ACKNOWLEDGEMENT

Mere words cannot express my sincere gratitude and sentiment to those who paved path for me, with their light of knowledge, Sincerity and constant encouragement.

It is with great pleasure I present this report to State Bank of India. I am highly thankful to reverend mem ers of !aculty for their pristine advice and time, I am highly inde ted to Mr. "#MI$%&" SI$'()%y.Manager* of State Bank +f India, fountain chownk, for allowing me to undergo pro-ect in his esteemed organi.ation.

I express my profound thanks to Mr. #S(/#$I B(#00#, my teacher and guide, who has een magnanimous in guiding, encouraging and supporting me during this pro-ect and she guided me to choose this immensely productive topic and it was ecause of her confidence in me that I have een a le to carry out such a eautiful study report.

!inally, I would like to state that the pro-ect not only fulfilled an academic re1uirement, ut would also help me in future endeavors in the years to come.

#t last ut not the least I would like to pay my regards to My 2arents 3 !riends who were always with me during all the odds of my life. %I4S(# S#%#$#

DECLARATION

I here y declare that the pro-ect report entitled M+BI0& B#$4I$' S&"5I6&S su mitted for the M.6om Business Innovations is my original work and the 2ro-ect "eport has not formed the asis for the award of any degree, diploma, associate ship, or other similar titles.

%ate 2lace Signature

CONTENTS

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INTRODUCTION

Banking is the one of the fundamental need of every human eing in this earth, talking a out these days anking has not only een the need of human ut also to the various organi.ation and trust, even the iggest money earning trust of India including Sri Bala-i 7rust and Shirdi Sai 7rust are also using the ank services to take the proper care of the trustEs money. 7he anking did not only refer to the institutional anking ut also the exchange of money etween individuals and

organi.ations. 7he anking system in India is very vast and untouched yet this is the reason why there are so many possi ilities of further growth are present.

Because of the presence of the 2rivate sector in the field of anking, it ecomes mandatory for every ank to provide etter customer services and value for money to get the maximum num er of customers associated with it.

In seldom with the a ove mentioned lines there had een a very huge amount of change in the asic work process of every of the ank, now y leaving the oundary of red tape ism the satisfaction. ank are working for the higher and higher customer

$othing is $ew !orever is a very good line in /ikkipidea.com a out services, it means that none of the service is long lasting, launch of a new service is a typical

issue lots of constrains like Budget, "isk level, Market potential etc has to e search a out, thus continuously an organi.ation tries to ring innovation in the particular service and y this means get a it more time for eing in competition with other.

7hese days every of the ank is preparing itself to provide the est possi le services to the customers weather pu lic or private every of the ank is trying to attract the customer toward their own organi.ation y various possi le methods like advertisement, sponsorship of events, various types of further services like "ailway ticketing, Internet Banking, Mo ile Banking etc.

7he Internet Banking and Mo ile anking are one of the very new concepts in the field Banking, these are far etter than the traditional concept of anking where one had to wait several hours standing making 1ueue inside the ank premises. 7his is another step in anywhere anking service provided y the anks.

State ank of India is the pioneer of Mo ile Banking in India, this is the first ank to launch several other services like Internet anking and even #7M cards which could e popularly known y the name of plastic Money

Mobile banking is a system that allows customers of a financial institution to conduct a num er of financial transactions through a mo ile device such as a mo ile phone or personal digital assistant. Mobile banking refers to the use of a smart phone or other cellular device to perform online anking tasks while away from your home computer, such as monitoring account alances, transferring funds etween accounts, ill payment and locating an #7M.

Mo ile

anking has until recently most often

een performed via SMS or

the mo ile we . #ppleFs initial success with i2hone and the rapid growth of phones ased on 'oogleFs #ndroid )operating system* have led to increasing use of special client programs, called apps, downloaded to the mo ile device.

Mo ile anking is a facility using which customers can access their ank account using their mo ile phone. 7hey donFt have to visit the ank or the #7M to check their alance or to perform other anking transactions. 7his is especially useful for usinessmen and professionals who cannot get to visit anks during weekdays )Since theyFve got their own -o s to take care of* and need to use the anking facilities.

STUDENTS PROFILE

7his is the age of technical up gradation. $othing remains same for a long period. &verything changes within a certain span of time. So itEs must for every organi.ation to put irdEs eye view on its overall functioning.

7his report was prepared during summer training of Masters of commerce in Business Innovations, 8'6 sponsored course at S.6.% 'ovt. 6ollege, 0udhiana. 7he student of M.6+M )B.I* essentially re1uires a practical training for G to A weeks in any usiness organi.ation. It gives an opportunity to the students to test their ac1uired knowledge through practical experiences.

7he o -ective of my pro-ect is 7he study of Mo ile anking facility of State ank of India. I however, present this report in all my modesty to the readers with a faith that it will serve the cause of the su -ect.

2laceH 08%(I#$#

%ateH

DIKSHA SADANA

ORGANISATIONS PROFILE

State Bank of India is one of the very prominent anking service providers in India, which could even e ranked num er one in the customer satisfaction. 7he ank was introduced y the name of Imperial Bank of India in ;?>; y associating three imperial anks, including ank of Bengal, ank of Bom ay )Mum ai these days*, ank of madras)6hennai these days*. #nd finally in ;?== the name had changed to the State ank of India een

7he social profile of State Bank of India has also grown up and the reason ehind this is the several of social schemes y the ank itself, which includes planning to revive its village adoption scheme under corporate social responsi ility programme.

7he decadesCold scheme, now rechristened as SBI 4a #pna 'aon, will seek active support of village panchayats in 8ttarakhand and other States for its revival.

ItsE main purpose is to achieve ;BB percent financial inclusion for all elow poverty line )B20* families. It would also seek to promote selfChelp groups )S('s*, farm clu s with the participation of $'+s and other development agencies.

7he scheme would focus on credit re1uirements of all eligi le rural households and link community services with SBI anking services.

7he SBI has already started identifying villages in this regard and has organised a detailed survey wherein the ankEs staff mem ers would act as ridge etween the villages and the ank.

In 8ttarakhand, the SBI would work in tandem with the State government, which has also launched a similar Atal Adarsh Gram Yojna in all G@B nayay panchayats. +ne village in each nayay panchayat will e identified under the SBI scheme, with the thrust on development of rural social and infrastructure facilities to remove regional im alances.

7ruly speaking the State Bank of India is having the similar name and fame in anking sector as 0I6 is having in Insurance and 7#7# is having in #utomo iles and Steel in India. 7he purpose of comparison is not to ring the moral down of others ut it is to retrospect the leaders of their prospective fields and undou tedly 7he State Bank of India is the Market leader when it is a out Banking.

/ithout a sound and effective anking system in India it cannot have a healthy economy. 7he anking system of India should not only e hassle free ut it should e a le to meet new challenges posed y the technology and any other external and internal factors.

!or the past three decades IndiaEs

anking system has several outstanding

achievements to its credit. 7he most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian anking

system has reached even to the remote corners of the country. 7his is one of the main reasons for IndiaEs growth.

EVOLUTION OF STATE BANK OF INDIA

7he origin of the State Bank of India goes

ack to the first decade of the

nineteenth century with the esta lishment of the Bank of 6alcutta in 6alcutta on > 9une ;ABG. 7hree years later the ank received its charter and was reCdesigned as the Bank of Bengal )> 9anuary ;AB?*. # uni1ue institution, it was the first -ointC stock ank of British India sponsored y the 'overnment of Bengal. 7he Bank of Bom ay );= #pril ;A<B* and the Bank of Madras ); 9uly ;A<D* followed the Bank of Bengal. 7hese three anks remained at the apex of modern anking in India till their amalgamation as the Imperial Bank of India on >@ 9anuary ;?>;.

2rimarily #ngloCIndian creations, the three presidency anks came into existence either as a result of the compulsions of imperial finance or y the felt needs of local &uropean commerce and were not imposed from outside in an ar itrary manner to moderni.e IndiaFs economy. 7heir evolution was, however, shaped y ideas culled from similar developments in &urope and &ngland, and was influenced y changes occurring in the structure of oth the local trading environment and those in the relations of the Indian economy to the economy of &urope and the glo al economic framework.

ESTABLISHMENT

7he esta lishment of the Bank of Bengal marked the advent of limited lia ility, -ointCstock anking in India. So was the associated innovation in anking, vi.. the decision to allow the Bank of Bengal to issue notes, which would e accepted for payment of pu lic revenues within a restricted geographical area. 7his right of note issue was very valua le not only for the Bank of Bengal ut also its two si lings, the Banks of Bom ay and Madras. It meant an accretion to the capital of the anks, a capital on which the proprietors did not have to pay any interest. 7he concept of deposit anking was also an innovation ecause the practice of accepting money for safekeeping )and in some cases, even investment on ehalf of the clients* y the indigenous ankers had not spread as a general ha it in most parts of India. But, for a long time, and especially up to the time that the three presidency anks had a right of note issue, ank notes and government alances made up the ulk of the

investi le resources of the anks.

7he three anks were governed y royal charters, which were revised from time to time. &ach charter provided for a share capital, fourCfifth of which were privately su scri ed and the rest owned y the provincial government. 7he mem ers of the oard of directors, which managed the affairs of each ank, were mostly proprietary directors representing the large &uropean managing agency houses in India. 7he rest were government nominees, invaria ly civil servants, one of whom was elected as the president of the oard.

BUSINESS

7he usiness of the anks was initially confined to discounting of ills of exchange or other negotia le private securities, keeping cash accounts and receiving deposits and issuing and circulating cash notes. 0oans were restricted to ` one lakh and the period of accommodation confined to three months only. 7he security for such loans was pu lic securities, commonly called 6ompanyFs 2aper, ullion, treasure, plate, -ewels, or goods Fnot of a perisha le natureF and no interest could e charged eyond a rate of twelve per cent. 0oans against goods like opium, indigo, salt woolens, cotton, cotton piece goods, mule twist and silk goods were also granted ut such finance y way of cash credits gained momentum only from the third decade of the nineteenth century. #ll commodities, including tea, sugar and -ute, which egan to e financed later, were either pledged or hypothecated to the ank. %emand promissory notes were signed y the orrower in favor of the guarantor, which was in turn endorsed to the ank. 0ending against shares of the anks or on the mortgage of houses, land or other real property was, however, for idden.

Indians were the principal orrowers against deposit of 6ompanyFs paper, while the usiness of discounts on private as well as salary ills was almost the exclusive monopoly of individuals &uropeans and their partnership firms. But the main function of the three anks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a a degree of sta ility to the prices of government securities.

