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Abstract
Cell Banking has been in existence since more than a decade. Cell banking also called Mobile
banking (also known as Mbanking, sms-banking) is a term used for performing balance
checks, account transaction, payments etc. via a mobile device such as a mobile phone.
Mobile banking is an obvious extension of online banking as cell phones get more powerful
and begin to mimic computers. Mobile Banking would be increasingly used from “Building
better customer relations, reducing cost, achieving new revenue stream” etc to that of
“connecting with the new customer segments, enhancing customer relationships to improve
loyalty and reduce attrition, create new ways to generate lead in the process of prospecting,
real time experience of bi-directional customer experience etc.” And needless to say the
technological revolution would play a major role in days to come.
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Introduction
In country only banking sector is that sector which works as a channel in attracting savings
As, change is the rule of nature. To alter the policies according to environment fluctuation is
known as change and to explore or use new technology for making change is known as
innovation. Today all sectors are working as innovation acceptor. Banking sector’s
banking needs are getting more complex and demands are for more innovative products. So
give them better services banks have introduced a new profitable technology called Cell
banking or Mobile Banking. And many more like internet banking, ATM, debit card, credit
card etc. With mobile banking technology, banks can offer a wide range of services to their
customer such as funds transfer while travelling, receiving online updates of stock price or
even performing trading while being stuck in traffic. M-banking gives ability to customer to
control their cash outflows anytime, anywhere, without having to connect to internet
The use of a mobile phone to make payment and carryout other banking transaction called m-
banking has started taking roots in a number of developing countries, including India. M-
banking is a service of banks to make available, the facility of banking wherever the customer
is and whenever he needs. In today’s world every person has personal mobile rather than
having computer at home. Even rural person also have mobile. With mobile banking
customer can bank from anytime and anywhere. 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 race. And also spread of mobile phones across the developing world is one
of the most remarkable technology stories of the past decade. Mobile banking is enjoying a
rapid growth in India. It has successfully crossed the introduction stage. Mobile banking is
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different from internet banking and ATMs anyways. The internet is not as commonly used as
the mobile phones. Further, the internet requires particular devices such as a desktop or a
laptop. Mobile banking can be said to consist of three interrelated concept viz; Mobile
ICICI bank pioneered in mobile banking service in India. Among public bank, Union bank of
India was first to introduce mobile banking (Akturan, 2016) . “Mobile banking refers to
provision and a ailment of banking and financial services with the help of mobile
application that enables consumer to use their mobile telephones to request their bank
account balance and last transaction, store value in an account linked to their handsets,
transfer funds between accounts and to make buy and sell orders, for the stock exchange and
to receive portfolio and stock exchange, price information. , or even access credit or
world. The public sector bank realized that if they have to survive, they will have to adopt
modern technology, SBI was first to focus on technology and is constantly at work to
innovate in an attempt to lower costs. Technology will not just help them reach out to
customer better but also help them cut costs and improve efficiency. Hence by adopting right
mobile banking regulation and mobile security standards the banks can reach whole
population which result in economic growth of the country. Banks have changed from paper
based banking solution provider to the latest of the technology like online banking, Mobile
banking.
Mobile banking should reach to the common man at the remotest location in the country.
Mobile banking reaches from high-end to low-end users and from metros to middle towns
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and rural areas. M-banking system is one which provides all daily banking operations to
customer with one click of the mobile handset with support application. Growth in the M-
banking is driven by various facilities like convenience of banking operation, greater reach to
growth of mobile phones is more than computer. It is fully personalized and private
increasing transaction authenticity and is 100% available all the time with the users. Mobile
Banking is a service that allows you to do banking transactions through your mobile phone
without making a call, using the SMS / WAP facility. You can check your balance, stop a
cheque payment, or even pay your utility bills. Mobile Banking service gives you account
information and real-time transaction capabilities from the mobile phones anywhere, anytime.
Problem Statement
Stated as a question this concern can be expressed as: what is the extent of access to financial
services? What are the attitudes towards mobile banking by small businesses? And what are
Motivation
The purpose of this study is to establish the importance of mobile banking in the day to- day
banking as a business tool and appreciate the advantages and disadvantages therein.
