INTRODUCTION

The Indian banking sector has emerged as one of the strongest drivers of India’s economic growth.
The Indian banking industry (US$ 1.22 trillion) has made outstanding advancement in last few
years, even during the times when the rest of the world was struggling with financial meltdown.
State Bank Of India is the largest nationalized Bank in the country in terms of Branch Network,
Total Business, Advances, Operating Profit and Low Cost CASA Deposits. The ICICI is amongst
the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank
in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994.
E-banking:-

Internet banking (or E-banking) means any user with a personal computer and
a browser can get connected to his banks website to perform any of the virtual banking
functions. In Internet banking system the bank has a centralized database that i s w e b - e n a b l e d .
Internet banking is the term used for new age banking system. Internet banking is also called as
online banking and it is an outgrowth of PC banking. Internet banking uses the internet as the
delivery channel by which to conduct banking activity, for example, transferring funds, paying
bills, viewing checking and savings account balances, paying mortgages and purchasing financial
instruments and certificates of deposits. Internet banking is a result of explored possibility to use
internet application in one of the various domains of commerce. It is difficult to infer whether the
internet tool has been applied for convenience of bankers or for the customers’ convenience. But
ultimately it contributes in increasing the efficiency of the banking operation as well providing
more convenience to customers. Without even interacting with the bankers, customers transact
from one corner of the country to another corner. There are many advantages of online Banking.
It is convenient, it isn’t bound by operational timings, there are no geographical barriers and the
services can be offered at a minuscule cost (IAMAI’s, 2006). Electronic banking has experienced
explosive growth and has transformed traditional practices in banking.
In its very basic form, e-banking can mean the provision of information about a bank and its
services via a home page on the World Wide Web (WWW). More sophisticated e-banking services
provide customer access to accounts, the ability to move their money between different accounts,
and making payments or applying for loans via e-Channels. The term e-banking will be used in
this book to describe the latter type of provision of services by an organization to its customers.
Such customers may be either an individual or another business. To understand the electronic
distribution of goods and services, the work of Report and Sviokla (1994; 1995) is a good starting
point. They highlight the differences between the physical market place and the virtual market
place, which they describe as an information-defined arena. In the context of e-banking, electronic
delivery of services means a customer conducting transactions using online electronic channels
such as the Internet? Many banks and other organizations are eager to use this channel to deliver
their services because of its relatively lower delivery cost, higher sales and potential for offering
greater convenience for customers. But this medium offers many more benefits, which will be
discussed in the next section. A large number of organizations from within and outside the financial
sector are currently offering e-banking which include delivering services using Wireless
Application Protocol (WAP) phones and Interactive Television. Many people see the development
of e-Banking as a revolutionary development, but, broadly speaking, e-banking could be seen as
another step in banking evolution. Just like ATMs, it gives consumers another medium for
conducting their banking. The fears that this channel will completely replace existing channels
may not be realistic, and experience so far shows that the future is a mixture of “clicks (e-banking)
and mortar (branches)”. Although start up costs for an internet banking channel can be high, it can
quickly become profitable once a critical mass is achieved.

Fig.1.1 E-Banking Services

EVOLUTION OF E-BANKING
There have been significant developments in the e-financial services sector in the past 30 years.
According to Devlin (1995), until the early 1970s functional demarcation was predominant with
many regulatory restrictions imposed. One main consequence of this was limited competition both
domestically and internationally. As a result there was heavy reliance on traditional branch based
delivery of financial services and little pressure for change. This changed gradually with
deregulation of the in-E-Banking Management IGI Global, distributing in print or electronic forms
without written permission of IGI Global is prohibited industry during 1980s and 1990s, whilst
during this time, the increasingly important role of information and communication technologies
brought stiffer competition and pressure for a faster pace of change. The Internet is a relatively
new channel for delivering banking services.