BOARD OF DIRECTORS

S ! Na"e No! % . / 0 ' 1 2 3 & %4 Mohapatra %% %. %/ %0 %' %1 Bahadur Singh Shri "a-iv 7akru %r. 8r-it ". 2atel Shri S.4. Mukher-ee %r. "a-iv 4umar Shri %eepak #min Shri (arichandra %irector %irector %irector %irector %irector %irector %irector +fficer &mployee Iyengar Shri 7homas Mathew Shri 9yoti Bhushan 6ontractor Shri %iwakar 'upta Shri #. 4rishna 4umar Shri S.5ishvanathan Shri S. 5enkatachalam Shri %. Sundaram Shri 2arthasarathy Managing %irector Managing %irector Managing %irector %irector %irector %irector %irector /orkmen De#ignation

Unde Se$tion of SBI A$t %&'' %& ,a;? ) * ;? ) * ;? ) * ;? ) * ;? )c* ;? )c* ;? )c* ;? )c* &mployee ;? )ca*

S( i ) ati* C(a+d(+ i C(ai "an Shri (emant '. Managing %irector

;? )c * ;? )d* ;? )d* ;? )d* ;? )e* ;? )f*

ASSOCIATES OF STATE BANK OF INDIA

7he Bank of Bengal, which later ecame the State Bank of India. State Bank of India with its seven associate anks commands the largest anking resources in India. SBI has five associate anks, all use the State Bank of India logo, which is a lue circle, and all use the IState Bank ofI name, followed head1uartersF nameH y the regional

State Bank of Bikaner 3 9aipur

State Bank of (ydera ad

State Bank of Mysore

State Bank of 2atiala

State Bank of 7ravancore

&arlier SBI had seven associate

anks, all of which had

elonged to princely

states until the government nationali.ed them

etween +cto er ;?=? and May

;?GB. In tune with the first !ive :ear 2lan, which prioriti.ed the development of rural India, the government integrated these anks into State Bank of India system to expand its rural outreach. 7here has een a proposal to merge all the associate anks into SBI to create a Imega ankI and streamline the groupFs operations.

7he first step towards unification occurred on ;D #ugust >BBA when State Bank of Saurashtra merged with SBI, reducing the num er of associate state anks from

seven to six. 7hen on ;? 9une >BB? the SBI oard approved the a sorption of State Bank of Indore. SBI holds ?A.DJ in State Bank of Indore. )Individuals who held the shares prior to its takeover y the government hold the alance of ;.@@J.*

7he ac1uisition of State Bank of Indore added <@B ranches to SBIFs existing network of ranches. #lso, following the ac1uisition, SBIFs total assets will inch very close to the ;B trillion mark );B illion long scale*. 7he total assets of SBI and the State Bank of Indore stood at ?,?A;,;?B million as of March >BB?. 7he process of merging of State Bank of Indore was completed y #pril >B;B, and the SBI Indore ranches started functioning as SBI ranches on >G #ugust >B;B.

ABOUT LO5O

7(& 20#6& 7+ S(#"& 7(& $&/S ...KK S(#"& 7(& 5I&/S KK

7ogetherness is the theme of this corporate loge of SBI where the world of anking services meet the ever changing customers needs and esta lishes a link that is like a circle, it indicates complete services towards customers. 7he logo also denotes a ank that it has prepared to do anything to go to any lengths, for customers.

7he lue pointer represent the philosophy of the ank that is always looking for the growth and newer, more challenging, more promising direction. 7he key hole indicates safety and security.

7o retain the BankEs position as premiere Indian !inancial Service 'roup, with world class standards and significant glo al committed to excellence in customer, shareholder and employee satisfaction and to play a leading role in expanding and diversifying financial service sectors while containing emphasis on its development anking rule.

VISION STATEMENT6

2remier Indian !inancial Service 'roup with prospective worldCclass standards of efficiency and professionalism and institutional values

"etain its position in the country as pioneers in %evelopment anking.

Maximi.e the shareholders value through highCsustained earnings per Share.

#n institution with cultural mutual care and commitment, satisfying and

'ood work environment and continues learning opportunities.

VALUES

&xcellence in customer service

2rofit orientation

Belonging commitment to Bank

!airness in all dealings and relations

"isk taking and innovative

7eam playing

0earning and renewal

Integrity

7ransparency and %iscipline in policies and systems.

MISSION OF SBI

&xpand the frontiers of our usiness glo ally.

2lay a proactive role in the full reali.ation of IndiaEs potential.

Maintain a healthy financial profile and diversify our earnings across usinesses and geographies.

Maintain high standards of governance and ethics.

6ontri ute positively to the various countries and markets in which we operate.

6reate value for our stakeholders.

7o e the leading provider of financial services in India and a ma-or glo al ank.

COM)ETITORS

6ompetitors and other players in the fieldHC

A) Top Performing Public Sector Banks #ndhra Bank

#llaha ad Bank

2un-a $ational Bank

%ena Bank

5i-aya Bank

B) Top Performing Private Sector Banks

(%!6 Bank

I6I6I Bank

#LIS Bank

4otak Mahindra Bank

6enturion Bank of 2un-a

C) Top Performing Foreign Banks

6iti ank

Standard 6hartered

(SB6 Bank

#B$ #M"+ Bank

#merican &xpress

SERVICE )ROFILE

7he services of state Bank of India are always a matter of consideration for the people of India and this is the reason why the ank is having so vast range of services associated with it. 7he State ank of India is the institution which is working very hard for achieving the customer satisfaction through molding its policies towards the customerEs

interest. !or example as making home is one of the very common desire of each and every middle class family and thus the ank had molded the home loan policy in such a way so that the home loan is availa le to the customers M <J, which is first time in India. 7he few main services of the State Bank of India are listed elow.

6ore Banking. Internet Banking. International Money 7ransfer. International #7M cum %e it 6ard. SBI :atra 6ard Mo ile Banking.

7he detailed information a out these services is mentioned as follows.

Core Banking

6ore anking is the facility which has een started y State Bank of India in the year >BBB which was very new and innovative concept for Indian anks those days, this service includes fund transfer at a very high rate and within few minutes to any of the ank or ranch within India.

!nternet Banking

Internet anking is one of the concept pioneered y State Bank of India in >BB@ which had ena led the customers to access their accounts y the use of Internet, this service had ena led the customers to go for online shopping and share trading and even for fund transfer.

International Money 7ransferH

Money transfer etween the anks is always a matter of due importance and when it comes to international money transfer itEs a severe issue, to cope up with this kind of pro lem the State ank of India is in accord with /estern 8nion money transfer, which will e helpful to the $"Is to transfer the money to the country and even collect that.

!nternational AT" cum #ebit Card

7he service of #7M is again an innovation rought in Indian su continent y State Bank of India and the other anks had introduced it later the card is having a specific magnetic strip which possess the detail of account of the card holder this card can internationally eing used for the money withdrawal and as the %e it 6ard to pay the ills y one single access.

SB! Yatra Card

7he India railways is having the largest rail line network worldwide and it is the second largest mean to carry passengers from one place to other so itEs o vious having 1ueues at 7icket "eservation counters, to cope up with this the SBI had launched :atra 6ard, y which a passenger can ook 7icket from anywhere using internet.

"obile Banking

It was a dream of Mr. %heeru Bhai #m ani pioneer of "eliance that every single Indian have his or her own mo ile, thus y watching the importance of mo ile phones SBI had launched the Mo ile Banking which is -ust like home anking or any where anking.

$%$A& A'# AG$!C%&T%$A& BA'(!'G

7he "ural, MicroCBanking 3 #gricultural Business 'roup is responsi le for envisioning and implementing rural anking strategy, including agricultural anking and microCfinance.

'$!)BA'(!'G

# gamut of services to take care of all $"I anking needs including deposits, money transfers and private anking.

P$*P+$TY

!or millions of home uyers across the country, SBI Bank offers not -ust great deals on home loans ut also a wealth of expert advice. SBI Bank offers home search service which can help a customer identify the property of his choice ased on his udget and other re1uirements.

#+"AT ACC*%'TS

SBI BankEs demat services after uni1ue features like eCconstructions, consolidation, digitally signed statements, mo ile re1uests and corporate enefit tracking.

$%$A&)BA'(!'G

Bank offers technologyC ased solutions, financial innovations and multiple delivery channels to meet the financial needs of rural areas.

"!C$*F!'A'C+

SBI Bank assists over >.= million low income clients to uild livelihoods y partnering with over ;BB microfinance institutions.

5RO7TH OF STATE BANK OF INDIA

State Bank of India has often acted as guarantor to the India 'overnment, most nota ly during 6handra ShekharEs tenure as 2rime Minister of India. /ith ;;,<<A ranches and a further G=BB N associate ank ranches, the SBI has extensive coverage. State Bank of India has electronically networked all of its ranches under 6ore Banking System )6BS*. 7he ank has one of the largest #7M networks in the region. More than A=BB #7Ms across India. 7he State Bank of India has had steady growth over its history, though it was marred y the (arshad Mehta scam in ;??>. In recent years, the ank has sought to expand its overseas operations y uying foreign anks. It is the only Indian ank to feature in the top ;BB world anks in the !ortune 'lo al =BB rating and various other rankings.

STREN5TH8O))ORTUNITIES

7he growth for SBI in the coming years is likely to e fueled y the following factorsH

O 6ontinued effort to increase low cost deposit would ensure improvement in earnings.

O 'rowing retail 3 SM&s thrust would lead to higher usiness growth.

O Strong economic growth would generate higher demand for funds pursuant to higher corporate demand for credit on account of capacity expansion.

7EAKNESS8THREATS

7he risks that could ensue to SBI in time to come are as underH

O SBI is currently operating at a lowest 6#". Insufficient capital may restrict the growth prospects of the ank going forward.

O Stiff competition, especially in the retail segment, could impact retail growth of SBI and hence slowdown in earnings growth.

O 6ontri ution of retail credit to total ank credit stood at >GJ. Significant thrust on growing retail ook poses higher credit risk to the ank.

O %elay in technology up gradation could result in loss of market shares.

O Slow down in domestic economy would pose a concern over credit offCtake there y impacting earnings growth

OVERVIE7 OF STATE BANK OF INDIA

$ot only many financial institution in the world today can claim the anti1uity and ma-esty of the State Bank +f India founded nearly two centuries ago with primarily intent of imparting sta ility to the money market, the ank from its inception mo ili.ed funds for supporting oth the pu lic credit of the companies governments in the three presidencies of British India and the private credit of the &uropean and India merchants from a out ;AGBs when the Indian economy ook a significant leap forward under the impulse of 1uickened world communications and ingenious method of industrial and agricultural production the Bank ecame intimately in valued in the financing of practically and mining activity of the Su C 6ontinent #lthough large &uropean and Indian merchants and manufacturers were undou tedly thee principal eneficiaries, the small man never ignored loans as low as ` ;BB were dis ursed in agricultural districts against glad ornaments. #dded to these the ank till the creation of the "eserve Bank in ;?D= carried out numerous 6entral P Banking functions.

