MEDI-CAPS UNIVERSITY

INDORE

Project Report Synopsis

ON
“RISK & BENEFITS OF MOBILE BANKING TECHNOLOGY”
Submitted as partial Fulfillment for
Degree of Masters of Business Administration
TO
Medi-caps University, Indore

GUIDED BY- SUBMITTED BY

Dr Rashmi Somani Palak Mishra
(MS19MS501188)
 DECLARATION BY THE STUDENT

This is to certify that the dissertation entitled “Risk & Benefits of mobile banking
technology “is a Bonafede work done by me Palak Mishra (MS19MS501188) under the
supervision of Dr Rashmi Somani in partial fulfilment for the degree of Master of Business
Administration by Medi- Caps University, Indore. This project report is my original work.

Palak Mishra

MS19MS501188
 CERTIFICATE OF THE SUPERVISOR

This is to certify that Ms Palak Mishra has executed the dissertation entitled “Risk and
benefits of mobile banking technology “under my supervision and the report submitted
therewith is the result of work done under my supervision. To best of my knowledge the
report is original and has not been copied or submitted anywhere else it is an independent
work done by her.

Place: Indore Name of the supervisor

Date: Dr Rashmi Somani

Place: Indore
Date: External viva – voice Examiner
 ACKNOWLEDGEMENT

I am grateful to my guide Dr Rashmi Somani of Medi- Caps University, Department of

Management, Indore for her precious guidance throughout my dissertation work. She has
devoted her valuable time and motivated me at every step towards completing this
dissertation. The study would not have been possible without her generous guidance.
I am deeply indebted to Dr Harish Bapat, Dean Management, Medi- Caps University, Indore
for his continuous support and blessings. His support has rendered me great help towards this
dissertation work.
I also express my sincere gratitude to my family members, friends and respondents for
extended support throughout the dissertation work

Palak Mishra
MS19MS501188
 Table of contents

CHAPTERS CONTENTS PAGE No.

Declaration by the Student

Certificate of the Supervisor

Acknowledgement

Table of Contents
Introduction
Chapter - 1 1.1 Overview of the Topic

Chapter - 2 Review of literature

Research Methodology
3.1 Objectives of Study
3.2 Hypotheses of the Study
Chapter - 3 3.3 Conceptual Model
3.4 Sample Characteristics (Sample Size, Unit, Frame etc.…)
3.5 Measures (Questionnaire)
3.6 Procedures (Data Collection Procedure-Tools & Techniques)
Chapter - 4 Data Analysis and Interpretation
Conclusion
5.1 Conclusion (Recommendation and Suggestions)
Chapter - 5 5.2 Limitations of the study
5.3 Scope for the future Study

References

Appendix
Mobile Banking: The Basics

Mobile banking has recently grown in popularity in America and across the globe. Mobile
banking statistics show that it accounts for 35% of all banking interactions that take place in
the United States. That percentage is higher than for each of the other kinds of banking. Of
course, mobile banking services vary depending on the bank or credit union that you do
business with. Generally, mobile banking gives consumers the ability to use their cell phones
and tablets to pay bills, manage accounts, transfer funds to friends and make mobile checking
deposits. Mobile banking technology has progressed over time. In its infancy, it mainly
involved SMS banking via text messaging. Now, receiving text message notifications about
deposits and overdrafts, using mobile Internet browsers to access banking sites and testing
out different banking apps all fall under the umbrella of mobile banking. It’s important to
note that there’s a difference between mobile banking and mobile-only banks. Many
traditional banks and credit unions offer mobile sites and apps for their busy customers who
don’t have time to meet with tellers face-to-face. Mobile-only banks, on the other hand, don’t
have physical locations. Instead, all banking is done through apps on mobile devices 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. Customers 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.

