EXECUTIVE SUMMARY

The principal objective of this report is to provide the readers a thorough

understanding of the concept of Telebanking.

After going through many articles, websites, books and publications, I have
been able to
enhance knowledge and clear my doubts regarding the concept.
This project is aimed at understanding the telebanking in India. The project
is an attempt to trace the development of e-banking services in India and
the response of producers and insurance companies “ .
The project starts with a brief understanding of size and scale of the Indian
banking sector .
This project gives an understanding about the evaluation of telebanking
services in India . the advantages and diaadvantages of telebanking services
.

1
 Contents

Serial Chapters. Page

no. Nos.
1) Growth of Tele- Banking 6 -9

2) A Tele Banking Conceptual Model 10 – 16

3) TELE Banking In India 17 – 20

4) Advantages and Disadvantages of Tele 21 – 23

Banking
5) 24 – 31
Sms Banking
6) 32 – 36
I.T in Banks
7) 37 – 38
Case Study of tele banking of OBC
8) 39– 59
Mobile banking ICICI Bank
9) 60 – 64
Examples
10) 65 – 73
Conclusion
11) 74 – 75
Bibliography
75

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 Growth of TELE Banking in India

INTRODUCTION

Telephone banking is a service provided by a financial institution, which

allows its customers to perform transactions over the telephone.

Most telephone banking services use an automated phone answering system

with phone keypad response or voice recognition capability. To guarantee
security, the customer must first authenticate through a numeric or verbal
password or through security questions asked by a live representative With
the obvious exception of cash withdrawals and deposits, it offers virtually all
the features of an automated teller machine: account balance information
and list of latest transactions, electronic bill payments, funds transfers
between a customer's accounts, etc.

Usually, customers can also speak to a live representative located in a call

centre or a branch, although this feature is not always guaranteed to be
offered 24/7. In addition to the self-service transactions listed earlier,
telephone banking representatives are usually trained to do what was
traditionally available only at the branch: loan applications, investment
purchases and redemptions, chequebook orders, debit card replacements,
change of address, etc.

Banks which operate mostly or exclusively by telephone are known as

phone banks. They also help modernize the user by using special
technology.

Telephone banking is a service feature offered by many banking institutions.

The process involves using the keypad on a touch-tone telephone to perform

3
a variety of banking functions. Along with traditional banks, phone banking is
also utilized extensively by online banking institutions, including banks that
conduct business primarily with the use of telephone technology.

The concept of telephone banking has been around for several decades.
Initially, the process required manual intervention by a bank employee.
Customers would call into the bank, answer questions to verify their
identities, and submit queries to the service representative. While
somewhat labor intensive, this approach did make it possible to conduct a
number of banking transactions from the comfort of home.

With the advent of touch-tone services, the idea of telephone banking took
on a new direction. Instead of connected with a live bank representative,
customers could use the keypad on a touch-tone phone to enter an
automated system and obtain information on bank accounts as of the latest
posting day. One advantage of this newer approach is that bank customers
could call any time of the day or night and check the status of their accounts.
As technology continued to progress, the scope of functions that could be
performed with the automated system expanded, making the service even
more valuable to customers.

There are several ways that a telephone banking service may be configured.
Some function off a validation process that includes voice recognition
before access to the customer accounts is granted. Other systems make use
of login credentials such as user names and pass codes that must be entered
using the telephone keypad. Once the customers enters the correct data, the
automated system makes it possible to perform a wide range of functions in
relation to the accounts connected with the login credentials.

The typical bank telephone customer can access his or her accounts to
perform a variety of functions. Balances can be checked and the latest

4
activity can be reviewed. The customer can also transfer funds between
accounts using telephone banking, as well as order more checks, make loan
payments, or request information on other services the bank offers.

In addition to use by traditional banks, telephone banking is also utilized by

virtual banks that rely heavily on telephone and Internet access to process
transactions and provide information to customers. Telephone banks
generally function primarily by establishing access credentials that can be
used on any telephone with touch-tone service. In addition, the transactions
or queries can be conducted around the clock, an advantage that allows the
telephone bank to seek clients in any area of the world where the bank is
authorized to conduct business.

MOBILE BANKING (also known as 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. Mobile banking today (2007) is
most often performed via SMS or the Mobile Internet but can also use
special programs called clients downloaded to the mobile device.

ORIGIN: Mobile banking probably had its origin in November 1946.In India,
the first bank on wheel was launched by the bank of Patiala in 1950

Internet banking helped give the customer's anytime access to their bank
s. 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
Mobile banking – The Future White Paper Overview Abstract This paper
describes the basic concepts, services offered, market survey and

5
technology which enables Mobile banking. 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. This opens up huge markets
for financial institutions interested in offering value added services. With
mobile technology, bank s 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. 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, with high rate of
penetration and potential to grow.

GROWTH OF MOBILE BANKING:-

Mobile commerce has also increased significantly Cell phone banking
is cheap, secure, efficient and, more than anything, convenient.

ATMS and internet banking have been around in India for a while.
While both modes have had some success, penetration and use levels have
been moderate.
While ATMs offer convenience, they pose a perceive security threat in
India given instances of mugging around them. Senior citizens and women
appear reluctant to use ATMs if they have a choice to go to a branch and
withdraw money in safety. The security situation in India shows little sign of
improvement and therefore a large scale proliferation of ATMs will remain a
challenge. Internet banking, on the other hand, relies on PC and internet
penetration. Estimates suggest that there are approx 40 million internet
users which is expected to rise to 100 million soon – despite this growth,
penetration and use levels remain low, especially in non-metro areas.

