An Internship Report On Mobile Banking (Banking In Your Hand)-A Study On Dutch-Bangla Bank Limited, Satmosjid Road Branch

Date of Submission: 10th September 2011

An Internship Report On Mobile Banking (Banking In Your Hand)-A Study On Dutch-Bangla Bank Limited, Satmosjid Road Branch

Supervised By:
Mohammed Masum Billah Assistant Professor Faculty of Business Administration Northern University Bangladesh

Prepared By:
Dipock Mondal ID:BBA070360590
Major: Finance

Date Of Submission: 10th September 2011

Declaration

I do hereby declare that this Internship report entitled “Mobile Banking (Banking in your Hand)” is submitted by me to Northern University Bangladesh for the degree of Bachelor of Business Administration is an original work. It has not been submitted earlier, either partly or wholly, to any other University or Institution for any Degree, Diploma, Studentship, Fellowship or Prize.

………………… Dipock Mondal BBA 070360590 Major: Finance Minor: Management Information System (MIS) Faculty of Business Administration Northern University

Certificate of Acceptance
This is to certify that Dipock Mondal, bearing ID No BBA 070360590, student of Department of Business Administrative, Northern University Bangladesh has done the internship report title “Mobile Banking (Banking in your Hand)” of Dutch-Bangla Bank Ltd -At Satmosjid Road Branch, under my supervision and guidance. I am approving his internship report and accepting it in quality form. Mr. Dipock Mondal is intelligent, sincere and hardworking. He has put in lot of work and has also brought forth his views and ideas which are being studied for implementation at appropriate time. I wish him every success in his future Endeavour.

Signature

Signature

…………………………… Mohammad Masum Billah
Assistant Professor Faculty of Business Administration Northern University Bangladesh

………………
Chairman Internship Committee Faculty of Business Administration Northern University Bangladesh

Letter of Transmital
10th September, 2011 Mohammed Masum Billah Assistant Professor Faculty of Business Administration Northern University Bangladesh Sub: Submission of the Report on “Mobile Banking (Banking in your Hand)” Dear Sir, I am a student of BBA program of NUB. I’m happy and delighting to submit here with a copy of internship report for your kind evaluation and appreciation. I would be honored if you go thought my report and find it worthwhile as really put in a lot of effort while preparing it. My internship period was from 12.05.2011 to 11.08.2011. I have immense pleasure to have the opportunity to study on Mobile Banking of Dutch-Bangla Bank Ltd Satmosjid Road Branch. I believe that this report has enriched my knowledge. If you have further queries regarding the report, please let me know. I would be obliged to avail at your convenience.

Yours sincerely, ……………… Dipock Mondal ID: BBA 070360590 Faculty of Business Administration Northern University Bangladesh

Acknowledgement

The successful completion of this report is the outcome of the contribution of a number of people to whom I’m grateful and thank them from the very deep of my heart. So, I would like to take this opportunity to thank all those people who helped me in preparing this report on “Mobile Banking (Banking your Hand)”-A study on Dutch-Bangla Bank Ltd Satmosjid Road Branch.” First of all I would like to express my great respect to almighty for providing me the strength and energy to prepare this report. I would like to convey my sincere gratitude to my honorable teacher Mr. Mohammad Masum Billah, Assistance professor, Department of Business Administration Northern University Bangladesh. I would like to thanks Mr. Md. Badiul Alam Badal(Senior Assistant Vice President) as well as Mr. Mohammed Zakir Hossain (Executive Officer) who help me to provide lot of information about DBBL. I heartily thank all the officials of DBBL and my friends who directly or indirectly lent me there assistance in this regard Finally, I would like to thank my parents for giving me the mental as well as the financial support for preparing the report. With warm Thanks

Abbreviations
ATM CIB EVA IT LRA DBBL SLR SSI CSR NID M-Banking E-Money STD IT LC DPS SWIFT SMS GPRS 3G : Automation Telex Machine. : Credit Information Bureau. : Economic Value Added. : Information Technology. : Liquidity Ratio Analysis. : Dutch-Bangla Bank Limited. : Statutory Liquidity Ratio. : Small Scale Industries. : Corporate Social Responsibility : National Identity : Mobile Banking : Electronic Money : Short Term Deposit : Information Technology : Letter of Credit : Deposit Plus Scheme : Society for Worldwide Interbank Financial Telecommunication : Short Message Service : General packet radio service : 3ed Generation

Table of Contents
Chapter 1: Introduction Page No
1 1 2 2-3 3 3 3 3 4

1.1 Introduction of The Report ………………………………. ……… 1.2 Background of the Study ………………………………………… 1.3 Objectives of the study…………………………………………….. 1.4 Scope of the Report ………………………………………………... 1.5 Methodology ………………………………………………………... 1.5.1 Source of Data …………………………………………… 1.5.2 Primary …………………………………………………… 1.5.3 Secondary ………………………………………………. 1.6 Limitations of the Study …………………………………………….

Chapter 2: Company Profile
2.1 DBBL In Bangladesh ………………………………………………… 5 2.2 Historical Background ……………………………………………… 2.3 Objective of the DBBL ………………………………………… 2.3.1 Objective ………………………………………………….. 5-6 6 7

2.3.2 Financial Objectives ………………………………………. 7 2.3.3 Vision ……………………………………………………… 7 2.3.4 Mission ……………………………………………………. 2.4 Functions of DBBL ………………………………………………… 2.5 Corporate Strategy ………………………………………………….. 2.6 Organizational Goals ……………………………………………….. 2.7 Different Operations of Dutch-Bangla Bank Limited……………… 2.7.1 Deposit Collection………………………………………… 2.7.2 Life line Disbursement……………………………………. 2.7.3. Foreign Trade…………………………………………… 2.7.4 Foreign Currency Endorsement…………………………. 7 7-8 8 9 9 9 9 9 10 2.3.5 Core values…………………………………………………. 7

2.7.5 Investment………………………………………………... 2.7.6. Social Responsibility…………………………………….. 2.8 Overall Standings of Dutch-Bangla Bank Limited…………….. 2.9 Corporate Profile……………………………………… 2.10 Organizational Structure…………………………….

10 10 10 11 12

Chapter 3: Internship position & duties
3.1 Internship position & duties ……………………………. 3.1.1 Internship Position & Duties………….. 3.1.2 Learning Points……………………….. 3.1.3 Activity Schedule…………………….. 13 13 14 15

Chapter 4: Mobile Banking
4.1 Introduction to Mobile Banking………………………………….. 4.2 Reason of Genesis of M-Banking……………………………… 4.3 Mobile Banking A New Business Models For Banking…….. 4.4 Mobile Banking………………………………………………… 4.5 Objective of Mobile Banking…………………………. 4.6 Benefits of Mobile Banking…………………………….. 4.7 Some other purpose of Mobile Banking………………….. 4.8 Why Mobile Banking is Necessary………………………….. 4.9 Why DBBL chose Mobile Banking……………………… 4.10 Partner of Mobile Banking…………………………………… 4.11 Where DBBL M-Banking is available? ............................... 4.11.1 Benefits of DBBL Mobile Banking……………… 4.11.2 What does DBBL Mobile banking offer? ........... 4.11.3 How does it work? ................................................. 4.11.4 Necessity………………………………………. 16 17 17 18 19 19-20 20-21 21 22 22 23 23 24 24 25

4.11.5 Mobile Account opening procedure in a flow chart .. 4.11.6 Why PIN is required? ............................................ 4.11.7 Why PIN is strictly confidential?…………………. 4.11. 8 Why Check digit? ................................................ 4.11.9 Which Telco’s Mobile can be registered? .............. 4.11.10 What type of Mobile set is required? .................... 4.11.11 How much initial deposit is required?................,… 4.11.12 Can I deposit and withdraw money immediately After registration? ............................................... 4.11.13 How is DBBL Mobile Banking secured? ......... 4.11.14 Where to cash-out (cash withdrawal)? ................ 4.11.15Mobile A How does it work? ............................... 4.11.16 Where to cash-in (cash deposit)? ........................ 4.11.17 How does it work? ............................................... 4.11.18 What is transaction limit? .................................. 4.11.19 How to check your account balance? ................. 4.11.20 How to change PIN? .......................................... 4.11.21 What is Salary/Allowance Disbursement? .......... 4.11.22 How it works? ................................................... 4.11.23 Benefits of Corporate Office/Government? ........... 4.11.24 Benefits of employee/beneficiary? .................. 4.11.25 How foreign remittance can be sent to Mobile Account? ............................................... 4.11.26 Fees & Service Charges……………………. 4.11.27 Mobile Banking Services in DBBL……………. 4.11.28 Account Information………………………… 4.11.29 Payments & Transfers……………………….. 4.11.30 Transaction…………………………………… 4.12 Advantages of Mobile Banking……………………………… 4.13 Limitation of Mobile Banking…………………………… 4.14 Challenges before Mobile Banking…………………..

