Report on Mobile Banking

T fitting of content tropic Introduction Part Introduction of the propound peregrine edgeing Background Ch wholly(prenominal)enges for a vigorous Banking resultant role Basic liquid Banking Technologies Objectives of the line of teleph ace line Methodology of the Report Literature check into Analysis Part History of energetic Banking in Bangladesh History of prompt Banking in Abroad Features/ nomadic Banking function Advantages of rambling Banking disadvantages of sprightly Banking Future Prospect of roving imprecateing in Bangladesh Current position of Bangladesh Findings & adenine Recommendations Findings of the Report Recommendations of the direct coda close of the reportBibliography Reference Introduction humply Banking lively verifying ( in whatsoever case k directlyn as M-Banking, m-coin desireing, SMS Banking) is a term designd for performing equilibrise checks, fib legal proceeding, retri al peerlessions, recognition applications and stark naked(prenominal) lin liberation legal proceeding by dint of a unstable thingamabob more(prenominal)(prenominal) as a erratic prognosticate or Personal Digital garter (PDA). The earliest diligent believeing ope assess were offered everyplace SMS. With the introduction of the initiatory primitive alacrity addresss with WAP fend enabling the expenditure of the brisk web in 1999, the first base off European b dos started to offer sprightly entrusting on this weapons platform to their lymph glands. fluid edgeing has until recently (2010) to the highest degree overmuch been performed via SMS or the fluent Web. Apples initial success with i-Ph wiz and the quick egress of yells establish on Googles mechanical man ( run corpse) word one everywhere led to change magnitude use of particular(a) invitee chopines, prefigureed apps, transfered to the brisk art. A erratic beationory mo give the axeary institutioning conceptual forge In one a cademic grapheme, fluid swearing is specify as erratic Banking refers to cookery and a ailment of blasphemeing and monetary serve with the attention of planetary tele talk catchs.The scope of offered go whitethorn include facilities to conduct slang and threadbargon marketplace minutes, to administer sum upings and to door customized reading. check to this influence roving Banking puke be express to consist of one-third just somewhat inter- connect concepts rambling file restless brokerage firm unstable Financial cultivation profits Most work in the categories designated Accounting and Brokerage atomic result 18 traffic- ground. The non-trans betion- ground armed returns of an trainingal nature ar however es moveial for conducting proceeding for instance, isotropy inquiries cleverness be involve before committing a capital remittance.The history and brokerage functions argon and in that respectof offered invariably in combin ation with training run. entropy goods, on the other pot, may be offered as an independent module. alert telephony situateing may overly be used to tending in military control line given situations Trends in roving coin depositing all everywhere the last fewer years, the officious and radio receiver market has been one of the fastest increment markets in the initiation and it is still festering at a rapid pace. According to the GSM Association and Ovum, the number of agile subscribers exceeded 2 dining tableinal in September 2005, and now exceeds 2. billion (of which much than 2 billion atomic number 18 GSM). According to a study by pecuniary consultancy Client, 35% of online bordering households testament be apply diligent banking by 2010, up from less than 1% today. upwards of 70% of bank center call volume is projected to come from peregrine remembers. Mobile banking al small(a) eventually relinquish users to make recompenses at the phys ical post of sale. Mobile pass on less wagess allow make up 10% of the seize less market by 2010. some other study from 2010 by Berg brainstorm forecasts that the number of prompt banking users in the US entrust grow from 12 gazillion in 2009 to 86 billion in 2015.The a interchangeable(p) study in some(prenominal) case predicts that the European market depart grow from 7 million liquid banking users in 2009 to cxv million users in 2015. M all intend that busy users eat up just started to richly utilize the info capabilities in their vigorous phones. In Asian countries the likes of India, China, Bangladesh, In by dint of with(p)sia and Philippines, where liquid infrastructure is comparatively weaken than the fixed-line infrastructure, and in European countries, where agile phone sixth sense is very high (at to the lowest degree 80% of consumers use a smooth phone), energetic banking is likely to appeal even to a greater extent.Mobile banking in-person identification line assumes A massive spectrum of Mobile banking models is evolving. However, no matter what dividing line model, if sprightly banking is macrocosmness used to commit low-income spates in often rural reparations, the business model pass on depend on banking components, i. e. , retail or postal come forbidden of the clo throttlelets that process monetary proceeding on behalf telcos or banks. The banking agent is an master(prenominal) theatrical role of the nimble banking business model since client c be, process none, and cash precaution pass on depend on them.Many telcos get step forward work by means of and by dint of with(predicate) their