In one academic model, mobile banking is defined as:

Mobile Banking refers to provision and ailment 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 inter-related concepts:

 Mobile accounting
 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. Mobile banking
may also be used to help in business situations as well as for financial situation

Figure 1. Mobile Banking Technology Acceptance Model, adopted from Davis (1989)

Perceived usefulness
of mobile banking

Behavioral intention to use of

p Actual mobile
mobile banking banking system use
m

Perceived ease
of use of
mobile
banking
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 centre 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 in the World

Many Information systems researchers worldwide have investigated the
concept of mobile banking. In china, Govender and Sihala (2014) studied
consumer attitudes towards online and mobile banking. The aim of this
study was to investigate the market status for online/mobile banking in
China. The results of the study showed that Chinese online and mobile bank
users were predominantly males, not necessarily young and highly educated,
in contrast with the electronic bank users in the West. The issue of security
was found to be the most important factor that motivated Chinese consumer
adoption of online banking. Main barriers to online banking were the
perception of risks, computer and technological skills and Chinese traditional
cash-carry banking culture. The barriers to mobile banking adoption were
lack of awareness and understanding of the benefits provided by mobile
banking.
A similar study was conducted in South Korea by (Lee, Lee & Kim,
2007). The objective of the study was to identify factors influencing the
 adoption of mobile banking service. In this study they concluded that
perceived risk indirectly influences adoption behavior but only when it was
via trust. Using the mobile banking service context, the study also obtained
strong empirical evidence for measuring perceived risks' dimensions.
Evidence for a composite perceived risk variable was identified and a strong
inhibiting effect of perceived risk on trust was also identified.
Laukkanen and Cruz (2008) conducted a study which they investigated
what inhibits mobile banking adoption in the two European countries namely
Finland and Portugal and how the countries differ in terms of barriers to the
service adoption. They explored how the five adoption barriers namely
usage, value, risk, tradition and image, derived differed between these two
countries. The results of the study suggested that functional usability and
relative advantage compared to other ways of banking are currently the most
powerful inhibitors of mobile banking adoption. Remarkably, tradition
appeared to be a negative determinant of resistance. Portuguese online bank
customers showed less resistance in terms of usage, value, risk and image to
adopting mobile banking services than their Finnish counterparts. However,
Portuguese online bank customers showed greater preference for personal
service, indicating more traditional banking behavior compared to Finns.

History
Before the introduction and enablement of mobile web services in 1999, mobile banking was
completed primarily through text or SMS; it was known as SMS banking. European banks
were on the frontier of mobile banking service offering, using the mobile web via WAP
support. SMS banking and mobile web were the most popular mobile banking products
before 2010. With the development of smartphones with iOS or Android operating systems,
mobile banking applications (apps) began to evolve. Clients were able to download the
banking apps onto their smartphones with more sophisticated interfaces and improved
transactional abilities.
To date, many financial institutions make use of both SMS and mobile applications to keep
their clients informed of their account activities or to send out alerts regarding possible fraud
and/or updates and maintenance of service provision. Examples can be a text message from a
bank, notifying users that their ATMs or apps will not be accessible during a particular time
period due to system maintenance, or a confirmation text from the bank regarding a transfer
carried out by the client via the mobile app.
However, the security issues are the major concerns for mobile banking service providers
and the users. As mobile banking systems mature, more users will start using mobile banking,
which will draw the attention of the hacker community to target mobile banking customers
mostly for financial gain. Safety and security of the personal and financial information stored
and managed in the devices are the key factors for users, banking organization and the
security community. The purpose of this paper is to gain basic knowledge of mobile banking,
explain the different kinds of architecture used in mobile banking and identify the different
security attacks and its countermeasures.
The Early Days of Mobile Banking
The earliest forms of mobile banking came in the form of SMS banking. SMS was the most
widespread form of texting messages when the use of mobile phones become more
widespread in the late 1990s and SMS banking used that format. However, those banks that
offered SMS banking offered a relatively limited service. You could text them to request your
balance or they could text you to alert you to a large transaction involving your bank account
or to let you know you were going overdrawn. The arrival of WAP (Wireless Application
Protocol) allowed many new mobile phones to access the internet and this brought new
possibilities for banks too. The first WAP banking services began in Norway in 1999 and
soon spread to other companies.

Mobile Banking Technologies

Mobile banking is useful to customers in the following ways:

1. Access to Account Information

Information is power. And thus, knowing your exact bank balance is important. This helps
you in better management of your funds. And thus, this is the primary mobile banking service
provided by any bank. You can check the following:

 View account balance (balance enquiry)

 Transaction history
 e-statement of account
 Loan statements
 Card statements
 e-Passbooks

2. Transactions
Making payments and transferring money from one account to another is the most basic
banking activity. Therefore, it only makes sense that these are the most used and in-demand
mobile banking services. You can transfer funds to anyone by adding them as beneficiaries or
simply via Unified Payments Interface or UPI.