#daptation world and the needs of the hour has een one of the strengths of the Bank, in the post depression exe. !or instance P when ecome extremely restricted, rules laid down in the usiness opportunities

ook of instructions were

relined to ensure that good usiness did not go post. :et seldom did the ank contravene its value as depart from sound anking principles to retain as expand its

usiness. #n innovative array of office, unknown to the world then, was devised in the form of ranches, su ranches, treasury pay office, pay office, su pay office

and out students to exploit the opportunities of an expanding economy. $ew usiness strategy was also evaded way ack in ;?D@ to render the est anking service through prompt and courteous attention to customers.

# highly efficient and experienced management functioning in a well defined organi.ational structure did not take long to place the ank an executed pedestal in the areas of usiness, profita ility, internal discipline and a ove all credi ility # impecca le financial status consistent maintenance of the lofty traditions if anking an o servation of a high standard of integrity in its operations helped the ank gain a preC eminent status. $o wonders the administration for the ank was universal as key functionaries of India successive finance minister of independent India "esource Bank of governors and representatives of cham er of commercial showered economics on it.

Modern day management techni1ues were also very much evident in the good old dayEs years efore corporate governance had ecome a pu..led the anks ound functioned with a high degree of responsi ility and concerns for the shareholders. 8n roken records of profits and a fairly high rate of profit and fairly high rate of dividend all through ensured satisfaction, prudential management and asset lia ility management not only protected the interests of the Bank ut also ensured that the o ligations to customers were not met. 7he traditions of the past continued to e upheld even to this day as the State Bank years itself to meet the emerging challenges of the millennium.

OBJECTIVES 7he first and foremost step in the research process consists of identifying the need of research then the identification of pro lem and opportunities underlying the pro lem. 7he necessity of proper identification of pro lem cannot e over

emphasi.ed. It is therefore rightly said that the pro lem properly defined is half solved. 7hus proper formulation of research pro lems through setting num er of marketing research o -ectives would ena le to give a sense of direction to researcher.

7he o -ectives of my pro-ect study areHC

;* 7o analy.e the current market potential for Mo ile anking of SBI.

>* 7o study the consumer satisfaction level for the mo ile anking facility of SBI

D* 7o compare etween mo ile anking and counter anking of SBI.

<* 7o compare the viewpoint of different respondents depending on their occupation a out the mo ile anking !acility of SBI.

=* 7o know the view point of staff mem ers of SBI.

G* 7o analy.e the customers regarding the use mo ile anking.

@* 7o learn a out the challenges faced y mo ile anking.

A* 7o examine the factors that influences the intention to use of mo ile anking services.

?* 7o examine the opportunities and challenges in mo ile anking.

;B* 7o evaluate mo ile anking service in terms of its adopta ility

INTRODUCTION OF THE TOPIC

7he last technology that had a ma-or impact in helping anks service their customer was with the introduction of the internet anking. Internet anking helped the

customers anytime access to their anks. 6ustomers could check out their account details, get their ank statement, perform transactions like transferring money to other account and pay their ills sitting in the comfort of their homes and offices.

(owever the iggest limitation of Internet anking is the re1uirement of a 26 with an Internet connection, not a ig o stacle if we look at the 8S# and the &uropean countries, ut definitely a ig arrier if we consider most of the developing

countries of #sia like 6hina and India. Mo ile anking addresses this fundamental limitation of Internet anking, as it reduces the customer re1uirement to -ust a mo ile phone.

Mo ile usage has seen an explosive growth in most of the #sian economies like India, 6hina and 4orea. In fact 4orea has seen one of the most aggressive rollouts of mo ile anking services. Still, the main reason that mo ile anking scores over Internet anking is that it ena les Q#nywhere BankingE. 6ustomers now donEt need access to a computer terminal to access their ank.

7he scales at which Mo ile anking has a potential to grow can e gauged y looking at the pace users are getting mo ile in these ig #sian economies.

#ccording to the 6ellular +perators #ssociation of India )6+#I* the mo ile su scri er ase in India hit <B.G million in the #ugust >BB<. In Septem er >BB< it added a out ;.A= million more. 7he explosion as most analysts say, it yet to come as India has a out one of the iggest untapped markets. 6hina, which already

witnessed the mo ile oom, is expected to have a out DBB million mo ile users y the end of >BB<. South 4orea is targeted to reach a out <> million mo ile users y the end of >BB=. #ll three of these countries have seen gradual rollCout of mo ile anking services, the most aggressive eing 4orea which is now witnessing the rollCout of some of the most advanced services like using mo ile phones to pay ills in shops and restaurants.

MOBILE BANKIN5 IN THE 7ORLD

Mo ile anking is used in many parts of the world with little or no infrastructure, especially remote and rural areas. 7his aspect of mo ile commerce is also popular in countries where most of their population is un anked. In most of these places, anks can only e found in ig cities, and customers have to travel hundreds of miles to the nearest ank.

In Iran, anks such as 2arsian, 7e-arat, Mellat, Saderat, Sepah, &d i, and Bankmelli offer the service. Banco Industrial provides the service in 'uatemala. 6iti.ens of Mexico can access mo ile anking with +mni life, Ban comer and M2ower

5enture. 4enyaFs Safaricom )part of the 5odafone 'roup* has the MC2eas Service, which is mainly used to transfer limited amounts of money, ut increasingly used to pay utility ills as well. In >BB?, Rain launched their own mo ile money transfer usiness, known as R#2, in 4enya and other #frican countries. In Somalia, the many telecom companies provide mo ile (ormuud 7elecom and its R##% service. anking, the most prominent eing

7elenor 2akistan has also launched a mo ile anking solution, in coordination with 7aameer Bank, under the la el &asy 2aisa, which was egun in S< >BB?. &ko India !inancial Services, the usiness correspondent of State Bank of India )SBI* and I6I6I Bank, provides ank accounts, deposit, withdrawal and remittance services, microCinsurance, and microCfinance facilities to its customers )nearly ABJ of whom are migrants or the un anked section of the population* through mo ile anking. In a year of >B;B, mo ile anking users soared over ;BB percent in 4enya, 6hina, Bra.il and 8S# with >BBJ, ;=B J, ;;B J and ;BB percent respectively.

%utchCBangla Bank )www.dutch angla ank.com* launches the very first mo ile anking service in Bangladesh on D; March, >B;;. 7his service is launched with Q#gentE and Q$etworkE support from mo ile operators, Bangla link and 6ity cell. Sy ase DG=, a su sidiary of Sy ase, Inc. has provided software solution. 7here are around ;GB million people in Bangladesh, of which, only ;D per cent have ank accounts. /ith this solution, %utchCBangla Bank can now reach out to the rural and un anked population, of which, <= per cent are mo ile phone users. 8nder the service, any mo ile handset with su scription to any of the six existing mo ile operators of Bangladesh would e a le to utili.e the service. 8nder the mo ile anking services, ankCnominated Q#gentsE perform anking activities on ehalf of the anks, like opening mo ile anking account, providing cash services )receipts and payments* and dealing with small credits. 6ash withdrawal from a mo ile account can also e done from an #7M validating each transaction y Qmo ile phone 3 2I$E instead of Qcard 3 2I$E. +ther services that are eing delivered through mo ile anking system are personCtoCperson )e.g. fund transfer*, personCtoC

usiness )e.g. merchant payment, utility salaryTcommission dis ursement*,

ill payment*,

usinessCtoCperson )e.g. )dis ursement of

governmentCtoCperson

government allowance* transactions.

INDIAN SCENARIO

Most Indian anks offer mo ile anking facilities. "BI has cautiously encouraged the trend with guidelines on mo ile anking with putting in place a "s =BBBTC limit on withdrawals via a mo ile anking transaction to avoid fraud. 7he mo ile payments market is still at its infancy in India and it is estimated that the current daily transaction volumes today will e in the range of "s =C;B Million. &ven if =J of mo ile ill payment and recharge shifts onto mo ile payments platform the industry can grow to "s>BB Million a day.

Mo ile transactions as followsH

!und 7ransfer

Bill 2ayment

+ther financial services like share trading.

&n1uiry Based

6reditT%e it #lerts.

Minimum Balance #lerts

Bill 2ayment #lerts

#ccount Balance &n1uiry

#ccount Statement &n1uiry.

6he1ue Status &n1uiry.

6he1ue Book "e1uests.

"ecent 7ransaction (istory

HISTOR9 OF MOBILE BANKIN5

Mo ile anking customers now en-oy a more userCfriendly service compared with the serviceFs eginnings in the early >BBBs. 7he decade has een a time of trial and error, as financial institutions struggle to meet consumer preferences for mo ile anking features

&arly >BBBs

Banks faced mo ile

anking challenges in the early part of the

decade. 6onsumers found it difficult to view their financial information on the small cell phone screens that were common at the time. Some anks offered the service, only to soon discontinue it, in

>BB>, many anks developed a mo ile anking service and only >,=BB customers enrolled in it. Because of the poor response, they soon withdrew the offering.

MidC>BBBs

#s the si.e and capa ilities of mo ile devices increased, so did the effectiveness of mo ile anking. Banks introduced services that

accommodated more types of cell phones and mo ile devices, including smart phones. 6onsumers preferred the easier navigation and improved images and graphics offered y updated,

technologically advanced mo ile services.

>BBA and Beyond

In >BBA, smaller

anks

egan to offer mo ile

anking. More

customers of large anks were also using the service. #s of !e ruary >BB?, +ther industry players offers a mo ile anking application that allows customers from different anks, with different types of

mo ile devices, to more easily conduct transactions.

FEATURES OF MOBILE BANKIN5

Mo ile 2ayments are any monetary transactions that take place with the help of a mo ile phone. 7here are three primary types of mo ile paymentsH

M:Co""e $e

Mo ile phones linked to creditTde it cards can e used to make payments typically for transportation, vending machines etc.

E:Mone;

6ash loaded in the mo ile phones at service provider outlets. 6onsumers use this virtual cash as real value for all types of transactions.

Banking C(annel

Mo ile phone used for accessing the through the ank.

ank accounts. #ll payments are routed

7oday 6ash cow will e focusing on Mo ile Banking. Mo ile anking is a way for the customer to perform anking actions on the cell phone or other mo ile device.