25 25 26 26 26 26 27 27 27 28 28 29 29 29 30 30 31 31 31 32 32 32 32 33 33 33 34-35 35-36 36-38

4.15 Prospective……………………………………………………….

39

Chapter 5: Findings and Analysis
5.0 Findings……………………………………………………….. 5.1 Demographic information analysis of the respondents……. 5.1.1 Ages of the respondents……………………… 5.1.2 Genders of the respondents……………………. 5.1.3 Professions of the respondents…………………… 5.1.4 Reason for opening A/C……………………….. 5.1.5 Education Level of respondents……………… 5.1.6 Responses analysis from the survey questionnaire. 40 41 41 42 43 44 45 46-54

SWOT ANALYSIS
5.1.7 SWOT Analysis………………………………………… 55 Strengths………………………………….. Weaknesses………………………………. Opportunities……………………………… Threats……………………………………. 55 55 56 56

Chapter 6: Conclusion and Recommendation
6.1 Conclusion…………………………………………………….. 6.2 Recommendations …………………………………………….. 57 58

References Appendix

Executive Summary
Importance of banking system in a country is increasing day by day. It is quite impossible for any country to develop in industrial and commercial sector without sound banking system in modern economic era. General Banking and Mobile Banking is one of the significant functions of the bank. It plays a vital role in overall economy of the country. Bank collects information from numerous sources relating to cost and revenue from Customer Management. Globalization of national economies has given a boost to international trade. The seller and the buyer in an international trading transaction must agree for a product or its quality, price etc. enter into a sales contract, spelling out precisely shipping and delivery details, terms of payment, required documentation and other related issues including dispute settlement procedure and legal framework available.

This internship report has been prepared to fulfill the requirement for getting BBA degree. As a part of my course, it is mandatory to get involved with an organization for a certain period of time to acquire the practical knowledge. The placement committee of Department of Business Administration, Northern University Bangladesh places me at Dutch-Bangla Bank Ltd for doing my Report. The report covers organizational aspects of Dutch-Bangla Bank Ltd and a project title “Mobile Banking (Banking in your Door)”. All the discussions are presented in detail in the project part of the report. Hope it will help the reader to have a distinct picture of the whole project work. Any kind of criticism is welcome for the betterment of the project.

Chapter-1 General Introduction

1.1 Introduction of the Report:
Now we are living in the age of competition at anything in any places. From that tendency recently Education is also in the age of competition. So the procedures and standards of teaching are upgraded by different universities and institutions in our country. In respect to that, internship is mandatory for our BBA program offered by Northern University Bangladesh. This program is a partial fulfillment of our BBA curriculum. To do so I decided to complete my internship in Dutch-Bangla Bank Ltd. The financial system is a framework or system through which financial surpluses in the economy are mobilized from surplus economic units. There are three economic units involved in the process. * Financial Institutions * Business Concerns * Individuals

1.2 Background of the Study:
We Know Bangladesh Bank play an important role of our country. The banking system of Bangladesh is composed variety of banks working as National Commercial Banks, Foreign bank, Specialization, banks and Development Banks. However there are many Banks in Bangladesh at Present. Under internship program each student has to prepared a report on a particular topics related with the organization. According to this requirement, I have already completed my Internship at DBBL Satmosjid road Branch. On the basis of my practical experience as well as theoretical knowledge, I have completed the report regarding, Mobile Banking (Banking In Your Hand)-A Study on Dutch-Bangla Bank Limited, Satmosjid Road Branch. The main focuses of my study is to analysis about Mobile Banking which is new banking system in Bangladesh and its strength and weakness.

1.3 Objectives of Study:

Now a day the world is denoted as Global village. The whole world is consider as a potential market as a every single product and service. The economical prospective of a country largely depends on the international trade. With that view the volume of international business increase day by day. The banking sector of the operations are considered as a key factor of the economy of a country’s economic development. As a student of BBA another objective is to get sound knowledge about Banking
• • • •

To fulfill academic requirement. To gain practical knowledge in banking sector of our country To learn different activities of DBBL To explain the procedures of the General Banking and Mobile Banking of Dutch-Bangla To inspect the mobile Banking services by Dutch-Bangla Bank. To measure the actual position in classified Loan and provisions maintained by the To get acquainted with the new investment, size, profile of sector wise outstanding To identify major strength and weakness of Dutch-Bangla Bank Limited in respect to To assess and evaluate the growth trends on Dutch-Bangla Bank Limited among other To recommend ways and means to solve problems regarding Banking.

Bank.
• •

Dutch-Bangla Bank Limited.

position of new investment.

other Banks in case of Mobile Banking.

Banks.

1.4 Scope of the Report:

The Report mainly focuses on the following areas:
 General Banking as well as Mobile Banking and Internet Banking extended by Dutch-

Bangla Bank Limited.

 General procedures for general banking of Duth-Bangla Bank Ltd.  What kinds of standard documents are required for different types of account opening

like Mobile account, saving account, Current Account, STD, Excel, Power, Power Plus..  How different kinds of projects are appraised and financed at Dutch-Bangla Bank Limited.  Present scenario and prospective of Dutch-Bangla Bank Ltd

1.5 Methodology:

1.5.1 To make the Report more meaningful and presentable, two sources of data and information have been used widely.

Both primary and secondary data sources were used to generate the report. 1.3.2 Primary: Primary data are root level data and are collected without correction. These data were collected by 1) Face to face conversation with customer as well as employee 2) By observing various organizational procedures 1.3.3 Secondary:

Annual reports and PDF of Mobile Banking of Dutch-Bangla Bank Limited, Instruction circular of Head Office, Brochures of different Banks, News Paper & Magazine regarding Mobile Banking issues, Seminar papers and so on.

1.6 Limitations of the Study:

The major limitations of this study are:  Sufficient records, publications were not available as per my requirement.  Time constraint.  Non-cooperative behavior of some officials of the bank.  3 months are very short time to prepare this.  Lack of opportunity to work in all the departments for a longer time.  Up to date data are not available.  Lack of opportunity to visit more than one branch as well as Mobile Banking Agent.  Customers are not free to interview long time.

Chapter-2
Company Profile

i

2.1 DBBL in Bangladesh:

Banking system occupies an important place in a nation’s economy. Banking institution is indispensable in a modern society and it plays a vital role in the economic development of a country. Against the background of Liberation of economic policies in Bangladesh. DutchBangla Bank Ltd. Emerged as a new commercial bank to provide efficient banking services with a view to improving the socio-economic development of the country. The Bank provides a broad range of financial services to its customers and corporate clients. The Board of Directors consists of eminent personalities from the realm of commerce and industries of the country.

2.2 Historical Background:

Dutch-Bangla Bank Limited is a second generation bank that was established in 1995 with a dream and a vision to become a pioneer banking institution of the country and contributes significantly to the national economy and society also. The banks journey began when it was incorporated as public limited company on July 04, 1995. The registrar of Joint Stock Companies and firms issued the Certificate of Commencement of business of the bank on the same date. The banks first branch was inaugurated at the busiest commercial hub of the country at 1, Dilkusha Commercial Area, Dhaka on June 03, 1996. In its arduous journey since, Dutch-Bangla Bank Limited has succeeded in realizing the dreams of those who established it. Today is one of the leading banks in the private sector, contributing significantly to the national economy and society also. The authorized capital of the Bank is today Tk. 4000.00 million. Its Paid-Up-Capital Tk. 2000.00 million and Reserve reached to Tk. 2524.72 million as on September31, 2010. The Dutch-Bangla Bank Limited was established by the leading business personalities and eminent industrialists of the country and abroad with stakes in various segments of the national economy. They established the Bank with a vision to bring efficient and professional

banking service to the people and the business community of Bangladesh to help the national economy to grow. The incumbent chairman of the bank is Mr. Abedur Rashid Khan. The Bank’s operations are built upon unequivocal emphasis on effective corporate governance. The objective here is to create, promote and build long-term company value. The Banks first and highest priority is to provide effective services and maximum satisfaction to the customer. The ethos of harmony and co-operation is widely practiced in the bank. It believes that transparency in decision-making, monitoring mechanism and full disclosure to shareholders and regulatory authorities are essential aspects of bank’s corporate governance and that they create an intense pressure to rationalize bank’s services and search for new competitive advantages. It works ceaselessly within these parameters. A team of efficient professionals manages the bank. They create and generate an environment of trust and discipline that affects everybody in the bank to work together for achieving the objectives of the bank. A commitment to quality and excellence in service is the hallmark of their identity. Now, the Dutch-Bangla Bank Limited has become a synonym of quality banking products and services. It has an array of such products services tailored carefully to cater to the needs of all segments of customer. It has been achieved much of its goals but it has been performing its activities to satisfy the country people as it did before well.

