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7/27/2019 Mobile Banking Standard Chartered Bank
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Problems and prospects ofMOBILE BANKING IN BANGLADESH
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Submitted to:
Course Instructor
Md. Ziaul Haque
Lecturer, Department of Business Administration
East West University
Assignment Prepared By:
NAME ID
Mithila Islam Tisha 2010-2-10-270
Supria Debnath 2010-2-10-122
Kazi Shakhawat Hossen 2010-2-10-121
Masuda Mustari 2010-2-10-272
Tanzila Hossain 2010-2-10-267
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Letter of Submission
13th
December 2011
Md. Ziaul Haque
Lecturer, Department of Business Administration
East West University
Subject: Submission of Term Paper
Dear Sir,
With the due respect it is our pleasure to present the term paper entitled Mobile Banking on
Standard Chartered. While preparing the report we have tried our level best to focus closely on
the topic and try to collect most complete and updated information available. We believe that it
will provide a clear idea about our analysis on Mobile Banking.
To prepare this term paper, we have given best effort to accumulate needed information.
We will be available to answer any question for clarification. Thank you for your sincere
support.
Yours sincerely, Signatures
Supria Debnath
Kazi Shakhawat Hossen
Mithila Islam Tisha
Masuda Mustari
Tanzila Hossain
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Acknowledgement
First, we would like to express our gratitude to Almighty for giving us the strength to complete
the project within the stipulated time.
We are deeply indebted to our course instructorMd. Ziaul Haque, Lecturer of EWU for his
guidance to prepare and to complete this report. Our special thanks to our course instructor for
direction of the layout of the report.
We are grateful to those employees of Standard Chartered and the users of Standard Chartered
who have helped us with their assistance and comments, feedbacks.
Last but not least, we like to convey our fellow classmates who always gave us good advice,
suggestions, inspiration and support.
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Table of Content
Contents Page No.
Introduction 06-07
Present Condition of Mobile Banking 07
Benefits of Mobile Banking 08
Disadvantages of Mobile Banking 09-10
Recommendations 11-12
Conclusion 13
References 14-16
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Introduction
Internet Banking helped give the customer's anytime access to their banks. Customer's could
check out their account details, get their bank statements, perform transactions like transferring
money to other accounts and pay their bills sitting in the comfort of their homes and offices.
However the biggest limitation of Internet banking is the requirement of a PC with an Internet
connection, not a big obstacle if we look at the US and the European countries, but definitely a
big barrier if we consider most of the developing countries of Asia like China and India. Mobile
banking addresses this fundamental limitation of Internet Banking, as it reduces the customer
requirement to just a mobile phone. Mobile usage has seen an explosive growth in most of the
Asian economies like India, China and Korea.
The main reason that Mobile Banking scores over Internet Banking is that it enables Anywhere
Anytime Banking'. Customers don't need access to a computer terminal to access their bank
accounts, now the can do so on-the-go while waiting for the bus to work and traveling.
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E-banking is now a global phenomenon. It is an invaluable and powerful tool driving
development, supporting growth, promoting innovation and enhancing competitiveness.
Technological innovations have been identified to contribute to the distribution channels of
banks and these electronic delivery channels are collectively referred to as electronic baking. The
evaluation of banking technology has been driven by changes in distribution channels as
evidenced by automated teller machine(ATM), phone-banking,Tele-banking,PC-banking and
most recently internet banking. The developed country as a part and parcel of their economy is
now using electronic banking or online banking.
Mobile Commerce has gained increasing acceptance amongst various sections of the society in
previous years. The reasons for its growth can be traced back to technological and
demographical developments that have influenced many aspects of the socio-cultural behavior in
todays world. The need for mobility seems to be the driving force behind Mobile Commerce.
The launch of UMTS technology has provided Mobile Commerce with the necessary verve.
Mobile banking is practiced for performing balance checks, account transactions, payments,
credit applications and other banking transactions throughout a mobile device such as a mobile
phone or Personal Digital Assistant (PDA). The earliest mobile banking services had been
offered through short message service (SMS), but introduction of the first smart phone with
wireless application protocol (WAP) support made the use of the mobile web in 1999 possible.