7he amount of anking you are a le to do on your cell phone varies depending on the anking institution you use. Some anks offer only the option of text alerts, which are messages sent to your cell phone that alert you to activity on your account such as deposits, withdrawals, and #7M or credit card use. 7his is the most asic type of mo ile anking.

# more involved type of mo ile anking allows the user to log into his or her account from a cell phone, and then use the phone to make payments, check alances, transfer money etween accounts, notify the ank of a lost or stolen credit card, stop payment on a check, receive a new 2I$, or view a monthly statement, among other transactions.

MODELS IN MOBILE BABKIN5

A) Conceptual model

In one academic model, mo ile anking is defined asH Mo ile Banking refers to provision and availment of ankingC and financial

services with the help of mo ile telecommunication devices. 7he scope of offered services may include facilities to conduct ank and stock market transactions, to administer accounts and to access customi.ed information.I

#ccording to this model Mo ile Banking can e said to consist of three interCrelated conceptsH

Mo ile #ccounting Mo ile Brokerage Mo ile !inancial Information Services

Most services in the categories designated #ccounting and Brokerage are transactionC ased. 7he nonCtransactionC ased services of an informational nature are however essential for conducting transactions C for instance, alance in1uiries might e needed efore committing a money remittance. 7he accounting and

rokerage services are therefore offered invaria ly in com ination with information services. Information services, on the other hand, may e offered as an independent module. Mo ile phone anking may also e used to help in usiness situations

B, "obile banking business models

# wide spectrum of Mo ileT ranchless anking models is evolving. (owever, no matter what usiness model, if mo ile anking is eing used to attract lowCincome populations in often rural locations, the usiness model will depend on anking agents, i.e., retail or postal outlets that process financial transactions on ehalf telecoms or anks. 7he anking agent is an important part of the mo ile anking usiness model since customer care, service 1uality, and cash management will depend on them. Many telecoms will work through their local airtime resellers.

7hese models differ primarily on the 1uestion that who will esta lish the relationship )account opening, deposit taking, lending etc.* to the end customer, the Bank or the $onCBankT7elecommunication 6ompany )7elco*. #nother difference lies in the nature of agency agreement etween ank and the $onCBank. Models of ranchless anking can e classified into three road categories C Bank !ocused, BankC0ed and $on ankC0ed.

;.

BankCfocused model

7he ankCfocused model emerges when a traditional ank uses nonCtraditional lowC cost delivery channels to provide anking services to its existing customers.

&xamples range from use of automatic teller machines )#7Ms* to internet anking or mo ile phone anking to provide certain limited anking services to anksE customers. 7his model is additive in nature and may e seen as a modest extension of conventional ranchC ased anking.

>.

BankCled model

7he

ankCled model offers a distinct alternative to conventional

ranchC ased

anking in that customer conducts financial transactions at a whole range of retail agents )or through mo ile phone* instead of at ank ranches or through ank employees. 7his model promises the potential to su stantially increase the financial services outreach y using a different delivery channel )retailersT mo ile phones*, a different trade partner )7elco T chain store* having experience and target market distinct from traditional anks, and may e significantly cheaper than the ankC ased alternatives. 7he ankCled model may e implemented y either using

correspondent arrangements or y creating a 95 etween Bank and 7elcoTnonC ank. In this model customer account relationship rests with the ank

D.

$onC ankCled model

7he nonC ankCled model is where a ank has a limited role in the dayCtoCday account management. 7ypically its role in this model is limited to safeCkeeping of funds. #ccount management functions are conducted y a nonC ank )e.g. 7elco* who has direct contact with individual customers.

TECHNOLO5IES ENABLIN5 MOBILE BANKIN5

7echnically speaking most of these services can e deployed using more than one channel. 2resently, Mo ile anking is eing deployed using mo ile application developed on one of the following four channelsH

%.

!-$ .!nteractive -oice $esponse-

I5" service operates through preCspecified num ers that anks advertise to their customers. 6ustomers make a call at the I5" num er and are usually greeted y a stored electronic message followed y a menu of different options. 6ustomers can choose options y pressing the corresponding num er in their keypads, and are then read out the corresponding information, mostly using a text to speech programme.

Mo ile anking ased on I5" has some ma-or limitation that they can e used only for en1uiry ased services. #lso, I5" is more expensive as compared to other channels as it involves making a voice call which is generally more expensive than sending an SMS or making data transfer )as in /#2 or Standalone clients*.

+ne way to ena le I5" is y developing a 2BL system that can host I5" dial plans. Banks looking to go the low cost way should consider evaluating asterisk, which is an open source 0inux 2BL system.

#sterisk, due to its open source nature has caught on in a ig way and is eing old as a 2BL solution y 1uite a few companies commercially. (owever there has een considera ly noise on multiple asterisks related forums over the sta ility of asterisk ased systems. 6ompanies planning to use #sterisk for their I5" solution should certainly do a rigorous evaluation of its capa ilities efore committing their long term future on it.

.!

S"S .Short "essaging Service,

SMS uses a popular textCmessaging standard to ena le mo ile application ased anking. 7he way this works is that the customer re1uests for information y

sending an SMS containing a service command to a preCspecified num er. 7he ank responds with a reply SMS containing the specific information

!or example, customer of the SBI ank in India can get

their account alance

details y sending the keyword QSBIB#0E and receive their alance information

again y SMS. Most of the services rolled out y ma-orEs anks using SMS have een limited to the In1uiry ased ones.

(owever there have een few instances where even transactionC ased services have een made availa le to customer using SMS. !or instance, customer of the Bank of 2un-a can make fund transfer y sending the SMSE 7"$ )#T6 no* )2I$ $o* )amount*E.

+ne of the ma-or reason that transaction ased services have not taken of on SMS is ecause of concerns a out security and ecause SMS doesnEt ena le the ank to deliver a customer to access more complex service such as transactions.

7he main advantage of deploying mo ile application over SMS is almost all mo ile phones, including the low end, cheaper oneEs, which are most popular in countries like India and 6hine are SMS ena led.

#n SMS ased service is hosted on SMS gateway that further connects to the mo ile service providers MS center. 7here are couple of hosted I2 ased SMS gateways availa le in the market and also some open sources one like 4annel.

/!

/AP .0ireless access Protocol,

/#2 uses a concept similar to that used in Internet anking. Banks maintain /#2 sites which customerEs access using a /#2 compati le rowser on their mo ile

phones. /#2 sites offer the familiar from ased interface and also implement security 1uite effectively.

Bank of #merica offers a /#2 ased service channel to its customers in (ong 4ong. 7he anks customers can now have an anytime, anywhere access to a secure relia le service that allows them to access all in1uiry and transaction ased service and also more complex transaction like trade in securities through their phone. # /#2 ased service re1uires hosting a /#2 gateway. Mo ile application users access the anks site through the /#2 gateway to carry our transactions, much like internet users access a we portal for accessing the anks services.

7he following figure demonstrates the framework for ena ling mo ile applications over /#2. 7he actually forms that go in to a mo ile anking application stored on a server, and served on demand. 7he /#2 'ateway forms an access point to the Internet from mo ile network.

0!

Standalone "obile Application Clients

Standalone mo ile application are the ones that hold out the most promise as they are most suita le to implement complex anking transaction like trading in

securities. 7hey can e easily customi.ed according to the user interface complexity supported y the mo ile. In addition, mo ile applications ena le the

implementation of a very secure and relia le channel of communication.

+ne re1uirement of mo ile application clients is that they re1uire to e downloaded on the clients device efore they can e used, which further re1uires the mo ile device to support one of the many development environments like 9>M& or SualcommEs B"&/. 9>M& is fast ecoming an industry standard to deploy mo ile applications and re1uires the mo ile phone to support 9#5#.

7he ma-or disadvantage of mo ile application clients is that the applications needs to e customi.ed to each mo ile phone on which it might finally run. 9>M& ties together the #7I for mo ile phones which have the similar functionality in what it calls QprofilesE. (owever the rapid proliferation of mo ile phone with support different functionality has resulted in a huge num er of profiles, which are further significantly driving up development costs. 7his scale of this pro lem can e

gauged y the fact that companies implementing mo ile application clients might need to spend as much as =BJ of their development time and resources on -ust customi.ing their application to meet the needs of different mo ile profiles.

+ut of 9>M& and B"&/, 9>M& seem to have an edge right now $okia has made the development tools open to developers which has further fostered a huge online community focused in developing application ased on 9>M&.

MOBILE BANKIN5 SERVICES

Mo ile anking can offer services such as the followingH

A- A$$o+nt Info "ation

MiniCstatements and checking of account history #lerts on account activity or passing of set thresholds Monitoring of term deposits #ccess to loan statements #ccess to card statements Mutual funds T e1uity statements Insurance policy management 2ension plan management Status on che1ue, stop payment on che1ue +rdering che1ue ooks Balance checking in the account "ecent transactions %ue date of payment )functionality for stop, change and deleting of payments* 2I$ provision, 6hange of 2I$ and reminder over the Internet Blocking of )lost, stolen* cards

B- )a;"ent#< De*o#it#< 7it(d a=al#< and T an#fe #

%omestic and international fund transfers MicroCpayment handling Mo ile recharging

6ommercial payment processing Bill payment processing 2eer to 2eer payments /ithdrawal at anking agent %eposit at anking agent

# specific se1uence of SMS messages will ena le the system to verify if the client has sufficient funds in his or her wallet and authori.e a deposit or withdrawal transaction at the agent. /hen depositing money, the merchant receives cash and the system credits the clientFs ank account or mo ile wallet. In the same way the client can also withdraw money at the merchantH through exchanging sms to provide authori.ation, the merchant hands the client cash and de its the merchantFs account.

C- In>e#t"ent#

2ortfolio management services "ealCtime stock 1uotes 2ersonali.ed alerts and notifications on security prices

D- S+**o t

Status of re1uests for credit, including mortgage approval, and insurance

coverage 6heck )che1ue* ook and card re1uests &xchange of data messages and email, including complaint su mission and

tracking #7M 0ocation

E- Content Se >i$e#

'eneral information such as weather updates, news 0oyaltyCrelated offers 0ocationC ased services

Based on a survey conducted y !orrester, mo ile anking will e attractive mainly to the younger, more ItechCsavvyI customer segment. # third of mo ile phone users say that they may consider performing some kind of financial transaction through their mo ile phone. But most of the users are interested in performing transactions such as 1uerying for account alance and making ill payment. asic

MOST )O)ULAR BANKIN5 SERVICES ON MOBILE

6hecking account alances is the most popular anking service used y ur an Indians with almost <B million users followed y checking last three transactions, >A million and status of che1ue with >; million users.