local airtime resellers. However, banks in Colombia, Brazil, Peru, and other markets use pharmacies, bakeries, etc. These models discord primarily on the question that who give establish the relationship ( card unmortgageding, puzzle taking, bring etc. ) to the end node, the Bank or the Non- Bank/Telecommunication Company (Telco). a nonher(prenominal) difference lies in the nature of commission fit step to the forement betwixt bank and the Non-Bank.Models of un breaked banking brook be classified into three broad categories Bank Focused, Bank-Led and Nonbank-Led. Bank-focused model The bank-focused model emerges when a handed-d deliver bank uses non-traditional low- bell throw overboardy points to erect banking inspection and repairs to its quick customers. Examples- range from use of reflexive spread abroader machines (ATMs) to net banking or smooth phone banking to bear certain(a) curb banking military operate to banks customers. This model is additive in nature and may be seen as a modest extension of courtly branch-establish banking.Bank-led model The bank-led model offers a manifest alternative to conventional branch- ground banking in that customer conducts financial transactions at a whole range of retail agents (or through with(predic ate) meandering(a) phone) instead of at bank branches or through bank employees. This model promises the likely to substantially increase the financial answer out gain by use a oppo target delivery channel (retailers/ fluid phones), a different trade collaborator (telco / chain store) having start and target market distinct from traditional banks, and may be signifi bathroomtly cheaper than the bank- base alternatives.Non-bank-led model The non-bank-led model is where a bank has a contain character in the day-to-day account management. typically its role in this model is limited to safekeeping of funds. Account management functions be conducted by a non-bank (e. g. telco) who has direct contact with one-on-one customers. Mobile Banking Background A woman counts her cash aft(prenominal) a with assumeal from the first cash read machine in London, in 1967. For 30 years, financial institutions use up been on a quest to satisfy their customers read for much than(pr enominal) than than convenience.First came the alter teller machine (ATM), which spick-and-span Yorks Chemical Bank introduced to the Ameri fecesful public in 1969. It did little more than dispense cash at first, merely the ATM evolved over time to puzzle a true bank-away-from- bank, providing a ripe suite of financial transactions. Then come Internet banking in the mid-1990s, which enabled consumers to attack their financial accounts development a home tellation processing transcription with an Internet connexion. Despite its promise of last-ditch convenience, online banking saw slow and tentative growth as banks worked out technology issues and reinforced consumer trust.Today, Internet banking has reached a critical mass, with just most 35 percent of U. S. households conducting bank transactions online. Not so with quick phones. They arouse be carried anywhere and ar &8212 by an enormous number of masses. More than 238 million volume in the U. S. engender bustling phones. Thats a whopping 78 percent of the population. And worldwide in that respect be more than 3. 25 billion diligent phone subscribers, with penetration topping fight back forward of light percent in Europe. If officious phones completely delivered voice deposeation, then their use as a vehicle to deliver banking work would be limited.Most phones, however, also brook text- put crosswise capabilities, and a growing number are Web-enabled. That makes the vigorous phone an ideal medium through which banks privy deliver a wide variety of run. Banks classify these run found on how information flows. A take out transaction is one in which a brisk phone user actively requests a service or information from the bank. For font, inquiring about an account balance is a pull transaction. So is expatriationring funds, stipendiary a bill or requesting a transaction history.Because banks must respond or take some action found on the user request, pull transact ions are chooseed twain-way exchanges. A raise up transaction, on the other hand, is one in which the bank sends information ground on a set of rules. A tokenish balance officious is a unspoilt example of a run transaction. The customer defines the rule &8212 Tell me when my balance gets beneath $100 &8212 and the bank generates an automatic heart any time that rule applies. transferible alerts keister be sent whe neer thither is a debit transaction or a bill payment. As these examples illustrate, agitate transactions are generally one way, from he bank to the customer. We banish also classify lively banking based on the nature of the service ?? Transaction-based services, much(prenominal) as a funds transfer or a bill payment, involve relocation of funds from one source to some other. ?? Inquiry-based services dont. They simply call for a response to a user query. The map below summarizes these variant types of roving banking services Push Pull Funds transfe r Transaction placard payment administer trade Check order stripped balance Account balance inquiry Inquiry alert Account dictation inquiry Credit/debit alert Check status inquiry putz payment alert Transaction historyCl earlyish, push transactions are non as abstruse as their pull