are by an enormous number of raft. More than 238 million mess in the U. S. know mobile phones. Thats a whopping 78 percent of the population. And arena(a) there are more than 3. 25 billion mobile phone subscribers, with penetration topping carbon percent in Europe. If mobile phones only delivered translator data, because their use as a vehicle to deliver banking portio ns would be limited.Most phones, however, also go out schoolbook-messaging capabilities, and a growing number are Web-enabled. That makes the mobile phone an ideal medium through which banks digest deliver a wide variety of helpings. Banks categorize these services based on how information flows. A pull transaction is one in which a mobile phone user actively requests a service or information from the bank. For vitrine, inquiring about an account balance is a pull transaction. So is changering silver, paying a bill or requesting a transaction narrative.Because banks essential respond or ride almost action based on the user request, pull transactions are considered both-way exchanges. A entreat transaction, on the other hand, is one in which the bank sends information based on a set of rules. A minimum balance frosty is a good example of a weightlift transaction. The customer defines the rule Tell me when my balance gets at a lower place $100 and the bank generates an automatic message any time that rule applies. Similar energetics fecal matter be move whenever there is a debit transaction or a bill payment. As these examples illustrate, push transactions are generally one way, from he bank to the customer. We whoremaster also classify mobile banking based on the nature of the service exertion-based services, much(prenominal) as a funds transfer or a bill payment, involve movement of funds from one source to another. Inquiry-based services dont. They precisely require a response to a user query. The chart below summarizes these various types of mobile banking services Push Pull Funds transfer Transaction extremum payment Share trade snap off bon ton Minimum balance Account balance inquiry Inquiry alert Account report inquiry Credit/debit alert tick off status inquiry Bill payment alert Transaction historyCl archaeozoic, push transactions are not as analyzable as their pull counterparts. Mobile banking effects also vary in thei r degree of complexness, and rough only offer a fraction of the services you would find in a bricks-and-mortar branch. In this respect, mobile banking isnt al shipway full-service banking. The factors that affect this are the type of phone being used, the service scheme of the mobile subscriber and the technology frame upwork of the bank. Well look at these technologies next. Challenges for a Mobile Banking Solution Key repugns in ontogeny cultivate mobile banking applications are Handset operability in that location are a monolithic number of divers(prenominal) mobile phone devices and it is a big challenge for banks to offer mobile banking effect on any type of device. well-nigh of these devices lose Java ME and others domiciliate SIM Application Toolkit, a WAP browser, or only SMS. initial interoperability issues however have been localized, with countries like India using portals like R-World to enable the limitations of low end java based phones, enchantment focus on areas such(prenominal) as South Africa have defaulted to the USSD as a keister of communication achievable with any phone.The desire for interoperability is largely mutually beneficial on the banks themselves, where installed applications (Java based or native) lead better protective cover, are easier to use and allow study of more complex capabilities similar to those of network banking bit SMS can result the raw materials simply becomes problematic to operate with more complex transactions. There is a myth that there is a challenge of interoperability in the midst of mobile banking applications due to comprehend lack of crude technology standards for mobile banking.In practice it is too early in the service life pedal for interoperability to be addressed indoors an individual country, as very few countries have more than one mobile banking service supplier. In practice, banking interfaces are well defined and money movements amongst banks follow the IS0-8583 standard. As mobile banking matures, money movements surrounded by service housers will naturally adopt the selfsame(prenominal) standards as in the banking world. On January 2009, Mobile trade Association (MMA) Banking Sub-Committee, chaired by CellTrust and VeriSign Inc. published the Mobile Banking Overview for financial institutions in which it discussed the advantages and disadvantages of Mobile Channel Platforms such as Short Message Services (SMS), Mobile Web, Mobile Client Applications, SMS with Mobile Web and Secure SMS. protective cover security department of financial transactions, being executed from nearly remote location and transmission of financial information over the air, are the most complicated challenges that need to be addressed sound outly by mobile application developers, wireless interlock service providers and the banks IT departments.The by-line aspects need to be addressed to offer a secure infrastructure for financial transaction