Mo ile anking is popular among the ` ; to = lakhs per year income group with almost GBJ of mo ile anking users falling in the income racket, an indicator of adoption of this service y younger generation.

BENEFITS OF MOBILE BANKIN5

7he iggest advantage that mo ile anking offer to anks is that is drastically cuts down the costs of providing service to the customers. !or example an average teller or phone transaction costs a out ` >.DG each, whereas an electronic transaction costs only a out ` B.;B each. #dditionally, this new channel gives the ank a ility to crossCsell upCsell their other complex anking products and services such as vehicle loans, credit card etc.

!or service providers, mo ile anking offers the next surest way to achieve growth. #lso service providers are increasingly using the complexity of their supported mo ile anking services to attract new customers and retain old ones.

Mo ile anking solution offer a full range of enefits for financial institution, ranging from reduced customer support costs to improved customer satisfaction and retention as well a revenue growth. # recent 'artner Measurement Study showed that an average contact center deflects ;GJ of its contacts to phoneC ased automated selfCservice technology, with some high performing companies achieving deflection rates up to =BJ. /ith typical I5" )Integrated 5oice "esponse* calls averaging ` B.?= per call, anks could reap cost saving of up

to <=J y deflecting half of their calls to an I5" system.

# mo ile selfCservice alternative to oth call centers and I5" customer 1ueries could reap even more cost saving. BankCrelated customer support calls typically relate to routine anking in1uiries, such as account alances, which are perfectly situated to a mo ile selfCservice solution. 6ustomer "+I studies has shown that Mo ile aware can reduce the cost of simple 1uery resolution or transaction y up to ?=J. #dded to that is a more satisfied customer ased that is no longer faced with the frustration of dealing with I5" systems, or waiting in line for the next availa le customer service representative.

Mo ile

anking also offers financial institutions the opportunity to target and

ac1uire new customer segments that value mo ility and real time control of their finances, leading to increased customer growth and revenue.

A, Business Bene i!s

Greater Customer Convenience

!inical mo ile anking solution empowers anking customers to make informed decisions y providing them with an invalua le set of financial management tools on the mo ile handset. 7hese tools help in 1uantitative and 1ualitative analysis, as well as in the selection and comparison of financial products.

$educed Turnaround Time

!inical mo ile anking solution has a ro ust integration framework which allows it to function in tandem with disparate host systems, core anking solutions, payment networks and thirdCparty applications. 7his translates into reduced goCtoCmarket time for the ank as well as support for legacy systems.

$obust !nclusivit1 Frame0ork

!inical mo ile anking solution leverages Infosys connect to smoothly hurdle the challenges posed y the multiplicity of form factors and access mechanisms on multiple devices to provide context agnostic view to the transaction server. 7his ena les anks to include, through the mo ile channel, its various customer

segments, ranging from the ($/I to specific un anked communities, surmounting the complexities of diverse location and dissimilar mo ile devices.

"a2imi3e !nnovation

Banks can leverage !inical solutionEs indigenously developed middleware Infosys connect, to configure an unlimited palette of services from any channel, to the mo ile space, with ease. 7he need for development of new ack end services is precluded due to the availa ility of a anking solution ehind the mo ile interface. !inical also provides the flexi ility to deploy services over the existing online anking platform or through a standalone delivery channel interfaced directly with the relevant host systems. 7his ensures the rapid delivery of a comprehensive range of financial services, em ellished with new innovative features, on mo ile devices.

$obust Securit1

7he solution offers extensive application security features like 8"0 encryption, referral 8"0 check and session management to provide a ro ust security framework. 7he solution also supports +72 )one time password*, which provides a two factor authentication mechanism for users transacting with downloada le mo ility client. 7his ena les the ank to offer products that are highly secure and geared to withstand the onslaught of security threats associated with mo ile transactions.

Cost Savings

7he solution presents

anks with the advantages of reduced integration

leveraging common interface messages, maintenance and deployment costs. 7his translates into significant cost savings without anks having to compromise on

features or the range of devices supported. 7he mo ile

anking solution is

inherently independent of the network service provider, o viating the need to uild a usiness model that involves costs and profits sharing with them.

Client -alue

!inical mo ile

anking solution ena les

anks to offer the convenience of

comprehensive anywhere anytime anking, using '2"S, mo ile rowser or SMS. It supports a wide range of mo ile devices and mo ile rowsers. Banking

customers can 1uery on account alances and make fund transfers. Banks can also proactively send timely information to customers in a completely secure environment, whenever a customerCdefined event occurs. 7he solutionEs selfC service capa ilities empower customers to manage their anking activities etter. 7he solution also addresses data transmission and storage related security concerns ade1uately, delivering a truly streamlined customer experience.

Mo ile anking through cell phone is really catching up. $ow you can access your account, transfer funds or make payments with your mo ile. Mo ile connectivity is vast and this makes mo ile anking very successful. Mo ile anking provides

anking services to inaccessi le )mountainous and remote* areas. It provides financial services to clients, allowing them the flexi ility of accessing their account details from anywhere in the world.

IM)ACT OF MOBILE BANKIN5 SERVICES ON BANKS

Mo ile anking is one of the most significant technological innovations of the >;st century. It allows customers of a particular ank to do their daily anking on the go, which is important in this usy world.

Technolog1 !mprovements

%evelopers of applications, or IappsI as they are known, have improved the technology for mo ile anking and have made it easier for consumers to have their daily anking needs meet.

Competition

Mo ile

anking has led to increased competition for deposits,

ecause anks with the est mo ile anking features tend to gain more deposits than those that are less versatile.

Stock Trading

Mo ile anking has led to an increase in stock trading, as investors do not have to e at a computer or call a roker to trade stocks.

VALUE OF MOBILE BANKIN5

%eposit mo ile phones eing much more prevalent than 26s, there are more service availa le in the market place for internet commerce rather than mo ile commerce or MCcommerce. It is interesting to note this phenomenon, as one would assume a marketerEs interest in tapping a device that is always with the customer. /hile one almost carries a mo ile phone, one does not carries oneEs 26s and laptop. 7he adoption of mo ile technology is still slow while we technology is still slow while we technology in eing used y people to offer more convenient customer

services. 7he same is true for anking services. Bank need to look for multiple and alternate channels to engage the customer y providing himTher with value added services. Bank also need to look for innovative means of reducing transaction costs as the perCcustomer transaction have increased, as ank are providing multiple service under one roof. Mo ile technology can come into rescue of financial services in such a scenario. SMSs ased through a we interface could e one such service. # we interface allows you to communicate instantly with individual or groups via ulk text messaging. +ne could send SMSs to oneEs group through a mo ile phone.

:et another way of improving customer services could e to inform customer etter. 6redit 6ard !raud is one such area. # ank could, through the use of mo ile technology, inform owner each time purchases a ove a certain value have een made on their card. 7his way the owner is always informed when their card is used, and how much money is used for each transaction.

Similarly, the ank could remind customer f outstanding loan repayment dates, date for the payment of monthly installment or simply tell them that a ill has een

presented and is up for payment. 7he customer can then check their alance on phone and authori.e the re1uired amount for payments. 7he customer can also re1uest for additional information. 7hey can automatically view deposit and withdrawal as they occur and also preCschedule payment to e made or che1ues to e issued. Similarly, one could also re1uest for services like stop che1ues or issue of che1ues ook over oneEs mo ile phone.

7here a num er of reasons that should persuade ank in favor of mo ile phones. 7hey are set to ecome a crucial part of a total anking services experienced for the customers. #lso, they have the potential to ring down costs for the ank itself. 7hrough mo ile messaging and other such interfaces, ank provided value added services to the customer at marginal costs. Such messages also ear the virtue of eing targeted and personal making the services offered more effective. 7hey will etter result on account of etter customer profiling.

:et another enefit is the anywhere or anytime characteristics of mo ile services. # mo ile is almost always with the customer. #s such it can use over a vast geographical area. 7he customer does not have to visit the ank #7M or a ranch to avail of the anks services. "esearch indicates that the num er of footfall at a ank ranch has fallen down drastically after the installation of #7Ms. #s such with mo ile services, a ank will need to hire even fewer employees, as people will no longer need to visit ank ranches apart from certain occasion.

/ith Indian telecom operators working on offering services like money transaction over a mo ile, it may soon e possi le for a ank to offer phone ased system. 7his

will make credit card redundant and also aid in checking credit card fraud apart from offering enhanced customer convenience. 7he use of mo ile technology is thus a winCwin proposition for oth the anks and the ankEs customers. Such services are highly personal in nature and are effective ecause of the same.

7he

ank adds to this personali.ed communication through the process of

automation. !or instances, if the customer ask for his account or car alance after conducting a transaction , the installed software can send him an automated reply informing of the same. 7his automated reply thus saves the ank the need to hire additional employees for servicing customerEs needs.

RELATIVE ADVANTA5E

"elative advantage is concerned with the degree to which an innovation is perceived has eing etter than the idea it supersedes, the degree of relative

advantage is often expressed as economic profita ility, social prestige, saving in time and effort, immediacy of the reward or as degree of discomfort. 7he construct of relative advantage can e seen differently innovation and on other hand of differently in context of different innovations and on other hand on different consumer. In case of mo ile anking relative advantage is mainly formed across the mo ile value of the new anking service delivery medium. Mo ile value signifies he value arising from the mo ility of the medium, i.e., making use of electronic service on the moveTroad, mo ility offers the creation of choice and new freedom.

C"#$%e&i!'

7he perception of complexity involved when conducting financial transactions via mo ile channel is often inversely related to a customerEs experience with technology in general. #doption of complex products depends on adopterEs a ility to develop new knowledge and new patterns of experience. 7his a ility can e enhanced y the knowledge gained from related products. In !inland usage of Internet anking has already diffused to masses of anking customers, it can e argued that Internet anking is sort of related service.

C"#$(!i)i%i!'

7he degree to which an innovation channel such as a mo ile device is compati le with the individuals past experiences and values appears to have a significant impact on willingness to adopt. "espondents were asked a out their attitudes towards technologyC ased products and services. &very target segment informed with positive means scores to mo ile phone and services, Internet, personal computer, ca le television, &Cmail that they were pretty enthusiastic a out using technology, except of electronic I%Ccard. !urthermore A>J of the respondent had an Internet connection on use. compati ility of an innovation with previously introduced idea can influence the adoption of the innovation as well as the development stage of infrastructure and prior experience with the products class, which for example in this case is usage of Internet anking, may lead to greater accepta ility of a new product.