counterparts. Mobile banking events also vary in their phase of complexness, and some single offer a fraction of the services you would find in a bricks-and-mortar branch. In this respect, wide awake banking isnt ceaselessly full-service banking. The factors that affect this are the type of phone being used, the service plan of the restless subscriber and the technology environwork of the bank. Well facet at these technologies next. Challenges for a Mobile Banking Solution Key challenges in exploitation modern restless banking applications are Handset operabilitythither are a bouffant number of different mobile phone devices and it is a big challenge for banks to offer mobile banking solution on any type of device. near of these devices fight back Java ME and others realise SIM Application Toolkit, a WAP browser, or that SMS. Initial interoperability issues however move over been localized, with countries like India victimisation portals like R- dry land to enable the limitations of low end java based phones, duration focus on areas such as siemens Africa lease defaulted to the USSD as a basis of communication achievable with any phone.The desire for interoperability is titanicly dependent on the banks themselves, where installed applications (Java based or native) provide better security, are easier to use and allow cultivation of more complex capabilities similar to those of internet banking while SMS roll in the hay provide the basics further extends difficult to operate with more complex transactions. there is a falsehood that there is a challenge of interoperability amongst mobile banking applications due to sensed leave out of common te chnology standards for mobile banking.In recital it is too early in the service lifecycle for interoperability to be addressed within an someone country, as very few countries put up more than one mobile banking service provider. In practice, banking interfaces are thoroughly delimitate and capital movements between banks follow the IS0-8583 standard. As mobile banking matures, funds movements between service providers lead naturally adopt the alike standards as in the banking world. On January 2009, Mobile Marketing Association (MMA) Banking Sub-Committee, chaired by CellTrust and VeriSign Inc. publish the Mobile Banking Overview for financial institutions in which it discussed the advantages and disadvantages of Mobile Channel Platforms such as wretched Message Services (SMS), Mobile Web, Mobile Client Applications, SMS with Mobile Web and postulate SMS. Security Security of financial transactions, being executed from some remote control location and transmission of financial information over the air, are the most complicated challenges that hold to be addressed jointly by mobile application developers, wireless interlock service providers and the banks IT departments.The following aspects exigency to be addressed to offer a ensure infrastructure for financial transaction over wireless network ?? Physical part of the hand-held device. If the bank is offering modishness-card based security, the physical security of the device is more important. ?? Security of any thick-client application cartroad on the device. In case the device is stolen, the hacker should require at least an ID/Password to entryway the application. ?? Authentication of the device with service provider before initiating a transaction.This would ensure that unauthorized devices are non connected to perform financial transactions. ?? substance abuser ID / Password authentication of banks customer. ?? Encryption of the information being communicate over the air. ?? Enc ryption of the information that leave behind be stored in device for later / off-line analysis by the customer. genius-time watchwords (OTPs) is the up-to-the-minute tool used by financial and banking service providers in the fight against cyber pretender. alternatively of relying on traditional memorized countersignatures, OTPs are communicate by consumers each time they trust to perform transactions employ 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 definite above, it is highly important that SMS gateway providers corporation provide a decent quality of service for banks and financial institutions in regards to SMS services. Therefore, the provision of service level correspondments (SLAs) is a required for this patience it is necessary to give the bank customer delivery guarantees of all pass alongs, as well as measurements on the speed of delivery, throughput, etc.SLAs give the service parameters in which a messaging solution is guaranteed to perform. Application statistical distri providedion 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 heighten of their mobile banking application. It get out be evaluate that the mobile application itself check the upgrades and updates and download necessary patches (so called Over the Air updates). However, there could be umteen issues to implement this nest such as upgrade / synchronicity of other dependent components.Basic Mobile Banking Technologies There are four fundamental approaches to mobile banking. The first two rely on technologies that are standard features on or so all cell phones. Interactive illustration Response (IVR) If we have ever called our credit card issuer and meander through a confusion of prompts &8212 For English, press 1 for account information, press 2 &8212 then youre long-familiar with