INTRODUCTION TO MOBILE BANKING

Mobile Banking (also known as M-Banking, m-banking, SMS Banking, etc.) is a term used for
performing balance checks, account transactions, payments, etc., via a mobile device such as a
mobile phone. It was Internet Banking, which ushered in a new era in banking convenience by
bringing the entire operations to the computer, and now mobile banking promises to take it to the
next level. Internet Banking helped give the customers anytime access to their banks. Customers
could check out their account details, 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 India and China.
Mobile Banking addresses this fundamental limitation of Internet Banking, as it reduces the
customer requirement to just a mobile phone. Mobile usage has seen an explosive growth in most
of the Asian economies like India, China and Korea. The main reason that Mobile Banking scores
over Internet Banking is that it enables 'Anywhere Anytime Banking'. The last time that technology
had a major impact in helping banks service their customers was with the introduction of the
Internet banking. Internet Banking helped to give the customer's anytime access to their banks.
Customer's could check out their account details, get their bank statements,
perform transactions like transferring money to other accounts and pay their bills sitting in the
comfort of their homes and offices. However the biggest limitation of Internet banking is the
requirement of a PC with an Internet connection, not a big obstacle if we look at the US and the
European countries, but definitely a big barrier if we consider most of the developing countries of
Asia like China and India. Mobile banking addresses this fundamental limitation of Internet
Banking, as it reduces the customer requirement to just a mobile phone.
Mobile usage has seen an explosive growth in most of the Asian economies like India, China and
Korea. In fact Korea boasts about a 70% mobile penetration rate and with its tech-savvy populace
has seen one of the most aggressive rollouts of mobile banking services. Still, the main reason that
Mobile Banking scores over Internet Banking is that it enables ‘Anywhere Banking'. Customers
now don't need access to a computer terminal to access their banks, they can now do so on the go
– when they are waiting for their bus to work, when they are 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 these
big Asian economies. According to the Cellular Operators' Association of India (COAI)
the mobile subscriber base in India hit 40.6 million in the August 2004. In September 2004 it added
about 1.85 million more. The explosion as most analysts say, is yet to come as India has about one
of the biggest untapped markets. China, which already witnessed the mobile boom, is expected to
have about 300 million mobile users by the end of 2004. South Korea is targeted to reach about 42
million mobile users by the end of 2005. All three of these countries have seen gradual roll-out of
mobile banking services, the most aggressive being 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.
Mobile banking has been at the threshold of a revolution for some time. While many operators, as
well as banks, had introduced mobile banking applications, it never became popular due to security
concerns. The number of people using mobile banking services has jumped from under 10,000 to
120,000 in two years. While the trend is growing, lack of awareness of services, apart from
perceived security issues are inhibiting faster take-off. There is yet another reason why the service
will not spread like wild fire – the credit environment. RBI has been tightening the banks, which
have been offering unsecured and secured loans with minimal or no customer verification. With
RBI tightening liquidity, personal loan defaults have reached 9% and banks will be very wary of
giving you a credit card on the mobile.
Though RBI has specified norms for the banks to provide secure technology and ensure
'confidentiality, integrity, authenticity and non-reputability', security remains a major concern as
well as a hurdle. However, with a few precautions and safety measures, users can have a safer m-
banking experience. The m-PIN, which is issued by the bank, should be memorized and the PIN-
mailer destroyed immediately. Change your m-PIN regularly and do not share it with anyone. The
PIN is valid only for the corresponding phone number, which means users cannot access their
accounts using other hand-sets. Thus, in case of a loss/theft of mobile phone, inform the mobile
phone operator as well as the bank to block the banking application.
Similarly, you should also inform the bank, if you change your hand-set or SIM card. Reserve
Bank of India has set-up the Mobile Payments Forum of India (MPFI), a 'Working Group on
Mobile Banking' to examine different aspects of Mobile Banking (M-banking). The Group had
focused on three major areas of M banking, i.e.,
(i) Technology and security issues,
(ii) Business issues, and
(iii) Regulatory and supervisory issues.
Each stake-holder group has the following expectations: -
a) To meet the following expectations of Consumer: -
· Personalized service
· Minimal learning curve
· Trust, privacy and security
· Ubiquitous - anywhere, anytime and any currency
· Low or zero cost of usage
· Interoperability between different network operators, banks and devices
· Anonymity of payments like cash
· Person to person transfers
b) To meet the following expectations of Merchant: -
· Faster transaction time
· Low or zero cost in using the system
· Integration with existing payment systems
· High security
· Being able to customize the service
· Real time status of the mobile payment service
· Minimum settlement and payment time
c) To meet the following expectations of Telecom Network Providers: -
· Generating new income by increase in traffic
· Increased Average Revenue Per User (ARPU) and reduced churn (increased loyalty)
· Become an attractive partner to content providers
d) To meet the following expectations of Mobile Device Manufacturers: -
· Large market adoption with embedded mobile payment application
· Low time to market
· Increase in Average Revenue Per User (ARPU)
e) To meet the following expectations of Banks: -
· Network operator independent solutions
· Payment applications designed by the bank
· Exceptional branding opportunities for banks
· Better volumes in banking - more card payments and less cash transactions
· Customer loyalty
f) To meet the following expectations of Software & Technology Providers:
· Large markets
g) To meet the following expectations of Government: -
· Revenue through taxation of m-payments
· Standards
There are lots of evidences that not only big cities are using mobile banking, but even thousands
of people from rural areas across 12 states are also likely to get their social security pension and
wages paid under the National Rural Employment Guarantee Act (NREGA) Scheme with the help
of mobiles over the coming few months. Bharti Airtel, too, is in the process of tying-up with two
leading banks to extend its mobile remittance services to rural areas, according to its President
(Mobile Services), Sanjay Kapoor. Airtel has already partnered with the Indian Farmers' Fertilizers
Cooperative Limited (IFFCO) to set up IFFCO Kisan Sanchar Limited in Rajasthan. Under this
initiative, the cooperative department will provide mobile hand-sets to farmers at marginal price
through its out-lets in the rural areas. These handsets would be loaded with green SIM cards, which
will flash daily updates on agricultural practices and weather forecasts free of cost.
A MOBILE BANKING CONCEPTUAL MODEL
Mobile banking is defined as:
"Mobile Banking refers to provision and availment of banking- and financial services with the help
of mobile telecommunication devices.The scope of offered services may include facilities to
conduct bank and stock market transactions, to administer accounts and to access customised
information."

According to this model Mobile Banking can be said to consist of three interrelated
concepts:
· Mobile Accounting
· Mobile Brokerage
· Mobile Financial Information Services

Most services in the categories designated Accounting and Brokerage are transaction-based. The
non-transaction-based services of an informational nature are however essential for conducting
transactions - for instance, balance inquiries might be needed before committing a money
remittance.

The accounting and brokerage services are therefore offered invariably in combination with
information services. Information services, on the other hand, may be offered as an independent
module. The lifespan of all good ideas can be broken into five phases: concept, prototype, pilot,
pre-production, commercial deployment. Few ideas ever reach the stage of commercial
deployment, because they are just not viable, or have been ill conceived or badly deployed. For
some or other reason, mobile banking has been over-saturated with concepts and to some degree
with prototypes. The idea of utilising the phone for financial transactions are so obvious that every
man and his dog have developed a new concept or have submitted a patent somewhere. Everyone
of them believing that they have stumbled on the ultimate approach.
The reality is that very few of these ever progress past the rudimentary prototype stage. And it is
actually quite easy to demonstrate simple mobile banking functionality in a prototype environment.
Some of the challenges that often have not even been identified and hence solved are issues related
to integration, regulatory/legal and usability. These are sometimes addressed in the few prototypes
that migrate to pilot.
A pilot usually consists of a few hundred, maybe thousands of subscribers performing transactions
in a controlled environment with limited functionality. Even if pilots work, they often don't address
important aspects like scalability and system responses to unpredicted actions or break-downs.
What happens in the case of transactions that have been lost and how does the system respond to
situations where a component is not available. Important legal aspects are also often not addressed
yet at this stage. Pilots seldom uncovers the real system challenges and at best highlights key
elements regarding user experience.
During the pre-production stage business processes and system reliability and robustness should
be attended to. Many different business processes are required if a system is to be deployed in a
production environment. This should include registration, dispute resolutions, service activation
to name only a few. In examples that we have seen in the market some deployments have neglected
key processes leading to very difficult deployments and disillusioned clients. What looked easy
during pilot now turns out to be a nightmare of realities.
It is only when a solution is deployed commercially that they most important element of any idea
is tested: Can it make money? Mobile banking solutions that are not profitable will fail ultimately.
And this is where we at Fundamo can really contribute to making a difference in deploying
successful mobile payment/banking solutions. We have seen what works and what does not. We
have built powerful business modeling tools and have helped many customers to culminate with
commercially successful deployments of novel ideas. We have seen many competing products fail
because they were not commercially viable
TRENDS IN MOBILE BANKING
The advent of the Internet has revolutionized the way the financial services industry conducts
business, empowering organizations with new business models and new ways to offer 24x7
accessibility to their customers.