 Bank to bank transfers

 Transfer of funds to self
 Payments to third parties (rent payments, bill payment, etc.)
 Giving standing instructions for periodic payments
 Payments via NEFT/IMPS/RETG/UPI/MMID

3. Investments

 Opening fixed deposit/recurring deposits

 Mutual fund investments
 Portfolio management services (e.g., SBI Capital Securities)

4. Other Services

Apart from the account summary, bill payments, fund transfers and investments, there are
other services that a customer requires for smooth banking experience. Also, there may be
times when you have some grievances and due to lack of time, are not able to address. For
such extra services, you can always resort to your bank’s mobile banking and find solutions
to your complaints or queries. These services include:

 ATM locators
 Branch locators
 Lodging complaint/ tracking applications
 Ordering new cheque book
 Cancelling/stopping an issued cheque

Mobile Banking over SMS 

Along with mobile apps, most banks offer mobile banking services over SMS. This
service is useful for those who do not have smartphones and/or internet connection.
Customers need to register their mobile number with their bank in order to avail SMS
banking.
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 solution 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 Kennel.

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 channel
of 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 need 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 I banco 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 Info COMM 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 programs in the country. On the other hand, a country
like South Korea with its tech-savvy population has a widespread adoption ofthe higher-end
mobiles, which support application development

Risk of Mobile Banking Technology

BITS expects to hone its mobile recommendations over the next several months, Smoker
says. Soon, it expects to offer more specific recommendations, perhaps even best practices,
that offer stronger advice. For now, BITS is just getting a handle on the industry's mobile
worries. Its current list of issues was compiled from a poll of mobile experts at 50 U.S.
financial institutions.

The top six areas of concern, according to the poll, are:

 Rapid growth. Mobile banking and payments will continually change, and the
expectation among security and mobile experts is that the mobile channel will soon
become consumers' primary financial-services platform. Because the channel is
convenient and can be customized, users will migrate from PC banking and payments
to mobile. And the more mobile users, the greater the security risk.
 Need for new security controls. Because the mobile threat landscape is growing
- Symantec in its just-released Internet Security Report says targeted attacks on
mobile phones are increasing - financial institutions must be diligent in their efforts to
keep up with emerging mobile threats. That means they have to make investments in
security controls specific to mobile.
 More players, more risks. The mobile system depends on a number of players, many
of which fall outside the scope of core financial services. Device manufacturers,
operating systems, network operators, application developers and others all are
involved. And they all need to address security.
 Privacy issues. Emerging mobile privacy issues, such as those revolving around geo-
location, will become more critical. As more mobile technologies emerge, institutions
will have to balance customer and member convenience with security and fraud
prevention.
 Role of consumers. Financial institutions must develop strategies to educate their
customers and members about actively managing their own mobile-device security.
  Anticipating Risk. As more mobile services hit the market, banks and credit unions
must balance innovation with fraud protection. More threats will emerge as adoption
grows. Anticipating new risks will be paramount.

Benefits Associated with Advanced Mobile Banking

The ability to access your financial records anytime, anywhere makes mobile banking
appealing. You can deposit checks, send someone else money and monitor transaction history
while standing in a grocery line. Those actions give you a safety advantage, too. In
monitoring your account more often, you’ll have a greater chance to discover fraud more
quickly or spot times when you may need to slow down on spending.

1. Accessibility
Part of the appeal is the ability to access your account on a mobile device whenever you wish.
Unlike a bank branch, you can use a mobile banking app to check in with your account 24
hours, seven days a week with some exceptions, such as planned maintenance updates.