2.3 Objective of the Dutch Bangla Bank Limited:

2.3.1 Objective:
To achieve positive Economic Value Added (EVA) each year. To be market leader in product innovation. To be one of the top three Financial Institution in Bangladesh in terms of cost efficiency. To be one of the top five Financial Institutions in Bangladesh in terms of market share in all significant market segments we serve.

2.3.2 Financial Objectives:
To achieve a return on shareholders’ equity of 20% or more, on average.

2.3.3 Vision:
Dutch-Bangla bank, as a first class pioneer banking financial institution, dreams of a better Bangladesh, where arts and letters, sports and athletics, music and entertainment, science and education, health and hygiene, clean and pollution free environment and above all a society based on morality and ethics make all our lives worth living. DBBL’s essence and ethos rest on a cosmos of creativity and the marvel –magic of a charmed life that abounds with spirit of life and adventures that contributes towards human development.

2.3.4 Mission:
The Dutch-Bangla Bank engineers enterprises and creativity in the business and industry with a commitment to social responsibility. “Profits alone” does not hold a central focus in the banks operation; because “man does not live by bread & butter alone.”

2.3.5 Core values:
The Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer’s needs and satisfaction and to become their first choice in banking. Taking cue from its pool of esteemed clientele, the bank intends to pave the way for a new era for a banking that upholds and epitomizes its vaunted marques “Your trusted partner.” For the community strengthening the corporate values and taking environment and social risks and reward into account

2.4 Functions of DBBL:

Dutch-Bangla Bank is one of the well known second generation private bank in Bangladesh. It has much better reputation, position in, and contribution to the economic sector of Bangladesh

only for its better quality services and efficient team of performers. But it has not reached here over night. It has some distinction features so that it is now very close of the peak of success. Those distinctive features are as stated:  The Dutch-Bangla bank provides service with high degree of experienced & expert & use of modern technology.  The bank has the biggest IT investment as a bank in the country.  The institution creates long term relationship based on mutual trust.  It responses to customers needs with speed & accuracy.  It shares its values & beliefs with the clients.  It provides products & services at competitive pricing.  It ensures safely & security of customers valuables in trust with us.  It introduces diversified & dynamic banking system.  It targets every income level person for its banking service.  The financial institution ensures higher level of transparency and accountability at all level of doing business for having efficient and effective business operation.  It is the pioneer in maintaining Corporate Social Responsibility (CSR) as a banking financial institution all over the country.  It holds the biggest ATM (Automated Teller Machine) network.

2.5 Corporate Strategy:

Financing establishment of small units of industries and business and facilitate their

growth • • • • Small Balance Sheet size composed of quality assets. Steady and sustainable growth. Investment in a cautious way. Adoption of new banking technology.

2.6 Organizational Goals:

To employ funds for profitable purposes in various fields with special emphasis on

small scale industries.
• • •

To undertake project promotion on identify profitable areas of investment. To search for newer avenues for investment and develop new products to suit such needs. To establish linkage with other institutions which are engaged in financing micro

enterprises.

To cooperate and collaborate with institutions entrusted with the responsibility of

promoting

2.7 Different Operations of Dutch-Bangla Bank Limited:

As one of the leader of banking financial institutions of the country, the Dutch-Bangla Bank Limited has a wide variety of operations. It earns a lot of profit from those operations. The important thing is that the operations are little unique from the competitors. The different operations are as stated shortly here: 2.7.1 Deposit Collection: As a leading commercial bank of the country, Dutch-Bangla Bank Limited collects huge amount of idle money from the country people as deposit in against of paying interest depending upon the account features. It pays different percentage of interest for different maturity of fixed deposits. It disburses flat 4% interest for savings account. As usual, it does not pay any interest for the current account 2.7.2 Life line Disbursement: The bank has a wide variety of life line. The collected idle money is distributed among the applicants after judging their possibility. Life line can be for commercial, personal, business, home, car, health, children, education, marriage etc. It takes

interest based on the maturity period of the life line. It earns almost 85% of its income from this operation 2.7.3. Foreign Trade: Foreign trade is another source of income for the bank. It is involved in both export and import business. It earns little from this sector but it contributes a lot to the national economy. Here, L/C (Letter of Credit) is the main source of income. 2.7.4 Foreign Currency Endorsement: Foreign currency endorsement is another source of income for the bank. It supplies money of the different recognized foreign currency like US Dollar, British Pound, Japanese Yean, Saudi Real etc to the immigrants after having their passports and visa. 2.7.5 Investment: Investment is an important operation of the bank. It can be of long and short term. It contributes significantly in the profit earning of the bank that goes to the stockholders ultimately. This investment improves the infrastructural, national development. 2.7.6. Social Responsibility: Social Responsibility is a very important operation for the bank. Though it is not a major operation from the view of profit earning but it has generated a very strong image of the bank among the national and international community also. Through this image, it has reached to the top of the success. The bank often arranges different types of social campaign like eye replacement, blood donation, free medical check up, various natural calamities, social awareness against of dowry system, early marriage, Scholarship of different level and other social problems .

2.8 Overall Standings of Dutch-Bangla Bank Limited:

The Dutch-Bangla Bank Limited began its journey with only tk. 200 million as authorized capital. But its expansion of business has led it towards this position. Now it has tk. 4000 as authorized capital, tk. 2000 as paid up capital and a total capital of tk 6257.29 million and a capital surplus of tk, 902.15 million which is remarkable for the banking industry. In 2010, it had a net profit of tk. 1410.01 million after tax where the total operating income was 5134.67. It had a statutory reserve of tk. 2524.72 million. It earned total revenue of tk. 9887.59 million and had total expenses tk. 7054.26 million. It possessed a total asset of tk. 99,877.43 million of which

earning asset is tk. 81,566.84 million which was outstanding. statements ended Sep 30, 2010)

(As per diluted financial

At first the bank had begin its operation with only 3 branches and a very few officials. Those branches are Motijheel Local Office, Agrabad branch and Banani branch. But now it has a strong network of service consisting of 97 branches and over 2000 officials over the country. [ 2.9 Corporate :

Profile:

Corporate Profile of Dutch-Bangla Bank Ltd
Name of the Bank Status Corporate Slogan Commencement of operation Authorized capital Paid up capital Industry Nature of Business Target customers Number of ATM Number of Branches Number of employees SWIFT Dutch Bangla Bank Limited Private Limited company Your Trust Partner April 1995.

Tk.4000 million. Tk.2000 million.
Banking industry of Bangladesh Banking Business with different services/products. Individuals and corporate customers financial

1351 101 Around 3000 DBBL BD DH

2.10 Organizational Structure:

Chairman Managing Director (MD) Additional managing Director (AMD) Deputy Managing Director (DMD) Senior Executive Vice President (SEVP) Executive vice president (EVP) Senior vice president (SVP) Vice President (VP) Senior Assistant Vice President (SAVP) Assistant Vice President (AVP) First Assistant Vice President (FAVP) First Vice President (FVP) Senior Executive Officer (SEO) Executive officer (EO) First Executive Officer (FEO) Assistance Officer (General) Trainee Officer (cash)

Chapter-3
Internship Position & Duties

3.1.1 Internship Position & Duties:
In the period of my three months internship program, I have got some positions and duties in the DBBL Satmosjid Road Branch. In this branch they are given me a rotation of positions and duties which was duration of 15 working days for a department. My main responsibilities and duties are as follows: Accounting Opening: I have to open an account and finally authorized those account. Also I have to prepared cheque book, provide account statement of the customer, and prepared bank solvency. I have to prepared daily affairs of account department I have to write pay order, demand draft, prepared voucher and check all of these. I have to prepared voucher of daily entertainment expense of the branch. I have to do work in clearing department that how the cheque is scan and input in the automated clearing software I have to do work Mobile account opening, cash in and cash out I have also work in remittance department as well as Loan department I have also work in western union The large dept is card dept which is challenging for
• • • •