The ability to offer financial transactions online has also created new players in the financial
services industry, such as online banks, online brokers and wealth managers who offer
personalized services, although such players still account for a tiny percentage of the industry.
Over the last few years, the mobile and wireless market has been one of the fastest growing markets
in the world and it is still growing at a rapid pace. According to the GSM Association and Ovum,
the number of mobile subscribers exceeded 2 billion in September 2005, and now exceeds 2.5
billion (of which more than 2 billion are GSM).

According to a study by financial consultancy Celent, 35% of online banking households will be
using mobile banking by 2010, up from less than 1% today. Upwards of 70% of bank center call
volume is projected to come from mobile phones. Mobile banking will eventually allow users to
make payments at the physical point of sale. "Mobile contactless payments” will make up 10%
of the contactless market by 2010.

Many believe that mobile users have just started to fully utilize the data capabilities in their mobile
phones. In Asian countries like India, China, Bangladesh, Indonesia and Philippines, where
mobile infrastructure is comparatively better than the fixed-line infrastructure, and 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.
This opens up huge markets for financial institutions interested in offering value added services.
With mobile technology, banks can offer a wide range of services to their customers such as doing
funds transfer while travelling, receiving online updates of stock price or even performing stock
trading while being stuck in traffic. According to the German mobile operator Mobilcom, mobile
banking will be the "killer application" for the next generation of mobile technology.
Mobile devices, especially smartphones, are the most promising way to reach the masses and to
create “stickiness” among current customers, due to their ability to provide services anytime,
anywhere, high rate of penetration and potential to grow. According to Gartner, shipment of
smartphones is growing fast, and should top 20 million units (of over 800 million sold) in 2006
alone.
In the last 4 years, banks across the globe have invested billions of dollars to build sophisticated
internet banking capabilities. As the trend is shifting to mobile banking, there is a challenge for
CIOs and CTOs of these banks to decide on how to leverage their investment in internet banking
and offer mobile banking, in the shortest possible time.
The proliferation of the 3G (third generation of wireless) and widespread implementation expected
for 2003–2007 will generate the development of more sophisticated services such as multimedia
and links to m-commerce services.
MOBILE BANKING SERVICES
Mobile banking can offer services such as the following:
Account Information
1. Mini-statements and checking of account history
2. Alerts on account activity or passing of set thresholds
3. Monitoring of term deposits
4. Access to loan statements
5. Access to card statements
6. Mutual funds / equity statements
7. Insurance policy management
8. Pension plan management
9. Status on cheque, stop payment on cheque
10. Ordering check books
11. Balance checking in the account
12. Recent transactions
13. Due date of payment (functionality for stop, change and deleting of payments)
14. PIN provision, Change of PIN and reminder over the Internet
15. Blocking of (lost, stolen) cards
Payments, Deposits, Withdrawals, and Transfers
1. Domestic and international fund transfers
2. Micro-payment handling
3. Mobile recharging
4. Commercial payment processing
5. Bill payment processing
6. Peer to Peer payments
7. Withdrawal at banking agent
8. Deposit at banking agent
Especially for clients in remote locations, it will be important to help them deposit and withdraw
funds at banking agents, i.e., retail and postal outlets that turn cash into electronic funds and vice
versa. The feasibility of such banking agents depends on local regulation which enables retail
outlets to take deposits or not.
A specific sequence of SMS messages will enable the system to verify if the client has sufficient
funds in his or her wallet and authorize a deposit or withdrawal transaction at the agent. When
depositing money, the merchant receives cash and the system credits the client's bank account or
mobile wallet. In the same way the client can also withdraw money at the merchant: through
exchanging sms to provide authorization, the merchant hands the client cash and debits the client's
account.
Investments
1. Portfolio management services
2. Real-time stock quotes
3. Personalized alerts and notifications on security prices
Support
1. Status of requests for credit, including mortgage approval, and insurance coverage
2. Check (cheque) book and card requests
3. Exchange of data messages and email, including complaint submission and tracking
4. ATM Location
Content Services
1. General information such as weather updates, news
2. Loyalty-related offers
3. Location-based services

Based on a survey conducted by Forrester, mobile banking will be attractive mainly to the younger,
more "tech-savvy" customer segment. A third of mobile phone users say that they may consider
performing some kind of financial transaction through their mobile phone. But most of the users
are interested in performing basic transactions such as querying for account balance and making
bill payment.
One way to classify these services depending on the originator of a service session is the
‘Push/Pull' nature. ‘Push' is when the bank sends out information based upon an agreed set of rules,
for example your banks sends out an alert when your account balance goes below a threshold level.

‘Pull' is when the customer explicitly requests a service or information from the bank, so a request
for your last five transactions statement is a Pull based offering.
The other way to categorize the mobile banking services, by the nature of the service, gives us two
kind of services – Transaction based and Enquiry Based. So a request for your bank statement is
an enquiry based service and a request for your fund's transfer to some other account is a
transaction based service. Transaction based services are also differentiated from enquiry based
services in the sense that they require additional security across the channel from the mobile phone
to the banks data servers.
The new generation of mobile phones offers the speedy GPRS, EDGE or 3G data transmission
standards and has large, high-definition colour displays. Prices are coming down and services and
features are now considerably easier to handle on the mobile. Mobile Banking, in particular, has
finally become a fast, user-friendly and affordable service. India's leading telecom companies
started their services for Mobile Banking, basically they use these services as a marketing tool to
advertise there services on this basis. Here are few giants of telecom industries in India who are
offering Mobile Banking in various states.