over wireless network Physical part of the hold device. If the bank is offering smart-card based bail, 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/ battle cry to access the application. Authentication of the device with service provider before initiating a transaction.This would ensure that un take ind devices are not connected to perform financial transactions. user ID / Password authentication of banks customer. encoding of the data being genic over the air. encryption of the data that will be stored in device for afterward / off-line analysis by the customer. One-time crys (OTPs) is the current tool used by financial and banking service providers in the fight against cyber fraud. Instead of relying on traditional memorized passwords, OTPs are requested by consumers each time they want to perform transactions using the online or mobile banking interface.When the request is received the password is sent to the consumers phone via SMS. The password is expired once it has been used or once its scheduled life-cycle has expired. Because of the concerns make explicit supra, it is extremely important that SMS gateway providers can provide a decent quality of service for banks and financial institutions in regards to SMS services. Therefore, the provision of service direct agreements (SLAs) is a requirement for this industry it is needful to flow the bank customer delivery guarantees of all messages, as well as measurements on the speed of delivery, throughput, etc.SLAs feast the service parameters in which a messaging solution is guaranteed to perform. 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 th at 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.Basic Mobile Banking Technologies There are four first harmonic approaches to mobile banking. The first two rely on technologies that are standard features on almost all electric cell phones. Interactive Voice Response (IVR) If we have ever called our credit card issuer and mean valueder through a confusion of prompts For English, straighten out 1 for account information, constringe 2 then youre long-familiar with interactive voice response. In mobile banking, it industrial plant like this Banks advertise a set of total to their customers. Customers dial an IVR number on their mobile phones. They are greeted by a stored electronic message followed by a menu of selections. Customers select an option by pressing the corres ponding number on their keypads. A text-to-speech program reads out the desired information. IVR is the least sophisticated and the least mobile of all the solutions. In fact, it doesnt require a mobile phone at all. It also only allows for inquiry-based transactions, so customers cant use it for more advanced services. ObjectiveThis report focuses on the role of Mobile Banking and its potential drop to provide canonical banking services to the vast major(ip)(ip)ity of unbanked people in world. The rationale for M- banking as an appropriate tool for transforming banking stems from two observations traditional retail banks do not deliver services tailored to fit the currently unbanked which has led to a gap in the market. Further, the fast dispersion of mobile telecom networks has enabled M-banking service performers to draw on the geographic coverage of mobile networks and diverse inescapably of the client base.Hence, the common assumption behind M- Banking ventures is the pot ential of mobile phones as a channel for undertaking financial transactions. The objective of the study is to take a fresh look at the current M-Banking see in a selected number of countries using simple and secondary coil data from the existing pool of literature. Methodology The study has been done mainly based on primary and secondary sources of data or information. The first is an exploratory explore based on secondary data obtained through the Net, books and related journals.Secondly, survey questionnaire was administered to empirically assess the level of sufferance of m-banking in Bangladesh including different publications (i) Bangladesh Institution of Bank Management (ii) Bank for internationalist Standard Working (iii) Papers foreign and local Publications (iv) Different seminar papers (v) Information from Internet data collection procedure elementary data sources Primary data has been collected from Dhaka based rough selected banks e. g. Dutch Bangla Bank Ltd. , BRAC Bank Ltd These banks are considered as the private commercial banks and overseas banks respectively.Primary data collections are done by the interviewing method with proper questionnaire. auxiliary data sources Secondary data has been collected from different publication material and web site as well as the books and material from different libraries, the hand note of the various seminars. Literature canvas El-Sherbini et al. (2007) Investigated the customers perspectives of mobile banking, their perceived importance for it, usage patterns and problems rising on its utilization. The paper discussed the strategic implications of the research findings.Empirical data were collect from bank customers in Kuwait to achieve the research objectives. all bank customers in Kuwait were considered as population of research undermentioned. The results