Pin Delivery Card Delivery Cheque delivery Account Opening of virtual card a new product of DBBL

3.1.2 Learning Points:
In the internship period I have been learn lot of things, which are: In my internship I have been learn about the overall banking operation of a bank, which was totally unpractical for me. I have learned about how to prepare a cheque book, bank solvency, client bank account statement etc. By this internship I have got lot of information about pay order, demand draft, etc. Clear idea about the fixed deposit scheme, DPS, STD, Power, Power Plus, Excel, Loan account, Locker Account of DBBL Idea about the investment product of DBBL How to open an Account Mobile Account opening cash in and out process. What are requirement have to fulfill for opening an account Learn about online banking service Learn about the bank financial position in the banking sector Learn about the background of the DBBL Objective, mission and vision of the DBBL. Know about how the customer collect money from Western union, SWIFT code of DBBL

3.1.3 Activity Schedule:
Month
Activity

May-Jun W 1 W 2 W 3 W 4 W 5 W 6

Jun-July W 7 W 8 W 9

July-August W1 W1 W1 W 10 11 12 1 3

Week Observe the functional unit of the Bank Plan Actual

To do work in different department

Plan Actual Plan

Collection of Primary and secondary data Data processing and analysis

Actual Plan Actual Plan

Report Preparation Report Submission

Actual Plan Actual

Chapter-4
Mobile Banking (Banking in your Hand)

”Mobile banking” is not simply another delivery channel but represents a fundamental shift in the paradigm of consumer banking.”

4.1 Introduction to Mobile Banking:

Internet Banking helped give the customer's anytime access to their banks. Customer's could check out their account details, get their bank statements, perform transactions like transferring money to other accounts and pay their bills sitting in the comfort of their homes and offices. However the biggest limitation of Internet banking is the requirement of a PC with an Internet connection, not a big obstacle if we look at the US and the European countries, but definitely a big barrier if we consider most of the developing countries of Asia like Bangladesh. Mobile banking addresses this fundamental limitation of Internet Banking, as it reduces the customer requirement to just a mobile phone. Mobile usage has seen an explosive growth in most of the Asian economies like Bangladesh. The main reason that Mobile Banking scores over Internet Banking is that it enables ‘Anywhere Anytime Banking'. Customers don't need access to a computer terminal to access their bank accounts, now they can do so on-the-go while waiting for the bus to work, traveling or when they are waiting for their orders to come through in a restaurant. The scale at which Mobile banking has the potential to grow can be gauged by looking at the pace users are getting mobile in Bangladesh. The mobile subscriber base in Bangladesh hit 70 million in 2011. The explosion as most analysts say, is yet to come as Bangladesh has about one of the biggest untapped markets. We see that in Korea which is now witnessing the roll-out of some of the most advanced services like using mobile phones to pay bills in shops and restaurants.

4.2 Reason of Genesis of M-Banking:

Introduction of new technologies Control costs, removal of cost duplication To increase online channel customers Personalize customer interactions Unparalleled convenience & proactive customer service

4.3 Mobile Banking A New Business Models For Banking: Sector:

A wide spectrum of Mobile/branchless banking models is evolving. These models differ primarily on the question that who will establish the relationship (account opening, deposit taking, lending etc.) With the end customer, the Bank or the NonBank/Telecommunication Company (Telco). Models of branchless banking can be classified into three broad categories - Bank Focused, Bank-Led and Non Bank-Led. The bank-focused model emerges when a traditional bank uses non-traditional low cost delivery channels to provide banking services to its existing customers and new customers in rural area where commercial bank can not reach till now

4.4 Mobile Banking:

Mobile Banking is a Banking process without bank branch which provides financial services to un-banked communities efficiently and at affordable cost. To provide banking and financial services, such as cash-in, cash out, merchant payment, utility payment, salary disbursement, foreign remittance, government allowance disbursement, ATM money withdrawal through mobile technology devices, i.e. Mobile Phone, is called Mobile Banking. Mobile banking (m-banking) involves the use of a mobile phone or another mobile device to undertake financial transactions linked to a client’s account. M-banking is one of the newest approaches to the provision of financial services, made possible by the widespread adoption of mobile phones even in low income people. The roll out of mobile telephony has been rapid, and has extended access well beyond already connected customers in rural area. There is mounting evidence of positive social impact on poorer people and communities as a result. There are sound reasons for the hope that m-banking could have similar impact. A mobile network offers a high technology platform onto which other services can be often provided at very low cost to deliver an effective result. Mobile data channels are often under-used and therefore may be offered at low cost by the network operator. M-banking services which use channels such as text messaging/ SMS can be carried at a cost of less. The low cost of using existing infrastructure makes such channels more amenable to use by low income customers. M-banking is new in our country, and there has been limited donor support in this sector to date. This report considers the case for donors to support m-banking as a sector. Bangladesh Bank permitted 10 commercial bank to do such kind of mobile banking business that the rural people who have mobile but haven’t banking facilities, Service holders can get there salary by the mobile banking.

4.5 Objective of Mobile Banking:

Around 87% of the total population of Bangladesh is un-banked. To bring such a huge population into the banking channel, DBBL is implementing a system to launch mobile banking soon. The project is in its final stage now. With this facility any person having a mobile number will be able to use his number as a bank account. In this mobile account they will be able to do the following: ● Cash deposit to any Agent of DBBL ● Cash withdrawal from any Agent of DBBL ● Cash withdrawal from DBBL ATMs ● Funds transfer to another mobile account ● Utility bill payment, Tuition fee payment, Air time top-up. ● Receive remittance from home and abroad ● Salary disbursement ● Disbursement of Govt. allowances ● Merchant Payment ● Balance Inquiry

4.6 Benefits of Mobile Banking:

By providing electronic access to money, it is possible to ultimately alleviate poverty, because of the following reasons.  Real time on-line banking

 Available anytime, anywhere throughout the country  It’s convenient, affordable and secure  It is much more effective in developing savings habits  It will make access to banking and advanced payment transactions at affordable cost  It is much safer, speedy and safeguard against fraudulent transaction.

4.7 Some other purpose of Mobile Banking:

While poor people have little money, they are active managers of what they have. Holding cash comes at high price to poor people because of the risk of crime in many poor People, but they often have few alternatives to cash based services. In particular, appropriate financial services help poor people to access usefully large lump sums of money, which may either enable a pathway out of poverty through investment in income generating activities (such as micro enterprises) or asset creation (such as housing); or may reduce vulnerability to sudden shocks to cash flow, as a result for example of illness or climate conditions. In our country, poor people are forced to rely on informal financial services, which may be unsafe, or fringe formal financial products which may be expensive as well as unsafe. In other words, their exclusion from formal financial services has economic and social impacts which may exacerbate their poverty.

The cost efficient provision of formal financial services (payments/ remittances, savings, credit or insurance) is predicated on customers having access at least to a basic transactional account, from which electronic transfers can be made as like purchase product and pay one another by Mbanking and cash withdrawn as necessary. M-banking holds the prospect of offering a low cost, accessible transaction banking platform for currently unbaked and poorer customers. In addition, as mobile networks expand their coverage, they offer the opportunity of bringing payment and remittance services into that areas where banking services is unable able. However, not all m-banking products will be transformational in the sense of broadening access to financial services substantially at first or even at all. However, it is likely that even m-banking services which start targeted at existing banked customers may over time extend to un-banked groups.

4.8 Why Mobile Banking is Necessary:
• In low income people, m-banking may enable to use such kind of Banking where Banking facilities can’t reach till now the cost and safety of using m-banking is comparatively low. • M-banking potentially brings new Customer where banking sector is running as like as dog for there product marketing; these may be stronger than retail banks and better placed to reach out to un-banked customers. • M-banking is still very new, whereas other forms of e-banking are quite well established; the potential to influence and adapted to the customer may be higher compare to former banking because a lot of people use mobile phone in our country

4.9 Why DBBL chose Mobile Banking: \

Rapid expansion of Mobile Phone Nation wide coverage. Enhanced Mobile Phone Services Failing cost of Technology Increasing competition in Commercial Banking Ability to offer low cost banking services Affordable and secure High level of Mobile phone literacy among client Existing of Mobile payment platform which is save and secure & recognized by Bangladesh Bank

4.10 Partner of Mobile Banking:

Banglalink & citycel are two Leading mobile phone operator in Bangladesh. 152 outlets. It is reliable as Telecom Company that turns a mobile phone into an electronic wallet.