2. Convenience
It also provides you a way to save time. Consider mobile check deposit, which is now
mainstream within your mobile banking app. The feature lets you deposit a check without
requiring you to go anywhere. Nowadays, the best mobile banking apps are evolving to help
you optimize your money in all sorts of newer ways, too. In recent months, a number of
banks have been going one step further by providing money guidance via their mobile apps
so you can do less thinking. For example, Ally Bank has been recently testing a feature to
help its checking account customers organize their digital money and optimize how much
money they can regularly save a particularly relevant feature considering only four in 10 U.S.
adults would cover the cost of a $1,000 car repair or emergency room visit using their
savings, according to Bankrate’s January Financial Security Index survey’s. Bank also
messages customers when its algorithms see an opportunity to save money, or alternatively,
forecasts when they are at risk of over drafting an account.

3. Paying IOUs
It’s also easy to pay back a friend or family member when you are logged into your mobile
banking app. Banks across the country partner with Zella so that you can send someone
money in minutes through your mobile banking app rather than give them physical cash. You
will only need to know your recipient’s email address or phone number to send them money.
If your bank doesn’t offer Zelle, it will usually let you send a transfer to someone else’s bank
account if you know their routing and account number.

4. Good security
Banks are in the business of guarding your assets including your interactions on their mobile
apps. Of course, nothing is fool proof. But there are steps you can take to step up security
precautions if you’re worried about mobile banking security. While you may still use a
username and password to login to a mobile banking app, your bank may let you enrol in
added safety measures. You could, for example, enrol in multi-factor authentication where
you need two (or more) kinds of verification to prove that it’s really you. For example, a bank
could send a code to your phone for money transfers above a certain amount. In order for the
payment to go through, you would need to enter the code in addition to logging in through the
app to help verify you are who you say you these days, mobile devices and some bank apps
will let you login by scanning your face or fingerprint as yet another way to protect your
digital bank account That also means if your phone goes missing, you will have an added
lock to keep fraudsters out. You can also disable your mobile phone remotely.

5. Control
Think of a mobile banking app as a remote control for your money. The app lets you deposit
check and send someone money whenever you wish. The controls are getting more advanced,
too. A growing number of banks, like Wells Fargo, Ally Bank and Bank of America, let you
use your mobile banking app to turn your debit or credit card off if it goes missing or is
stolen. It’s a nice feature to help you feel instantly secure in a moment of panic calling a 1-
800 number is not required if you want to turn your card back on, either. Some banks have
already extended the use case of the card control feature. At Wells Fargo, customers are able
to see their recurring payments connected to their payment card in addition to turning their
cards on and off under one hub.  It’s called Control Tower and it ought to help you when
you’re in a life transition, like when you’re moving to a new city and want to make sure you
aren’t paying for services you no longer use. “As a customer, you can see where you have
cards stored, where you have subscriptions, where you potentially have monthly payments
that you aren’t using [that] you can get rid of,” says Stephen Greer, a senior analyst focused
on retail banking at Celent. You may also want to enrol in something bank apps have long
had: mobile alerts for low balances and when your transactions post. Some banks also let you
set up travel alerts on their apps

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.”

Review of Literature
In this field few studies were conducted in India. The researcher reviewed many researchers
conducted in India and abroad to find out the correct area to carry out the research work,
which will fruitful for the professionals and country.

Rangan, V. Kasturi and Lee, Katharine L., (2012), “Mobile Banking for the Unbanked “,
The case describes in detail the workings of two mobile banking operators in AfricaWIZZIT
in South Africa and M-PESA in Kenya. It explores the dimensions of strategy that make for
success in the market for the unbanked. It raises questions regarding the portability of the
model to other countries and settings.

V. Raja, Joe A. (2012), “Global e-banking scenario and challenges in banking system”, This
paper is an attempt to explore the various levels of internet banking services provided by
banks using the secondary data. It also compares the traditional banking systems with net
banking. It lists out the various advantages of internet banking and the successful security
measures adopted by different banks for secured banking transactions. It also analyses how
E-banking can be useful for banking industry during this global financial meltdown.