Recently, mobile banking has been performed via SMS or the mobile web.
Mobile Banking presents an opportunity for banks to retain their existing, technology-savvy
customer base by offering value-added, innovative services and to attract new customers from
corresponding sections of the society.
Over the last few years, the mobile and wireless market has been one of the fastest growing
markets in the world and it is still growing at a rapid pace. Extensive spectrum of
mobile/branchless banking models is embryonic. Conversely, business model is not so important.
Mobile banking is being used to attract low-income populations often in rural locations. The
business model will depend on banking agents' retail or postal outlets that practice financial
transactions on behalf of telecoms or banks.
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What is Mobile Banking:
Mobile banking is a term used for performing balance checks, account transactions, payments,
credit applications and other banking transactions through a mobile device such as a mobile
phone or Personal Digital Assistant (PDA). It is also known as M-Banking,SMS Banking.The
earliest mobile banking services were offered overSMS. With the introduction of the first
primitive smart phones with WAP support enabling the use of the mobile web in 1999, the first
European banks started to offer mobile banking on this platform to their customers.
Mobile banking has until recently (2010) most often been performed via SMS or the Mobile
Web. Apple's initial success with iPhone and the rapid growth of phones based on Google's
Android (operating system) have led to increasing use of special client programs, called apps,
downloaded to the mobile device.
http://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/SMShttp://en.wikipedia.org/wiki/Smart_phoneshttp://en.wikipedia.org/wiki/Wireless_Application_Protocolhttp://en.wikipedia.org/wiki/Mobile_webhttp://en.wikipedia.org/wiki/1999http://en.wikipedia.org/wiki/2010http://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Android_%28operating_system%29http://en.wikipedia.org/wiki/Android_%28operating_system%29http://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/2010http://en.wikipedia.org/wiki/1999http://en.wikipedia.org/wiki/Mobile_webhttp://en.wikipedia.org/wiki/Wireless_Application_Protocolhttp://en.wikipedia.org/wiki/Smart_phoneshttp://en.wikipedia.org/wiki/SMShttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Mobile_phone7/27/2019 Mobile Banking Standard Chartered Bank
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Present situation in Bangladesh of Mobile
Banking
Bangladesh started believing in mobilebanking, which was introduced on May 15 by
Dutch Bangla Bank Ltd (DBBL). BRAC Bank
introduced the service on July 21. Mercantile
Bank and Trust Bank are also going to
introduce m-banking throughout the country .
Banks and other financial institutions are
exploring the use of mobile commerce to
allow their customers to not only access
account information, but also make
transactions, such as purchasing stocks,remitting money via mobile phones and other
mobile equipments. This service is often
referred to as m-Banking. Since cellular networks has become an essential component of the
economic and social infrastructure of the developed and developing countries, a new subset of
electronic banking has created, mobile banking (m-Banking). m-Banking refers to that
technology which covers account management via mobile devices. Bangladesh is amongst the
poorest countries in the world, with 50% of people living in poverty and a gross national income
(GNI) per capita of $470. Despite of the difficult business environment, the mobile
communications sector is growing rapidly and is cited as the fastest growing industry in
Bangladesh. The mobile communications sector began in Bangladesh with the licensing of a
single company, Pacific Bangladesh Telecom Ltd in 1991. In 1996, three national GSM (Global
System for mobile communication) licenses were granted and this opened upon the mobile
communications sector to a wider subscriber base [10]. Currently, six mobile network operators
are currently licensed to operate in Bangladesh. Geographic coverage increased from 48% in
December 2004 to over 85% in December 2007 including rural and Chittagong Hill Tract areas.