4.11 Where DBBL M-Banking is available? Where DBBL M-Banking is available?

Customer can register at any authorized agent point of DBBL – at present these are the retailers of City cell & Banglalink throughout the country who can display ‘DBBL Agent Certificate’ and ‘DBBL Mobile Banking Banner’. Banking is there. Around 152 Banglalink and Citycel agent around the country and all the DBBL branch is the Mobile Banking place. A Mobile account holder can deposit money from DBBL permitted Banglalink and City cell agent and any branch of DBBL, They also can withdrew money from DBBL Banglalink and City cell agent and Branch. They also cash out from ATM.

4.11.1 Benefits of DBBL Mobile Banking
By providing electronic access to money, it is possible to ultimately alleviate poverty, because of the following reasons.  Real time on-line banking.  Available anytime, anywhere throughout the country.  It is convenient, affordable and secure.  It is much more effective in developing savings habits.  It will make access to banking and advanced payment transactions at affordable cost.

 It is much safer, speedy and safeguard against fraudulent transactions 4.11.2 What does DBBL Mobile banking offer?  Customer Registration  Cash-in (cash deposit)  Cash-out (cash withdrawal)  Merchant Payment  Utility Payment  Salary Disbursement  Foreign Remittance  Air-time Top-up  Fund Transfer

4.11.2 How does it work?
 Customer fills up the KYC Form and submit to agent along with his photograph & National ID (NID).  Agent checks the Application Form, photograph & NID.  Agent goes to Customer Registration Menu in his/her mobile and insert customer’s mobile number.  Customer receives a call and in reply, s/he gives a 4-digit PIN number of his/her choice (please remember your PIN).  A Mobile Account is created in the DBBL system which is his/her mobile number + one check digit.  Customer receives an SMS which contains his/her Mobile Account number (please remember your check digit). According to the Law and Practice the Banker – Customer relation arises only from contract between the two. And opening of Mobile Account is the contract that establishes the relationship between a banker and a customer. So this section pays very important role in attracting customer and therefore be handled with extra care

4.11.3 Necessity
A person who wants to open an account he/she should have some documents to open an account, these are1. 2 copies PP size photo of Applicant 2. Photocopy of National ID Card 3. 100 take as account opening charge.

4.11.4 Mobile Account opening procedure in a flow chart
The authorized officer scrutinized the introduction and examine the documents submit

Applicant fills up the relevant application form in the prescribed manner

He/ she is required to fill up the specimen signature

Depositing the cash

Account is opened

After registration of DBBL Mobile Banking DBBL cell center call customer for choosing the password. Customer chose four digit number what they like. The mobile banking number will be like mobile number with one cheque digit. It will be active within 1-2 working day. 4.11.5 Why PIN is required? PIN is required to be inputted during cash withdrawal from an Agent or DBBL ATM. PIN ensures security of your money and protects fraudulent transaction.

4.11.6 Why PIN is strictly confidential?

PIN is the key for transaction of Mobile Banking. Only correct match of PIN & Mobile Number can access the Mobile Account. PIN is needed to verify the A/C owner by the system. If a PIN is disclosed, respective account is at risk; therefore, PIN should be handled very carefully. 4.11.7 Why Check digit? Mobile number is public and known to many people. Without knowing your check digit, none will be able to deposit money at your account, thus it helps to keep your mobile account confidential. On the other hand, a check digit eliminates typing error, thus protects sending or depositing money to a wrong account. 4.11.8 Which Telco’s Mobile can be registered? Customer having any mobile from any Mobile Operator can be registered for DBBL Mobile Banking at any agent point of Banglalink and Citycell. All these Mobile Account holders will be able to deposit and withdraw money from the Agents. However the customers having mobile from operators other than Banglalink and Citycell will not be able to initiate many selfinitiated services like Balance checking, fund transfer, utility payment, Air-time top up, PIN Change etc. Customers having mobile from Banglalink and Citycell will be able to enjoy all the services – agent-initiated as well as self-initiated.

4.11.7 What type of Mobile set is required?
Any type of mobile set can be used for DBBL mobile banking.

4.11.8 How much initial deposit is required?
Customers can open a DBBL Mobile Account with an initial deposit of Taka 10/- (taka ten) only.

4.11.9 Can I deposit and withdraw money immediately after registration?
You can deposit money immediately after registration. However, you can withdraw after your account is fully registered. Bank officer verifies the information on the registration form (KYC form) and authorizes the account for full registration. Normally 1-2 working days are required for full registration. After your account is fully registered, you will get an SMS notification.

4.11.10 How is DBBL Mobile Banking secured?

DBBL Mobile Banking is highly secured as it uses either USSD or SMS+IVR as its communication channel. In case of USSD, both the instructions and PIN are communicated using USSD while in case of SMS+IVR, instructions are sent via SMS and PIN via IVR (voice channel) both the USSD and IVR are secured for transmission of PIN Customer’s money is safe as none can withdraw his/her money without taking possession of Mobile set, PIN and Check digit together. None will be able to deposit unwanted money into a Mobile Banking Account without knowing the check digit (although the mobile number is publicly known).

4.11.11 Where to cash-out (cash withdrawal)?
Customer can cash-out (withdraw) at any authorized agent of DBBL (at present Citycell & Banglalink agents), DBBL ATMs and DBBL Branch.

4.11.12Mobile A How does it work?

 Customer asks the Agent for withdrawal of an amount from his/her mobile account  Agent initiates the transaction from his/her mobile  Agent gets prompt menu and in reply agent enters customer’s mobile account number (including check digit) and amount to withdraw  DBBL system sends prompt menu to the customer’s mobile (or IVR Call): “You are going to withdraw Tk. XXXX from your mobile account with DBBL. If you want to continue, please enter your 4-digit PIN”  Customer enters his/her PIN  System debits customer’s account and send an SMS to the customer’s mobile  Agent hands over money to the customer

4.11.13 Where to cash-in (cash deposit)?
Customer can cash-in (deposit) at any authorized agent of DBBL (at present Citycell & Banglalink agents) or DBBL Branch.

4.11.14 How does it work?
 Customer hands over cash to the Agent  Agent initiates the transaction from his/her mobile  Agent gets prompt menu and in reply agent enters customer’s mobile account number (including check digit) and amount  Agent enters his/her PIN  System credits customer’s account for the same amount  Agent issues a receipt to the customer  System sends an SMS to the customer’s mobile  For security reason, customer needs to check the sending number of SMS and the amount. SMS will be sent from 16216

4.11.15 What is transaction limit ?

There may be scarcity of cash at agent points. We want to serve as many customers as possible from each agent points. On the other hand, it is required to minimize fraudulent loss, if any. To arrest all the above, a transaction limit in terms of frequency and amount have been set in the system. Current limit for the customers are as under: Cash-in frequency per day = 5 times

Cash-out frequency per day = 5 times Cash-in / cash-out amount per transaction = 5,000/Cash-in frequency per month = 20 times Cash-out frequency per month = 20 times

4.11.16 How to check your account balance?
 Customer initiates the transaction from his/her own mobile  DBBL system sends prompt menu to the customer’s mobile (or IVR Call): “Please enter your 4-digit PIN to know your balance or press Cancel button to cancel the request”  Customer enters his/her PIN  System sends the balance into his/her mobile

4.11.17 How to change PIN?

 Customer initiates the process from his/her own mobile.  DBBL system sends prompt menu to the customer’s mobile (or IVR Call): “Please enter your existing 4-digitPIN to proceed or press Cancel button to cancel the request”  Customer enters his/her existing PIN  DBBL system asks for new 4-digit PIN  Customer enters his/her new PIN  The PIN is changed

4.11.17 What is Salary/Allowance Disbursement?

It is a process by which Corporate Office can disburse the salary of their employees and Government can disburse different allowances like elderly allowance, freedom fighter allowance to the people within a few moment in a hassle free way.