6
Research also suggests that internet banking is picking up amongst the
target user group.
While internet penetration and use in India is relatively low, mobile
phone penetration is much higher and growing rapidly. There are over 200
million mobile phone subscribers in India and the number continues to
explode. Financial services companies are now working with mobile payment
players like mChek to offer innovative mobile phone solutions to urban and
rural Indian population. Reserve bank of India has restrictions on non- bank
involvement in money transfer. Therefore, development of mobile financial
services applications is being sponsored primarily by bank s in India.
Economic Times reports that Citigroup has tested a proposition which
allows brokerage to respond to margin calls or enhance credit limits, by
authorizing transactions over the mobile phone. Once the customer and
broker sign up for the application, the process is carried out by PIN
validations. A one-time PIN is generated for each transaction, which is
verified by the customer, after which the bank validates the transaction and
sends it to the broker. Once the transaction is completed, the customer is
intimated on his mobile phone again. City and m-Chek are also exploring the
possibility of a similar offer for mutual funds. They have also launched a
mobile application which enables farmers to receive money for sale of
produce through their mobile phones. These payments take the form of
‘intent to pay’ information that can be cashed at partner bank s. The paper
also reports that Visa recently announced the launch of its Visa Money
Transfer on Mobile service, which will enable money transfer via the mobile
phone. Initially, this service will be a pilot program available to Visa
cardholders of Corporation bank , HDFC bank and ICICI bank . The recipient
can be a Visa cardholder of any bank in India and the money can be
transferred to his/her mobile phone or Visa card.
Mobile banking has the potential to bring a whole host of people that
have no/little access to land lines/internet connections onto the electronic
platform – an innovative way to generate financial inclusion. To do so

7
successfully will require customer training, technology stabilization and
managing carefully the ‘know your customer’.
One newspaper extracts represents the banker’s sentiment on the
growth and concern towards mobile banking given below:
Mobile banking guidelines likely in a fortnight Mumbai:
As Indian banks gear up to offer mobile banking as
the next step in payment systems, they also need to
address customer concerns with regard to security.

The dependence of bank s on mobile payment service

providers would place the knowledge of customers in public domain.
Therefore, banks would need to take adequate risk control measures to
manage such risks and protect sensitive customer data

Phones that match your personality this was the opinion shared by
speakers at a seminar mobile banking organized by bank net.

Mobile Banking ConceptualModel

1. A mobile banking conceptual model
In one academic model,[1] 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 customized
information."

According to this model Mobile banking can be said to consist of three

inter-related concepts:

8
 • 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 enquiries 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.

2. 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 bank s, 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 Client, 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

9
make payments at the physical [[[point of sale]]. "Mobile contact less
payments” will make up 10% of the contact less market by 2010.[2]

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, bank s 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 Mobil COM, 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
Smartphone’s is growing fast, and should top 20 million units (of over 800
million sold) in 2006 alone.

In the last 4 years, bank s 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 CIO’s and CTOs of these
bank s to decide on how to leverage their investment in internet banking
and offer mobile banking, in the shortest possible time.[citation needed]

10
 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.

3. Telebanking business models

A wide spectrum of Mobile/branchless banking models is evolving.
These models differ primarily on the question that who will establish the
relationship (account opening, deposit taking, lending etc.) to the end
customer, the bank or the Non- bank /Telecommunication Company (Telco).
Another difference lies in the nature of agency agreement between bank and
the Non- bank . Models of branchless banking can be classified into three
broad categories - bank Focused, bank -Led and Non bank -Led.

3.1 Bank -focused model

The bank -focused model emerges when a traditional bank uses non-
traditional low-cost delivery channels to provide banking services to its
existing customers. Examples range from use of automatic teller
machines (ATMs) to internet banking or mobile phone banking to provide
certain limited banking services to bank s’ customers. This model is
additive in nature and may be seen as a modest extension of conventional
branch-based banking.

3.2 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 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 /

11
chain store) having experience and target market distinct from traditional
bank s, and may be significantly cheaper than the bank -based alternatives.
The bank -led model may be implemented by either using correspondent
arrangements or by creating a JV between bank and Telco/non- bank . In this
model customer account relationship rests with the bank

3.3 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

4. Tele & Mobile Banking Services

Mobile banking can offer services such as the following:

Your phone is now your bank!

Phone Banking services are a combination of IVR and Agent offering,

depending on the type of transaction. For all transactions that cannot be
completed on the IVR such as reporting loss of cards, logging complaints,
requests & queries, Phone Banker-assisted services are available.

Check your account balance - Get up-to-the-second details of your

Savings or Current Accounts and your Fixed Deposits. You can also get the
details of the last 5 transactions on your account, or have a mini statement
of last 15 transactions faxed across to you.

Enquire on the cheque status - You can use Phone Banking to check on
the status of cheques issued or deposited from anywhere in India.

Order a Cheque Book / Account Statement - Just call Phone Banking and
get your Cheque Book or latest Account Statement delivered at your
doorstep.

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Stop Payment - Stop payment of a single cheque or a series of cheques, 24
hours a day.

Loan Related queries - Get details of the outstanding loan amount,

enquire about your loan account, request for an interest certificate and
repayment schedule, etc. Just call Phone Banking in your city, select your
preferred language and dial 4 to speak to our Phone Banker.

Demat Related Queries - Get details of Account holding, Transaction

details, ISIN Number of a scrip, status of Depository Slips, Client Master list
details, Charges for the account and others. Call Phone Banking in your city,
select your preferred language & dial 5 to speak to our Phone Banker.

Open a Fixed deposit - Talk to our Phone Banker to open a Fixed Deposit
over the phone, by simply authorizing a transfer of funds from your Savings
Account

Transfer Funds between accounts - You can also transfer money from
one of your accounts to another. Both accounts must be linked to your
Customer ID. You can transfer amounts upto Rs 1 Lac in a single day.

Pay your bills - Pay your cellular, telephone, electricity bills through
PhoneBanking using Bill Pay, a comprehensive bill payments solution.

Re-generation requests for ATM / Debit card PIN / Net Banking

IPIN,etc - Call Phone Banking in order to regenerate your ATM / Debit card
PIN / Net Banking IPIN,etc.

Report loss of your ATM / Debit / Prepaid Card - If your ATM / Debit /
Prepaid Card is lost, call any Phone Banking number to hotlist / block your
card(s).