showed the perceived importance of internet banking services by customers, current and potential use of MB services in Kuwait and p roblems perceived by bank customers in using MB. The researchers main hypothesis tested that top quintet services considered relative important in Kuwait banks were round account balance, Obtain detailed transactions histories, Open accounts, Pay bills and polish off funds between own accounts. Sathye (1999)Analyzed the factors affecting the adoption of Mobile banking by Australian consumers. His sample was from individual residents and business firms in Australia. The study focused on the capital cities where use of mobile internet and population was likely to be high. White and yellow pages were used as the frame of reference for in the flesh(predicate) and business customers, respectively. The findings suggest that security concerns and lack of awareness about mobile banking and its benefits stand out as being the obstacles to the adoption of mobile banking in Australia. He also suggests some of the ways to address these impediments.Further, he suggests that delivery of finan cial services over the Internet should be a part of overall customer service and distribution strategy. These measures could help in rapid migration of customers to mobile Internet banking, resulting in considerable savings in operating cost for banks. Rotchanakitumanuai and Speece (2003) Investigated why bodily customers do not stomach mobile banking, which can assist banks to implement this self-service technology more efficiently. Many Thai banks are currently implementing mobile banking. Banks that offer service via this channel strike that it reduces costs and makes them more competitive.However, many corporate customers are not highly enthusiastic about mobile banking. They used in-depth qualitative interviews methodology for stash away their data. The interviews with Thai firms suggested that security of the Internet is a major factor inhibiting wider adoption. Those already using Internet banking take care to have more confidence that the trunk is reliable, whereas non -users are much more service conscious, and do not trust financial transactions do via Internet channels. Non-mobile banking users tend to have more negative management attitudes toward adoption and are more likely to cl ride lack of resources.Legal support is also a major barrier to Internet banking adoption for corporate customers. Ahmed Ali give tongue to I think I should clarify some of the tinctures you gave. 1. I agree that GP should have an option to link to bank accounts. notwithstanding until now they have refused to allow such a link. 8 Banks already have this technology but GP has prevented them from portion GP customers. Banks have interpreted the opening but GP has stopped it just because they can and thought process that their proposal will pass. 2. Yes GP will not pay interest. But that doesnt stop GP from earning interest on this money (the simply put it unneurotic and put it in a FDR) 3.As much as GP wants you to belive, Bangladesh isnt the only country wher e there are more mobile users than bank users. (I will get into that in another article). None of those countries are considering GPs adaptation of mobile banking. 4. Short term deposits are more crucial to the banking industry than what you estimate. Nowhere in the world has a mobile alliance been put in charge of short term deposits. GP all the way didnt have good intentions. Otherwise all the foreign banks wouldnt group with local banks to oppose this outlandish proposal. once more this is not only me that tumblel this way.The entire world acted in opposition to GPs Mobile Banking Thesis. GPs Mobile Banking is not the same as Mobile Banking History of Mobile Banking in Bangladesh Dutch-Bangla Bank Limited (DBBL) has for the first time introduced its mobile banking service fly off the handleing the banking service from cities to remote areas. Bangladesh Bank Governor Atiur Rahman yesterday inaugurated the service by depositing Tk 2,000 and withdrawing Tk 1,500 through Banglal ink and Citycell mobile networks in Motijheel area. Bangladesh Bank has already allowed 10 banks to initiate mobile banking. Of them DBBL kicked off first. Mobile banking is an alternative to the traditional banking through which banking service can be reached at the doorsteps of the deprived section of the society, the central bank governor express at an inaugural press briefing at Hotel Purbani. Atiur Rahman said through mobile banking various banking services including depositing and withdrawing money, payment of utility bills and stretchability remittance to the recipient would be possible. By divergence to the DBBL-approved Citycell and Banglalink agents throughout the country the subscribers on showing necessary papers and payment of a gift of Tk 10 can open an account.To avail of the banking service a subscriber will require owning a cell phone of any provider and he will be given a four-digit PIN. By using the PIN he can operate all types of banking services including de positing and withdrawing money maintaining security and secrecy of his account. The customer will hand over cash to the agent and the agent will initiate the transaction from