4.11.18 How it works?
 Corporate Office/ Government will send the list of mobile account numbers (including check digit) and monthly salary/allowance to DBBL  DBBL will credit all the individual accounts by debiting corporate account centrally by a batch process system  The employee/beneficiary will get an SMS regarding the transaction  The employee/beneficiary can go to any agent or DBBL ATM or DBBL Branch for withdrawal of money

4.11.19 Benefits of Corporate Office/Government?
 Time savings  Cost savings  No need of extra manpower  Probability of error is very low  Instant service is ensured

4.11.20 Benefits of employee/beneficiary?
 Instant credit to the account

 No hassle to collect salary/allowance  No queue  Money can be withdrawn from any agent or DBBL ATM or DBBL Branch

4.11.21 How foreign remittance can be sent to Mobile Account?
 Exchange houses at abroad receive remittance against beneficiary’s mobile account number  Exchange houses send the mobile account number and the amount to DBBL  DBBL will centrally credit the amount against respective mobile account  The beneficiary will get an SMS regarding such transaction.  The beneficiary can go to any agent or DBBL ATM or DBBL Branch for withdrawal of money

4.11.22 Fees & Service Charges
Registration Fee: Free Cash-in Charges: 1% of the transaction amount or Tk.5/-, whichever is higher Cash-out Charges: 2% of the transaction amount or Tk.10/-, whichever is higher. Merchant Payment: Free for customer Mobile Top-up: Free for customer Salary Disbursement: Free Allowance Disbursement: Free Remittance Disbursement: Free

4.11.23 Mobile Banking Services in DBBL
Banks offering mobile access are mostly supporting all of the following Services

4.11.24 Account Information
• Mini-statements and checking of account history

•SMS Alerts on account • Registration fee, salary and remittance disbursement

4.11.25 Payments & Transfers
• Domestic fund transfers • Micro-payment handling • Mobile recharging • Bill payment processing

4.11.26 Transaction
• Fund Transfer • Bill Payment • Other financial services like

4.11.27 Enquiry Based
• Credit/Debit Alerts. • Minimum Balance Alerts • Bill Payment Alerts • Account Balance Enquiry • Account Statement Enquiry • Cheque Status Enquiry. • Cheque Book Requests. • Recent Transaction History.

4.12 Advantages of Mobile Banking

The biggest advantage that mobile banking offers to banks is that it drastically cuts down the costs of providing service to the customers.  You can make transactions or pay bills anytime. It saves a lot of time.

 Mobile banking thorough cell phone is user friendly. The interface is also very simple. You just need to follow the instructions to make the transaction. It also saves the record of any transactions made.  Cell phone banking is cost effective. DBBL provide this facility at a lower cost as compared to banking by self.  Banking through mobile reduces the risk of fraud. You will get an SMS whenever there is an activity in your account. This includes deposits, cash withdrawals, funds transfer etc. You will get a notice as soon as any amount is deducted or deposited in your account.  Banking through cell phone benefits the banks too. It cuts down on the cost of tele- banking and is more economical.  Mobile banking through cell phone is very advantageous to the banks as it serves as a guide in order to help the banks improve their customer care services.  Banks can be in touch with their clients with mobile banking.  Banks can also promote and sell their products and services like credit cards, loans etc. to a specific group of customers.  Various banking services like Account Balance Enquiry , Credit/Debit Alerts, Bill Payment Alerts, Transaction History, Fund Transfer Facilities, Minimum Balance Alerts etc. can be accessed from your mobile.  You can transfer money instantly to another account in the same bank using mobile banking.  Mobile banking has an edge over internet banking. In case of online banking, you must have an internet connection and a computer. This is a problem in developing countries. However, with mobile banking, connectivity is not a problem. You can find mobile connectivity in the remotest of places also where having an internet connection is a problem. Mobile banking is helping service providers increase revenues from the now static subscriber base. Service providers are increasingly using the complexity of their supported mobile banking services to attract new customers and retain old ones. A very effective way of improving customer service could be to inform customers better.

4.13 Limitation of Mobile Banking

Uncertainties over the speed and nature of customer adoption: This is to be
expected with any new offering, although the uncertainty is compounded by the relative lack of knowledge of the needs of un-banked people in many places, and the market potential. Consumer education may speed adoption; but more likely, adoption on scale will happen as it has happened with mobile phones: by forced to adapt their offerings as they encounter feedback in The market place. Therefore, it is necessary to have sufficient providers in the market who Can remain in the market long enough to ensure that to identify the elements of a successful model. Hence, support to providers may assist in overcoming this barrier. Generally available research into the patterns and needs of the un-banked target market may also help.

Lack of interoperability with existing systems: Interoperability of different payment
systems is primarily a question of market structure and regulation. It arises initially only in markets where there is an existing payment infrastructure with which new providers can interoperate (and later on, once new infrastructure becomes the standard). Without inter-operability, the fixed costs of deploying financial infrastructure may be much harder to recover, since usage per item of proprietary infrastructure will fall. Clearly, one solution may be to give regulators the power to require interoperability; however, it may be sufficient to encourage the identification of appropriate standard upfront. This could take place via support to regulators or industry bodies, where these exist.

Regulatory barriers: Specific regulatory impediments vary by market; but in general, a lack
of openness to new models of provision and a lack of policy certainty limit the potential of new models. Increasing openness and certainty may require support to regulators to outline high level policy, as well as to amend existing regulations or draft new ones where and when required.

The case for donor support therefore rests on removing barriers such as these, thereby making it more likely that transformational models of m-banking will emerge at all, or at least, sooner; and that they will develop more rapidly than otherwise would be the case.

4.14 Challenges before Mobile Banking:

Reaching deeper into rural areas without costly investment in infrastructure. Reducing the costs of servicing. Interoperability Security risks from robbery & holdup. Scalability & reliability Personalization Customer education Reduce cost of clients High transecting cost Lac of cash out late Cost of cash in and out is high compare to interest rate on bank deposit Marketing to convince more people Merchants and Shops to accept M-cash in payment for goods and services. Overcome initial security of customer money.

Interoperability:
There is a lack of common technology standards for mobile banking. Many protocols are being used for mobile banking. It would be a wise idea for the vendor to develop a mobile banking application that can connect multiple banks. It would require either the application to support multiple protocols or use of a common and widely acceptable set of protocols for data exchange. There are a large number of different mobile phone devices and it is a big challenge for banks to offer mobile banking solution on any type of device. Security Security of financial transaction, being executed from some remote location and transmission of financial information over the air, are the most complicated challenges that need to be addressed jointly by mobile application developers, wireless network service providers and the bank's IT department. The following aspects need to be addressed to offer a secure infrastructure for financial transaction over wireless network:

* Physical security of the handheld device. If the bank is offering smart-card based security, the physical hacker security should of require the device to is access more the important. application. * Security of the thick-client application running on the device. In case the device is stolen, the ID/Password * Authentication of the device with service provider before initiating a transaction. This would ensure that unauthorized devices are not connected to perform financial transactions. * * User ID / of Password the data authentication being of bank's over customer. the air. Encryption transmitted

* Encryption of the data that will be stored in device for later / off-line analysis by the customer. Scalability & Reliability Another challenge for the banks is to scale-up the mobile banking infrastructure to handle exponential growth of the customer base. With mobile banking, the customer may be sitting in any part of the world (a true anytime, anywhere banking) and hence banks need to ensure that the systems are up and running in a true 24 x 7 fashion. As customers will find mobile banking more

and more useful, their expectations from the solution will increase. Banks unable to meet the performance and reliability expectations may lose customer confidence. Application Distribution Due to the nature of the connectivity between bank and its customers, it would be impractical to expect customers to regularly visit banks or connect to a web site for regular upgrade of their mobile banking application. It will be expected that the mobile application itself check the upgrades and updates and download necessary patches. However, there could be many issues to implement this approach such as upgrade / synchronization of other dependent components. Personalization It would be expected from the mobile application to support personalization such as: 1. Preferred Language 2. Date / Time format 3. Amount format 4. Default transactions 5. Standard Beneficiary list 6. Alerts

4.15 Prospective:
Increasing faster transmission via GPRS 3G technology to be lunched soon in Bangladesh is expected to bring in a mobile revaluation. Users are slowly getting used to the concept of mobile in hand held device as digital cash or wallet to carry out purchase. Presently low value M-commerce transecting are happening. To extent low cost banking services to existing clients & un-banked individuals especially in rural areas.

Chapter-5
Findings And Analysis

5. Findings and Analysis:

5.0 Findings:
Despite many advantages of DBBL have some disadvantages which I did noticed while I served DBBL, Satmosjid Road Branch and I would like to mention those recommendation. I believe it may improve better customer Satisfaction for DBBL All activities are conducted are per customers necessary. Limited number of Invest mode practices. Number of employee is not sufficient. FDR rate is low compare to other Bank Shorter bank space Some department are very slow to deal with customer Poor security system Shortage of ISP as well as capacity of generator is not high as necessary. Behavior of some employee is not good. Card and cheque division are not well arrange as necessary. Customer available but employee are shortage. Customer are inspire to open account but lone or FDR is discrete. Network Problem as a result customer are sufferer a lot. One employee are not able to other desk in case of gathering of customer because of unable to do most type of work. A lot of missing is being held when customer open a account as like spelling of name, card types, cheque.

