GROUP MEMBERS

Bhawna Sood
Shreya khuntia Garima Sharma

Bhavesh Gaur
Avneet Kaur Yamini Kataria

WHAT IS MOBILE BANKING ?

Mobile banking (also referred to as m-banking, phone banking, SMS banking, etc.) means conducting account transactions via a mobile phone. Mobile banking has become the most promising medium of reaching out to customers because of the ability to provide services at any time or place in the world . Using mobile technology, financial institutions offer a wide array of services . Such as bill payments, balance inquiries and transfers among accounts owned by the same person, bank statements, receiving minimum balance alerts or even performing stock trading

TECHNOLOGIES BEHING MOBILE BANKING

1. IVR (Interactive Voice Response)
IVR or Interactive Voice Response service operates through prespecified numbers that banks advertise to their customers. Customer's make a call at the IVR number and are usually greeted by a stored electronic message followed by a menu of different options. Customers can choose options by pressing the corresponding number in their keypads, and are then read out the corresponding information, mostly using a text to speech program.

2 SMS

It enables mobile application based banking. customer requests for information by sending an SMS containing to a pre

specified number. bank responds with a reply SMS containing the information. For example, customers of the HDFC Bank in India can get their account balance details by sending the keyword HDFCBAL' and receive their balance information by SMS. . One of the major reasons that transaction based services have not taken of on SMS because of concerns about security. The main advantage of deploying mobile applications over SMS is that almost all mobile phones are SMS enabled.

3. WAP (Wireless Access Protocol)

Uses a concept similar to that used in Internet banking. Banks maintain WAP sites which customer's access using a WAP compatible browser on their mobile phones. WAP sites offer the familiar form based interface and can also implement security quite effectively. Bank of America offers a WAP based service channel to its customers in Hong Kong. The banks customers can now have an anytime, anywhere access to a secure reliable service that allows them to access all enquiry and transaction based services and also more complex transaction like trade in securities through their phone

4. Standalone Mobile Application Clients

Standalone mobile applications are the ones that hold out the most promise as they are most suitable to implement complex banking transactions like trading in securities. easily customized according to the user interface complexity supported by the mobile. In addition, mobile applications enable the implementation of a very secure and reliable channel of communication.

MOBILE BANKING SERVICES

1. Account Information

Mini-statements and account history Alerts on account activity Monitoring of term deposits Access to loan &card statements Mutual funds / equity statements Insurance policy & Pension plan management 2.Payments & Transfers Domestic and international fund transfers Micro-payment handling Mobile recharging Commercial payment processing Bill payment processing

3.Investments
Portfolio management services Real-time stock quotes Personalized alerts and notifications on security prices

4.Support Status of requests for credit, including mortgage approval, and insurance coverage Check (cheque) book and card requests Exchange of data messages and email, including complaint submission and tracking
5.Content Services General information such as weather updates, news Loyalty-related offers Location-based services

CURRENT TRENDS
Mobile communication devices are revolutionizing banking transactions over wireless network and the Internet. To attract and retain customers, bank need to exchange their full range of services across a wide range of Mobile, wireless devices without having an impact on their current infrastructure and the delivery channels it currently supports. Wireless Networks, Mobile Gateways, Wireless Application Protocol (WAP) &W ireless Mark-up Language (WML) all play an important role in bringing mobile banking strategy to the market Over the last few years, the mobile and wireless market has been one of the fastest growing markets in the world According to the GSM Association the number of mobile subscribers exceeded 2 billion in September 2005, and now exceeds 2.5 billion In Asian countries like India China Bangladesh Indonesia and Philippines mobile infrastructure is comparatively better than the fixed-line infrastructure, In European countries, where mobile phone penetration is very high (at least 80% of consumers use a mobile phone), mobile banking is likely to appeal even more.

1.Always on 24 7 access: Mobile networks will provide the ability for consumers to be transaction- ready, much in the way cable access has facilitated online access and reduced consumer delays . 2.Advanced penetration of mobile networks :2G (second generation) networks already cover more than 90 percent of the population in the western world, and this number is growing steadily. 3.Personalization :Through SIM (Subscriber Identity Module) cards, mobile customers have a specific profile that enables customized functionality that directly reflects the way they want to transact business over mobile devices. Through the convenient addition of a multi application relationship card, mobile customers will also have a built in platform for a host of other application services, including security keys, virtual credits cards, and other customized payment instruments. 4. Global protocols such as WAP (wireless application protocol): This enables the communication channel between computers and mobile devices. The WAP component essentially provides the facility for reformatting data for display on wireless hands.

ADVANTAGES OF MOBILE BANKING

5.Faster Data Processing Speeds: Increases in bandwidth and data transmission a speed makes mobile data services efficient and cost - effective in a real time environment. 6.Security Effectively, the mobile banking transaction can be protected by a private key stored on SIM card and hence mobile phone can become a wireless wallet to protect proprietary and financial information

LIMITATIONS OF MOBILE BANKING

1.Compatibility
not available on every device. Some banks do not provide mobile banking at all. Others require you to use a custom mobile banking application only available on the most popular smart phones, such as the Apple iPhone and RIM Blackberry. Third-party mobile banking software is not always supported.

2.Unsafe
Mobile users are especially susceptible to a phishing-like scam called "smishing." happens when a mobile banking user receives a fake text message asking for bank account details from a hacker posing as a financial institution. Many people have fallen for this trick and had money stolen through this scam.

3Cost
Need to pay data and text messaging fees. Some financial institutions charge an extra fee for mobile banking service, and you may need to pay a fee for software. These extra charges quickly add up, especially if you access mobile banking often.

Mobile banking is poised to become the big killer mobile application arena. However, banks going mobile the first time need to tread the path cautiously. The biggest decision that banks need to make is the channel that they will support their services on. Mobile banking through an SMS based service would require the lowest amount of effort, in terms of cost and time, but will not be able to support the full breath of transaction-based services. However, in markets like India where a bulk of the mobile population users' phones can only support SMS based services, this might be the only option left. On the other hand a market heavily segmented by the type and complexity of mobile phone usage might be good place to roll of WAP based mobile applications.

CONCLUSION