13
4.1 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

4.2 Payments & 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

4.3 Investments
1. Portfolio management services

2. Real-time stock quotes

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 3. Personalized alerts and notifications on security prices

4.4 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

4.5 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.

15
Issues and Challenges for Tele banking in
India
For the last ten years, technology has been the driving force in the banking
industry. As foreign and private banks poured huge sums of money to
counter the branch advantage of public sector banks, they discovered that
technology gives them a large competitive advantage. Technology is helping
the banks to reduce transaction cost and improve efficiency. ITES becomes
Unique Selling Proposition (USP) of the many players in the industry as it
facilitates the innovations in all functional management activities – whether
accounting and finance, production and designing, marketing and customer
management, research and development activities, and so on. In the last
decade banks have invested heavily in the technology such as e-commerce,
data warehousing and data mining, customer relationship management
solution software, knowledge management systems etc.

Some are investing in it to drive the business growth, while others are having
no option but to invest, to stay in business. The choice of right channel,
justification of IT investment on ROI, e-governance, customer relationship
management, security concerns, technological obsolescence, mergers and
acquisitions, penetration of IT in rural areas, and outsourcing of IT operations
are the major challenges and issues in the use of IT in banking operations.
The main challenge, however, remains to motivate the customers to
increasingly make use of IT while transacting with banks. For small banks,

16
heavy investment requirement is the compressing need in addition to their
capital requirements. The coming years will see even more investment in
banking technology, but reaping ROI will call for more strategic thinking.

Everyone today is convinced that the technology is going to hold the key to
future of banking. The achievements in the banking today would not have
make possible without IT revolution. Therefore, the key point is while
changing to the current environment the banks has to understand properly
the trigger for change and accordingly find out the suitable departure point
for the change.

Challenges for a Mobile banking Solution

Key challenges in developing a sophisticated mobile banking
application are :

Interoperability
There is a lack of common technology standards for mobile banking.
Many protocols are being used for mobile banking – HTML, WAP, SOAP,
XML to name a few. It would be a wise idea for the vendor to develop a
mobile banking application that can connect multiple bank s. It would
require either the application to support multiple protocols or use of a
common and widely acceptable set of protocols for data exchange.

There are a large number of different mobile phone devices and it is a

big challenge for bank s to offer mobile banking solution on any type of
device. Some of these devices support J2ME and others support WAP browser
or only SMS.

17
 Overcoming 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 bank s

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.

Scalability & Reliability

Another challenge for the CIO’s and CTOs of the bank s 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 bank s 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. bank s unable to meet the
performance and reliability expectations may lose customer confidence.

Application distribution
Due to the nature of the connectivity between bank and its customers,
it would be impractical to expect customers to regularly visit bank s 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.

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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.

Mobile banking in India

Mobile banking is gaining popularity in India, mainly because the cell

phone usage has grown tremendously. People are mobile-savvy and are
always ready to try out advanced handsets and services. Mobile banking
also saves the time and effort of going to the bank , standing in queues etc.
According to bank survey, one out of every three persons was ready to
change his/her bank s to avail free mobile banking services. Around 50
percent of the people who were surveyed used cell phones to check their
bank balance. Awareness of mobile banking is also high in India.

19
Concerns about mobile banking Security – People worry about frauds in
their accounts as they think it has a weaker security system than personal
banking. Even RBI is concerned about the security, especially when it comes
to verifying the bona fides of users accessing bank accounts from distant
locations.

Marketing – bank s haven’t marketed the service aggressively enough to

attract customers.

Awareness – Since it’s a relatively new concept, many people are still
unaware of its existence, benefits and use. In the interiors of India, where
banking is still a new concept, mobile banking is a distant dream.

Future

Even bank s, cell phone companies and payment service providers are
working together to develop ways in which mobile banking services can
comply with India’s regulatory requirements. For example, Obopay Inc. of
California and mCheck India Payment Systems Pvt. Ltd. of Bangalore, India
are working on a product that complies with the regulatory guidelines to
bring fast mobile payment services to customers in India. RBI is also
extending mobile banking services to make banking and financial services

20
available to lower income groups. The G2P project in Andhra Pradesh will use
cell phones to ensure payments of pension and unemployment benefits - cell
phones with special features will be given to local agents and the recipient
will be given a smart card.

NXP Semiconductors and A Little World have launched RFID-based

mobile payment solutions with seven bank s in India; this facility is available
in Mizoram, Uttarakhand, Andhra Pradesh and Meghalaya (Source:
contentsutra.com). Barclay recently launched its ‘Hello Money’ scheme in
India, for customers with GSM handsets using Airtel, Idea or Vodafone
connections in 40 cities. (Source: Business Standard).

Mobile banking is expected to become common and popular the

world over and replace traditional banking activities and facilities. In fact,
people have begun to prefer mobile banking to debit/credit cards, also
because the numbers of cell phone users are more than debit/credit
cardholders.

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

21
application developers, wireless network service providers and the bank s' 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.

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

- Advantages & Disadvantages of TeleBanking

22
Advantages: -

The biggest advantage that mobile banking offers to bank s 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 subscribers use. Service providers are increasingly using
the complexity of their supported mobile banking services to attract new
customers and retain old ones. A very effective way of improving customer
service could be to inform customers better. Credit card fraud is one such
area. A bank could, through the use of mobile technology, inform owners
each time purchases above a certain value have been made on their card.
This way the owner is always informed when their card is used, and how
much money was taken for each transaction. Similarly, the bank could
remind customers of outstanding loan repayment dates for the payment of
monthly installments or simply tell them that a bill has been presented and is
up for payment. The customers can then check their balance on the phone
and authorize the required amounts for payment.