Utility of Mobile Banking from Banks’

Perspective
At this stage it would be relevant to understand the usefulness of Mobile Banking from the
banks’perspective. It is therefore imperative to understand the business environment in which
banks operate and to identify customer groups that the banks may seek to target via Mobile
Banking.
Intensified Competition in the Banking Sector:
Bank products are of immaterial nature sold increasingly with the help of computer networks
spanning across the globe.The global networks provide the customer with world-wide services, for
instance the use of credit cards while abroad. The creation of an EU-wide single domestic market
has led to intensification of competition in the EU in all business fields including in the banking
sector. The ongoing Globalisation has further intensified the competition. Technical developments
coupled with the process of Globalisation, have made it possible for banks to offer their services
in far-flung areas without investing money to build branches and hire additional staff. This
opportunity, of course, is a two-way street: On the one hand, a bank gets access to new markets.
On the other hand it is faced with increased competition on its home turf. To master this
combination of opportunities and challenges banks need – apart from business consolidation and
cooperation – organic growth. It is therefore necessary to retain the existing customer base while
simultaneously acquiring new, economically prosperous customers. Seen in conjunction with the
price-sensitivity of customers and the resultant low relevance of the brand-name banks are
compelled to introduce innovative services that potentially attract prospective customers while
retaining others. Even though the brand-name remains a critical factor on account of the need for
trust in banking business, the Globalisation and the technological developments, however, have
reduced entry barriers so that the number of available reputed brands has increased significantly;
thereby intensifying the competition.

Adapting to Requirements of Core Target Groups:

Banks, today, are increasingly confronted with technology-savvy customers who are often on the
move. As Wolfgang Klein, Private Customers Director at Postbank, a leading German bank, puts
it: “Today’s customers want to organise banking transactions while on the move, irrespective of
opening hours”.Banks are responding to this development by introducing mobile services. Core
target groups of Mobile Banking are often divided in three categories:
a) The Youngsters: the segment of 14-18 years old youth has acquired an important role in the
growth of mobile telecommunications and related services. This group is technology-savvy and
willing to experiment with innovative products and services. The
youngsters, often on the move, demand ubiquitous, anytime service. Though the youngsters as a
group are hardly relevant for banks from a financial perspective, they represent the prospective
clientele of tomorrow and need to be cultivated in the middle to long-term marketing strategy of
the banks.
b) The Young Adults: Also this segment is thought to be technology- and innovation friendly.
Though this group too is financially not very strong, many members of this
group are known to be involved in stock market activities. Further, this group can be expected to
enter in short to medium-run a professional carrier so that it needs to be cultivated in order to retain
customers of this age-group even after they enter professional lives.
c) The Business People: this group of customers, generally in the age group of 26-50 years, is
thought to be the most important one for Mobile Banking. Members of this group are generally
well educated and economically well-off. They need to be professionally often on the move and
carry mobile devices to ensure accessibility. For this reason they are ideal candidates to use
services offered via mobile devices. From the banks’ perspective this group is particularly
attractive on account of its relative economic prosperity and the need for financial services, e.g.
home loans for young families. In order to fulfil the requirements of these customer groups banks
tend to look at Mobile Banking as a promising option. However, these services also have their own
utility for the banks.
Mobile Banking as Distribution Channel
Mobile Banking enhances the number of existing channels of distribution that a bank employs to
offer its services. The efficiency of a distribution channel can be measured by its fulfilment of
three major objectives, which are closely related to each other.
Increasing Sales Volume
One of the primary tasks of a distribution channel is to increase the volume of demand for products
at profitable prices .This objective is arrived by increasing operational efficiency so that those
losses are minimized that are caused by delays in catering to customer orders. Further, a favourable
reputation of the firm’s logistical capacities may help generate additional orders.

TECHNOLOGIES ENABLING MOBILE BANKING

Technically speaking most of these services can be deployed using more than one channel.
Presently, Mobile Banking is being deployed using mobile applications developed on one of the
following four channels.
1. IVR (Interactive Voice Response)
2. SMS (Short Messaging Service)
3. WAP (Wireless Access Protocol)
4. Standalone Mobile Application Clients
1.IVR (Interactive Voice Response)
IVR or Interactive Voice Response service operates through pre-specified 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.
Mobile banking based on IVR has some major limitations that they can be used only for Enquiry
based services. Also, IVR is more expensive as compared to other channels as it involves making
a voice call which is generally more expensive than sending an SMS or making data transfer (as
in WAP or Standalone clients).
One way to enable IVR is by deploying a PBX system that can host IVR dial plans. Banks looking
to go the low cost way should consider evaluating Asterisk , which is an open source Linux PBX
system.
Asterisk, due to its open source nature has caught on in a big way and is being sold as an PBX
solutions by quite a few companies commercially. However there has been considerable noise on
multiple Asterisk related forums over the stability of Asterisk based systems. Companies planning
to use Asterisk for their IVR solutions should certainly do a rigorous evaluation of its capabilities
before committing their long term future on it.
2. SMS (Short Messaging Service)

SMS uses the popular text-messaging standard to enable mobile application based banking. The
way this works is that the customer requests for information by sending an SMS containing a
service command to a prespecified number. The bank responds with a reply SMS containing the
specific 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 again by SMS. Most of
the services rolled out by major banks using SMS have been limited to the Enquiry based ones.
However there have been few instances where even transaction-based services have been made
available to customer using SMS. For instance, customers of the Bank of Punjab can make fund
transfer by sending the SMS ‘ TRN(A/c No)(PIN No)(Amount)'.
One of the major reasons that transaction based services have not taken of on SMS is because of
concerns about security and because SMS doesn't enable the banks to deliver a custom user
interface to make it convenient for customers to access more complex services such as transactions.
The main advantage of deploying mobile applications over SMS is that almost all mobile phones,
including the low end, cheaper one's, which are most popular in countries like India and China are
SMS enabled. An SMS based service is hosted on a SMS gateway that further connects to the
Mobile service providers SMS Centre. There are a couple of hosted IP based SMS gateways
available in the market and also some open source
ones like Kannel .

