Report on Mobile Banking

hedge of content Tropic Introduction Part Introduction of the Report officious commiting Background Ch anyenges for a winding swaning Solution Basic industrious believeing Technologies Objectives of the vignette Methodology of the Report Literature Review Analysis Part archives of nimble deponeing in Bangladesh tarradiddle of ener acheic Banking in Abroad Features/ smooth Banking Services Advantages of runny Banking disadvantages of wandering Banking Future Prospect of winding avowing in Bangladesh Current position of Bangladesh Findings & Recommendations Findings of the Report Recommendations of the study Conclusion Conclusion of the reportBibliography annex Introduction nimble Banking officious trusting ( in like manner kn give as M-Banking, m- b to severally adepting, SMS Banking) is a confines mildewd for bring to passing balance checks, fib minutes, recompenses, reference work applications and other buzzwording trans directynesss finished a ramb ling contrivance more than(prenominal) as a busy amplifyress or Personal Digital Assistant (PDA). The conciselyest ready unsexing companying function were projected allplace SMS. With the introduction of the break line uply primitive flip earpieces with WAP bet on enabling the apply of the energetic meshing in 1999, the basic European brinks started to straits ready imprecateing on this platform to their nodes.Mobile confideing has until recently (2010) much or less often been performed via SMS or the Mobile Web. apples initial success with i-Phone and the rapid egress of crys base on Googles Android (operating system) make led to increasing exercise of exceptional thickening programs, called apps, downloaded to the nimble device. A nomadic margeing conceptual sticker In one academic model, unsettled briming is defined as Mobile Banking refers to provision and a ailment of margeing and financial runs with the dish out of wanderin g telecommunication devices.The scope of offered swear outs may include facilities to conduct chamfer and stock commercialize proceedings, to administer work outs and to access customized information. tally to this model Mobile Banking preempt be said to consist of lead inter-related concepts Mobile measure statement Mobile Brokerage Mobile Financial education Services nigh expediencys in the categories designated considering and Brokerage be proceeding- establish. The non- performance-establish answers of an informational personality atomic chassis 18 however essential for conducting consummations for instance, balance inquiries efficiency be motivationed before committing a gold remittance.The drawing and brokerage seconders be therefore offered invariably in combination with information go. tuition run, on the other spend, may be offered as an in subject module. Mobile border cambering may also be single- setd functiond to help in line of merc spateise given situations Trends in active sticking everywhere the last some years, the spry and wireless commercialise has been one of the fastest growing markets in the world and it is still growing at a rapid pace. match to the GSM Association and Ovum, the nume come in of nimble subscribers exceeded 2 billion in folk 2005, and now exceeds 2. billion (of which to a greater extent than 2 billion ar GSM). According to a study by financial consultancy Client, 35% of online bounding ho practiseholds pass on be victimisation peregrine banking by 2010, up from less than 1% today. upwardly of 70% of bank center call volume is projected to obtain from rambling rallys. Mobile banking go away level offtually intromit exploiters to lay down hires at the physical point of sale. Mobile contact less defrayments go forth make up 10% of the contact less market by 2010. other study from 2010 by Berg Insight forecasts that the number of ready banking users in the US will grow from 12 million in 2009 to 86 million in 2015.The same study also predicts that the European market will grow from 7 million meandering(a) banking users in 2009 to one hundred fifteen million users in 2015. Many believe that active users fox respectable started to fully utilize the info capabilities in their active recalls. In Asiatic countries standardized India, China, Bangladesh, Indonesia and Philippines, where diligent nucleotide is comparatively better than the fixed-line infrastructure, and in European countries, where sprightly phone penetration is very high (at least 80% of consumers use a mobile phone), mobile banking is likely to appeal even out more(prenominal).Mobile banking business models A wide spectrum of Mobile banking models is evolving. However, no matter what business model, if mobile banking is world used to attract low-income populations in often unpolished locations, the business model will depend on banking agentive roles, i. e. , sell or postal outlets that bear upon financial proceedings on behalf telcos or banks. The banking agent is an important fiber of the mobile banking business model since customer c be, portion quality, and capital management will depend on them.Many telcos will work finished and through and through their local airtime resellers. However, banks in Colombia, Brazil, Peru, and other markets use pharmacies, bakeries, etc. These models dissent primarily on the question that who will establish the relationship (account opening, nonplus taking, lending etc. ) to the end customer, the Bank or the Non- Bank/ telecom Company (Telco). Another difference lies in the nature of agency savvy between bank and the Non-Bank.Models of branchless banking shadow be classified into three broad categories Bank Focused, Bank-Led and Nonbank-Led. Bank- repointed model The bank- pore model emerges when a traditional bank uses non-traditional low-cost sales talk channels to result banking op erate to its existing customers. Examples- kitchen range from use of automatic teller machines (ATMs) to net profit banking or mobile phone banking to return certain limited banking work to banks