In Bangladesh the numbers of GSM mobile subscribers 44.64 million at the end of January, 2009
while number was 36.42 million at the end of January 2008. So, mobile devices become
prominent to every level of people of Bangladesh. [3]. And gradually people accept mobile not
only their communication device but also an information transfer media which is highlynecessary for their livelihood [2].The fall in prices of handsets, SIM and calling services,
primarily due to reductions in handset import duties and the SIM activation tax alongside the
impact of competition, has increased the affordability of mobile telephony and lead to the
observed increase in penetration rates. Among different services of mobile phones short
Messaging Service (SMS) has become the most popular and cheapest service. It permits us
sending message of alphanumeric characters between mobile phones. Considering these issues,
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SMS technique can be integrated in Bangladesh banking sector. It is the nature of human being
to get services within short time. In our country, several private banks such as Dutch Bangla
Ltd, Brac Bank Ltd and STB have introduced the facilities of online banking, phone banking and
at last SMS banking with too limited services. But our national banks such as Sonali Bank,
Janata Bank, Agrani Banks and other specialized financial institutions like Krishi Bank do not
provide such facilities. A huge amount of our country people are the clients of these banks. In
this paper, a m-Banking system has been proposed depending on the current extent of todays
banking transactions of Bangladeshi banks. To make our proposed m-Banking system more
enriched, robust and secure, PUSH and PULL nature of SMS has been adopted. Through this
proposed SMS based m-Banking system, a bank customer can be authorized to carry out any
financial transaction from remote place only sending PULL service SMS or receiving PUSH
service SMS. It saves not only customers time and energy but also gives a mental satisfaction by
providing updates of his/her account related information. The key challenges of m-Banking are
security, usability and data failover [6] which are handled more efficiently without any severe
system congestion, performance and throughput loss.
How many bank serve mobile banking:
DUTCH BANGLA BANK LIMITED
The Opening of DBBL Mobile Banking by Bangladesh Bank Governor.
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BRAC BANK
MERCANTILE BANK LIMITED
BANGLADESH POST OFFICE
TRUST BANK also on the way to introducing mobile banking.
Rules Of Mobile Banking:
To use the banking service, subscribers must own a cell phone from any provider.
The bank gives subscribers a four-digit PIN. By using the PIN, subscribers can use a
number of banking services.
Customers may hand over cash to agents in the bank's network, and agents can coordinate
the transaction from their mobile phones.
Customers can deposit or withdraw money up to five times per day, up to Tk 5,000 per
day
http://en.wikipedia.org/wiki/Personal_identification_numberhttp://en.wikipedia.org/wiki/Personal_identification_number7/27/2019 Mobile Banking Standard Chartered Bank
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What does Mobile banking offer?
Customer Registration
Cash-in (cash deposit)
Cash-out (cash withdrawal)
Merchant Payment
Utility Payment
Salary Disbursement
Foreign Remittance
Air-time Top-up
Fund Transfer
Where to register?
Customer can register at any authorized agent point of - at present these are the retailers of
Citycell & Banglalink throughout the country who can display DBBL Agent Certificate andMobile Banking Banner.
How does it work?
Customer fills up the KYC Form and submit to agent along with his photograph &
National ID (NID)
Agent checks the Application Form, photograph & NID
Agent goes to Customer Registration Menu in his/her mobile and insert customers
mobile number
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Customer receives a call through IVR or USSD prompt and in reply, s/he gives a 4-digit
PIN number of his/her
Choice (please remember your PIN)
A Mobile Account is created in the system which is his/her mobile number + one check
digit
Customer receives an SMS which contains his/her Mobile
Account number (please remember your check digit)
Why PIN is required?
PIN is required to be inputted during cash withdrawal from an Agent or ATM. PIN ensures
security of your money and protects fraudulent transactions.
Why PIN is strictly confidential?
PIN is the key for transaction of Mobile Banking. Only correct match of PIN & Mobile Number
can access the Mobile Account. PIN is needed to verify the A/C owner by the system. If a PIN is
disclosed, respective account is at risk; therefore, PIN should be handled very carefully.
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Why check digit?