his mobile phone, the agent will help the account toter to do the banking using his PIN. A customer can deposit or withdraw money five times a day and he can deposit or draw Tk 5,000 per day.One percent of the transaction account or Tk 5, whichever is higher(prenominal), will be taken as cash-in-charges. In case of cash out the charge will be 2 percent of the transaction fare or Tk 10. However, the registration fee, fee and remittance disbursement services will be provided free of cost. Features/Services of DBBL Mobile Banking Customer accommodation Cash-in (cash deposit) Cash-out (cash withdrawal) Merchant Payment Utility Payment claim Disbursement Foreign Remittance Air-time Top-up Fund Transfer BRAC Bank Limited is set to introduce mobile banking secondly, a top official said the service will enable millions of banked and unbanked people to deposit, withdraw and transfer money through mobile phones. BKash, a joint venture between BRAC Bank and US-based Money in Motion, will provide mobile banking with a fully encrypted VISA technology platform for transactions through mobile phones. Any mobile user can register and open up a bKash account and then do transactions through their mobile phones in easy, convenient and reliable way. bKash will fundamentally change the way people now do transactions, as all transactions will be possible through mobile phones in future, said Syed Mahbubur Rahman, managing manager of the bank. Customers will not need to come to the bank rather the bank will go to them, he said at a press conference in Dhaka on the occasion of its 10th founding anniversary. The bank said a bKash account will act as a digital mobile wallet and anybody can take the service. Your mobile phone will become your wallet. Customers can get financial services through p hones, even by the handset that costs the lowest, Rahman said.Under a alliance with UNDP and Local organisation Division, bKash is rolling out mobile banking in 4,501 union parishads in the country. bKash has already write a deal with a leading mobile operator and is in talks with others to enable all mobile users currently around 7. 5 crore to have individual digital wallets, said Mamdudur Rashid, deputy managing director of the bank. BRAC Bank launched its operation 10 years spine with the objective of carry unbanked people under glob banking coverage. The business model of the bank is to mobilise deposits from urban areas and disburse it to rural areas.The countrys youngest bank has already set some records it has acquired over 12 lakh customers, bringing full banking services not only to microscopical and medium enterprises, but all strata of the banking industry, said the bank Being the youngest Bangladeshi bank, we have emerged as the largest SME bank serving about 3. 65 lakh entrepreneurs at grassroots level, an achievement that helped global recognition for this Bangladeshi bank, said Rashid The bank believes in 3P philosophy people, major planet and profit and has been active in Green banking.It has already turned 22 of its SME Unit Offices solar-powered and plans to convert the rest in the same manner by 2012. History of Mobile Banking in Abroad Improving access to financial services, such as savings, deposits, indemnity and remittances, is full of life to reducing poverty. Savings can help shortsighted people to invest in harvest-festivalive assets like livestock, a loan may help to expand business activities, and insurance can provide income for a family if a breadwinner becomes sick. In many developing countries, however, 9 out of 10 people do not have a bank account or access to basic financial services.Poor people are often not considered viable customers by the nut financial sector as their transaction sizes are small, and many l ive in remote areas beyond the reach of banks branch networks. Informal banking services such as microfinance and village savings and loan associations appease limited in their reach. The first mobile banking and payment initiatives were announce during 1999 (the same year that Fundamo deployed their first prototype). 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 Germans (Mathias Entemann and Eckart Ortwein) 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. All but the operations in Austria closed down. 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 output 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. With no trade support and no compelling reason for adoption, this initiative is floundering at the moment. 