Van B., Paul, Veloso, Francisco M. and Oliveira, P., (2012), “Innovation by Users in
Emerging Economies: Evidence from Mobile Banking Services”, This paper examined the
extent to which users in emerging economies innovate, and whether these innovations are
meaningful on a global stage. To study this issue, the researcher conducted an empirical
investigation into the origin and types of innovations in financial services offered via mobile
phones, a global, multi-billion-dollar industry where emerging economies play an important
role. The researcher used the complete list of mobile financial services, as reported by the
GSM Association (GSMA), and collected detailed histories of the development of the
services and their innovation process. Analysis of this study shows that 85% of the
innovations in this field originated in emerging markets. The researcher also concludes that at
least 50% of all mobile financial services were pioneered by users, approximately 45% by
producers, and 5% jointly by users and producers. Additionally, services developed by users
diffused at more than double the rate of producer-innovations. Finally, the researcher
observed that threequarters of the innovations that originated in emerging markets have
already diffused to OECD countries and that the (user) innovations are therefore globally
meaningful.

Nel J., Boshoff C., Reletting T, (2012), “Exploiting the technology cluster effect to enhance
the adoption of WIG mobile banking among low-income earners” This study investigated the
attitude formation of low-income, non-users of Wireless Internet Gateway (WIG) mobile
banking, by including use of the Short Message Services (SMS) as a moderator of attitude
formation. A non-probability sample of 465 South African non-users of mobile banking was
drawn and clustered into High users and Low users of the SMS, based on the average number
of text messages sent in a week. The moderating effect of "use of the SMS" was investigated
by means of a structural equation modelling multi-group analysis. The findings revealed that
the influence of Ease of use on Attitude and of Self-efficacy on Ease of use were stronger for
High users and significantly different from Low users, while the opposite was true for the
influence of Facilitating conditions on Usefulness.

Oliveira P, Eric V. H., (2011), “Users as service innovators: The case of banking services”
Fond that 55% of today's computerized commercial banking services were first developed
and implemented by non-bank firms for their own use, and 44% of today's computerized
retail banking services were first developed and implemented by individual service users
rather than by commercial financial service providers. Manual precursors to these services –
manual procedures that carried out functions similar to computerized services in our sample –
were almost always developed by users as self-services.


This study was generated to understand
   
 
   
 
was used to collect relevant data. The respondents were
randomly taken by using convenience sampling while
visiting the selected banks for the present study. Survey
questionnaire was sent to more than 500 customers of
which 200 responses were received. 155 were selected
for the present study as the rest of the questionnaires had
   
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
This study was generated to understand
   
 
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 
was used to collect relevant data. The respondents were
randomly taken by using convenience sampling while
visiting the selected banks for the present study. Survey
questionnaire was sent to more than 500 customers of
which 200 responses were received. 155 were selected
for the present study as the rest of the questionnaires had
   
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
RESEARCH METHODOLOGY:

RESEARCH METHODOLOGY
The research paper is based on both primary and secondary data. In this research paper the
Primary data was collected through face-to-face interaction of the mobile banking customers
and non- customers. In this research paper, recommendations and conclusions based on
primary data. The paper is based on exploratory research for the present research. The main
role of exploratory research is based on the new creative ideas. Through exploration research,
the researcher develops ideas effective and more clearly, implement operational definitions,
establish priorities and improve the design of research.

Research design: the data have been divided into two main categories-

Primary data and Secondary data: The primary data have been collected through
exploratory research like questionnaire with customer and non-customer of mobile banking.
The secondary data collected form web sites, newspapers, journals and magazines and also
research papers. Primary data: the primary data for the research is collected from a survey in
Kothrud in Pune, India. There is sample size is 100 respondents for research. The parameters
for customer perspective in each research are shown in table Customer awareness and usage
factor of mobile banking

Secondary Data: this research paper has been sourced from magazines and journals dealing
with current issues in mobile banking awareness. Text books, reference books and Internet
related to mobile banking and research methodology have been a major secondary source for
the extraction of the expert’s opinion.

Objective of the study

 To study the Information Technology in view of research study
 To study the use of Information technological means in the system
 To study the feedback of the past transaction system
 To study the existing transaction system
  To study the all-dependent parameters
 To study the work culture of customer, employee a
 To development and management
 To study the feedback of the existing transaction system
 To study the service provided by the system in view of customer relation
 To study the view of management, employee and customers review
 To study the Software Engineering in view of research work

Hypothesis of the Study

 Actual mobile banking use is positively influenced by the user’s behavioural intention
to use mobile banking
 Perceived ease use of mobile banking positively affects the behavioural intention to
use mobile banking
 Perceived usefulness of mobile banking has a positive impact on the behavioural
intention to use mobile banking

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 modelling 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

Sample Design and Size

In this research project descriptive research design is used. Judgement and Convenience
sampling method will be used to get the information about online banking. This method is
used because we are interested in exploring gender, age in online banking in the population
for conducting this research a structured questionnaire is prepared and sample of 100 people
is taken from customers itself.