5.1 Demographic information analysis of the respondents 5.1.1 Ages of the respondents:
Analysis: From the figure 01, it is evident that, among 100 respondents, 44% ( the height portion) of the respondents belongs to the age group of 20-30. The lowest portion 13% belongs to the age group of 50+. The second height 26% respondents belong to the age between 31-40.
Ag e

13% 17% 44% 20-30 31-40 41-50 50> 26%

Figure: 01 Age of the respondents

Age 20-30 31-40 41-50 50> Total

No. of Respondents 44 26 17 13 100

Percentage 44% 26% 17% 13% 100%

Table: 01 Age of the respondent

5.1.2 Genders of the respondents:
Analysis: The total respondents were 100 in number and from the figure 02 it is evident That, among 100 respondents 68 respondents were male and 32 were female.

Gender
80 70 60 50 40 30 20 10 0
Figure: 02 Age of the respondents

M a le

F e m a le
Percentage 68% 32% 100%

Gender Male Female Total

No. of Respondents 68 32 100
Table: 02 Age of the respondents

5.1.3 Professions of the respondents:
Analysis: From the figure 03, it is evident that, among 100 respondents, 35%(the height Portion) of the respondents belongs to the other professional like student. The lowest portion 10% belongs to Professional The second height 25% respondents belong to the Service Holder

.

Profession
40 35 30 25 20 15 10 5 0 Student Professionals Business ManServices Holder Housewife

Figure: 03 Age of the respondents

Reason opening Required Facilities

of

A/C No. of Respondents 53 14 21 12 100

Percentage 53% 14% 21% 12% 100%

Attractiveness Near from my place Total

Table: 03 Qualification of the respondent

5.1.4 Reason for opening A/C: Analysis: From the figure 03, it is evident that, among 100 respondents, 53%(the height
portion) of the respondents belongs that they have require Mobile A/C. The lowest portion 12% belongs to the near from my place. The second height 21% respondents belong to the Facility.

R e a s o n F o r A /C o p e n in g

12% 14% 53% 21% R e q u re d F a c ilit y A t t ra c t ive n e s s N e a r fro m m y p la c e

Figure: 04 Reason of A/C Opening of the respondents

Reason of A/C No. of Respondents opening Required 53 Attractiveness Facilities Near from place Total 14 21 my 12 100

Percentage 53% 14% 21% 12% 100%

Table: 04 Reason of Account opening of the respondents

5.1.5 Education Level of respondents: Analysis: From the figure 05, it is evident that, among 100 respondents, 38%(the height
portion) of the respondents belongs that they are HSC level. The lowest portion 9% belongs that haven’t no formal education. The second height 25% respondents belong to the SSC Level.

E du catio n L evel

16% 12%

9% No Form al E duc tion 25% SSC HS C G raduate P os t G raduate 38%

Figure: 05 Education Level of the respondents

Education Level No Formal Eduction SSC HSC Graduate Post Graduate Total

No. of Respondents 9 25 38 12 16 100

Percentage 9% 25% 38% 12% 16% 100%

Table: 05 Education Level of the respondent

5.1.6 Responses analysis from the survey questionnaire:

Mobile Banking is new but modern:
Analysis: From the figure 9, it is evident that among 100 respondents, the highest respondents 61 agreed with the statement that Mobile Banking is new but modern. The second highest, 25 respondents also strongly believes that statements. For the data tables of this analysis.

70 60 50 40 30 20 10 0 Strongly Agree Agree 27 7 Neutrial 3 Disagree 0 Strongly Disagree 63 Series1

Figure: 06 M-Banking new but modern of the respondents

You feel safe in your transaction through mobile
Analysis: From the figure 9, it is evident that among 100 respondents, the highest respondents41 agreed with the statement that You feel safe in your transaction through mobile. The second highest,29 respondents also strongly believes that statements. For the data tables of this analysis.

You feel safe in your transaction through mobile
45 40 35 30 25 20 15 10 5 0

41 29 20 10 Strongly Agree Agree Neutral Disagree 0 strongly Disagree

Figure: 07 seem safe trangection of the respondents

Call center services are always available when you require
Analysis: From the figure 9, it is evident that among 100 respondents, the highest respondents 52 agreed with the statement that Call center services are always available when you require. The second highest, 27 respondents disagree believes that statements. For the data tables of this analysis.

You feel safe in your transaction through mobile
60 50 40 30 20 10 0 Strongly Agree Agree 50 18 2 Neutral Disagree
Figure: 08 cell center service availability of the respondents

27 3 strongly Disagree

The Cost of cash In and out is affordable in case of Mobile Banking.

Analysis: From the figure 9, it is evident that among 100 respondents, the highest respondents 59 Strongly Disagreed with the statement that The Cost of cash In and out is affordable in case of Mobile Banking. The second highest, 21 respondents also strongly Agree believes that statements. For the data tables of this analysis.
Cost of M -Banking
70 60 50 40 30 20 10 0 Strongly Agree Agree 21 20 0 Neutrial Disagree 0 Strongly Disagree 59 Series1

Figure: 09 cost effective of the respondents

Available agent and branch for m-banking
Analysis: From the figure 9, it is evident that among 100 respondents, the highest respondents 36 agreed with the statement that Available agent and branch for m-banking.The second highest, 24 respondents also strongly believes that statements. For the data tables of this analysis.

You feel safe in your transaction through mobile
40 35 30 25 20 15 10 5 0 Strongly Agree Agree 24 6 Neutral Disagree strongly Disagree 36 20 14

Figure: 10 Available Agent of M-Banking

M-banking is save your time
Analysis: From the figure 9, it is evident that among 100 respondents, the highest respondents 31 agreed with the statement that M-banking is save your time.The second highest, 29 respondents also strongly believes that statements. For the data tables of this analysis.

Save Time
35 30 25 20 15 10 5 0 Strongly Agree Agree 2 Neutrial Disagree Strongly Disagree 11 31 29 27 Series1

Figure: 11Save time of M-Banking

I feel safe in my transactions with this bank.
Analysis: From the figure 9, it is evident that among 100 respondents, the highest respondents 50 agreed with the statement that I feel safe in my transactions with this bank. The second highest, 21 respondents also strongly believes that statements. For the data tables of this analysis.

Yo u feel safe in yo u r tran s actio n th ro u g h m o b ile
60 50 40 30 20 10 0 S trongly A gree A gree 50 21 0 Neutral 17 s trongly Dis agree

12 Dis agree

Figure: 12 Feel safe in Trangection of the respondents

DBBL understands your specific needs
Analysis: From the figure 9, it is evident that among 100 respondents, the highest respondents 41 agreed with the statement that DBBL understands your specific needs. The second highest, 20 respondents also Disagree that statements. For the data tables of this analysis.

You feel safe in your transaction through mobile
45 40 35 30 25 20 15 10 5 0

41 17 20 10 Disagree strongly Disagree

12 Neutral

Strongly Agree

Agree

Figure: 13DBBL understand specific need of the respondents

Time taken to process of Mobile transaction of this bank is acceptable Analysis: From the figure 9, it is evident that among 100 respondents, the highest respondents 58 agreed with the statement that Mobile Banking is new but modern. The second highest, 25 respondents also strongly believes that statements. For the data tables of this analysis.

You feel safe in your transaction through mobile
70 60 50 40 30 20 10 0 Strongly Agree Agree 25 0 Neutral 17 Disagree 0 strongly Disagree 58

Figure: 14 Trangection Time acceptance of the respondents

In your experience, the approximate waiting time for cash in is
Analysis: From the figure 25, it is evident that, among 100 respondent , the highest 38% waits 15 min, for deposit., 28% needs to below 10 min., 18% waits for 30 min. and 16% waits for above 30 min.

Waiting for deposit
45 40 35 30 25 20 15 10 5 0 Belo 10Min 15 Min 30 Min Above 30 Min 14 27 39 20

Figure: 15 waiting time of the respondent

In your experience, the approximate waiting time for cash out is
Analysis: From the figure 25, it is evident that, among 100 respondent , the highest 50% waits 15 min, for deposit., 18% needs to below 10 min., 12% waits for 30 min. and 20% waits for above 30 min.

Waiting for Cash Out
60 50 40 30 50 20 10 0 Belo 10Min 15 Min 30 Min Above 30 Min 18 12 20

Figure: 16Waiting for cash out of the respondents

Are you regular customer?
Analysis: From the figure 21, it is evident that, among 100 respondent , the highest 76% are regular customer and 24% are irregular customers.