Mobile number is public and known to many people. Without knowing your check digit, none
will be able to deposit money at your account, thus it helps to keep your mobile account
confidential. On the other hand, a check digit eliminates typing error, thus protects sending or
depositing money to a wrong account.
Which Telcos Mobile can be registered?
To activate the SMS based m-Banking system and getting its facilities, the customers have to be
registered according to proposed model. Due to increase of mobile crime, to ensure a secure
SMS based m-Banking system, the customer must be registered. For this, at first the bank server
broadcasts
SMS giving a notification of their SMS based m-Banking service. When a customer wants to
register for this service, he/she has to send SMS with a specified syntax to bank with account
number and password as shown in below:
The SMS Request for registration from Remote Customers Mobile
Retrieving original Sender number by Re-swapping through the server modem after
receiving customers SMS, the required information for registration procedure is
truncated. Then the encoded information of customers mobile number, registration
request command (reg) with provided account no. and password are decoded. In decoding Process, the customer (sender) mobile no. is decoded first and store in banks
database. Since during the sending SMS, the sender number is encoded by swapping so
original sender number is retrieved by re-swapping. Then from the SMS, the registration
request textual syntax part is decoded and segments are separated by using conversion of
HEX(Hexadecimal) to ASCII (American Standard Code for Information Interchange)
value method. Here the decoding and separation of user provided account number and
password data. For the validity of the decoded actual account number, a checking
procedure is done on the database of bank which is developed in MYSQL .If the
customer account is valid, then bank server broadcast a positive acknowledgement to
customers mobile.
Customer having any mobile from any Mobile Operator can be registered for Mobile
Banking at any agent point of Banglalink and Citycell. All these Mobile Account holders
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will be able to deposit and withdraw money from the Agents. However the customers
having mobile from operators other than Banglalink and Citycell will not be able to
initiate many self-initiated services like Balance checking, fund transfer, utility payment,
Air-time top up, PIN Change etc.
Customers having mobile from Banglalink and Citycell will be able to enjoy all the
servicesagent-initiated as well as self-initiated.
What type of Mobile set is required?
Any type of mobile set can be used for mobile banking.
How much initial deposit is required?
Customers can open a Mobile Account with an initial deposit of Taka 10/-(taka ten) only.
Can I deposit and withdraw money immediately after registration?
You can deposit money immediately after registration. However, you can withdraw after your
account is fully registered. Bank officer verifies the information on the registration form (KYC
form) and authorizes the account for full registration. Normally 1-2 working days are required
for full registration. After your account is fully registered, you will get an SMS notification.
How is Mobile Banking secured?
Mobile Banking is highly secured as it uses either USSD or SMS+IVR as its communication
channel. In case of USSD, both the instructions and PIN are communicated using USSD while in
case of Customers money is safe as none can withdraw his/her money without taking possession
of Mobile set, PIN and Check digit together.
None will be able to deposit unwanted money into a Mobile Banking. Mobile Banking is highlysecured as it uses either USSD or SMS+IVR as its communication channel. In case of USSD,
both the instructions and PIN are communicated using USSD while in case of SMS+IVR,
instructions are sent via SMS and PIN via IVR (voice channel) both the USSD and IVR are
secured for transmission of PIN Customers money is safe as none can withdraw his/her money
without taking possession of Mobile set, PIN and Check digit together.
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None will be able to deposit unwanted money into a Mobile Banking Account without knowing
the check digit (although the mobile number is publicly known).
Where to cash-out (cash withdrawal)?
Customer can cash-out (withdraw) at any authorized agent, ATMs and Branch.
How does it work?
Customer asks the Agent for withdrawal of an amount from his/her mobile account
Agent initiates the transaction from his/her mobile
Agent gets prompt menu and in reply agent enters customers mobile account number
(including check digit) and amount to withdraw
System sends prompt menu to the customers mobile (or IVR Call): You are going to
withdraw Tk. XXXX from your mobile account with DBBL. If you want to continue,
please enter your 4-digit PIN
Customer enters his/her PIN
System debits customers account and send an SMS to the customers mobile
Agent hands over money to the customer
Where to cash-in (cash deposit)?