The customers can also request for additional information. They can
automatically view deposits and withdrawals as they occur and also pre-
schedule payments to be made or cheques to be issued. Similarly, one could
also request for services like stop cheque or issue of a cheque book over
one’s mobile phone. There are number of reasons that should persuade
bank s in favor of mobile phones. They are set to become a crucial part of
the total banking services experience for the customers. Also, they have the

23
potential to bring down costs for the bank itself. Through mobile messaging
and other such interfaces, bank s provide value added services to the
customer at marginal costs. Such messages also bear the virtue of being
targeted and personal making the services offered more effective. They will
also carry better results on account of better customer profiling. Yet another
benefit is the anywhere/anytime characteristics of mobile services. A mobile
is almost always with the customer. As such it can be used over a vast
geographical area. The customer does not have to visit the bank ATM or a
branch to avail of the bank ’s services. Research indicates that the number
of footfalls at a bank ’s branch has fallen down drastically after the
installation of ATMs. As such with mobile services, a bank will need to hire
even less employees as people will no longer need to visit bank branches
apart from certain occasions.

With Indian telecom operators working on offering services like money

transaction. Over a mobile, it may soon be possible for a bank to offer
phone-based credit systems. This will make credit cards redundant and also
aid in checking credit card. Fraud apart from offering enhanced customer
convenience. The use of mobile Technologies is thus a win-win proposition
for both the bank s and the bank’s Customers. The bank s add to this
personalized communication through the process of Automation. For
instance, if the customer asks for his account or card balance after
conducting a transaction, the installed software can send him an automated
reply Informing of the same. These automated replies thus save the bank the
need to hire Additional employees for servicing customer needs. Use
banking facilities anywhere, even far away from a bank .Easy operation –
access accounts from a cell phone. Lower operational costs (for bank s) than
setting up ATM machines

24
Disadvantage:
Back in days when Internet was introduced, it was a boon to the
financial industry as it reduced all volumes by opening another self-service
channel for servicing customers. With mobile that advantage is not there as
already investments are made to reduce call volumes using Internet and
Internet is one of the technologies that is ever spreading in customer
community. Almost 80% of the people in US already have internet
connection. Mobile banking would be another value added service that can
be provided by financial institutions, it may only bring good will. Depending
on the technological direction for enabling Mobile companies either have to
spend enormous amount of money in matching customers expectation or
maintaining another stream of technology applications.

Technology still has security issues and software distribution issues.

Uses

1) Pay bills

2) Transfer funds

3) Take mini-statements, conduct balance enquiries

4) Set alerts for movement in accounts – change in balance, payments of

bills set on auto payment mode etc.

5)Purchase items – e.g. ABNAmro’s Mpower enables you to shop

25
Although advanced/high-end transactions can be conducted using cell
phones, most mobile banking customers use it for basic activities like
balance enquiry, making payments of regular bills etc.

- SMS Banking

When people are hard pressed for time, the need for "anytime anywhere”
is banking gains utmost importance. Bearing this in mind, bank s provide a
novel service which gives retail customers account information and real-time
transaction capabilities from their cell phones. With SMS banking the
following services can be obtained:

• Get account balance details

• Request a cheque book
• Request last three transaction details
• Pay bills for electricity, mobile, insurance etc.

SMS banking Overview

In order to avail the services mentioned above, a user subscribing to a
wireless carrier sends an SMS with a predefined code to the bulk service
provider’s number.

The service provider forwards this message to the bank ’s mobile

banking applications. The mobile banking applications interface with the
core banking servers (that contain the user account information) that
service the request made by the user. The response is then sent by the

26
mobile banking applications to the bulk service provider who in turn
forward it to the valid user via SMS. Which is very well explain in the
following diagram.

There are two ways in which a bank can communicate with a customer using
SMS:

1. In the first method the bank proactively sends data to customers in

response to certain transactions. For e.g. account to account transfer,
salary credit and some promotional messages. This data can be sent to
the customer in two ways
o E-mail to mobile (E2M) : In this method, the bank sends an
email to the mobile banking application through a specific email

27
 address. This email may consist of the message content together
with the mobile numbers of the customer. The mobile banking
application in turn sends this message in a specific format (for
e.g. XML tags are part of a HTTP GET message query string) to
the service provider’s application server. From hereon the
information from the XML tags is extracted and sent as a SMS to
the wireless carrier which in turn forwards this message to the
customer.

o Database to mobile (D2M) : Here a mobile banking

application continuously polls the bank s database server and
whenever a relevant event happens, for e.g. an account to
account transfer, it forwards the specific message to the service
provider’s application server. The message format may be the
same as the one used in the E2M case. This message is then
forwarded to the wireless carrier which in turn forwards this
message to the customer.

In the second method the bank sends data in response to specific

customer query such as account balance details. The customer first sends a
pre-defined request code via SMS to the Bulk SMS service provider’s
registered mobile number. Depending on the message code, the bulk SMS
provider forwards the SMS to a PULL application in the mobile banking
server. The PULL application receives the request and forwards it to the core
banking application for further processing. The core banking server then
processes this message and sends the reply to the PULL application which in
turn forwards in to the customer via the service provider. As in the above
cases the request and the response for the PULL application may be a HTTP
GET message with tags in the query string.

28
Push and Pull Messages
SMS banking services are operated using both Push and Pull
messages. Push messages are those that the bank chooses to send out to a
customer's mobile phone, without the customer initiating a request for the
information. Typically push messages could be either Mobile Marketing
messages or messages alerting an event which happens in the customer's
bank account, such as a large withdrawal of funds from the ATM or a large
payment using the customer's credit card, etc.

Another type of push message is One-time password (OTPs). OTPs

are the latest tool used by financial and banking service providers in the
fight against cyber fraud. Instead of relying on traditional memorized
passwords, OTPs are requested by consumers each time they want to
perform transactions using the online or mobile banking interface. When
the request is received the password is sent to the consumer’s phone via
SMS. The password is expired once it has been used or once its scheduled
life-cycle has expired.

Pull messages are those that are initiated by the customer, using a
mobile phone, for obtaining information or performing a transaction in the
bank account. Examples of pull messages for information include an account
balance inquiry, or requests for current information like currency exchange
rates and deposit interest rates, as published and updated by the bank .