Literature review
Mobile banking is a service provided by a bank or other financial institution that allows its
smartphone or tablet. Unlike the related internet banking it uses software, usually called an
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app, provided by the financial institution for the purpose. Mobile banking is usually available
on a 24-hour basis. Some financial institutions have restrictions on which accounts may be
accessed through mobile banking, as well as a limit on the amount that can be transacted.
mobile device.
Transactions through mobile banking depend on the features of the mobile banking app
provided and typically includes obtaining account balances and lists of latest transactions,
electronic bill payments, remote check deposits, P2P payments, and funds transfers between a
customer's or another's accounts (Vaidya, 2015). Some apps also enable copies of statements
to be downloaded and sometimes printed at the customer's premises. From the bank's point of
view, mobile banking reduces the cost of handling transactions by reducing the need for
customers to visit a bank branch for non-cash withdrawal and deposit transactions. Mobile
banking does not handle transactions involving cash, and a customer needs to visit an ATM
or bank branch for cash withdrawals or deposits. Many apps now have a remote deposit
option; using the device's camera to digitally transmit cheques to their financial institution.
Mobile banking differs from mobile payments, which involves the use of a mobile device to
pay for goods or services either at the point of sale or remotely, analogously to the use of a
debit or credit card to effect an EFTPOS payment (Tiwari, 2014). The earliest mobile
banking services used SMS, a service known as SMS banking. With the introduction of smart
phones with WAP support enabling the use of the mobile web in 1999, the first European
banks started to offer mobile banking on this platform to their customers (Owens, 2016).
Mobile banking before 2010 was most often performed via SMS or the mobile web. Apple's
initial success with iPhone and the rapid growth of phones based on Google's Android
(operating system) have led to increasing use of special mobile apps, downloaded to the
mobile device. With that said, advancements in web technologies such as HTML5, CSS3 and
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JavaScript have seen more banks launching mobile web based services to complement native
applications. These applications are consisted of a web application module in JSP such as
In one academic 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
According to this model mobile banking can be said to consist of three inter-related concepts:
Mobile accounting
Most services in the categories designated accounting and brokerage are transaction-based.
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 (Tiwari, 2014). Mobile banking may also be used to help
Electronic Banking
networked computers to mobile devices (Salzaman, 2013). Presently, the use of electronic
banking is considerably high and as more and more users sign up for electronic-banking, the
maturity as regards remote banking ( i.e. banking outside the banking hall) is on the increase.
With electronic banking, users can now conveniently carry out banking transactions, but this
convenience cannot be achieved if the user does not have access to the internet, hence, in
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other words, the user cannot carry out a banking transaction while waiting for a bus, or
perhaps while having lunch in a restaurant. With m-banking, convenience can be achieved
24hrs a day. This is because a user has access to his mobile phone all day, at all times. So, to
effectively achieve a truly convenient banking mode, a truly mobile mode of banking has to
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 24
hour 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
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 Friedman, (2010) 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 contact less payments” will make up 10% of the contact
less 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,
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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 traveling, 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 smart phones, 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 smart phones is growing fast, and should top 20 million
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 2007–
2011 will generate the development of more sophisticated services such as multimedia and
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Mobile Banking Business Models
business model, if mobile banking is being used to attract low-income populations in often
rural locations, the business model will depend on banking agents, i.e. retail or postal outlets
that process financial transactions on behalf telecoms or banks. The banking agent is an
important part of the mobile banking business model since customer care, service quality, and
cash management will depend on them. Many telecoms will work through their local airtime
resellers. However, banks in Colombia, Brazil, Peru, and other markets use pharmacies,
bakeries, etc. These models differ primarily on the question that who will establish the
relationship (account opening, deposit taking, lending etc.) to the end customer, the Bank or
agency agreement between bank and the Non-Bank. Models of branchless banking can be
classified into three broad categories - Bank Focused, Bank-Led and Nonbank-Led.
Bank-focused Model
The bank-focused model emerges when a traditional bank uses non-traditional low-cost
Examples range from use of automatic teller machines (ATMs) to internet banking or mobile
phone banking to provide certain limited banking services to banks‟ customers. This model is
banking.
Bank-led Model
The bank-led model offers a distinct alternative to conventional branch-based banking in that
customer conducts financial transactions at a whole range of retail agents (or through mobile
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phone) instead of at bank branches or through bank employees. This model promises the
potential to substantially increase the financial services outreach by using a different delivery
channel (retailers/ mobile phones), a different trade partner (telco / chain store) having
experience and target market distinct from traditional banks, and may be significantly
cheaper than the bank-based alternatives. The bank-led model may be implemented by either
Non-bank-led Model
The non-bank-led model is where a bank does not come into the picture (except possibly as a
safe-keeper of surplus funds) and the non-bank (e.g. telco) performs all the functions.