Customer can cash-in (deposit) at any authorized agent.
How does it work?
Customer hands over cash to the Agent
Agent initiates the transaction from his/her mobile
Agent gets prompt menu and in reply agent enters customers mobile account number
(including check digit) and amount.
Agent enters his/her PIN
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System credits customers account for the same amount
Agent issues a receipt to the customer
System sends an SMS to the customers mobile
For security reason, customer needs to check the sending number of SMS and the
amount.
How foreign remittance can be sent to Mobile Account?
Exchange houses at abroad receive remittance against beneficiarys mobile account
number Exchange houses send the mobile account number and the amount to Agent.
Agent will centrally credit the amount against respective mobile account.
The beneficiary will get an SMS regarding such transaction.
The beneficiary can go to any office of agent or ATM or Branch for withdrawal of money
What is transaction limit?
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There may be scarcity of cash at agent points. We want to serve as many customers as possible
from each agent points. On the other hand, it is required to minimize fraudulent loss, if any. To
arrest all the above, a transaction limit in terms of frequency and amount have been set in the
system. According to DBBL Current limit for the customers are as under:
Cash-in frequency per day = 5 times
Cash-out frequency per day = 5 times
Cash-in / cash-out amount per transaction = 5,000/-
Cash-in frequency per month = 20 times
Cash-out frequency per month = 20 times
How to check your account balance?
Customer initiates the transaction from his/her own mobile
System sends prompt menu to the customers mobile (or IVR Call): Please enter your 4-
digit PIN to know your balance or press Cancel button to cancel the request
Customer enters his/her PIN
System sends the balance into his/her mobile
How to change PIN?
Customer initiates the process from his/her own mobile.
System sends prompt menu to the customers mobile (or IVR Call): Please enter your
existing 4-digit PIN to proceed or press Cancel button to cancel the request.
Customer enters his/her existing PIN.
System asks for new 4-digit PIN.
Customer enters his/her new PIN.
The PIN is changed.
Fees & Service Charges
Registration Fee : Free
Cash-in Charges : 1% of the transaction amount or
Tk.5/-, whichever is higher
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Cash-out Charges : 2% of the transaction amount or
Tk.10/-, whichever is higher.
Objective:
This report focuses on the role of Mobile Banking and its potential to provide basic banking
services to the vast majority of unbanked people in world. The rationale for M-banking as an
appropriate tool for transforming banking stems from two observations;traditional retail banks do
not deliver services tailored to fit the currently unbanked
Features/Mobile Banking Services (In General):
Mobile banking can offer services such as the following
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
Mutual funds / equity statements
Insurance policy management
Pension plan management
Benefits of Mobile BankingThere is a lot of benefit of mobile banking in Bangladesh. These are given below:
By providing electronic access to money, it is possible to ultimately
alleviate poverty, because of the following reasons. Our proposed m-Banking system opens a
new door of benefits for banking customers.
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It saves valuable time in this machine age where time is more care than money. In
Bangladesh,horrible traffic jam is a common scenario. By our proposed system m-
Banking customers will get better customer service and satisfaction at the just a press of
button on mobile wherever he / she might be.
Another benefit of our proposed system is multitasking opportunity. For example if the
customer goes to the bank physically he or she would have to be engrossed and give time
to one task, banking transaction. But in this case, while doing important official tasks if
needed, the businessman can request for executing financial transaction over SMS.
SMS is the most easiest and familiar application in mobile set. So customers need not
know any extra knowledge of how to access this m-Banking infrastructure. In case of
online banking, not only
additional knowledge but also extra cost of computer, modem and internet service has to beencountered. In case of our developed m-Banking
system the only cost for an existing mobile user, would be max 2.15Taka (including
VAT).Requirement here is very simple just a mobile set with connectivity. Compared to online
banking costs 29212.15 Taka (Personal Computer + Modem +Internet cost per minute =25,000
Taka + 4200
tk.+0.50Tk*10 min), SMS banking costs case of SMS banking , the solution is of 2500Tk mobile
set+300Tk /450Tk/800Tk SIM +50TK recharge card+2.15 TK SMS cost =
2852.15/3002.15/3352.15 TK. Compared to online banking cost of 25005Tk it will just costcustomers just 2852.15 TK for the setup, which are undoubtedly a benefit and a better
satisfaction.