O)se*+()i%i!'

+ serva ility of an innovation descri es the extent to which an innovation is visi le to other mem ers of a social system, how easily the enefits can e o served and communicated. 7he lack of physical domain in service product may present some pro lems, even though in this case the service delivery medium, mo ile phone itself, may enhance physical evidence of the innovation. In the surgery respondent mentioned they had gained information of mo ile anking services from anksE personal via personal selling activities, and secondly from marketing

communication activities, such as advertisements and mailings.

T*i(% ()i%i!'

2otential adopters who are allowed to experiment with the innovation will feel more comforta le with it and are more likely to adopt it. 6onse1uently, if consumers are given the opportunity to try the innovation certain fears of unknown and ina ility to use can e reduced. In this survey ;>.@= J of nonCusers had tested mo ile anking services, ut this did not lead to permanent use. (owever, this evidences that trial use of mo ile anking services is possi le.

Pe*,ei+e- Ris.

Security and trustworthiness of usage of service was mentioned to e the most important factor within every target segments when deciding on anking service

delivery channel. Survey participants responded also positively to the argument using mo ile phone in anking is trustworthy.

SMS BANKIN5

/hen people are hard pressed for time, the need for Qanytime anywhereE anking gains utmost importance. Bearing this in mind, anks provide a novel services which gives retail customers account information and realCtime transaction capa ilities from their cell phones. /ith SMS anking the following services can e o tainedH

'et account alance details "e1uest a che1ue ook "e1uest last three transaction details 2ay ills for electricity, mo ile, insurance, etc.

SMS B(n.in/ O+e*+ie0

In order to avail the services mentioned a ove, a user su scri ing to a wireless carries sends an SMS with a predefined code to the ulk services providers num er. 7he services provider forwards this message to the applications. 7he mo ile anks mo ile anking anking

anking applications interface with the core

servers )that contain the user account information* that service the re1uest made y the user. 7he response is then sent y the mo ile anking applications to the ulk service provider who in turn forward it to valid user via SMS.

7here are two ways in which a ank can communicate with a customer using SMS. In the first method the ank proactively sends data to customers in response to certain transactions. !or e.g. account to account transfer, salary credit and some promotional messages. 7his data can sent to the customer in two ways

#* E:"ail to "obile ,E.M-

In this method, the ank sends an email to the mo ile anking application through a specific &Cmail address. 7his &Cmail may consist of the message content together with the mo ile num er of the customer. 7he mo ile anking application in turn sends this message in a specific format )for e.g. LM0 tags are part of a (772 '&7 message 1uery string* to the service providersE application serve. !rom here on the information from the LM0 tags is extracted and send as a SMS to the wireless carrier which in turn forwards this message to the customer.

B* Databa#e to "obile ,D.B-

here the mo ile anking application continuously polls the ank data ase server and whenever a relevant period happen, for e.g. an account to account transfer , it forward the specific message to the service providerEs application server. 7he message format may e the same as one used in the &>M case. 7his message is then forwarded to the wireless carrier which in turn forwards the messages to the customer.

In the second method the ank send data in respond to specific customer 1uery such as account alance details. 7he customer first sends a preCdefined re1uest code via SMS to the Bulk SMS providerEs registered mo ile num er. %epending on the message code, the Bulk SMS provider forwards the SMS to a 2800 application in the mo ile anking server. 7he 2800 application receives the re1uest and forwards it to the core anking application for further processing. 7he core anking server than processes this message and sends the reply to the pull application which in turn forwards in to the customer via the service provider. #s in the a ove cases the re1uest and the response for the 2800 application may e a (772 '&7 message with tags in the 1uery string.

C"n,e*ns (n- S.e$!i,is# ()"u! SMS B(n.in/

Many anks would have some concerns when the prospects of introducing SMS Banking are discussed. Most of these concerns could revolve around security and

operational controls around SMS anking. (owever supporters of SMS claim that while SMS anking is not as secure as other conventional anking channels, like the #7M and Internet Banking, the SMS Banking channel is not intended to e used for very highCrisk transactions.

T1e C"n+enien,e F(,!"*

7he convenience of executing simple transactions and sending out information or alerting a customer on the mo ile phone is often the overriding factor that dominates over the skeptics who tend to e overly itten y security concerns.

#s a personali.ed endCuser communication instrument, today mo ile phones are perhaps the easiest channel on which customers can e reached on the spot, as they carry the mo ile phone all the time no matter where they are. Besides, the operation of SMS Banking functionality over phone key instructions makes its use very simple. 7his is 1uite different to Internet anking which can offer roader

functionality, ut has the limitation of use only when the customer has access to a computer and the Internet. #lso, urgent warning messages, such as SMS alerts, are received y the customer instantaneously, unlike other channels such as the post, &C mail, Internet, telephone anking, etc. on which a anks notification to the customer involves the risk of delayed delivery and responses.

7he SMS Banking channel also acts as the anks means of alerting its customers, especially in an emergency situation, e.g. when there is an #7M fraud happening in the region, the ank can push a mass alert )although not su scri ed y all

customers* or automatically alert on an individual

asis when a predefined

Qa normalE transaction happens on a customerEs account using the #7M or credit card. 7his capa ility mitigates the risk of fraud going unnoticed for a long time and increases customer confidence in the anks information system.

C"#$ens(!in/ C"n!*"%s F"* L(,. O En,*'$!i"n

7he lack of encryption on SMS message is an area of concern that is often discussed. 7his concern sometimes arises within the group of the anks technology personnel, due their familiarity and past experience with encryption on the #7M and other payment channels. 7he lack of encryption is inherent to the SMS Banking channel and several anks that use it have overcome their fears y introduction compensating controls and limiting the scope of the SMS Banking application to where it offers an advantage over other channels.

Suppliers of SMS Banking software solutions have found relia le means y which the security concerns can e addressed. 7ypically the methods employed are y preC registration and using security tokens where the transaction risk is perceived to e high. Sometimes #7M type 2I$s are also employed ut the usage of 2I$s in SMS Banking makes the customerEs task more cum ersome.

Te$(nologie# E"*lo;ed Fo SMS Banking

Most SMS Banking solutions are addCon products and work with the

ankEs

existing host system deployed in its computer and communications environment. #s most anks have multiple ackend hosts, the most advance SMS anking system are uilt to e a le to work in a multiChost anking environment, and to have open interfaces which allow for messaging etween existing anking host systems using industry or deCfacto standards.

/ell developed and mature SMS anking software solution normally provide a ro ust control environment and a flexi le and scala le operating environment. 7hese solution are a le to connect seamlessly to multiple operators in the country of operation. %epending on the volume of messages that are re1uire to e pushed, means to connect to the SMS could e different, such as using simple modems or connecting over leased line using low level communication protocols. #dvanced SMS Banking solutions also cater to providing failover mechanisms and leastCcost routing options.

28S( and 2800 Message

SMS anking services are operated using oth 28S( and 2800 messages. 28S( messages are those that the ank chooses to send out to a customerEs mo ile phone, without the customer initiating a re1uest for the information. 7ypically 28S( messages could e either Mo ile Marketing messages or messages alerting an event which happens in the customersE ank account, such as a large withdrawal of funds from the #7M or a large payment using the customer credit card etc.

#nother type of 28S( message is +neCtime password )+72s*. +72s are the latest tool used y financial and anking service providers in the fight against cy er fraud. Instead of relying on traditional memori.ed passwords, +72s are re1uested y consumers each time they want to perform transactions using the online or mo ile anking interface. /hen the re1uest is received the password is sent to the consumersE phone via SMS. 7he password expired once it has een used or once it scheduled lifeCcycle has expired.

PULL #ess(/es are those that are initiated y the customer, using a mo ile phone, for o taining information or performing a transaction in the ank account. &xample of 2800 messages for information include an account alance in1uiry, or re1uest for current information like currency exchange rates and deposit interest rates, as pu lished and updated y the ank. 7he ankEs customer is empowered with the capa ility to select the list of activities )or alerts* that heTshe needs to e informed. 7his functionality to choose activity can e done either y integrating to the internet anking channel or through the anks customer service call center.

7ypical push and pull services offered under SMS Banking %epending on the selecting extend of SMS anking transaction offered y ank, a customer can authori.ed to carry out either nonfinancial transactions, or oth and financial and nonCfinancial transaction. SMS Banking solution offer customers a range of functionality, classified y 2ush and 2ull services as outlined elow.

T1pical Push Services 0ould include

2eriodic account alance reporting )say at the end of the month*,

"eporting of salary and other credits to the ank account,

Successful or unsuccessful execution of a standing order,

Successful payment of a che1ue issued on the account,

Insufficient funds,

0arge value withdrawals on an account,

0arge value withdrawals on the #7M or on a de it card,

0arge value payment on a credit card or out of country activity on a credit card.

+neCtime password and authentication.

T1pical Pull Services 0ould include

#ccount alance in1uiry,

Mini statement re1uest,

&lectronic ill payment,

7ransfers etween customers own accounts, like moving money from a saving

account to a current account to fund a che1ue,

Stop payment instruction on a che1ue,

"e1uesting for an #7M card or credit card to e suspended,

%eCactivating a credit or de it card when it is lost or the 2I$ is known to e

compromised,

!oreign currency exchange rates in1uiry,

!ixed deposit interest rate in1uiry.

MARKETIN5 OF MOBILE BANKIN5

Mo ile

anking is poised to

ecome the

ig killer mo ile application arena.

(owever, anks going mo ile the first time need to tread the path cautiously. 7he iggest decision that anks need to make is the channel that they will support their services on.

Mo ile anking through an SMS ased service would re1uire the lowest amount of effort, in terms of cost and time, ut will not e a le to support the full reath of transaction ased services. (owever, in markets like India ulk of the mo ile

population users, phones can only support SMS ased services, this might e the only option left.

+n the other hand a market heavily segmented y the type and complexity of mo ile phone usage might e good place to roll of /#2 ased mo ile application. # /#2 ased services can let go of the need to customi.ed usa ility to the profile of each mo ile phone, the tradeCoff eing that it cannot take advantage of the full readth of features that a mo ile phone might offer.

Mo ile application standalone clients ring along the urden of supporting multiple mo ile device profiles. #ccording to the 'artner 'roup, a leading wireless computing consulting organi.ation, mo ile anking services will have to support a minimum of =B different device profiles in the near future. (owever, currently the est user experience, depending on the capa ility of a mo ile phone, is possi le only y using a standalone client.