3. WAP (Wireless Access Protocol)

WAP 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.
A WAP based service requires hosting a WAP gateway. Mobile Application users access the
bank's site through the WAP gateway to carry out transactions, much like internet users access a
web portal for accessing the banks services.
4.STANALONE 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. They can be 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 channelof communication.
One requirement of mobile applications clients is that they require to be downloaded on the client
device before they can be used, which further requires the mobile device to support one of the
many development environments like J2ME or Qualcomm's BREW. J2ME is fast becoming an
industry standard to deploy mobile applications and requires the mobile phone to support Java.
The major disadvantage of mobile application clients is that the applications needs to be
customized to each mobile phone on which it might finally run. J2ME ties together the API for
mobile phones which have the similar functionality in what it calls 'profiles'. However, the rapid
proliferation of mobile phones which support different functionality has resulted in a huge number
of profiles, which are further significantly driving up development costs. This scale of this problem
can be gauged by the fact that companies implementing mobile application clients might need to
spend as much as 50% of their development time and resources on just customizing their
applications to meet the needs of different mobile profiles.
Out of J2ME and BREW, J2ME seems to have an edge right now as Nokia has made the
development tools open to developers which has further fostered a huge online community focused
in developing applications based on J2ME. Nokia has gone an additional mile by providing an
open online market place for developers where they can sell their applications to major cellular
operators around the world. BREW on the other hand has seen limited popularity among the
developer community, mostly because of the proprietary nature of its business and because of the
steep prices it charges
for its development tools.
Quite a few mobile software product companies have rolled out solutions, which enable J2ME
mobile applications based banking. One such product is Wireless I-banco . The mobile user
downloads and installs the wireless Ibanco application on their J2ME pone. The J2ME client
connects to the wireless I-banco server through the service providers GSM network to enable users
to access information about their accounts and perform transactions. One of the other big
advantages of using a mobile application client is that it can implement a very secure channel with
end-to-end encryption.
However countries like India face a serious obstacle in the proliferation of such clients as few users
have mobiles, which support J2ME or BREW. However, one of the biggest CDMA players in the
Indian telecom industry, Reliance Infocomm has about 7.01 million users all of which have
handsets, which support J2ME. Reliance has unveiled one of the most ambitious data services
deployment program in the country. On the other hand a country like South Korea with its tech-
savvy population has a widespread adoption of
the higher-end mobiles, which support application development.
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. For example an average teller or phone transaction costs
about $2.36 each, whereas an electronic transaction costs only about $0.10 each. Additionally, this
new channel gives the bank ability to cross-sell up-sell their other complex banking products and
services such as vehicle loans, credit cards etc.
For service providers, Mobile banking offers the next surest way to achieve growth. Countries like
Korea 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.
1. User experience of browsing the internet from a mobile device is familiar and offers a rich UI
experience.
2. Allows end user to access corporate association.
3. Secure connection can be established on most of the mobile browsers.

DISADVANTAGES OF MOBILE BANKING

· Many non-standards variables including handsets,browsers and operating system.
· Inconsistent user experience due to varying connection speed and different handset.
· User needs to have a data plan,which may be a barrier to adoption among price sensetive
demographics.
· No “offline” (out of the coverage) capability.
CHALLENGES FOR MOBILE BANKING

Key challenges in developing a sophisticated mobile banking application are :

Handset operability

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. Some of these devices support J2ME and

others support WAP browser or only SMS.

Initial interoperability issues however have been localized, with countries like India using portals

like R-World to enable the limitations of low end java based phones, while focus on areas such as

South Africa have defaulted to the USSD as a basis of communication achievable with any phone.

The desire for interoperability is largely dependent on the banks themselves, where installed

applications(Java based or native) provide better security, are easier to use and allow development

of more complex capabilities similar to those of internet banking while SMS can provide the basics

but becomes difficult to operate with more complex transactions.

There is a myth that there is a challenge of interoperability between mobile banking applications

due to perceived lack of common technology standards for mobile banking. In practice it is too

early in the service lifecycle for interoperability to be addressed within an individual country, as

very few countries have more than one mobile banking service provider. In practice, banking

interfaces are well defined and money movements between banks follow the IS0-8583 standard.

As mobile banking matures, money movements between service providers will naturally adopt the

same standards as in the banking world.

Security

Security of financial transactions, 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 banks' IT

departments. The following aspects need to be addressed to offer a secure infrastructure for

financial transaction over wireless network :

1. Physical part of the hand-held device. If the bank is offering smart-card based security, the

physical security of the device is more important.

2. Security of any thick-client application running on the device. In case the device is stolen, the

hacker should require at least an ID/Password to access the application.

3. Authentication of the device with service provider before initiating a transaction. This would

ensure that unauthorized devices are not connected to perform financial transactions.

4. User ID / Password authentication of bank’s customer.

5. Encryption of the data being transmitted over the air.

6. Encryption of the data that will be stored in device for later / off-line analysis by the customer.

Scalability & Reliability

Another challenge for the CIOs and CTOs of 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 (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.

There are systems such as Mobile Transaction Platform which allow quick and secure mobile

enabling of various banking services. Recently in India there has been a phenomenal growth in the

use of Mobile Banking applications, with leading banks adopting Mobile Transaction Platform

and the Central Bank publishing guidelines for mobile banking operations.

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 (so called "Over The Air" updates).
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

Features of Mobile Commerce

Mobile Commerce is characterised by some unique features that equip it with certain advantages

against conventional forms of commercial transactions, including Electronic Commerce:

i) Ubiquity: Ubiquity means that the user can avail of services and carry out transactions

largely independent of his current geographic location (the “anywhere” feature).

ii) Immediacy: Closely related to the feature of ubiquity is the possibility of real-time availment

of services (the “anytime” feature). This feature is particularly attractive for services that are time-

critical and demand a fast reaction, e.g. stock market information.

iii) Localisation: Positioning technologies, such as the Global Positioning System (GPS), allow

companies to offer goods and services to the user specific to his current location. LBS can thus

cater to consumers’ needs and wishes for localised content and services.
iv) Instant connectivity: Ever since the introduction of the General Packet Radio Service (GPRS)

mobile devices are constantly “online”, i.e. in touch with the network (the “always-on” feature).

This feature brings convenience to the user, as time consuming dialup or boot processes are not

necessary.

v) Pro-active functionality: Mobile Commerce opens, by the virtue of its ability to be immediate,

local and personal, new avenues for business. The user may choose the products, and services,

which he wants to be kept informed about. The Short Message Service (SMS) can be used to send

brief text messages to customers ensuring that the “right” (relevant) information is provided to the

user at the “right” place, at the “right” time.

vi) Simple authentication procedure: Mobile devices function with an electronic chip called

Subscriber Identity Module (SIM). The SIM is registered with the network operator and the owner

is thus unambiguously identifiable. The clear identification of the user in combination with an

individual Personal Identification Number (PIN) makes any further time-consuming, complicated

and potentially inefficient authentication process redundant.