Handset accessibility
There are a large number of different mobile phone devices and it is a big challenge for banks
to offer a mobile banking solution on any type of device. Some of these devices support Java
ME and others support SIM Application Toolkit, a 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
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.
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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.
CellTrust and VeriSign Inc., published the Mobile Banking Overview for financial
Platforms such as Short Message Services (SMS), Mobile Web, Mobile Client Applications,
Security
rates are escalating year-on-year. The types of cybercrimes which may affect mobile-banking
might range from unauthorized use while the owner is using the mobile banking, to remote-
hacking, or even jamming or interference via the internet or telephone network data streams.
This is demonstrated by the malware called SMSZombie. A, which infected Chinese Android
devices. It was embedded in wallpaper apps and installed itself so it can exploit the
weaknesses of China Mobile SMS Payment system, stealing banks credit card numbers and
information linked to financial transactions (Papajorgji, 2015). One of the most advanced
malwares discovered recently was the Trojan called Bankbot. It went past Google's
protections in its Android app marketplace and targeted Wells Fargo, Chase, and Citibank
customers on Android devices worldwide before its removal by Google in September 2017.
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This malicious app was activated when users opened a banking app, overlaying it so it can
Doing traditional banking from bank customer With help of M-banking customers do not need to
going physically to bank whenever they have go bank. Mobile banking enables anytime
Traditional banking needs papers. M-banking save paper &that save tree. It is a part
of green banking.
traditional banking facility is not possible to do M –banking services provide anytime banking.
anytime banking
Branches are (ATMs and computers) are location Mobile banking is not location specific. Customer
convenient location.
In traditional banking customer spent their M-banking save time. They need not stand in the
In traditional banking whenever customer wants In mobile banking customer need not face the
information about their a/c they face employee employee whom do not.
attitude.
Branches are not fully personalized and private Mobile phones are fully personalized and private
Traditional banking not available all the time. Its Mobile banking or mobile phones are 100%
time is fixed as office hours. available all the time with users. It is available
24*7.
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Benefits of Mobile banking;
To the customer:
Customer need not stand in the bank counters/offices for various enquiries about his
account.
Customer can save his valuable time in banking transaction and save in travel cost
It is the mobile banking to have information of all the 365 days at anytime, anywhere
Customer can pay his utility bills in time and save paying penalties, since alerts are
Plane funding his accounts for the cheque issued to various customer
For customers mobile banking reduces cost and save their precious time.
To the bankers
cost.
Banks can utilize the time saved for expansion of business, marketing and sales
Banks can take advantage of profit by way of commission for cellular companies by
Banks providing mobile banking services can have competitive advantage on those
Mobile banking enables banks to reduce costs of courier, communication and paper
works etc.
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M-banking can increase banks outreach to rural areas while reducing costs.
customer bank account. There should be any chance for information leakage.
Transaction is done by mistake there should be option to undo. The physical security
Scalability and reliability-The customer may be sitting in any part of the world and
these banks need to ensure that the system are up and running in a true. Customer will
find mbanking more and more useful. Banks unable to meet the performance and
Conclusion
Mobile banking plays vital role an increasing profitability of banks. And also maintain better
banking is popular among in all customers. Through this service customer save their valuable
time, cost and other expenses. To see the growth of mobile banking we can say that in future
mobile banking is spread both rural and urban area and also it becomes a basic need of
customer. With the help of this new technology banks can cover all unbanked area. Mobile
banking has a lot of advantages for both providers and those who avail the services. Mobile
phones provide a way to reach out to people in remotest area. Customer enjoy anytime
anywhere banking with the help of their mobile phones. It is cost effective for bankers and
customers.
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References
Akturan, N. (2016). Mobile Banking Adoption of the Youth Market Perception and Intention.
Marketing intelligence and planning , 30 (4).
Brook, C. (2017). "Mobile Banking Trojan BankBot Identified, Removed From Google Play".
Digital Guardian. Retrieved 3 October 2018.
Owens, J. (2016) Catching the Technology Wave: Mobile Phone Banking and Text-A-
Payment in the Philippines
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