Types of customers

24% Yes No 76%

Figure: 17 types of the respondents

How often do you use this facility?
Analysis: From the figure 9, it is evident that among 100 respondents, the highest respondents 55 use this facility once a week. The second highest, 24 respondents also use this facility more than once a week. For the data tables of this analysis.
Use this facility

18% 10% 22% 50%

once a week

More than once a week

once a month

Infrequent

Figure: 18 How Often Use this facilities

Overall Responses of the Respondent:

O v e r a ll R e s p o n d s

7% 25% 40%

4% 24%

S t r o n g ly A g rg ree eN e u t r iaDl is a g r eSe t r o n g ly D is a g r e e A e

Figure: 19 Overall respondents in pie chart

SWOT ANALYSIS

5.1.7 SWOT ANALYSIS
I get the following Strengths, weaknesses, opportunities, and threats (SWOT) from my practical observation in three months Internship Program, of DBBL as follows:

Strengths
Strengths 1. Potential customer in rural and urban area where branch banking is not possible. 2. Partner is available. 3. New investment like Mobile Banking where no bank in Bangladesh is not start such kind of business 4. Low cost for opening Mobile Bank Account. 5. Possible to give hand to the remote area customer of there remittance earn from abroad. 6. Mobile bill pay or recherché through Mobile Banking is possible. 7. Out let is available. 8. Tran section process is easy 9. Save money in rural area. 10. Salary/Allowance Disbursement 11. Strong network of telecom company 12. Efficient Employee of DBBL as well as Telecom Partner. 13. Cost effective

Weaknesses
Weaknesses 1. Out Let is not available as per requirement. 2. Mobile ATM booth is not available. 3. Amount of transaction is very little. 4. Advertisement is not adequate that most of the people don’t know about Mobile Banking. 5. Employee are not efficient that M-Banking is new in Bangladesh. 6. Insecure out let that rubbery the money in remote area where security is not available.

7. New concept in Bangladesh is the beast weakness 8. Cash in and out cost is more than interest rate 9. Lack of Knowledge of operating Mobile transaction within customer.

Opportunities
Opportunities 1. Lot of potential customer in Bangladesh that around 7 corer people use Mobile phone. 2. It may that the shopkeeper receive there payment through Mobile transaction. 3. Salary and allowance may distribute through Mobile Banking 4. Government and other International agencies positive attitude toward low classification rate. 5. Opportunity to expand banking business. 6. Large market for bank. 7. Gain more profit through Mobile Banking. 8. To reach the modern banking facilities to the rural area where banking facilities does not reach till now.

Threats
Threats: 1) Customer may not use properly the process of M-Banking. 2) Reaching deeper into rural areas without costly investment in infrastructure. 3) Reducing the costs of servicing. 4) Interoperability 5) Security risks from robbery & holdup. 6) Scalability & reliability 7) Personalization 8) Customer education 9) Reduce cost of clients 10) Lack of out late 11) Cost of cash in and out is high compare to interest rate on bank deposit.

Chpter-7
Conclusion and Recommendation

6.1 Conclusions:

For service providers, Mobile banking offers the next surest way to achieve growth. Countries like Bangladesh where mobile penetration is nearing saturation, mobile banking is helping service providers increase revenues from the now static subscriber base. Also service providers are increasingly using the complexity of their supported mobile banking services to attract new customers and retain old ones. For the fact is that one day, in most of the world emerging markets, more people will use mobile telephones than use fixed telephone lines. Businesses that are based on mobile financial serviced will thus be a natural fit for these economies. What is more, there is no need to wait for the next generation mobile networks; these businesses can be built using today's technology. But to capture this significant opportunity, financial firms and telecommunications companies will have to partnerships with one another and, possibly, with merchants and retail chains as well. Dutch-Bangla Bank is pioneer of Mobile Banking in Bangladesh and it has a lot of possibility to reach customers door as well as banking in the hand of customers.

6.2 Recommendation:
Continue Mobile Banking in the rural areas to increase the use of E-Money especially in commercial applications. Continuous pilot testing of the other M-Banking services to model cost effective ways of reaching more and more people in areas farther away from bank. Develop a mobile banking website as information portal particularly for M-Banking. Continuous support and training workshop on Mobile Banking. Procedures develops on going Developed M-banking system to automated transecting.  Major problems in a business arises when it’s new. The officer should observe that whether there is loss of the top executive, demand, or any other most important new one has entered and often the change may be worse.   DBBL and concern partner should advertise more for attracting all level of customers. DBBL should encourage students for Mobile account opening because students are a potential source for a bank.    DBBL should increase facility to fulfillment customers need. DBBL should increase its outlet. Bank should also be aware of significant changes in the training of M-Banking officer and concern Partners employee.  Changes in industry trends may directly affect business so that it can no longer completely profitable. Therefore, the Bank should keep information about the environment of each industry in which its customers operate  Real value of business can come from making regular visits to the customer’s place of business rather than holding all meetings in the Bank.  Against big willful defaulters legal action should be taken promptly for customer MMoney Security.  Should arrange more and more campaign in public place to increase M-Banking customer.    The cost of cash in and out should decrease. Try to involve small business to raise customers. Advertisement should increase through Radio, Newspaper, Poster, Banner.

References and Appendix

References: Books:
• Bringham, Eugene F, ‘Essential of Managerial Finance’ Twelfth Edition. • Syed Ashrf Ali & R.A Howlader “Banking Low & Practice” First Edition November 2009 • Annual Report 2010 DBBL • Ross, Westerfield, Jaffe Corporate Finance Sixth Edition • Gitman, J Lawrence(2003), ‘Principal of Finance’ Tenth Edition

Web Site:
• Official website www.dbbl.bd.com • www.scribd.com/Dipu01718(Dipock Mondal Dipu) • www.theprofriton.com • www.linkedin.com • www.blog.com

Others:
• Dutch-Bangla Bank Ltd.2010 Annual Report • Prospectus of DBBL • Mobile Banking PDF

Appendix:

Dutch-Bangla Bank Limited
Customer Satisfaction Survey questionnaire:
Its really appreciable if you would take just a few minutes to respond to the questioner below. As a valuable customer of DBBL Mobile Banking, how you rate our service, is very important information for us. It is to be noted that all answers here will be treated confidentially & no individual data will be disclose. Please read the statements, which some people agree with, and do not. Whether you Strongly Agree (SA), Agree (A), Neutral (N), Disagree (D), strongly Disagree (SD) with each statement.

Demographic Information:
1 Age a) 20-30 years d) 41-50 years 2 3 Gender. a) Male Occupation. a) Professionals c) Business man 4. Reason for opening A/C. a) Required c) Attractiveness 5. Education level. a) No formal education c) HSC e) Post Graduation b) Service Holder d) Housewife b) Facility d) Near from my place b) SSC d) Graduation e) others b) Female c) 31-40 years e) above 50 years

8. Would you like to use mobile banking services? a) Yes b) No

Please circle/mark the number you choiceSA A Particulars 1. Mobile Banking is new but modern 2. You feel safe in your transaction through mobile 3. Call center services are always available when you require. 4. The Cost of cash In and out is affordable in case of Mobile Banking. 5. Available agent and branch for m-banking. 6. M-banking is save your time. 7. I feel safe in my transactions with this bank. 8. DBBL understands your specific needs 9. Time taken to process of Mobile transaction of this bank is acceptable 9. DBBL provides prompt services to its customers. 10. DBBL Mobile Banking is very effective for you 5 5 5 5 5 5 5 5 5 5 5 4 4 4 4 4 4 4 4 4 4 4 3 3 3 3 3 3 3 3 3 3 3 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 N D SD

Please check one best alternativeIn your experience, the approximate waiting time for cash in is Δ Below 10 min Δ 15 min Δ 30 min Δ Above 30 min In your experience, the approximate waiting time for cash out is Δ Below 10 min Δ 15 min Δ 30 min Δ Above 30 min Are you regular customer? Δ Yes Δ No How often do you use this facility? Δ once a week Δ More than once a week Δ once a month Δ Infrequently

Your valuable comment regarding the service: …………………………………………………………………………………………………… …………………………………………………………………………………………………… …………………………………………………………………………………… Your precious suggestions to improve the services: …………………………………………………………………………………………………… …………………………………………………………………………………………………… ………………………………………………………………………………….... Thank you very much for sharing valuable time

Interview Guideline:

Who: Customer of Mobile Banking What: Satisfaction level of Mobile Banking When: 10 days within 10 Jul to 31 Jul.

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