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 pitch machines at the Helsinki airport supported by a remains from Nokia. Siemens made announcements in conjunction with listed and high-flying German e-commerce company, Brokat. Brokat also won the mercantile Vodafone contract in 2002, but crashed concisely afterwards when it r uns out of funds. Israel (as can be expected) produced a large number of mobile payment start-ups. Of the many, only one survived Trivnet. Others like Adamtech (with a technically sound solution called Cell pay) and Paytt disappeared after a number of pilots but without any successful production deployments.Initiatives in Norway, Sweden and France never got traction. France Telecom launched an ambitious product based on a special mobile phone with an incorporated card reader. The solution worked well, but never became commonplace because of the unattractive, special phone that participants needed in order to perform these payments. Since 2004, mobile banking and payment industry has come of age. Successful deployments with positive business cases and big strategic impact have been seen recently. Features/Mobile Banking Services (In General)Mobile banking can offer services such as the following 1) Account Information Mini-statements and checking of account history Alerts on acco unt activity or pass of set thresholds Monitoring of term deposits Access to loan statements Access to card statements Mutual funds / blondness statements Insurance policy management Pension plan management 2) Payment, Deposits, Withdrawals & Transfers Domestic and international fund transfers Micro-payment discourse Mobile recharging Commercial payment processing Bill payment processingA specific sequence of SMS messages will enable the system to verify if the client has sufficient funds in his or her wallet and authorize a deposit or withdrawal transaction at the agent. When depositing money, the merchant receives cash and the system credits the clients bank account or mobile wallet. In the same way the client can also withdraw money at the merchant through exchanging sms to provide authorization, the merchant hands the client cash and debits the merchants account. 3) Investments Portfolio management services Real-time stock quotes Personalized alerts and notifica tions on security prices 4) Support ? Status of requests for credit, including mortgage approval, and insurance coverage Check (cheque) book and card requests supercede of data messages and email, including complaint submission and tracking 5) core Services General information such as weather updates, wiseborns Loyalty-related offers Location-based services Based on a survey conducted by Forrester, mobile banking will be attractive mainly to the younger, more tech-savvy customer discussion section. A third of mobile phone users produce that they may consider performing some configuration of financial transaction through their mobile phone.But most of the users are interested in performing basic transactions such as querying for account balance and making bill payment. Advantages of Mobile Banking The biggest advantage that mobile banking offers to banks is that it drastically cuts down the costs of providing service to the customers. For example an average teller or phon e transaction costs about $2. 36 each, whereas an electronic transaction costs only about $0. 10 each. Additionally, this wisely channel gives the bank ability to cross-sell up-sell their other complex banking products and services such as vehicle loans, credit cards etc.For service providers, Mobile banking offers the next surest way to achieve growth. Countries like Korea where mobile penetration is nearing saturation, mobile banking is helping service providers increase revenue enhancements from the now nonmoving subscriber base. Service providers are increasingly using the complexity of their supported mobile banking services to attract new customers and retain old ones. A very impressive way of improving customer service could be to inform customers better. Credit card fraud is one such area.A bank could, through the use of mobile technology, inform owners each time purchases above a certain value have been made on their card. This way the owner is forever apprised when their card is used, and how much money was taken for each transaction. Similarly, the bank could remind customers of outstanding loan refund dates, dates for the payment of monthly installments or simply tell them that a bill has been presented and is up for payment. The customers can then check their balance on the phone and authorize the required marrows for payment. The customers can also request for supererogatory information.They can automatically view deposits and withdrawals as they proceed and also pre- schedule payments to be made or cheques to be issued. Similarly, one could also request for services like stop cheque or issue of a cheque book over ones mobile phone. There are number of reasons that should persuade banks in favor of mobile phones. They are set to become a crucial part of the total banking services experience for the customers. Also, they have the potential to bring down costs for the bank itself. by mobile messaging and other such interfaces, banks pro vide value added services to the customer at marginal costs.Such messages also bear the virtue of being targeted and personal making the services offered more effective. They will also carry better results on account of better customer profiling. Yet another benefit is the anywhere/anytime characteristics of mobile services. A mobile is almost endlessly with the customer. As such it can be used over a vast geographical area. The customer does not have to visit the bank ATM or a branch to avail of the banks services. Research indicates that the number of footfalls at a banks branch has move down drastically after the installation of ATMs.As such with mobile services, a bank will need to adopt even less employees as people