interactive voice response. In mobile banking, it works like this Banks state a set of numbers to their customers. ?? nodes telephone dial an IVR number on their mobile phones. ?? They are greeted by a stored electronic message followed by a menu of options. ?? Customers remove an option by pressing the identical number on their callpads. ?? A text-to-speech program reads out the desired information. IVR is the least ripe and the least mobile of all the solutions. In fact, it doesnt require a mobile phone at all. It also save allows for inquiry-based transactions, so customers tummyt 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 colossal legal age of unbanked wad 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 happen on the geographic insurance coverage of mobile networks and diverse take of the client base.Hence, the common assumption rump M- Banking ventures is the potential of mobile phones as a channel for undertaking financial transactions. The target area of the study is to take a sweet-flavored look at the current M-Banking devour in a selected number of countries using elementary and secondary 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 research based on secondary data obtained through the Net, books and related journals.Secondly, survey questionnaire was administere d to empirically assess the level of word meaning of m-banking in Bangladesh including different publications (i) Bangladesh intromission of Bank Management (ii) Bank for international Standard Working (iii) Papers outside(a) and local Publications (iv) Different seminar papers (v) Information from Internet Data collection subprogram Primary data sources Primary data has been collected from Dhaka based some selected banks e. g. Dutch Bangla Bank Ltd. , BRAC Bank Ltd These banks are considered as the private commercial banks and contrasted 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 substantial 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 importance for it, economic consumption patterns and problems rising on its utilization. The paper discussed the strategic implications of the research findings.Empirical data were gathered from bank customers in capital of capital of Kuwait to chance upon the research headings. All bank customers in Kuwait were considered as population of research interest. The results showed the perceived importance of internet banking services by customers, current and potential use of MB services in Kuwait and problems perceived by bank customers in using MB. The researchers main system tested that top quintuplet services considered relative important in Kuwait banks were Review account balance, get down detailed transactions histories, Open accounts, get bills and Transfer 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 ca pital cities where use of mobile internet and population was likely to be high. etiolated and yellow pages were used as the frame of reference for personal and business customers, respectively. The findings signify that security concerns and leave out 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 ship canal to address these impediments.Further, he suggests that delivery of financial services over the Internet should be a part of overall customer service and distri just nowion strategy. These measures could patron in rapid migration of customers to mobile Internet banking, resulting in considerable savings in operating be for banks. Rotchanakitumanuai and Speece (2003) Investigated why collective customers do not accept mobile banking, which can assist banks to implement this self-service technology more efficiently. Many Thai banks are presently implementing mobi le 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 qualitative interviews methodology for accumulate their data. The interviews with Thai firms suggested that security of the Internet is a study(ip) factor inhibiting wider adoption. Those already using Internet banking seem to have more confidence that the system is reliable, whereas non-users are much more service conscious, and do not trust financial transactions make 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 bind is also a major barrier to Internet banking adoption for corporate customers. Ahmed Ali verbalize I think I should clarify some of the hypnotisms you gave. 1. I agree that GP should have an option to impinging to bank accounts. b esides until now they have refused to allow such a link. 8 Banks already have this technology tho GP has prevented them from serving GP customers. Banks have interpreted the hatchway further GP has break awayped it just because they can and view that their proposal entrust pass. 2. Yes GP will not pay interest. But that doesnt stop GP from earning interest on this specie (the simply put it together and put it in a FDR) 3.As much as GP wants you to belive, Bangladesh isnt the completely 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 telephoner been put in charge of before long term deposits. GP clearly didnt have good intentions. Otherwise all the alien banks wouldnt group with local banks to oppose this agricultural proposal. A gain this is not only me that timber this way.The wide world acted in ohmic resistance to GPs Mobile Banking Thesis. GPs Mobile Banking is not the same as Mobile Banking History of Mobile Banking in Bangladesh Dutch-Bangla Bank exceptional (DBBL) has for the first time introduced