Mo ile anking has the potential to do the mo ile phone what &Cmail did to the Internet. Mo ile #pplication ased anking is poised to e a ig MCcommerce feature, and if South 4oreaEs foray in to mass mo ile anking is any indication, mo ile anking could well e the driving factor to increase sales of highCend

mo ile phones. $evertheless, Banks need to take a hard and deep look in to the mo ile usage patterns among their target customers and ena le their mo ile services on a technology with reaches out to the ma-ority of their customers.

CHALLEN5ES FOR MOBILE BANKIN5

4ey challenges in the developing a sophisticated mo ile anking application areH

4andset operabilit1

7here are a large num er of different mo ile phone devices and it is a ig challenge for anks to offer mo ile anking solution on any type of device. Some of these devices support 9ava M& and others support SIM #pplication 7oolkit, a /#2 rowser, or only SMS.

Initial interopera ility issues however have een locali.ed, with countries like India using portals like "C/orld to ena le the limitations of low end -ava ased phones.

7he desire for interopera ility is largely dependent on the anks themselves, where installed applications )9ava ased or native* provide etter security, are easier to use and allow development of more complex capa ilities similar to those of internet anking while SMS can provide the asics ut ecomes difficult to operate with more complex transactions.

7here is a myth that there is a challenge of interopera ility etween mo ile anking applications due to perceived lack of common technology standards for mo ile anking. In practice it is too early in the service lifecycle for interopera ility to e addressed within an individual country, as very few countries have more than one mo ile anking service provider. In practice, anking interfaces are well defined and money movements etween anks follow the ISBCA=AD standard. #s mo ile anking matures, money movements etween service providers will naturally adopt the same standards as in the anking world.

+n 9anuary >BB?, Mo ile Marketing #ssociation )MM#* Banking Su C6ommittee, chaired y 6ell 7rust and 5eriSign Inc., pu lished the Mo ile Banking +verview for financial institutions in which it discussed the advantages and disadvantages of Mo ile 6hannel 2latforms such as Short Message Services )SMS*, Mo ile /e , Mo ile 6lient #pplications, SMS with Mo ile /e and Secure SMS.

!nteroperabilit1

7here is a lack of common technology standards for mo ile

anking. Many

protocols are eing used for mo ile anking P (7M0, /#2, S+#2, LM0 to name a few. It would e a wise idea for the vendor to develop a mo ile anking

application that can connect multiple anks. It would re1uire either the application to support multiple protocols or use of a common and widely accepta le set of protocols for data exchange.

7here are a large num er of different mo ile phone devices and it is a ig challenge for anks to offer mo ile anking solution on any type of device. Some of this devices support 9>M& and others support /#2 rowser or only SMS.

+vercoming interopera ility issues however have een locali.ed, with countries like India using portals like "C /orld to ena le the limitations of low end 9ava ased phones.

7he desire for interopera ility is largely dependent on the anks themselves, where -ava ena led applications are of etter security, easier to use and offer development of more complex transactions similar to that of internet anking while SMS can provide the asics ecomes difficult to operate with more difficult transactions.

Securit1

Security of financial transaction, eing executed from some remote location and transmission of financial information over the air, are the most complicated

challenges that need to e addressed -ointly y mo ile application developers, wireless network service providers and the anks I7 department. 7he following aspect need to e addressed to offer a secure infrastructure for financial transaction over wireless networkH

;. 2hysical security of the hand C held device. If the ank is offering smart card ased security, the physical security of the device is more important.

>. Security of the thick P client application running on the device. In case the device is stolen, the hacker should re1uire I%T 2assword to access the application.

D. #uthentication of the device with service provider efore initiating a transaction. 7his would ensure that unauthori.ed devices are not connected to perform financial transactions.

<. 8ser I%T2assword authentication of anks customer. =. &ncryption of the data eing transmitted over the air.

G. &ncryption of the data that will e stored in device for laterToffC line analysis y the customer.

Scalabilit1 and $eliabilit1

#nother challenge for the anks is to scaleCup the mo ile anking infrastructure to handle exponential growth of the customer ase. /ith mo ile anking, the

customer may

e sitting in any part of the world )a true anytime, anywhere

anking* and hence anks need to ensure that the systems are up and running in a true >< x @ fashion. #s customer will find mo ile anking more and more useful, their expectations from the solution will increase. Banks una le to meet the performance and relia ility expectations may lose customer confidence.

Application distribution2

%ue to the nature of the connectivity etween ank and its customers, it would e impractical to expect customers to regularly visit anks or connect to a we site for regular upgrade of their mo ile anking application. It will e expected that the mo ile application itself check the upgrades and updates and download necessary patches. (owever, there could e many issues to implement this approach such as upgradeTsynchroni.ation of other dependent components.

Personali3ation

It would e expected from the mo ile application to support personali.ation such asH

;. 2referred language

>. %ateT time format

D. #mount format

<. %efault transactions

=. Standard eneficiary list

G. #lerts

7hese are a few of the most pro a le challenges that a anking organisation or company will face while newly introducing the mo ile anking system into its usiness processes. (owever, a ank should see past all the difficulties and

draw acks in the mo ile anking system as every aspect of todayEs world has some negative 1uality incorporated in it as every coin as two sides and so on. 7he main point that such a ank should focus on is the enefit such a system has in the future and how such a system will help the ank to further increase its customer ase and increase its usiness in the future to come of the ank.

!or the time eing these challenges, and many more which may arise and pose a threat to the adoption of mo ile anking and its success, is not to e considered as a real draw ack ecause for every pro lem or hindrance which may occur in mo ile anking, there is a solution and such solutions are eing devised, formulated and solved y professionals and expert who do what they do est and that is consult and find the most logical solution for that pro lem.

!or &xample, an information security company $SS MS6 S%$ B(% has devised a suita le solution for mo ile anking fraud. 7he main headache, which was caused y this fraud, for the anks were that the instructions regarding what has to e done y them which was told y the account holder, via mo ile anking services, would fall into the wrong hands and lead to illegal transactions or, even worse, identity theft.

!or this reason, $SS MS6 had devised a way to encrypt the message sent y the account holder to the ank. +nly the account holders ank could read the encrypted message and the ank could carry on its duties as instructed y the account holder without the worry or of fraud or information falling into the wrong hands.

7herefore, in future all pro lems and dead ends of mo ile anking will e taken care off which will pave the way for the ascension of mo ile anking services throughout all parts of the world.

THE )OSSIBLE FUTURE FOR MOBILE BANKIN5

P('#en! "n ($$*"+(% )' SMS

7his feature allows for -oint accounts or usiness account to have a preCdetermined limit to prompt for either supervisor or -oint account holder approval. # payment re1uest is made from the account to another preCnominated account, a message is then send to either supervisor or -oint account holder to also approve the payment.

T0"3s!(/e ,"n i*#e- $('#en!

7his payment process is similar to a letter of credit, when the end user sends a payment instruction for goods or services, the amount of payment will e

transferred to a specific account. 7he eneficiary will e notified that the amount is guaranteed. +nce the goods or services are delivered the end userTpayee will e a le to accept or re-ect the goods or services and make payment accordingly approving or denying the payment process. y

M")i%e $('#en! in *e!(i% "u!%e!s

8sing nothing ut their own mo ile handset, consumers will e a le to make purchased at a wide variety of retail outlet. 0etEs use the supermarket as a common exampleH the consumer needs to make a purchase from a supermarket, heTshe goes to the cashier and sends a payment re1uest along with hisTher password and the specific 2+S machine num er. 7he system will then send ack a %igital Money Se1uence $um er )%MS$* to the uyer. /hen asking to pay for the goods, the cashier will use hisTher special anking card, and when the uyer is asked for a password all they need to the is enter the %MS$. #s long as the transaction is within the daily limit of the account the transaction will take place instantly.

FUTURE E?)ECTATIONS FROM MOBILE BANKIN5

Based on the FInternational "eview of Business "esearch 2apersF from /orld usiness Institute, #ustralia, following are the key functional trends possi le in world of Mo ile Banking.

/ith the advent of technology and increasing use of smart phone and ta let ased devices, the use of Mo ile Banking functionality would ena le customer connect across entire customer life cycle much comprehensively than efore. /ith this scenario, current mo ile anking o -ectives of say uilding relationships, reducing cost, achieving new revenue stream will transform to ena le new o -ectives targeting higher level goals such as uilding rand of the anking organi.ation. &merging technology and functionalities would ena le to create new ways of lead generation, prospecting as well as developing deep customer relationship and mo ile anking world would achieve superior customer experience with iC

directional communications.

+ -ective ased functionality enrichment In Mo ile Banking

6ommunication enrichmentH C 5ideo Interaction with agents, advisors. 2ervasive 7ransactions capa ilitiesH C 6omprehensive Mo ile wallet 6ustomer &ducationH C 7est drive for demos of anking services 6onnect with new customer segmentH C 6onnect with 'en : P 'en R using

games and social network am ushed to surrogate ankEs offerings 6ontent moneti.ationH C Micro level revenue themes such as music, eC ook

download

5ertical positioningH C 2ositioning offerings over mo ile

anking specific

industries (ori.ontal positioningH C 2ositioning offerings over mo ile anking across all

the industries 2ersonali.ation of corporate anking servicesH C 2ersonali.ation experience for

multiple roles and hierarchies in corporate anking as against the vanilla ased segment ased enhancements in the current context. Build BrandH C Built the ankEs rand while enhancing the Mo ile real estate.

OBJECTIVES OF MOBILE BANKING

Saving the time of the customers.

2roviding etter facilities to customers.

2roviding >< hours anking facilities.

&asy management of regular financial transactions.

+ffer convenience to customers.

"educing the work load of counter anking.

"eduction of cost associated

anking services

Better handing of re1uests.

2roviding effective en1uiry services.

SCO)E OF STUD9

7he scope of this research includes customers of S7#7#& B#$4 +! I$%I# of 0udhiana. 5arious ranches of state ank are covered in the study for gathering the view point of customers regarding the mo ile anking services of state ank of India. 7he study focused on the mo ile su scri ers, age etween >B C=B.

7he scope also included examining the factors that influence the usersE choice whether or not to adapt the usage of Mo ile anking in their daily

lives. 7he study also took a glance on various definitions of mo ile anking and its history and future. &fforts are taken to gather the information regarding the reasons ehind the nonCimprovementTnonC populari.ing of mo ile anking despite of many enefits associated with the use of mo ile anking.

LIMITATIONS OF STUD9

# few possi le limitations have een identified due to which it ecomes little difficult to gather information for conducting the research on mo ile anking.

7here is a possi ility that all the 1uestionnaires handed out will not e answered.

7here might e candidates in the focus group who are reluctant to answer the 1uestionnaires handed out.