The bank ’s customer is empowered with the capability to select the

list of activities (or alerts) that he/she needs to be informed. This
functionality to choose activities can be done either by integrating to the
Internet banking channel or through the bank ’s customer service call
centre.

29
Typical Push & Pull Services offered under SMS banking:

Depending on the selected extent of SMS banking transactions

offered by the bank, a customer can be authorized to carry out either non-

financial transactions, or both and financial and non-financial transactions.

SMS banking solutions offer customers a range of functionality, classified by

Push and Pull services as outlined below.

Typical Push Services would include:

• Periodic account balance reporting (say at the end of month);
• Reporting of salary and other credits to the bank account;
• Successful or unsuccessful execution of a standing order;
• Successful payment of a cheque issued on the account;
• Insufficient funds;
• Large value withdrawals on an account;
• Large value withdrawals on the ATM or on a debit card;
• Large value payment on a credit card or out of country activity on a
credit card.
• One-time password and authentication

Typical Pull Services would include:

• Account balance inquiry;
• Mini statement request;
• Electronic bill payment;
• Transfers between customer's own accounts, like moving money from
a savings account to a current account to fund a cheque;
• Stop payment instruction on a cheque;
• Requesting for an ATM card or credit card to be suspended;

30
 • De-activating a credit or debit card when it is lost or the PIN is known
to be compromised;
• Foreign currency exchange rates inquiry;
• Fixed deposit interest rate inquiry.

Concerns & Skepticism about SMS Banking

Many bank s would have some concerns when the prospects of

introducing SMS banking are discussed. Most of these concerns could
revolve around security and operational controls around SMS banking.
However supporters of SMS claim that while SMS banking is not as secure
as other conventional banking channels, like the ATM and Internet
banking, the SMS banking channel is not intended to be used for very high-
risk transactions.

The Convenience Factor

The convenience of executing simple transactions and sending out

information or alerting a customer on the mobile phone is often the
overriding factor that dominates over the skeptics who tend to be overly
bitten by security concerns.

As a personalized end-user communication instrument, today mobile

phones are perhaps the easiest channel on which customers can be reached
on the spot, as they carry the mobile phone all the time no matter where

31
they are. Besides, the operation of SMS banking functionality over phone
key instructions makes its use very simple. This is quite different to Internet
banking which can offer broader functionality, but has the limitation of use
only when the customer has access to a computer and the Internet. Also,
urgent warning messages, such as SMS alerts, are received by the customer
instantaneously; unlike other channels such as the post, email, Internet,
telephone banking, etc. on which a bank 's notifications to the customer
involves the risk of delayed delivery and response.

The SMS banking channel also acts as the bank ’s means of alerting
its customers, especially in an emergency situation; e.g. when there is an
ATM fraud happening in the region, the bank can push a mass alert (although
not subscribed by all customers) or automatically alert on an individual basis
when a predefined ‘abnormal’ transaction happens on a customer’s account
using the ATM or credit card. This capability mitigates the risk of fraud going
unnoticed for a long time and increases customer confidence in the bank ’s
information systems.

Compensating controls for lack of Encryption

The lack of encryption on SMS messages is an area of concern that is

often discussed. This concern sometimes arises within the group of the bank
’s technology personnel, due their familiarity and past experience with
encryption on the ATM and other payment channels. The lack of encryption
is inherent to the SMS banking channel and several bank s that use it have
overcome their fears by introducing compensating controls and limiting the

32
scope of the SMS banking application to where it offers an advantage over
other channels. Suppliers of SMS banking software solutions have found
reliable means by which the security concerns can be addressed. Typically
the methods employed are by pre-registration and using security tokens
where the transaction risk is perceived to be high. Sometimes ATM type PINs
are also employed but the usage of PINs in SMS banking makes the
customer's task more cumbersome.

Technologies Employed for SMS Banking

Most SMS banking solutions are add-on products and work with the
bank ’s existing host systems deployed in its computer and communications
environment. As most bank s have multiple backend hosts, the more
advanced SMS banking systems are built to be able to work in a multi-host
banking environment; and to have open interfaces which allow for
messaging between existing banking host systems using industry or de-
facto standards.
Well developed and mature SMS banking software solutions normally
provide a robust control environment and a flexible and scalable operating
environment. These solutions are able to connect seamlessly to multiple
operators in the country of operation. Depending on the volume of messages
that are require to be pushed, means to connect to the SMS could be
different, such as using simple modems or connecting over leased line using
low level communication protocols. Advanced SMS banking solutions also
cater to providing failover mechanisms and least-cost routing op

- I.T IN BANKS
The reforms in the 1990s, which led to expansion, consolidation and
liberalization of the banking and financial sector in India, brought in many
changes and challenges. A number of private and foreign players entered
the Indian market with superior technologies that helped them service their
customers efficiently through multiple channels such as Atms and Online

33
banking. Indian bank s on the other hand have been using IT more out of
compulsion and primarily for transaction processing. They now need to adopt
IT to reposition bank s into the integrated financial services market.

The need for providing improved customer service, reducing

transaction costs and increasing productivity, shall be the main drivers for
banking sector to adopt IT. These considerations are particularly important
for public sector bank s in India, who are facing immense competition from
private and foreign bank s. IT can help them move from the present
scenario where they are working as isolated islands to providing a
centralized banking experience. There is a need today for IT and the
financial community to come together and develop customized IT solution to
make the Indian banking sector globally competitive.

IT adoption in the banking sector will provide real time availability of

transaction processing through multiple channels. It would enhance a bank
’s ability to cross sell products, ensure better management and security and
safety of funds and increase efficiently through integration of systems across
various locations. It would also ensure efficient management of Non
Performing Assets (NPAs), minimize transactions costs, enhance ability to
conduct in-depth financial analysis and gather business intelligence.
Enhanced use of IT would also encourage the use of Internet to provide
access for online bill payments, fund transfers and e-statements in addition
to encouraging wireless mobile banking and e-commerce.

With growing competition faced by foreign bank s and financial

institutions, the public sectors bank s in co-operation with the Indian IT
industry would need to equip themselves for the next phase of introducing
the benefits of IT to their customers by providing a centralized banking
solution.