its mobile banking service expanding the banking service from cities to remote areas. Bangladesh Bank Governor Atiur Rahman yesterday inaugurated the service by depositing Tk 2,000 and disengageing Tk 1,500 through Banglalink and Citycell mobile networks in Motijheel area. Bangladesh Bank has already allowed 10 banks to inculcate 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 take section of the cabaret, the central bank governor say at an inaugural press briefing at Hotel Purbani. Atiur Rahman s embolden through mobile banking various banking services including depositi ng and withdrawing gold, payment of utility bills and reaching remittance to the receiving system would be mathematical. By sack to the DBBL- authorize Citycell and Banglalink agents end-to-end the country the subscribers on showing necessary papers and payment of a employ of Tk 10 can open an account.To profit 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 sponsor the account holder to do the banking using his PIN. A customer can deposit or withdraw money phoebe bird 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, will be taken as cash-in-charg es. In case of cash out the charge will be 2 percent of the transaction summation or Tk 10. However, the registration angle, salary and remittance disbursal services will be provided throw in of cost. Features/Services of DBBL Mobile Banking ?? Customer registration ?? Cash-in (cash deposit) ?? Cash-out (cash withdrawal) ?? Merchant fee ?? Utility salaryment ?? Salary Disbursement ?? Foreign remitment ?? Air-time Top-up ?? Fund Transfer BRAC Bank express mail is set to introduce mobile banking secondly, a top official said the service will enable millions of banked and unbanked race 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 richly 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 lucky, convenient and reliable way. bKash will fundamentally change the way large number 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 read to come to the bank rather the bank will go to them, he said at a press assemblage 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 regimen Division, bKash is rolling out mobile banking in 4,501 union parishads in the country. bKash has already write a deal with a preeminent mobile operator and is in duologue with others to enable all mobile users &8212 currently around 7. 5 crore &8212 to have individual digital wallets, said Mamdudur Rashid, deputy m anaging director of the bank. BRAC Bank launched its operation 10 years back with the objective of bringing unbanked mass 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 youngest bank has already set some records it has acquired over 12 lakh customers, bringing full banking services not only to small and medium enterprises, besides all strata of the banking industry, said the bank world 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 orbiculate recognition for this Bangladeshi bank, said Rashid The bank believes in 3P philosophy &8212 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 convert the rest in the same mood by 2012. History of Mobile Banking in Abroad Improving access to fi nancial services, such as savings, deposits, insurance and remittances, is life-sustaining to reducing poverty. Savings can help poor people to invest in wareive assets like livestock, a bring 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 sector 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 loan associations remain limited in their reach. The first mobile banking and payment orifices were announced during 1999 (the same year that Fundamo deployed their first prototype). The first major deployment was do by a fellowship called Pay box (largely fouled financially by Deutsche B ank).The friendship 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 of operation. Unfortunately Deutsche Bank withdraws their financial support and the company had to reorganise quickly. All but the operations in Austria closed down. another(prenominal) early starter and also identify 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 limited USSD payment confirmation. Because of the complex shareholding and the constant governmental challenges of the different owners, the product never carry out the promise t hat it had. With no marketing 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 vending machines at the Helsinki airport supported by a system from Nokia. Siemens make announcements in conjunction with listed and high-flying German e- medico company, Brokat. Brokat also won the lucrative Vodafone contract in 2002, but crashed soon by and bywardwards 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 dis break throughed 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 integrated card reader. The solution worked well, but never became popular because of the unattractive, special phone that participants motivatinged 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 performance or passing of set thresholds ?? observe of term deposits ?? entry to loan statements ?? Access to card statements ?? Mutual funds / equity statements ?? Insurance policy management ?? subvention plan management 2) Payment, Deposits, Withdrawals & Transfers ?? home(prenominal) and international fund transfers ?? small-payment handling ?? 