7here might

e a possi ility candidates does not provide the true

information in the 1uestionnaires..

7he certain no of people had een contacted for data collection so it cannot e treated for the whole population.

7he respondents can e iased. 7ime was the ma-or constraint. 7o gather the data from the various sources is difficult task. "espondent may not take interest in the study.

)ERIOD OF STUD9 7he duration of the pro-ect was two months, as I have eight main tasks in the pro-ect, the 6hart

in the following will illustrate the duration and the main tasks.

Sr. ;st week $o ; Initial riefing > D <

>nd week

Drd week

<th /eek

=th week

Gth week

@th week

Information gathering 5isiting ranches !illing Suestionnaire

= G @

#nalysis %ocumentation Interpretations #nd recommendati ons

RESEARCH METHODOLOG4

7here is a specific procedure for conducting and controlling the research pro-ect. &very research must explicitly state its plan a out collection and analysis of data. It is the conceptual framework within which the study is conducted and deals with the procedures used in the study for the purpose of investigation.

7he "esearch Methodology in the context of the topic includes the partial study of the #ccount holders of SBI, it will also include various professionals and usinessmen who are having their mo ile anking accounts.

7he analysis tools would e of oth types which includeH

;. 2rimary data.

a* Suestionnaire.

* 2ersonal Interview.

>. Secondary %ata.

a* $ewspaper 3 Maga.ines

* Internet 3 9ournals.

Sa"*le A ea @ SiAe6

7he sample area of the study will e restricted to the 0udhiana only and the sample si.e would e of ;BB respondents. Sa"*ling Te$(niB+e6

7o study the 2ro-ect, a Simple "andom Sampling techni1ue is used. Data Anal;#i#6

#fter data collection, IEm a le to analy.e customerEs views, ideas and opinions related to M+BI0& B#$4I$' and a out S7#7& B#$4 !"&&%+MS and from this, SBI will come to know the customer re1uirements.

Data Inte * etation6

Interpretation of data is done

y using statistical tools like 2ie diagrams, Bar

graphs, and also using 1uantitative techni1ues ) y using these techni1ues* accurate information is o tained.

Cla##ifi$ation @ tab+lation of data6

7he data thus collected were classified according to the categories, counting sheets 3 the summary ta les were prepared. 7he resultant ta les were one dimensional, two dimensional.

Stati#ti$al tool# +#ed fo anal;#i#6

+ut of the total respondents, the respondents who responded logically were taken into account while going into statistical details 3 analysis of data. 7he tools that have een used for analy.ing data 3 inference drawing are mainly statistical tools like percentage, ranking, averages, etc.

#s per 1uestionnaire and market surveys I have find out different responses from different people. #ccording to their responses I analy.e the findings and draw certain remarks.

ANAL4SIS35 )#ccording to the survey conducted on customers*

%ata is the very important aspect of a research report ecause the data is the only thing from which the analysis and findings could e made, this is the reason why the data is eing collected for the purpose of the research study. 7he study can e made easier through the collection of data and while collecting it the data can e reformed and furnished like this so that meaningful information can e withdrawn from it.

7he 1uestion are framed as according to the respondents, the information gathered from the 1uestionnaire is eing used in the forms of pictorial

representation and in ta ular form thus the data representation is done in the form of pie chart, and graphs.

)ERCENTA5E NUMBER OF ACCOUNT HOLDERS

Bank #T6 holder $on Bank #T6 holder

ABJ >BJ

)ERCENTA5E NUMBER OF USERS DOIN5 FINANCIAL SERVICES ON CELL)HONE

8S&"S $+$C8S&"S

GBJ <BJ

A7ARENESS RE5ARDIN5 MOBILE BANKIN5

#/#"& 8$#/#"&

<BJ GBJ

)ERCENTA5E NUMER OF USERS OF MOBILE BANKIN5

8S&"S $+$C8S&"S

DBJ @BJ

)ERCENTA5E NUMBER OF )EO)LE HAVIN5 KNO7LED5E ABOUT THE KIND OF SERVICES )ROVIDED B9 MOBILE BANKIN5

(#5I$' 4$+/0&%'& $+7 (#5I$' 4$+/0&%'&

>BJ ABJ

SOURCE OF 5ETTIN5 KNO7LED57 ABOUT MOBILE BANKIN5

B#$4 2#M2(&0&7S

>BJ

B#$4 SI7& $&/S2#2&" !"I&$%S T!#MI0: +7(&"S

=BJ ;BJ ;=J =J

)ERCENTA5E USERS OF DIFFERENT SERVICES OF MOBILE BANKIN5

7+2C82T "&6(#"'& B#0#$6& &$S8I": !8$%S 7"#$S!&" +7(&"S

DBJ =BJ =J ;=J

)ERCE)TIVE

OF

CUSTOMERS

RE5ARDIN5

MOBILE

BANKIN5 AS A BETTER 7A9 OF BANKIN5

S7"+$'0: %IS#'"&& %IS#'"&& $&87"#0 #'"&& S7"+$'0: #'"&&

=J <BJ ;BJ DBJ ;=J

HEL)FULLNESS OF MOBILE BANKIN5 IN )ROFESSION OF THE USERS

(elpful 8nhelpful 6anEt say

GBJ DBJ ;BJ

SATISFACTION LEVEL OF CUSTOMERS FROM SBI FREEDOM

Satisfied %issatisfied 6anEt say

ABJ ;=J B=J

ANAL4SIS36 ,A$$o ding to t(e #+ >e; $ond+$ted on #taff "e"be #-

)ERCENTA5E NUMBER OF ACCOUNT HOLDERS

Bank #T6 holder $on Bank #T6 holder

B.??J B.B;J

)ERCENTA5E NUMBER OF USERS DOIN5 FINANCIAL SERVICES ON CELL)HONE

8S&"S $+$C8S&"S

GBJ <BJ

)ERCENTA5E NUMER OF USERS OF MOBILE BANKIN5

8S&"S $+$C8S&"S

DBJ @BJ

)ERCENTA5E NUMBER OF STAFF MEMBERS 7HO 7ANT TRAINNIN5 FOR MOBILE BANKIN5

"&S8I"&

DBJ

%+$E7 "&S8I"&

@BJ

FINDINGS 7he following information can e withdrawn from the data collected which has een shown a ove in the form of ta le and pie charts. ABJ of the citi.ens are having a ank account while the rest didnEt. GBJ of the citi.ens use cell phones for anking transactions +nly <BJ people of the total population is aware of Mo ile Banking. GBJ of the Mo ile Banking aware people are known to SBIEs Mo ile Banking facility called SBI freedom. !rom people who are aware of Mo ile anking only >BJ are using it for their anking needs. 7he =BJ of anking users are still relying on counter anking, DBJ of them are relying on internet anking and only ;BJ of people are relying on Mo ile anking.

=BJ of the users use mo ile anking for alance en1uiry, DBJ for recharge, =J for fund transfer, and ;= J for other services.

GBJ of people are agreed that mo ile anking is helpful for their profession. ABJ people are satisfied with the service which they are getting in SBI Mo ile Banking.

CONCLUSION

/hile analy.ing the various aspects of the Mo ile Banking of SBI it could e concluded that the Mo ile Banking is getting a greater amount of success which is uni1ue in its kind. Still some of the fields are yet to e improved and rethink due to which the organi.ation could improve the performance of its services, its utmost impossi le for a pure service ased organi.ation like anks to launch a service on a very greater aspect and 7he State Bank of India has proved this wrong y its own performance.

2articularly talking a out the Mo ile anking in usiness sector is one of the ma-or preference of youngsters they are having almost cra.e a out a facility through which ank could e managed and accessed through mo ile phones only, it has also

een the preference of those professionals who have to travel a lot for their -o and canEt manage the anking from counter and through internet. .

RECOMMENDATIONS

!or populari.ing the State Bank !reedom aggressive marketing is re1uired to make the people aware a out the mo ile anking.

Steps should e taken for providing training to the staff mem ers of the State Bank of India ecause one of the main reasons ehind the non populari.ing of mo ile anking despite of so many efforts is lack of

knowledge among staff mem ers regarding mo ile anking.

Stress should e given for making State Bank !reedom application for making anking easily availa le for apple and lack erry mo ile users.

!or all those people who are not familiar with &nglish language (indi version or any local language version of SBI !reedom should e launched.

2rovisions should me made for cross checking or approving the mo ile anking transactions through SMS.

More illers should e added for paying the ills through mo ile anking.

2amphlets regarding the mo ile customers.

anking should

e provided to the

8ser manuals should

e esta lished for making the customers aware

regarding the use of SBI !reedom.

2lans should e made for making receipts of the transactions availa le to the customers through email or post.

0ike internet anking, distinction should e made in viewing rights and transaction rights to the customers.

Make SMS ased mo ile anking little easier for customers.

8se social networking as a tool of marketing for SBI !reedom.

+rgani.e workshop on mo ile anking for customers as well as for staff mem ers. BIBLIOGRAPH4

www.s i.org www.google.co.in www.wikkipidea.com

4otler. 2hilip Marketing Management >BBD revised edition "esearch methodology >BB@

!+" S7#!! M&MB&"S

+B9&67I5&H C Main o -ective is to collect the data a out the peopleEs

perspective a out the use of mo ile anking services

;. NAMECCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC

ADDRESS

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CONTACT NO

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0 DUALIFICATIONUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU

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DO 9OU O)ERATE ACCOUNT

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;@

AN9 SUCCESTION FOR

IM)ROVEMENTUUUUUUUUUUUUUUUUUUUUUUU

T(ank# a lot fo in>e#ting ;o+ >al+able ti"e fo gi>ing +# ;o+ feedba$k

Signat+ e

!+" 68S7+M&"S

OBJECTIVE-Main objective is to collect the data about the peoples perspective about the use of mobile ban in! services

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?. 7HERE DID 9OU LEARN ABOUT MOBILE BANKIN5E a* Bank pamphlets e* friends or family f* +thers * ank site c* newspaper d* 75 advertisements

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;D. DO 9OU FIND MOBILE BANKIN5 A BETTER 7A9 OF BANKIN5. a* Strongly disagree f* strongly agree * disagree c* neutral d* agree

;<. DO 9OU BELIEVE MOBILE BANKIN5 IS HEL)IN5 9OU FOR MANA5IN5 9OUR BANKIN5 a* :&S * $+ TRANSACTIONS

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very expensive not very cheap

;@. AN9 SU55ESTION FOR IM)ROVEMENTUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU

T(ank# a lot fo in>e#ting ;o+ >al+able ti"e fo gi>ing +# ;o+ feedba$k

Signature