customers. This model is additive in nature and may be seen as a modest generation of effected branch-based banking.Bank-led model The bank-led model offers a distinct alternative to conventional branch-based banking in that customer conducts financial transactions at a self-colored range of retail agents (or through mobile phone) instead of at bank branches or through bank employees. This model promises the electric authorisation to substantially affix the financial services outr all(prenominal) by using a different retirey channel (retailers/ mobile phones), a different trade partner (telco / image store) having experience and target market distinct from traditional banks, and may be signifi give the gatetly 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 management. Typically its role in this model is limited to safekeeping of funds. Account management functions are 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 chooseal from the root cash point machine in London, in 1967. For 30 years, financial institutions involve been on a quest to satisfy their customers crave for more convenience.First came the automatise teller machine (ATM), which New Yorks Chemical Bank stored to the Ameri place public in 1969. It did little more than dispense cash at first, scarce the ATM evolved oer time to grow a unbowed bank-away-from- bank, providing a full suite of financial transactions. Then come meshing banking in the mid-1990s, which enabled consumers to access their financial accounts using a home information processor with an Internet connection. Despite its p romise of ultimate convenience, online banking saw slow and dubious growth as banks worked out engine room issues and built consumer trust.Today, Internet banking has reached a critical mass, with intimately 35 percent of U. S. households conducting bank transactions online. non so with mobile phones. They discharge be carried anywhere and are by an enormous number of bulk. More than 238 million population in the U. S. admit mobile phones. Thats a whopping 78 percent of the population. And cosmopolitan there are more than 3. 25 billion mobile phone subscribers, with penetration topping 100 percent in Europe. If mobile phones yet delivered share information, consequently their use as a vehicle to deliver banking services would be limited.Most phones, however, also provide text- put across capabilities, and a growing number are Web-enabled. That makes the mobile phone an ideal medium through which banks can deliver a wide variety of services. Banks classify these serv ices based on how information flows. A pull transaction is one in which a mobile phone user actively craves a service or information from the bank. For example, inquiring close together(p) an account balance is a pull transaction. So is transferring funds, paying a bill or requesting a transaction history.Because banks must(prenominal) respond or take some action based on the user request, pull transactions are considered nonpartisan exchanges. A weigh transaction, on the other hand, is one in which the bank disseminates information based on a dress out of rules. A token(prenominal) balance alert is a good example of a push transaction. The customer defines the rule Tell me when my balance gets below $100 and the bank generates an automatic message any time that rule applies. Similar alerts can be sent whenever there is a debit transaction or a bill fee. As these examples illustrate, push transactions are chiefly one way, from he bank to the customer. We can also classi fy mobile banking based on the nature of the service action-based services, such as a funds transfer or a bill earnings, involve campaign of funds from one source to another. Inquiry-based services dont. They simply overtop a response to a user query. The chart below summarizes these conglomerate typecasts of mobile banking services Push Pull Funds transfer Transaction Bill payment Share trade Check order nominal balance Account balance inquiry Inquiry alert Account statement inquiry Credit/debit alert Check military position inquiry Bill payment alert Transaction historyClearly, push transactions are not as complex as their pull counterparts. Mobile banking resolutions also vary in their degree of complexity, and some that offer a fraction of the services you would find in a bricks-and-mortar branch. In this respect, mobile banking isnt always full-service banking. The factors that affect this are the type of phone being used, the service invent of the mobile subscrib er and the engineering science framework of the bank. Well carry at these technologies next. Challenges for a Mobile Banking Solution Key con consorts in exploitation sophisticated mobile banking applications are Handset operabilitythither are a large number of different mobile phone devices and it is a tough challenge for banks to offer mobile banking solution on any type of device. Some of these devices support Java ME and others support 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, slice 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 mor e complex capabilities similar to those of internet banking while SMS can provide the basics only becomes difficult to operate with more complex transactions. in that location is a myth that there is a challenge of interoperability between mobile banking applications due to sensed lack of common technology standards for mobile banking.In practice it is too early in the service life calendar method of birth control for interoperability to be addressed within an individual acres, as very few countries have more than one mobile banking service provider. In practice, banking interfaces are considerably defined and cash 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. On January 2009, Mobile Marketing Association (MMA) Banking Sub-Committee, chaired by CellTrust and VeriSign Inc. promulgated the Mobile Banking Overview for financial institutio ns in which it discussed the advantages and disadvantages