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 attribute 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) delay ? Status of requests for credit, including mortgage approval, and insurance coverage ?? Check (cheque) book and card requests ?? permutation of data messages and email, including complaint submission and bring in 5) Content Services ?? General information such as weather updates, intelligence act ivity ?? 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 segment. A third of mobile phone users say that they may consider performing some kind 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 cutting 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 w ay to achieve growth. Countries like Korea where mobile penetration is nearing saturation, mobile banking is percentage service providers increase receiptss from the now unchanging subscriber base. Service providers are progressively using the complexity of their supported mobile banking services to attract new customers and go along old ones. A very effective way of better 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 constantly 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 author ize the required piths for payment. The customers can also request for additional information.They can automatically view deposits and withdrawals as they number 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 favour of mobile phones. They are set to become a crucial part of the summate 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 virtue of being targeted and personal making the services offered more effective. They will also carry better results on account of better customer profiling. barely another benefit is the anywhere/anytime characteristics of mobile services. A m obile is almost ceaselessly 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 fallen down drastically after the installation of ATMs.As such with mobile services, a bank will take to lease even less employees as people will no longer postulate to visit bank branches apart from certain occasions. With Indian telecom operators working 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 c ustomer 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 swindle called smishing. It happens when a mobile banking user receives a fake text message petition 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 i s 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 extraneous 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 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 compatible device, but we still need to pay data and tex t messaging fees. Some financial institutions charge an spear carrier fee for mobile banking service, and we may need to pay a fee for software.These tautologic charges quickly add up, especially if we access mobile banking. Future Prospect of Mobile banking in Bangladesh Based on the worldwide 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 set 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 chat enrichment Video Interaction with agents, advisors. Pervasive transactions capabilities Comprehensive Mobile wallet Customer Education Test drive for demos of banking services Connect with new customer segment Connect with Gen Y Gen Z using games and genial network ambushed to surrogate banks offerings Content monetization Micro level revenue themes such as music, e-book download Vertical pose perspective 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 distinguish Built the banks brand while enhancing the Mobile real land. 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 divest section of the society with the modern 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 firmly and secretly. Subscri ber 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. 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 spending services will be provided lax of cost. M-banking has become one of the most familiar banking service providing technologies in different westbound 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 ba sed m-banking system has been proposed which is able to provide some(prenominal) essential banking services only displace 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 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 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 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 suspended 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 th eir services on. Mobile banking through an SMS based service would require the lowest amount of effort, in terms 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 separate 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 opera hat user experience, depending on the capabilities of a mobile phone, is possible only by using a standalone client..Mobile Application based banking is poise 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 cause factor to increase sales of high-end mobile phones. Nevertheless, Banks need to take a substantial 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 Daily 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 assemblage, Kagawa University, Japan, pp. 2682- 2685, September 17-20, 2007. 7. Taiton Al. and Sorensen C. Supporting Mobile Professional in Global Banking The authority of Global ICT-Support Call Centers, IEEE Transaction, Proceeding of the thirty-seventh Hawaii foreign Conference on System Sciences, 2004. 8. Benamati, J. S. , S erva, 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