34
Opportunity for Indian banking sector in branch computerization
1. IT Networking
2. System Relationship Management
3. Customer Relationship Management (CRM) Applications
4. Back Office processing and Call Centers
5. Data warehousing/Data mining
6. Mobile banking and e- banking.

Different uses of Information Technology: -

a) Tele Banking
b) Any Time Banking
c) Automated Teller machine
d) Shared Payment Network System
e) Customer Service
f) Mobile banking
g) Home Banking
h) Electronic Fund Transfer
i) Plastic Cards as Media for Payment
1. Credit Card
2. Debit Card
3. Smart Card
4. ATM Card

CASE STUDY

35
Tele Banking Services OF Oriental Bank
OF Commerce
The Bank has launched the Centralized Tele-banking services in 20
major cities. By using this wonderful & convenient technology, the
customer can have Anytime, Anywhere (24 * 7) access to their
respective accounts. The Centralised Tele-banking facility can be
availed from any our Branches.

The Bank has planned to extend this facility to other major cities
as soon as the branches under these Cities are covered under the
bank’s Centralised Banking Solution (CBS) plan.

Services offered through Telebanking.

Account Related Inquiry

Ø Online Balance Inquiry :

o Current balance in your selected Account
o Balance on a particular date
Ø Last five transactions.
Ø Statement of Account by Fax (On same fax machine or other
Fax Machines as directed by the Customer).
Ø Statement of Account by E-Mail.
Cheque Status Inquiry
General Inquiry :-
Ø Bank’s working hours & holidays Inquiry.
Ø Retail Product information.
Ø The information on deposit rates is also available as under.
One can request for sending the Deposit rates information by
Fax also.
o Domestic Term Deposit Rates
o Domestic Term Deposit –Rates for Senior Citizens
NRE & FCNR Rates

How to use Telebanking ?

• Language Selection:- The Customer can interact with the
Telebanking system by selecting one of the four languages viz.
1. Hindi 2. English 3. Tamil 4. Bengali.

• When you dial the nearest City’s Telebanking Phone

number, after the recorded welcome message, you need to
select the language to interact with Telebanking system. Next

36
 you need to select either the option of 'Account Related
Information' to access your accounts Or you can choose the
General Information option. To Access the “Account Related
Information”, you must enter your Customer ID and the secret
PIN (which is being issued to you by the bank). Key-in the
various numbers on your keypad, for the services of your
choice as directed by the IVR System. During the Interaction
session, you can Press/ dial 9 to repeat the previous menu, 0
for main menu and # to quit the Telebanking system.

The Customer-ID Number and Personal Identification

Number (PIN ) :-
• Customer-id is a unique Numeric Code allotted by the
Computerised System to identify the Customer and its details
such as Customer name, addresses and various types of
Accounts the Customer is operating with the Bank viz. SB A/c.,
Overdraft A/c., Current Account etc. All the personal details of
the Customers are accessed using this Customer-ID.

• The Personal Identification Number (called PIN), is a four

digit number generated by the Telebanking system, which a
customer needs along with the Customer-ID number in order
to access Telebanking system. The PIN is issued by the Bank
and sent to a customer through sealed PIN mailers.

Interactive Voice Response System (IVR) :-

IVR is the abbreviation for Interactive Voice Response System. This
technology helps the Customer to understand and execute the
various options available in the Telebanking system.

Security :-
The Customers who have opted for Telebanking system are issued
secret PINs by the Bank, which are sent through sealed PIN Mailers.
When Customer uses the Telebanking system first time, he is
forced to change the PIN number to keep its secrecy. He further
has the option of changing the PIN number as and when required
by him. This enhances the security feature of this facility.

Locking of Telebanking Services :-

TeleBanking Services gets Locked automatically for the Customers
in case they enter the wrong PIN continuously 3 times. In such
cases, Customer needs to give written request to the concerned
branch which will further request to Telebanking Cell for Unlocking
of his/ her Account.

37
Re-Issuance of Personal Identification PIN :-
• In case Customer forget his/ her secret PIN, he/ she has to
give written request to the concerned branch for re-issuance of
PIN. The branch thereafter forwards the request to Telebanking
Cell at Head Office for re-issuance of PIN for the Customer.

• The Telebanking Services is growing fast in popularity and

the Bank is providing this facility to customers of all the
branches under the Core Banking Solution (CBS).

Tele & Mobile Banking by ICICI Bank

Bank on the move with ICICI bank Mobile banking. With ICICI bank ,
banking is no longer what it used to be. ICICI bank offers the Mobile banking
facility to all its bank , Credit Card, Demat and Loan customers.

ICICI bank Mobile banking can be divided into two categories of facilities:

 Alert facility: The ICICI bank Mobile banking Alert facility informs you
promptly of the significant transactions in your accounts. It keeps you
updated wherever you go.

 Request facility: ICICI bank Mobile banking Request facility enables

you to ask for your account information.

It’s simple! It’s easy!!

Use any of the following modes to access Mobile banking:

For all GSM mobile operators and Tata Indicom users.

Use ICICI bank ’s downloadable menu.

If you are an Airtel, Vodafone or Idea customer.

38
 Reliance Mobile User? Use R-world.

Bank Account

With Mobile banking, you can remain updated while you are on the
move,
without even making a phone call or a visit to the Branch. The ICICI bank
Mobile banking service for bank accounts can be divided into two
categories:

• Request Facility
• Alert Facility

Request Facility
The ICICI bank Mobile banking Request facility enables you to enquire
information about your ICICI bank account or to perform banking
transactions. You can ask for:

• IBAL - Your account balance

• ITRAN - The last three transactions in your account

• ICSI - Cheque status

• ISCR - Stop cheque instruction

• ICBR - Cheque book

• ICPA - Change your primary account

• IPAY - Making payment for your bills.

39
 • IVIEW - View your presented bills.