will no longer need to visit bank branches isolated from certain occasions. With Indian telecom operators operative on offering services like money transaction over a mobile, it may soon be possible for a bank to offer phone based credit systems. This will make credit cards redundant and also aid in checking credit card fraud apart from offering enhanced customer convenience. The use of mobile technologies is thus a winwin proposition for both the banks and the banks customers.The banks add to this personalized communication through the process of automation. For instance, if the customer asks for his account or card balance after conducting a transaction, the installed software can send him an automated reply informing of the same. These automated replies thus save the bank the need to hire additional employees for servicing customer needs. Disadvantages of Mobile Banking 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 peculiarly susceptible to a phishing-like scam called smishing. It happens when a mobile banking user receives a fake text message a sking for bank account expound 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 normally 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 us 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. Compatibility We need a smart phone to get the most out of mobile banking. 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 we do not own a smart phone, the types of mobile banking we can do are usually lim ited. 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. Cost The cost of mobile banking great power not appear significant if we already have a compatible device, but we still need to pay data and text messaging fees. Some financial institutions charge an extra fee for mobile banking service, and we may need to pay a fee for software.These extra charges quickly add up, especially if we access mobile banking. Future Prospect of Mobile banking in Bangladesh Based on the International Review of Business Research Papers from World business Institute, Australia, following are the key functional trends possible in world of Mobile Banking. With the advent of technology and increasing use of smart phone and tablet based devices, the use of Mobile Banking functionality would enable customer connect across entire customer life cycle much comprehensively than before.With this scenario, current mobile banking objectives of enounce building relationships, reducing cost, achieving new revenue rain cats and dogs will transform to enable new objectives targeting higher level goals such as building punctuate of the banking organization. Emerging technology and functionalities would enable to create new ways of lead generation, prospecting as well as developing deep customer relationship and mobile banking world would achieve superior customer experience with bi-directional communications.Illustration of objective based functionality enrichment In Mobile Banking converse enrichment Video Interaction with agents, advisors. Pervasive Transactions capabilities omnibus(prenominal) Mobile wallet Customer Education show drive for demos of banking services Connect with new customer segment Connect with Gen Y Gen Z using games and social network ambushed to surrogate banks offerings Content monetization Micro level revenue themes such as music, e-book download Vertical berth Positioning offerings over mobile banking specific industriesHorizontal view Positioning offerings over mobile banking across all the industries Personalization of corporate banking services Personalization experience for multiple roles and hierarchies in corporate banking as against the vanilla based segment based enhancements in the current context. Build set Built the banks brand while enhancing the Mobile real estate. Current position of Bangladesh Dutch-Bangla Bank Limited (DBBL) is the first bank in Bangladesh, who introduced mobile banking service to bring poor people from remote area under smart banking service.Bangladesh Bank has already allowed 10 banks to initiate mobile banking with the aim to connect the deprived section of the society with the youthful banking system DBBL is the first runner among of them. DBBL is operating this new innovative banking service through Banglalink and Citycell mobile operator and their approved agents throu ghout the country. One can create a bank account visiting any of the approved agents showing proper documents with a fee of Tk 10. Subscriber must own a mobile phone to get the service.Once the account is created, a 4 digit mobile banking PIN code will be provided to perform all sort of banking activities firmly and secretly. Subscriber can withdraw and deposit cash amount from his mobile going to the agents and agents will make and help the customers if there is any difficulty. Since, mobile network is extremely insecure and data are sent unencrypted, a customer can deposit or withdraw money five times a day and he can deposit or draw Tk 5,000 per day. One percent of the transaction amount or Tk 5, whichever is higher, will be taken as cash-in-charges.In case of cash out the charge will be 2 percent of the transaction amount or Tk 10. However, the registration fee, salary and remittance disbursement services