of Mobile Channel Platforms such as neat Message Services (SMS), Mobile Web, Mobile Client Applications, SMS with Mobile Web and Secure SMS. aegis Security of financial transactions, being punish from some contrary location and transmission of financial information over the air, are the roughly complicated challenges that get hold of to be addressed together with by mobile application developers, wireless network service providers and the banks IT departments.The succeeding(a) 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- greenback based security, the physical security of the device is more important. Security of any thick-client application running on the device. In moorage the device is stolen, the hacker should await at least an ID/ give-and-take to access the application. Authe ntication of the device with service provider before initiating a transaction.This would ensure that unauthorized devices are not connected to perform financial transactions. substance abuser ID / Password authentication of banks customer. Encryption of the information being transmitted over the air. Encryption of the data that will be stored in device for later / off-line analysis by the customer. One-time give-and-takes (OTPs) is the modish tool used by financial and banking service providers in the weigh against cyber artifice. 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 instrumentd life-cycle has expired. Because of the concerns make explicit above, it is extremely important that SMS gateway providers c an provide a decent quality of service for banks and financial institutions in regards to SMS services. Therefore, the provision of service level agreements (SLAs) is a requirement for this industry it is necessary to give the bank customer delivery guarantees of all messages, as well as measurements on the speed of delivery, throughput option, etc.SLAs give the service parameters in which a messaging solution is guaranteed to perform. Application distri thoion Due to the nature of the connectivity between bank and its customers, it would be impractical to expect customers to regularly chew out 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.Basic Mobile Banking Technol ogies There are four fundamental approaches to mobile banking. The first two rely on technologies that are standard features on al just roughly all carrel phones. Interactive Voice Response (IVR) If we have ever called our credit taunt issuer and meander through a confusion of prompts For English, press 1 for account information, press 2 then youre familiar with interactive voice response. In mobile banking, it works like this Banks advertise a set of numbers 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 options. Customers conduct an option by pressing the corresponding 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 to provide basic banking services to the vast studyity 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 before long unbanked which has led to a gap in the market. Further, the fast diffusion of mobile telecom networks has enabled M-banking service operators to draw on the geographic coverage of mobile networks and diverse needs of the client base.Hence, the common assumption behind M- Banking ventures is the potential of mobile phones as a channel for undertaking financial transactions. The purpose of the study is to take a fresh look at the received M-Banking experience in a selected number of countries using primary and petty(a) data from the existing pool of literature. Methodology The study has been done in general based on primary and secondar y sources of data or information. The first is an exploratory research based on secondary data obtained through the Net, books and related journals.Secondly, survey questionnaire was administered to empirically assess the level of adoption of m-banking in Bangladesh including different publications (i) Bangladesh Institution of Bank Management (ii) Bank for International step Working (iii) Papers International and local Publications (iv) Different seminar papers (v) Information from Internet Data collection procedure primary(a) data sources Primary data has been collected from capital of Bangladesh based some selected banks e. g. Dutch Bangla Bank Ltd. , BRAC Bank Ltd These banks are considered as the private commercial banks and foreign banks respectively.Primary data collections are done by the interviewing method with proper questionnaire. Secondary 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 Review El-Sherbini et al. (2007) Investigated the customers perspectives of mobile banking, their perceived grandness for it, usage patterns and problems rising on its utilization. The paper discussed the strategical implications of the research findings.Empirical data were gathered from bank customers in Kuwait to master the research objectives. whole bank customers in Kuwait were considered as population of research interest. The results showed the perceived importance of internet banking services by customers, current and potential use of MB services in Kuwait and problems perceived by bank customers in using MB. The researchers main hypothesis tested that top phoebe bird services considered relative important in Kuwait banks were Review account balance, Obtain detailed transactions histories, Open accounts, Pay bills and remove 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 file name extension for personal 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 financial 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 costs for banks. Rotchanakitumanuai and Speece (2003) Investigated why incarnate customers do not gestate mob ile 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 claim that it reduces costs and makes them more competitive.However, many corporate customers are not highly enthusiastic about mobile banking. They used in-depth soft interviews methodology for collecting 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 seem to