For specific information on the formats to be used, please select as

applicable from the following:

• Via sms - all GSM users

• Menu-based

• ICICI bank 's Mobile banking Menu

• Airtel GPRS

• Vodafone GPRS

• Idea GPRS
• Reliance R-world

Alert Facility
Under ICICI bank Mobile banking Alert, you get alerted when the
events you have subscribed for get triggered. You can subscribe for receiving
SMS alerts on the following events:

• Salary credit

• Account getting debited* - When your bank account is debited Rs.5,

000 or more, as specified by you.

• Account getting credited* - When your bank account is credited Rs.5,

000 or more, as specified by you.

• Cheque return

• When your balance rises above a limit

• When your balance falls below a limit.

40
Credit Card

With Mobile banking, you can remain updated while you are on the
move, without even making a phone call or a visit or logging on the Internet.
ICICI bank Mobile banking for Credit Cards can be divided into two
categories:

• Request Facility

• Alert Facility

Request Facility
The ICICI bank Mobile banking Request facility enables you to check
the following information for your Credit Card:

• IBALCC - Details of your balance

• IRPCC - Reward points available for redemption

• ILPCC - Details of the last payment

• IPDDCC - Payment due date

For specific information on the formats to be used, please select as

applicable from the following:

• Via sms - all GSM users

• Menu-Based

• Airtel GPRS

• Vodafone GPRS

• Idea GPRS

• Reliance R-world

Alert Facility

41
 On subscription to Credit Card Alerts, you get alerted when the events
you have subscribed for get triggered. You can subscribe for receiving sms
alerts for the following events:

• Due Date Reminder - You receive an alert five days prior to the due
date. This would inform you the total and minimum amounts due and
the the payment due date.

Demat

With Mobile banking you can remain updated while you are on the
move, without even making a phone call or a visit or logging on the Internet.
ICICI bank Mobile banking for Demat Accounts can be divided into two
categories:

• Request Facility

• Alert Facility

Request Facility
Through the ICICI bank Mobile banking Request facility, you can
request information pertaining to your demat account anytime at your
convenience. You can ask for:

• IBALD – Balance enquiry

• ITRAND - The status of a transaction

• IBILLD – Bill enquiry

• ISIND - ISIN enquiry

42
 In the Request facility, to check your holdings you can use any scrip
descriptor like Company name, Web trade scrip code, NSE symbol, BSE code
in the message.
For specific information on the formats to be used, please select as
applicable from the following:

• Via sms - all GSM users

• Menu-based

• Airtel GPRS

• Vodafone GPRS
• Idea GPRS

Alert Facility

Through this facility, you will receive sms alerts from ICICI Demat on the
following events:

Demat account getting credited / debited

Pledge Creation / Closure

Rejection of Submitted Instruction

Loans

ICICI bank Mobile banking for Loans enables you to ask for your loan
documents via your mobile phone. You can ask for:

• IAMT - Amortization schedule

• IITP - Income Tax Certificate - Provisional

• IITF - Income Tax Certificate - Final

• IRSL - Reschedulement letter

43
 • IRTL - Reset letter

• ILAC - Copy of Loan Agreement

E.g. for the Amortization Schedule of your Loan Account

LBMUM00000123456, please send IAMT LBMUM00000123456 as an sms to
5676766, where IAMT is the keyword for amortization schedule.

For specific information on the formats to be used, please select as

applicable from the following:

• Via sms - all GSM users

• Menu-based

• Airtel GPRS
• Vodafone GPRS

• Idea GPRS

• Reliance R-world

STEP FOR MOBILE BANKING OF ICICI BANK

1) ICICI Mobile banking

ICICI bank Mobile banking informs you promptly of significant
transactions in your bank account, credit card account and demat account,
such as:
Bank Alerts - Cheque return, salary credit and debit/credit of large
amounts as specified by you
Credit Card Alerts - Approaching credit limit and due date of payment of
your credit card bill.
Demat Alerts - Shares debited and credited to your account, etc.
The ICICI bank Mobile banking facility keeps you updated while you are on
the move.
2) ICICI bank Mobile banking Alerts

44
 ICICI bank Mobile banking Alerts is a facility through which you
receive the latest information about your bank account, credit card account
and demat account. Alerts are sent to your mobile phone number as
registered by you with the bank .
3) ICICI bank Mobile banking facility
All ICICI bank customers having a Savings bank Account, Credit Card
(not being an Add on Card) and Demat Account can avail of this facility. As
and when alerts are introduced for other ICICI bank products, inform can be
given by website, www.icicibank.com/pfsuser/channels/mobile/mobile.htm
4) Alerts to subscribe
Currently, we provide the following alerts depending on your
account(s) with us:
A. Banking Alerts
1. Credit to your bank Account of any amount of Rs.5, 000 or more as
specified by you
2. Debit to your bank Account of any amount of Rs.5, 000 or more as
specified by you
3. Salary Credit to the bank Account*
4. Cheque deposited in your bank Account but returned
5. Account balance above a specified amount
6. Account balance below a specified amount.
* Subject to the appearance of the word 'salary' in the narration of salary
credit.

B. Credit Card Alerts

1. Payment Due Date reminder on your next credit card bill
2. Your credit card spending reaches the limit set for your card (Approaching
credit limit).
C. Demat Alerts
1. Demat account getting credited
2. Demat account getting debited

45
3. Pledge creation and closure
4. Rejection of submitted instructions.
We will be introducing more alerts, of which we will inform you through our
website, www.icici bank .com/pfsuser/channels/mobile/mobile.htm.
5) Receiving the alerts.
Depending on the type of alerts you select, you will receive the alert(s) as
and when the particular event happens. However, in the case of Approaching
Credit Limit, the alert is sent at the end of the day.
6) Subscribe to ICICI bank Mobile banking by anyone of the
following means
You can subscribe to ICICI bank Mobile banking by any one of the following
means:
1) Logging into www.icici bank .com with your user ID and log-in password
and going to the Mobile banking section.
2) Calling up our 24-hour Customer Care and requesting subscription for
bank alerts and credit-card alerts. Our Customer Care representatives will
take you through the identification process and subscribe you to ICICI bank
Mobile banking.
3) For demat alerts, please fill and submit the Mobile Alerts Registration
Form to any ICICI bank branch offering demat services.
7) Any other prerequisites for availing of the ICICI bank Mobile
banking facility
For Mobile Alerts, you also need to have a mobile phone with a connection on
which these SMS alerts can be sent to you.
If your mobile phone service does not support the SMS facility, please
contact your mobile phone service provider to enable it.