Employment of Mobile Technologies in the Banking Sector

A cornerstone of Mobile Commerce is built by Mobile Banking, the availment of bank-related

financial services via mobile devices. It comprises of services in the field of accounting, brokerage

and financial information. Mobile Banking is increasingly being employed by many banks around

the world to generate additional revenues, reduce costs or to increase customer satisfaction, often

with very promising results. For instance, the utilisation of transaction-based MFS of Finland-

based Nordea bank grew by 30% in 2004.The number of France’s Société Générale customers

using mobile services crossed the mark of one million in year 2004, registering an impressive

growth of nearly 200% vis-à-vis 2003. These facts point toward a positive shift in the customer
perception of Mobile Banking. On the other hand, technological developments like Universal

Mobile Telecommunications System (UMTS) have provided a new platform for realistic mobile

applications.

Unlike in the past, when banks offering mobile services suffered a severe setback due to lack of

customer interest and unripe technologies, the time seems to be now ripe for (re-)launching mobile

services. Mobile Banking is usually defined as carrying out banking business with the help of

mobile devices such as mobile phones or PDAs [8; 11]. The offered services may include

transaction facilities as well as other related services that cater primarily to informational needs

revolving around financial activities. Considering these factors we can define Mobile Banking as

following:

“Mobile Banking refers to provision and availment of bank-related financial services with the help

of mobile telecommunication devices. The scope of offered services may include facilities to

conduct bank and stock market transactions, to administer accounts and to access customized

information.”

Mobile Banking, as defined above, includes a wide range of services. These services may be

categorized as following:

Mobile Accounting

Mobile Accounting is sometimes characterized as transaction-based banking services that revolve

around a bank account and are availed using mobile devices .Not all Mobile Accounting services

are however necessarily transaction-based. A more precise definition of Mobile Accounting would

therefore characterize it as “availment of account-specific banking services of non-informational

nature”. Mobile Accounting services may be divided in two categories to differentiate between
services that are essential to operate an account and services that are essential to administer an

account.

Mobile Brokerage

Brokerage, in the context of banking- and financial services, refers to intermediary services related

to the bourse, e.g. selling and purchasing of stocks. Mobile Brokerage can be thus defined as

transaction based, mobile financial services of non-informational nature that revolve around a

securities account. Mobile Brokerage, too, may be divided in two categories to differentiate

between services that are essential to operate a securities account and services that are essential to

administer that account.

Mobile Financial Information

Mobile Financial Information refers to non-transaction based banking- and financial services of

informational nature. Mobile Financial Information services include subsets from both banking

and financial services and are meant to provide the customer with anytime, anywhere access to

information .The information may either concern the bank and securities accounts of the customer

or it may be regarding market developments with relevance for that individual customer. The

information may be customized on the basis of preferences given by the customer and sent with a

frequency decided by him. The information should be provided, ideally, on both, pull and push

basis. Information services are an integral part of Mobile Accounting and Mobile Brokerage but

they may also be offered as a stand-alone, independent module, i.e. Mobile Financial Information

can be offered without offering Mobile Accounting or Mobile Brokerage but vice versa is not

feasible.

MOBILE BANKING IN THE WORLD

This part of the mobile commerce is very popular in countries where most of their population is

unbanked. Countries like Sudan, Ghana and South Africa received this new commerce very well.

In Latin America countries like Uruguay, Paraguay, Argentina, Brazil, Venezuela, Colombia,

Guatemala and recently Mexico started with a huge success.In Colombia was released with

Redeban.In Iran banks like Parsian, Tejarat, Mellat, Saderat, Sepah, edbi and bankmelli offer this

service. Guatemala have the support of Banco industrial.

Mexico released the mobile commerce with Omnilife,Bancomer and a private company(MPower

Ventures). Kenya's Safaricom (Part of the Vodafone Group) has had the very popular M-Pesa

Service - mainly used to transfer limited amounts of money, but has been increasingly used to pay

utility bills. Zain in 2009 launched their own mobile money transfer business known as ZAP in

Kenya and other African countries

CASE ANALYSIS

LG Telecom, South Korea

In terms of the evolution of services being offered on mobile applications, South Korea is showing

the way. The big push came when LG Telecom Ltd., the smallest of Korea's three mobile service

providers teamed up with the Kookmin bank to launch the ‘Bank on' service. Under this scheme

mobile users were able to use smart chips embedded in cell phones for accessing all of the

transaction and enquiry based services. The chip-based service automated the

authentication of users when they accessed their bank's financial services to make the whole

process much faster and convenient. The icing on the cake came with the ability of these chip
enabled cell phones to be used simultaneously as cash cards. By October 2004 there were already

about 100,000 infrared readers adapted to take payment directly from mobile phone handsets in

Korea. Users can now use their cell phones to pay for everything, from restaurant bills, travel

tickets, merchandise and even haircuts.

Reliance Infocomm, India

When Reliance Infocomm, India rolled out its CDMA network, (at the time the mobile market in

India was still in its infancy, and data services were almost never heard off) it made sure that all

handsets supported Java.The Reliance application platform, also known as R-World brought Java

compatibility even to the lower end phones. Reliance used a novel way to overcome the memory

limitations of lower-end mobile phones, which hampered deploying of multiple standalone J2ME

based clients. Instead of storing applications statically on their cell phones, users access a single

menu based application called R-World, which connects them to the Reliance servers. Using the

menu based user interface, mobile users select the application, which they want to run and

download them over-the-air to their cell phones. These applications are then executed locally on

the mobiles. From mid-2004 Reliance tied up with two of the popular private sector banks, HDFC

and ICICI, to provide a host of their enquiry and transaction based mobile banking services through

its R-World environment.

Malhotra, Pooja & Singh, B. (2010) investigates present status of Internet banking in India and

the extent of Internet banking services offered by Internet banks. In addition, it seeks to examine

the factors affecting the extent of Internet banking services. The data for this study are based on a

survey of bank websites explored during July 2009. The sample consists of 82 banks operating

in India. Multiple regression technique is employed to explore the determinants of the extent of

Internet banking services. The results show that the private and foreign Internet banks have

performed well in offering a wider range and more advanced services of Internet banking in

comparison with public sector banks. Among the determinants affecting the extent of Internet

banking services, size of the bank, experience of the bank in offering Internet banking financing

pattern and ownership of the bank are found to be significant. The primary limitation of the study
is the scope and size of its sample as well as other variables (e.g. market, environmental, regulatory

etc) which may have an effect on the decision of the banks to offer a wide range of Internet banking

services. The purpose of the study is to help fill significant gaps in knowledge about the Internet

banking landscape in India. The findings are expected to be of great use to the government,

regulators, commercial banks, and other financial institutions, e.g. co-operative banks planning to

offer Internet banking bank customers and researchers. An understanding of the factors affecting

the extent of Internet banking services is essential both for economists studying the determinants

of growth and for the creators and producers of such technologies. Moreover, this paper contributes

to the empirical literature on diffusion of financial innovations, particularly Internet banking in a

developing country, i.e. India.