have more confidence that the system is time-tested, 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 claim lack of resources.Legal support is also a major barrier to Internet banking adoption for corporate customers. Ahmed Ali said I su ppose I should clarify some of the suggestions you gave. 1. I agree that GP should have an option to link to bank accounts. But until now they have refused to allow such a link. 8 Banks already have this technology but GP has prevented them from serving GP customers. Banks have taken the initiative but GP has stopped it just because they can and thinking that their proposal will pass. 2. Yes GP will not pay interest. But that doesnt stop GP from earning interest on this money (the simply put it together and put it in a FDR) 3.As much as GP wants you to belive, Bangladesh isnt the only country where there are more mobile users than bank users. (I will get into that in another article). None of those countries are considering GPs version of mobile banking. 4. Short term deposits are more crucial to the banking industry than what you estimate. Nowhere in the world has a mobile company been put in charge of short term deposits. GP clearly didnt have good intentions. other all the forei gn banks wouldnt group with local banks to oppose this outlandish proposal. over again this is not only me that feel this way.The entire world acted in resistor 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 expanding the banking service from cities to out-of-door areas. Bangladesh Bank Governor Atiur Rahman yesterday inaugurated the service by depositing Tk 2,000 and withdrawing Tk 1,500 through Banglalink and Citycell mobile networks in Motijheel area. Bangladesh Bank has already allowed 10 banks to create 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 primordial bank governor said at an inaugural press instruct at Hotel Purbani. Atiur Rahman sa id through mobile banking various banking services including depositing and withdrawing money, payment of utility bills and reaching remittance to the recipient would be potential. By passing game to the DBBL- sanction Citycell and Banglalink agents throughout the country the subscribers on showing necessary papers and payment of a fee 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 depositing 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 holder 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, whiche ver 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 expense services will be provided free of cost. Features/Services of DBBL Mobile Banking Customer fitting Cash-in (cash deposit) Cash-out (cash insularity) Merchant Payment Utility Payment Salary Disbursement contrasted 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 reliabl e 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 director 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 phones, even by the handset that costs the lowest, Rahman said.Under a partnership with UNDP and Local Government Division, bKash is ringlet 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 back with the objective of bringing unbanked people under formal banking coverage. The business model of the bank is to mobilise deposits from urban areas and disburse it to rural areas.The countrys upstartest bank has already set some records it has acquired over 12 lakh customers, bringing full banking services not only to small and medium enterprises, but all strata of the banking industry, said the bank be the youngest East Pakistani 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, 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 transform the rest in the same manner by 2012. History of Mobile Banking in Abroad Improving access to financial services, such as saving s, deposits, insurance and remittances, is vital to cut back poverty. Savings can help scummy people to invest in productive assets like livestock, a give 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 formal financial sphere of influence as their transaction sizes are small, and many live in remote areas beyond the reach of banks branch networks. Informal banking services such as microfinance and village savings and add associations remain limited in their reach. The first mobile banking and payment initiatives were announced during 1999 (the same year that Fundamo deployed their first prototype). The first major deployment was made by a company called Pay disaster seat (largely supported financially by Deutsche Bank).The com pany 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 house. Unfortunately Deutsche Bank withdraws their financial support and the company had to reorganise readily. All but the operations in Austria closed down. Another early starter and also determine 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 complete the promise that it had. With no marketing support and no compelling argue for adoption, this initiative is floundering at the moment. Many other large players announced initiatives and ran pilots with well-favored 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- art company, Brokat. Brokat also won the lucrative Vodafone contract in 2002, but crashed soon afterwards when it runs 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 challenging product based on a special mobi le phone with an integrated card reader. The solution worked well, but never became popular 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 account activity or passing of set thresholds Monitoring of term deposits Access to loan statements Access to card statements uncouth funds / equity statements Insurance policy management Pension plan management 2) Payment, Deposits, Withdrawals & Transfers Domestic and international fund transfers Micro-payment handling Mobile recharging moneymaking(prenominal) payment processing Bill payment processingA specialized 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 notifications on security prices 4) Support ? side of requests for credit, including mortgage approval, and insurance coverage Check (cheque) book and card requests convert of data messages and email, including complaint submission and tracking 5) Content Services General information such as weather updates, youthfuls Loyalty-related offers Location-based services establish on a survey conducted by Forrester, mobile banking wi ll be attractive mainly to the younger, more tech-savvy customer segment. A third of mobile phone users say that they may consider performing some physical body 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 phone transaction costs about $2. 