8) Need to be registered with any particular service provider to

receive Mobile Alerts

46
You need not be registered with any particular service provider. All
customers with mobile phones where the service provider supports the SMS
facility will be able to avail of this facility.
9) Need a special phone for Mobile Alerts
No, all you require is a normal GSM/CDMA mobile phone to receive Mobile
Alerts. The CDMA mobile phone service provider should have activated the
SMS facility for you to avail of our Mobile Alerts.
10) Receiving an ICICI bank Mobile Alert
Mobile alerts will be received on your mobile phone. The message alert tone
set by you will indicate that a new message has arrived.
11) Access the alerts when customer is abroad
You need to ensure that you have subscribed for international roaming
facility for your mobile phone connection and you have switched your mobile
phone on.
12) Change mobile phone number
For banking alerts and Credit Card alerts, you may simply log into
www.icicibank.com or contact our 24-hour Customer Care and update our
records.
For Demat alerts, please fill and submit the Mobile Alerts Registration Form
to any ICICI bank branch offering Demat services.
13) Charges for the facility
All ICICI bank Mobile banking request services are currently FREE.
When you receive information from ICICI bank Mobile banking in response
to your request, the service is FREE of charge.
However, mobile alerts initiated by the bank and reporting transactions in
your account are chargeable according to the tariff displayed in the section
"Service Charges & Fees" of our website.
All updates of the fees would be put up on our website www.icicibank.com
/pfsuser/channels/mobile/mobile.htm for your reference. ICICI bank reserves
the right to change the charges for this facility.

47
14) More queries regarding this facility
Any queries on the ICICI bank Mobile Alert facility, you may write to the
Account Manager for clarification. To write to the Account Manager, log into
www.icicibank.com with your user ID and log-in password and select bank
--> Requests --> Write to ICICI bank .com.

Examples of ICICI bank Imobile

Mobile banking payments and mcommerce might finally get some
users in India. ICICI bank has launched its Mobile banking Application
called Imobile to all its users. The application can let you do most of the
actions you can perform over internet banking. Below is the main screen of
the application. As a security feature the application asks you to enter a PIN

48
before entering this screen. The PIN is set during the first use and when the
application is activated.

In order to tryout the application, I installed it over GPRS on my N82

and then tried doing a prepaid mobile recharge. The experience was great.
Check below for the screenshots and more info.

Prepaid Mobile Recharge

49
The application picked up my account no based on my phone number after
activation.

I entered the mobile number i want to recharge here.

Then it asked me enter the recharge amount, after which it showed a

confirmation screen.

50
It showed a couple of progress screens

51
Security Check

There’s surely a huge amount of risk connected to mobile banking for

sure. That the main reason m commerce has always found very less
adoption. This app asks for some digits on your debit /credit card to
complete the transaction, this is to a feature to prevent misuse and also to
make sure the transaction is being carried out by the account owner.

52
Success Screen

I was impressed when i saw this screen. The greatest part is that when
I was seeing this screen on my mobile the other phone in the room was
beeping as the recharge had just happened. Amazing!! Isn’t. It’s another
example to demonstrate how mobile technology is making an impact on our
lives. It’s such a cool thing to recharge another mobile from a mobile phone
application using GPRS!

ICICI bank allows all Internet banking transactions over cell phones.
Customers can now transfer funds to ICICI bank from other bank accounts.
Savings, dematerialized, credit card and loan accounts have been brought
under this facility. Customers can also pay their utility bills and insurance
premium through this facility."

Customer can also pay their ICICI Prudential policy premium through it.

53
Conclusion
The banking today is re-defined and re-engineered with the use of
Information Technology and it is sure that the future of banking will offer
more sophisticated services to the customers with the continuous product
and process innovations. Thus, there is a paradigm shift form the seller’s
market to buyer’s market in the industry and finally it effected at the
bankers level to change their approach from “conventional banking to
convenience banking” and “mass banking to class banking”. The shift has
also increased the degree of accessibility of a common man to bank for his
variety of needs and requirements

With the rapid development of transport and communication, people

and services are coming together as if they were just around the corner. If
this is the case for many services, then why should the banking industry lag
behind?

Internet banking, phone banking, e- banking and now mobile

banking all enable the bank to be better connected with the customer and
vice versa. A customer who is provided with a variety of additional services
feels appreciated and is more likely to be loyal to that bank , which is always
a good sign for a bank .

In the end mobile banking not only helps a bank to reduce costs but
also helps it to retain its valuable customers. And as far as customers are
concerned, this facility enables the customer to bank anywhere, at anytime
and in any condition, definitely a boon if a customer is stuck in the middle of
nowhere and requires banking services as soon as possible.

Thus mobile banking helps both, the customer as well as the bank ,
to lighten the burden of today’s world and to save time, money and energy

54
which is greatly required and appreciated. In a competitive world where
everyone is waiting to out do the other, a helping hand, in whatever forms
and from whatever source, is definitely god sent and should not go
unrecognized.

Bibliography
Websites:

1.www.wikipedia.com
1. www.googleimages.com
2. www.google.com
3. www.icici bank.com
4. www.hsbcbank.co.in
6.www.bankofbaroda.com

Books:
1. Indian banking, Parmeswaran.
2. Financial markets and services, Gordon and Natrajan.
3. Financial institutions and markets, L.M.Bhole.
4. Environment of financial services, O.P.Agarwal.

Survey sources:
1.ICICI Bank of Andheri
2.Bank of Baroda Andheri
3.HSBC Bank of Andheri

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