Our proposed system can process Push and Pull service request at maximum 25 second.
That means within I hour, 144 banking transactions can be done (3600
seconds/25seconds=no. tasks one hours that would be executed). That is faster than
manual banking.
Real time on-line banking
Available anytime, anywhere throughout the country
It is convenient, affordable and secure
It is much more effective in developing savings habits
It will make access to banking and advanced payment transactions at affordable cost
It is much safer, speedy and safeguard against fraudulent transactions
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Disadvantage of mobile banking :
According to the Bangladeshi prospectus mobile banking users are facing many problems, like
Most of the people of Bangladesh are uneducated they can not use mobile properly
They dont know how to use it properly
Lack of information booth of mobile banking
There are many problems of mobile frequency or there is networking
problem
difficult to do the process of m-banking
There are more formalities for the transaction
In the Bangladesh mobile banking is not high secured .
There are many changes to loss password from the mobile
Banks agents may be wrong
Have to give extra charge
Banks dont know properly about the account user informations
Banks dont know who are using the account
Lack of promotion of mobile banking
Limitation of transaction
Limitation of money transfer
These are the main problem of using mobile banking in Bangladesh for these reason people of
Bangladesh are not interested to use mobile banking.
Analysis:
According to the survey sheet, in the Bangladeshi prospectus most of the people who are the
users of mobile banking their age average over30 years old. Most of the users are male and most
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of them are service holder. They are the educated person and they are well known about mobile
phone. They are basically use advanced technologys mobile phone. Most of the m-banking user
use m-banking to know about account balance enquiries, reports of potentially fraudulent
transaction and stock market information.
Their opinions of advantage of m-banking are 1.Ubiquitous conducting of bank and 2.Overviewover the accounts. They think about the disadvantage of m-banking are risk and complicated. In
todays busy environment, with so many deadlines to fulfill, appointments to keep and meetings,
customers of a bank have little time to visit a branch or to wait for customer services operator to
come on phone line. m-Banking is a provision and availment of
banking and financial services with the help of mobile communication devices. In context of
Bangladesh, introduce of m-Banking in our national and private banking sector can be more
promising and beneficial one. SMS based m-Banking is a technology-enabled service offering
from banks to its customers, permitting them to operate selected banking services over their
mobile phones using SMS messaging thats cost is low enough. In this
paper, a newly proposed cost effective push pull services officering SMS based mobile banking
concept has been illustrated for 24 hours banking convenience which helps customers stay on top
of any recent changes made in their current or deposit account or loan through SMS. One of most
attractive features of our proposed banking system is push pull methodology
which is not only fast service provider but also of low cost, secure and easier to handle for bank
authority and customers. The sub classified broadcast, scheduling and event category push
services provides customers all time update of their current and deposit accounts along with any
major change in banking policy and status without customers request. By the pull services,
customers can pay deposit premium, electricity or mobile bill on due date by sending SMS in a
predefined nformat from remote. In our proposed system,
services are implemented and synchronized in a service table with help of XML such a technique
that if new services need to be added, it can be added
efficiently by determining which group it satisfy without any interruption of other services.
Through our proposed system, customers would not face problems due to server failure while the
server was in processing with
customers SMS. Because if bank server become out of order due to some accidental causes , a
track of data failure has been kept to handle this situation without any congestion in SMS server.
In future we have a plan
to convert our system into a decision support which would be able to make actions against
unexpected and unauthorized financial transactions.
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Recommendations
If the banks follow the given suggestions, the usage rate and the satisfaction level of SMS
banking customers will increase keeping pace with the growth rate of SMS banking customers.
