ACKNOWLEDEMENT

I feel deeply in debted towards people who have guided me in this project. It would have not
have been possible to make such an
extensivereport without the help, guidance and inputs from them. Most of myinformation source
has been from professional books of banking sector I would firstly like to express my gratitude
towards my guide PROF:KASHYAP GANATRA for having shown so much of flexibility &
guidingin such a way that I was really learning the subject all the time. She helpedme in deciding
the project topic. She showed a lot of openness in her approach and I would like to thank him
for his support in a way that has leadto proper & effective learning.I would like to thank Mr.
ASHOK PATEL, branch manager of
HDFC bank for their kind support in providing primary data and informationregarding Mobile
Banking.Last but not least I am grateful to all my family members & my friendsfor being my
side always. Without their help and Motivation it would have been impossible to complete my
project.
22

Findings
Primary Data
:Various people that included office staff help to collect the primary data on the basis of
interviews, thoughts & suggestion
Secondary Data:
The Main sources of Secondary data were combination of information from the Internet,
periodicals and books of the related topic.
Hypothesis:
To understand about how M-banking activity is carried out and howit is easy to use.
Limitations:
Lack of information pertaining to the various angles of the report.The topic is too vast to be
covered in this project. These were main problemsencountered by myself.
33
Table of Contents
NO.ParticularsPageNo1.Acknowledgement22.Finding33.Table of content44.Executive summer
y55.Introduction 6-
76.Mobile Network provide competitive advantages 87.Mobile Banking Applications 9-
108.Mobile payment-An additional role for Mobile phone 119.M-Commerce-
strategic implications for banks 12-1310.Terms and conditions governing the use of “SMS”-
SIBMobile service,(Push Alerts & Pull request)14-
2011.Customers Requirements for Mobile Banking Application 2112.Could Mobile Banking go
global ?2213.M-Banking-No Wires, No Worries, New customers.2314.M-
Banking use cases2415.M-Banking solutions : Best practice 25-
2616.Security for Mobile Banking 27-
3017.Characteristics of Mobile use 3118.General conditions of Mobile Banking3219.Case study
of HDFC bank 33-
3620.Conclusion and suggestions 3721.Application form for Mobile Banking 3822.Questionnair
es 39-4521.Bibliography and Wibliography 46
Introduction of Mobile Banking
The Internet is revolutionizing the way the financial industryconducts business,
empowering organizations with new business models
andn e w w a y s t o i n t e r a c t w i t h c u s t o m e r s . T h e a b i l i t y t o p e r f o r m b a n k i n
g transactions online has created new players in the financial industry, such asonline banks and
brokers who offer personalized services through their
Web p o r t a l s . T h i s i n c r e a s e d c o m p e t i t i o n i s d r i v i n g t r a d i t i o n a l f i
n a n c i a l institutions to find new ways to add the value to their products and
services,g a i n c o m p e t i t i v e a d v a n t a g e a n d i n c r e a s e c u s t o m e r l o y a l t y w h i l e
a l s o attracting new, high-value clients.Mobile and wireless technology, combined with the
wide varietyof portable devices available today, enables new revenue opportunities
for financial services organizations. This provid es a new channel that can beused to
refresh and expand the customer base, attract prime customers andenhance loyalty.
With mobile and wireless technology, banks can offer a wide possibilities

of services to their customers, from the freedom of paying bi l l s w hi l e st u ck i n t ra f fi c, t o

r ec ei vi n g n ot i fi ca t i o n of a ch an ge in
s t o ck p ri c e wh i l e h avi n g l u n ch, t h e c on ve ni en c e an d t i m e s avi n g b en e fi t s o f
wireless financial services are huge. The challenge, then, is how to turn these possibilities into a
reality for the customers.
Benefits

A. Grow new customer base and markets :

Developing wireless applications and services targeted at the mobilemass market will allow
attracting new, high-value customers into mobile banking portal and expanding the reach
to global markets.
B. Increase share of customer wallet
:

The convenience of having personalized wireless access to criticalfinancial information is an

invaluable service for customers on the move.Enabling the execution of time -
sensitive financial transactions
anywhere,a n yt i m e, p ro vi d es t h e op po rt u ni t y t o st r en gt h en t h e r el at i ons hi p s wi
t hex i s t i n g cu st om e r s. Thi s u l t i m at el y r e sul t s i n an i n c r ea s e d s ha r e of t he c us t
om e rs ' t r an s ac t i o ns - -p r ev en t i n g t he m fr om t ak i n g a po rt i on of t h ei r financial
business elsewhere

C. Grow assets, number of transactions and fees

:
Granting customers flexible access to financial information and accounts enables them to
perform transactions when it's most convenient for them. As a result, they have the
opportunity to conduct transactions morefrequently, driving increased revenue from fees.
D.Expand and enhance brand presence:
Brand and reputation for convenience, service and innovation will bestrengthened and
enhanced each time customers on the move stop to check their stock portfolio or to
pay bills wirelessly. This also offers significant potential to grow the market.
Mobile banking applicationsExamined applications
In the following, the main types of existing mobile banking applications areintroduced. These
build standard types as each of them is representative for aseries of comparable applications.
While WAP-banking and mobile bankingvia PDA are generic, SMS-banking and mobile
banking with SIM Toolkituse specialties of the GSM standard.
WAP-banking
The most widespread solution for mobile banking is based on micro-
websites following the WAP standard (Wireless Application Protocol).
Thef u n c t i o n o f W A P b a n k i n g i s i n m a n y w a y s s i m i l a r t o t h e f u n c t i o n o
f Electronic banking using http. The client sends a request and gets a
responsew i t h p a g e c o n t e n t , w h i c h i s s t o r e d o n o r d y n a m i c a l l y g e n e r a t e d
b y a standard web server. The main difference is in the usage of a WAP gatewayfor the
conversion of the protocols. At banks must be considered that verysensitive data is
processed. While a normal content provider doesn’t has toobserve special security
precautions, and in some cases can even use theservices of extern providers, has to secure
its web server and WAP Gatewayespecially against unauthorized access. This is especially
necessary
becauseo f t h e f a c t t h a t i n s i d e t h e W A P G a t e w a y t h e e n c r y p t i o n p r
o t o c o l i s converted from SSL/TLS to WTLS with the effect that data is not encryptedwhile
it is processed. While authentication is assured via a PIN (personal identification
number) of the user, authorization for transactions is realizedvia transaction numbers (TAN).
This concept, known from the electronic b a nki n g, fo rc e s t h e us e r t o c a rr y a T AN
l i s t s w i t h hi m i n o r de r t o m a k e transactions.
SMS-banking
The Short Message Service (SMS) is a GSM service to exchange textm
essages up to 140 byte (or 160 characters of 7 bits). The transmission of mobile-
originated short messages is carried out by the short message servicecenter (SMSC) of the
particular network operator. The SMSC is receiving the message from the mobile device
and routing it to the destination device.

For generating mobile-

t e r m i n a t e d s h o r t m e s s a g e s , i t i s p o s s i b l e t h a t a com p a n y o r a sp e ci al
s e rvi c e p rov i d e r ru ns an ow n S MS C . T hu s, a
ba nk c o u l d g e n e r a t e S M S f r o m b a n k d a t a l i k e a c c o u n t b a l a n c e o r a c c o
u n t movements and send it to the mobile device of the customer. This techniqueis used at
SMS-banking: The customer sends an SMS with a request to the bank, and gets the
desired data as an answer.The customer has to include a PIN for authorization in every SMS he
sendsto his bank. Alike the WAP banking, one should pay special attention on these cu ri t y o f
t he l o ca t i o n of t h e S MS C . Ma n y s e rv i c e p rov i d e rs o f fe r t h e o p e r a t i o n o f
S M S C a s a s e r v i c e . T h e u s a g e o f s u c h a s e r v i c e i s o u t o f question for
banks, because of the high sensitive character of the transmittedd a t a . F o r t h i s r e a s o n i t
i s m a n d a t o r y f o r b a n k s t o r u n t h e i r o w n S M S - Gateway and secure it from
unauthorized access. The main problem withthis kind of transmission is the missing
encryption of the data during the on-the air transmission between the service center and
the mobile phone.