36 each, whereas an electronic transaction costs only about $0. 10 each. Additionally, this raw 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 hel ping service providers join on revenues from the now static subscriber base. Service providers are progressively using the complexity of their supported mobile banking services to attract new customers and agree old ones. A very effective way of ameliorate 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 always informed when their card is used, and how much money was taken for each transaction. Similarly, the bank could remind customers of outstanding loan repayment 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 amounts for payment. The customers can also request for additive information.They can automatically view deposi ts and withdrawals as they occur 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. Through mobile messaging and other such interfaces, banks provide value added services to the customer at marginal costs.Such messages also bear the lawfulness of being targeted and personal making the services offered more effective. They will also carry better results on account of better customer profiling. that another benefit is the anywhere/anytime characteristics of mobile services. A mobile is almost always with the customer. As such it can be used over a vast geographical area. The customer does not have to visit t he bank ATM or a branch to avail of the banks services. inquiry indicates that the number of footfalls at a banks branch has fallen down drastically after the installation of ATMs.As such with mobile services, a bank will need to hire even less employees as people will no longer need to visit bank branches apart from certain occasions. With Indian telecom operators working(a) 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 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 us to enter a password or PIN, many people configure their mobile devices to save passwords, or use ins ecure 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 open 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 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. Cost The cost of mobile banking might not appear significant if we already have a harmonious 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 quic kly 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 say building relationships, reducing cost, achieving new revenue stream will transform to enable new objectives targeting higher level goals such as building brand of the banking organization. emerge technology and functionalities would enable to create new ways of lead generation, prospecting as well as developing complex customer relationship and mobile banking world would achieve superior customer experience with bi-directi onal communications.Illustration of objective based functionality enrichment In Mobile Banking Communication enrichment Video Interaction with agents, advisors. Pervasive proceeding capabilities Comprehensive Mobile wallet Customer Education Test stab for demos of banking services Connect with new customer segment Connect with Gen Y Gen Z using games and brotherly network ambushed to surrogate banks offerings Content monetization Micro level revenue themes such as music, e-book download Vertical positioning Positioning offerings over mobile banking specific industriesHorizontal positioning 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 scratch Built the banks brand while enhancing the Mobile reliable estate. Current position of Banglades h 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 fresh 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 throughout 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 securely and secretly. Subscriber can withdraw and deposit cash amount from his mobile going to the agents and agents will guide and help the customers if there is any difficulty. Si nce, 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 familiar 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 sending SMS to bank waiter from any remote loca tion. 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 research , balance transfer between authenticated customers, DPS payment and bill payment without going to bank physically and save their precious time.At least, after evaluating each module of this developed system a satisfactory 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 com munication 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 opportunity 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 hang up to become the big killer mobile application arena. However, banks going mobile the first time need to step the path cautiously. The biggest decision 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 legal injury of cost and time, but will not be able to sup port 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 hover to be a big m-commerce feature, and if South Koreas foray into mass mobile banking is any indication, mobile banking could well be the driving factor to change magnitude sales of high-end mobile phones. Nevertheless, Banks need to take a hard and deep look into the mobile usage patterns among their target cust omers 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. 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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