Dr. Saroj K. Datta (2010) concluded that the factors which are affecting the acceptance of e-

banking services among adult customers and also indicates level of concern regarding security and

privacy issues in Indian context. Primary data was collected from 200 respondents, above the age

of 35, through a structured questionnaire. Statistical analysis, descriptive statistics was used to

explain demographic profile of respondents and also Factor and Regression analyses were used to

know trend of internet use and factors affecting e-banking services among adult customer in India.

The finding depicts many factors like security & privacy, trust, innovativeness, familiarity,

awareness level increase the acceptance of E Banking services among Indian customers. The

finding shows that in spite of their security and privacy concern, adult customers are willing to

adopt online banking if banks provide him necessary guidance. Based on the results of current

study, Bank’s managers would segment the market on the basis of age group and take their opinion

and will provide them necessary guidance regarding use of online banking.
Polaris Software Lab (2010) had this study Polaris Software Lab Limited (POLS.BO),a leading

Financial Technology Company, launched Intellect(TM) PRIVACY based on state-of-the-art

technology and four patents filed by the Indian Institute of Technology Madras. IndusInd Bank

has become the first bank in India to implement Intellect(TM) PRIVACY, an online and internet

banking security card, for its internet banking customers. The technology will protect customers

and banks from practically all kinds of phishing attacks, viz. deceptive e-mail, key/screen logger,

brute force/dictionary attacks and Trojans, etc .Intellect PRIVACY uses multi factor ,dynamic

authentication technology providing for authorizing online banking transactions, in a completely

secure platform. Commenting on the innovation, Professor L S Ganesh, Coordinator of the

programmer, said, "At IIT Madras, the Department of Computer Science and Engineering and the

Department of Management Studies got particularly interested in designing an internet security

technology that is cost efficient and easy to use in a rapidly growing e-commerce scenario, and

transferring it commercially.

Azouzi, D. (2009) this paper aims to check if the current and prompt technological revolution

altering the whole world has crucial impacts on the Tunisian banking sector. Particularly, this study

seeks some clues on which we can rely in order to understand the customers' behavior regarding

the adoption of electronic banking. To achieve this purpose, an empirical research is carried out in

Tunisia and it reveals that panoply of factors is affecting the customers-attitude toward e-banking.

For instance; age, gender and educational qualifications seem to be important and they split up the

group into electronic banking adopters and traditional banking defenders and so, they have

significant influence on the customers' adoption of e-banking. Furthermore, this study shows that

despite the presidential incentives and in spite of being fully aware of the e-baking’s benefits,
numerous respondents are still using the conventional banking. It is worthy to mention that the

fear of loss because of transactions errors or hackers plays a significant role in alienating Tunisian

customers from online banking.

Elizabeth Daniel (2009) concluded that the newest delivery channel to be offered by the retail

banks in many developed countries and there is wide agreement that this channel will have a

significant impact on the market. Aims to quantify the current provision of electronic services by

major retail banking organizations in the UK and the Republic of Ireland. Additional in- sight into

the banks' adoption of this new channel is gained by exploring two areas important in the analysis

of new offerings, that is: an organization’s approach to innovation; and their view of the current

and future markets. By use of a mailed questionnaire, it was found that 25 per cent of the banks in

the UK and the Republic of Ireland which responded to this survey are already offering online

transactional services to consumers in their homes. The largest group of respondents (50 per cent)

is those that are currently testing or developing such ser- vices, while just 25 per cent of the

respondents were in organizations not providing or developing such services. It is also found that

the organization’s vision of the future, their prediction of customer acceptance, which tends to be

very low, and their organizational culture of innovation are the most important of the suggested

factors in their adoption of electronic delivery.

Hill (2009) conducted a study concerned with identifying the characteristics of online banking

users. She mentioned that it is commonly assumed that demographics do influence the acceptance

of electronic self-service tools, such as online banking. The result of the study was that people who
use such services are young, trendy and high earning. They actively seek out online banking tools,

and they want to conduct all transactions through the same channel.

B. Dizon, J.A. (2009) have founded that "E- Baking’s appeal is primarily its convenience. Clients

now a day’s want instant results; they don't want to wait anymore," said Francisco M. Caparros,

Jr., senior vice-president of Asia United Bank and president of Banc Net. It's also turned out to be

a more efficient way to process transactions, as e-banking does away with most of the paperwork

that clients have to accomplish. "A lot of people don't like filling forms," Mr. Caparros added.

"Online banking, in particular, relies on usernames and passwords which need to be protected,"

said Ferdinand G. La Chica, first vice- president and marketing group head for Sterling Bank of

Asia. These anti- theft barriers are at times supplemented by transaction passwords and "tokens",

often a key chain-like device that is issued to the client and generates random, one-time passwords

to enable him to log into his account online. Last year, the Rural Bank Association of the

Philippines announced that its members are looking to appoint local merchants like sari-sari stores

as third party agents where consumers can open new accounts and make large payments. Such

informal outlets will enable banks to reach out to small-income businesses and individuals,

particularly those in the agrarian sector, most of who are based outside the city center.

Uppal, R.K. & Chawla, R. (2009) highlights the customer perception regarding e-banking

services. A survey of 1,200 respondents was conducted in Ludhiana district, Punjab. The

respondents were equally divided among three bank groups namely, public sector, private sector

and foreign banks. The present study investigates the perceptions of the bank customers regarding

necessity of e-banking services, quality of e-banking services, bank frauds, future of e banking,
preference of bank customers regarding banks, comparative study of banking services in various

bank groups, preferences regarding use of e-channels and problems faced by e-bank customers.

The major finding of this study is that customers of all bank groups are interested in e-banking

services, but at the same time are facing problems like, inadequate knowledge, poor network, lack

of infrastructure, unsuitable location, misuse of ATM cards and difficulty to open an account.