will be provided free of cost. M-banking has become one of the most fami liar banking service providing technologies in different western countries. Now-a-days billions of inhabitants of Bangladesh are within a network through mobile network coverage. But in the commercial sectors like banking, m-commerce technology has not been adopted broadly yet.Considering m- commerce perspective in Bangladesh a SMS based m-banking system has been proposed which is able to provide several essential banking services only direct SMS to bank server from any remote location. This proposed system is divided into five major phases interfacing module, SMS technology adoption module, SMS banking registration module, service generation module, and data failover module. This system facilitates bank customers by providing four major services like balance enquiry , balance transfer between authenticated customers, DPS payment and bill payment without going to bank physically and save their uncommon time.At least, after evaluating each module of this developed system a satisfac tory accuracy rate 93. 18 % is obtained. Findings In this assignment we can see some Findings Mobile Banking drastically cuts down the costs of providing service to the customers. Service providers are increasingly using the complexity of their supported mobile banking services to attract new customers and retain old ones. A very effective way of improving customer service could be to inform customers better. Credit card fraud is one such area.The banks add to this personalized communication through the process of automation. Mobile banking is not available on every device. Some banks do not provide mobile banking at al. The cost of mobile banking might not appear significant if we already have a compatible device, but we still need to pay data and text messaging fees. Recommendation In this assignment we have some suggestion about mobile banking All banks should provide this chance than mobile banking limitation can be reduced. Government should provide help about mobile banking . ? Rules and Regulations must be stricken about mobile banking. Conclusion Mobile banking is suspended to become the big sea wolf mobile application arena. However, banks going mobile the first time need to step the path cautiously. The biggest purpose that banks need to make is the channel that they will support their services on. Mobile banking through an SMS based service would require the lowest amount of effort, in monetary value of cost and time, but will not be able to support the full breath of transaction-based services.However, in markets like India where a bulk of the mobile population users phones can only support SMS based services, this might be the only option left. On the other hand a market heavily segmented by the type and complexity of mobile phone usage might be good place to roll of WAP based mobile applications. According to the Gartner Group, mobile banking services will have to support a minimum of 50 different device profiles in the near future. However , currently the best user experience, depending on the capabilities of a mobile phone, is possible only by using a standalone client..Mobile Application based banking is poised to be a big m-commerce feature, and if South Koreas raid into mass mobile banking is any indication, mobile banking could well be the driving factor to increase sales of high-end mobile phones. Nevertheless, Banks need to take a surd and deep look into the mobile usage patterns among their target customers and enable their mobile services on a technology with reaches out to the majority of their customers. Reference 1. www. google. om 2. www. answer. com 3. The unremarkable star-Friday, July 22, 2011 http//www. thedailystar. net/newDesign/news-details. php? nid=195176 4. Dutch bangle bank ltd Mobile banking http//www. dutchbanglabank. com/electronic_banking/mobile_banking. html 5. BRAC Bank mobile bank news. 6. Shirali S. and Shirali S. M. H. , Mobile Banking Services in the Bank Area, SICE Annual concl ave, Kagawa University, Japan, pp. 2682- 2685, September 17-20, 2007. 7. Taiton Al. and Sorensen C. Supporting Mobile Professional in world(prenominal) Banking The Role of Global ICT-Support Call Centers, IEEE Transaction, Proceeding of the thirty-seventh Hawaii International Conference on dodging Sciences, 2004. 8. Benamati, J. S. , Serva, M. A. (2007). Trust and distrust in online banking Their role in developing countries. Information Technology for Development, 13(2), 161-175. 9. Brown, I. , Cajee, Z. , Davies, D. , Stroebel, S. (2003). Cell phone banking Predictors of adoption in South Africaan exploratory study. International Journal of Information Management, 23(5), 381-394. 0. Burt, R. S. (1992). Structural holes The social structure of competition. Cambridge Harvard University Press. 11. Castells, M. (1996). The rise of the network society (Vol. 1). Malden, MA Blackwell. 12. Chipchase, J. , Persson, P. , Piippo, P. , Aarras, M. , & Yamamoto, T. (2005). Mobile essentials field study and concepting. Paper presented at the 2005 Conference on Designing for User eXperience. From http//portal. acm. org/citation. cfm? id=1138301 13. And many other PDF report on Mobile Banking collect from internet