Employees of customer service department of banks should be co-operative for registration and
educating the customers this technology-based service.User guide should be provided to all
intended customers.The Pull service charge should be cheaper.Bank should provide Pull service
instantly.Banks should use all mobile service operators available in Bangladesh.More services
should be included in SMS banking.Banks should focus on the rural areas.Developing E-
commerce and M-commerce in Bangladesh.Rules and Regulations must be stricken about mobile
banking.
Conclusion
The study comes to the conclusion that Mobile Banking presents a sizeable opportunity
for banks to retain their existing,technology-savvy customer base by offering value-
added,innovative services and to attract new customers from corresponding sections of
the society.The customer survey provides evidence that such sections in the meanwhile
include the affluent and financially relevant groups of the society. Time seems to be ripe
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to convert this non-negligible customer interest into business-driving customer demand.
A proactive attitude on the part of the banks seems to be therefore recommendable.
The empirical survey of the customer acceptance conducted under the ambit of this
study detected a large-scale customer interest in Mobile Banking. The customer interest
and the willingness to pay however varied for individual services and target groups. For
instance, over 92% of all survey participants were willing to remit money and conducttransactions via mobile phones. Nearly 60% of survey participants were even willing to
pay extra fee in order to utilise mobile remittance facilities. On the other hand, services
perceived to be complicated, and thus requiring expert opinion, received a relatively
poor response, e.g. the option of subscribing insurance policies via mobile devices was
rejected by almost two-thirds of the participants.
Mobile banking is poised to become the big killer mobile application arena. However, banks
going mobile the first time need to tread the path autiously. 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 terms of cost and time, but will notbe able to support the full breath of transaction-based services. However, in markets like India
where a bulk of the mobile population users' phones can only support SMS based services, this
might be the only option left.
On the other hand a market heavily segmented by the type and complexity of
mobile phone usage might be good place to roll of WAP based mobile applications. A WAP
based service can let go of the need to customize usability to the profile of each mobile phone,
the trade-off being that it cannot take advantage of the full breadth of features that a mobile
phone might offer. Mobile application standalone clients bring along the burden of supportingmultiple mobile device profiles. 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 banking has the potential to do to the mobile phone what E-
mail did to the Internet. Mobile Application based banking is poised to be a big m-commerce
feature, and if South Korea's foray into mass mobile banking is any indication, mobile banking
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25 | P a g e
could well be the driving factor to increase sales of high-end mobile phones. Nevertheless,
Bank's need to take a hard 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.
According to authors such responses underscore the necessity to design products in
strict adherence to the needs and wishes of relevant target customer groups. Mobile
Banking seems to have reached a stage to transcend from being a technology-driven
product into a business-focussed customer service.
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References
www.google.com
www.answer.com
The Daily star-Friday, July 22, 2011
http://www.thedailystar.net/newDesign/news-details.php?nid=195176
Dutch bangle bank ltd Mobile Bank
http://www.dutchbanglabank.com/electronic_banking/mobile_banking.ht
ml
Shirali S. and Shirali S. M. H., Mobile Banking Services in the Bank Area,"
Dhaka Bank launches mobile banking
http://www.hawker.com.bd/news_details.php?news_id=149963&news_category_id=5&v
al_lan=1
Mercantile Bank inks MoU to introduce mobile banking
http://www.thefinancialexpress-bd.com/more.php?news_id=134746&date=2011-05-06
BRAC Bank launches mobile banking service
http://www.thedailystar.net/newDesign/news-details.php?nid=195176
Bank Asia Ltd official site.
http://www.bankasia-bd.com/index.php?page_id=252
Trust Bank Ltd official site
http://www.trustbank.com.bd/mobile_banking/mobile_banking.php
Eastern Bank official site
https://www.easternbank.com/site/personal/banking/MobileBanking/Pages/MobileB
anking.aspx
Banks stepping into mobile banking
.http://www.thefinancialexpress-bd.com/more.php?news_id=151017&date=2011-09-
28
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