Keeping in mind these problems faced by bank customers, this paper frames some strategies like

customer education, seminars/meetings, proper network and infrastructure facilities, online

shopping facilities, proper working and installation of ATM machines, etc., to enhance e-banking

services. Majority of professionals and business class customers as well as highly educated and

less educated customers also feel that e-banking has improved the quality of customer services

in banks.

Tero pikkarainin (2008) concluded that advances in electronic banking technology have created

novel ways of handling daily banking affairs especially via the online banking channel. The

acceptance of online banking services has been rapid in many parts of the world and in the leading

e banking countries the number of e banking contracts has exceeded 50 percent. Investigates online

banking acceptance in the light of traditional technology acceptance model (TAM), which is

leveraged into the online environment. On the basis of the focus group interviewed with banking

professionals, TAM literature and banking studies we develop a model indicating online banking

acceptance among private banking customers in Finland. The model was tested with the survey

sample of 268 respondents. The finding of the study indicates that perceived usefulness and

information on online banking on the web site were the main factors influencing online banking

acceptance.
Reeti, Sanjay, and Malhotra, A. (2008) examined about the Customers’ perspectives regarding

e-banking in an emerging economy. So that, the author determining various factors affecting

customer perception and attitude towards and satisfaction with e-banking is an essential part of a

bank's strategy formulation process in an emerging economy like India. To gain this understanding

in respect of Indian customers, the study was conducted on respondents taken from the northern

part of India. The major findings depict that customers are influenced in their usage of e-banking

services by the kind of account they hold, their age and profession, attach highest degree

of usefulness to balance enquiry service among e-banking services, consider security &trust most

important in affecting their satisfaction level and find slow transaction speed the most frequently

faced problem while using e-banking.

Hsun, K.S. (2008), this study considers the coherence of the financial service sector and adopts

different observational variables to identify innovation capital (training and R&D density) and

process capital (IT system sufficiency). The results show that human capital has a direct impact on

both innovation capital and process capital, which in turn affect customer capital; while finally,

customer capital affects business performance. In addition, there is a negative relationship between

process capital and customer capital in the financial service sector. It suggests that in the financial

service sector, customer satisfaction relies on a sufficient degree of training and R&D density.

Intemperate investment on the support of e-banking operation systems may not be a good answer.

Malhotra, P. & Singh, B. (2007) stated that the larger banks, banks with younger age, private

ownership, and higher expenses for fixed assets, higher deposits and lower branch intensity

evidence a higher probability of adoption of this new technology. Banks with lower market share
also see the Internet banking technology as a means to increase the market share by attracting more

and more customers through this new channel of delivery. Further, the adoption of Internet banking

by other banks increases the probability that a decision to adopt will be made .An understanding

of the factors affecting this choice is essential both for economists studying the determinants of

growth and for the creators and producers of such technologies. From this perspective,

understanding the factors determining the adoption of technology becomes highly relevant from

the policy point of view. Moreover, the studies on the adoption of financial innovations are related

to developed markets, e.g. US or European banking markets. Hence, this paper contributes to the

empirical literature on diffusion of financial innovations, particularly Internet banking, in

a developing country.

The objectives of study are:-

1) To analyze the current market potential for Mobile banking
2) To study the consumer satisfaction lev el for the mobile banking facility
3) To compare between mobile banking and counter banking.
4) To compare the viewpoint of different respondents depending on their occupation
about the mobile banking Facility.

Research Methodology
A Marketing research design specific a procedure for conducting and controlling the
research project. Every marketing research must explicitly state its plan about
collection and analysis of data. It is the conceptual framework within which the study is
conducted and deals with the procedures used in the study for the purpose of investigation.
Research Methodology in the context of the topic includes the partial study of the Bank
Account holders of Delhi city; it will also include various professionals
and businessmen who are having their mobile banking accounts.
Methods of Data collection:
The analysis tools would be of both types which include
1. Primary data.
a) Questionnaire.
b) Personal Interview.
2. Secondary Data.
a) Newspaper & Magazines
b) Internet & Journals.
Sample Area & Size:
The sample area of the study will be restricted to the Delhi city only and the sample size would be of 100 respondents.

Gender

34%

Males
Females
66%
 Age

4%
16%
17%
18-25
26-35
36-45
46-60
34%
29% 60+

Qualification

7%
29%
22%
12th
Graduate
Post Graduate

42% Professional

INFERENCE:
About 66% of the respondents are males. This study found a predominance of males among
Internet users in DELHI. This indicates that the percentage of male Internet users is higher than
the female internet users the respondents are relatively young, i.e. 34% between 26 and 35 years
old. This is a consistent study, which found that most Internet users are youths (less than 18 years
old: 16 %) and young adults. Respondents with post graduation were 42% followed by 22% of
graduate respondents and 29% with professional degrees. In terms of profession, service forms the
largest group with 44% respondents while students (28%) form the next largest group.

Bank

41%

59% Public
Private

M-Banking Users

35%

Yes
65%
No
 ANNEXURE 1

Questionnaire

I am a student of MBA, Delhi Institute of Advanced Studies, Indraprastha University I request you
to fill up a small questionnaire regarding the m-banking services provided by your bank. The
privacy will be maintained and the data will strictly be used for educational purposes only.

1. Name:

2. Gender:

Male Female

3. Age Group:

o 18-25
o 26-35
o 36-45
o 46-60
o 60+

4. Educational Qualification:

o 12th
o Graduate
o Post Graduate
o Professional

5. Occupation:
 o Student
o Service
o Business man
o Retired Individual
o Others please specify:

6. Are you aware of M- Banking services?

o Yes
o No

7. Do you use M- Banking services?

o Yes
o No

8. If the above option is No specify the reason.

o Never heard of internet banking

o Concerned about security
o Not available to my bank
o Not have enough knowledge
o Other:

9. What is the name of the bank you have an internet banking account with?

o Public Sector Bank

o Private Sector Bank

10. What is the most important reason that you choose this particular bank?

o The brand name of the bank

o The excellent service offered by this bank
o Easy to access
o Other:

11. How long have you been using the M-Banking services?

o Less than a month

o 1 to 6 months
o 6 to 12 months
o More than a year
12. What is the frequency of usage of M-Banking?

o 5 to 6 times/week
o 2 to 3 times /week
o Once in a week
o Once in a month
o Occasionally