Sampling Size
It indicates the number of people to be surveyed. Though large samples give more reliable
results than small samples but due to constraint of time and even this covid-19 the sample
size is restricted to 100 response. The respondents belong to different incomes and profession
people.
Sampling Units
It defines the target population that will be sampled i.e., it answered who is to be surveyed.
In this study, the sampling unit is the customers.

Questionnaires
1.Do you use mobile banking technologies?
 Yes
 No

2.Are you completely aware of all the mobile banking services?

 Strongly Agree
 Agree
 Neutral
 Disagree
  Strongly Disagree

3.Do you think while using Mobile Banking it saves your time?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

4.According to you using mobile banking technologies it is

Strongly Agree Neutral Disagree Strongly
Agree Disagree
a. Very Risky
b. Beneficial for us

5.Is it easy to carry out banking operations through use of Mobile Banking.
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
6.Do you trust the network connectivity while doing a transaction using mobile
banking?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

7.Are you Satisfied with Level of data &information security provided by bank in
mobile banking Technologies?
 Strongly Agree
 Agree
  Neutral
 Disagree
 Strongly Disagree

8.Do you feel comfortable using new technologies like mobile banking?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

9. Do you find it risky to share private & sensitive information in mobile banking?
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

10.According to you which service is best?

 Service provided by bank itself face to face
 Service provided by bank through mobile banking

11.How far do you agree with the following statement related to mobile banking?

Strongly Agree Neutral Disagree Strongly

Agree Disagree
a. Mobile banking is
familiar device
b. Conducting
mobile banking is
fast & effortless
c. Alert for
transaction is highly
 useful

12.What Specific suggestion do you have that will help bank to improve mobile bank.
Please rank them?
1 2 3 4 5

a. Advertisement
regarding mobile
banking
b. Bank employees
should tell their
customers about mobile
banking benefits
c. Possibilities of error
should be lower

Procedures
Data was collected using a semi-structured questionnaire which was served on respondents
through drop and picked methods this method was chosen because of time and cost
effectiveness. The use of quesonnaire assisted in attaining core information and other
supplementary information was obtained by reading other relevant information from
publication

A method of data collection has been come up with by the researcher to ensure
smooth execution of data collection. A questionnaire was created and approved; the
appropriate sample was identified to ensure random selection. The questionnaires were
handed personally to the residents of Gaborone so that if one was not familiar with the
language of cell phone banking clarity then would be made to them.

The data collected was processed with the aids of statistical package for
social science (SPPS) and Microsoft Excel. Excel enabled the researcher to use graphical
representation of the gathered data.
Data Analysis and Interpretation

Q2. Mention your Gender?

Interpretation

According to this study majority of females answered comparing males to my

questions related customer satisfaction of risk and benefit of mobile banking technology the
percentage of female is (52%) approx. and male is (47%) approx.

Q3. Mention your Age?

Interpretation

According to this study the age between 18-24 has answered majorly because
it’s a new generation who cope up with new technologies age between 40-60 the response
was 9%. commonly the new generation adopt the new thing easily and rather than doing hard
work they believe in smart work.

Q 4.1 Do you use mobile banking technologies?

Interpretation

According to this study most are in the favour of using mobile banking as this is a
time of pandemic situation where people are not even allowed to got of there home in this
case the use of technology has been increased.

Q5.2 Are you completely aware of all the mobile banking services?
Interpretation

According to this study mostly are agreed (56%) that they are completely aware
about the mobile technologies and service which provided by bank while sitting at home only
you can do many things and its saves cost and time also other then some are strongly agree
(19%), some are neutral (18%), some are disagree (3%) and even some are strongly agree
(1%) approx.

Q6.3 Do you think using mobile banking saves your time ?

Interpretation

According to this study majortiy are agree( 49%) with this statement that
mobile banking technologies saves their time and this statement is true otherthan some are
disagree (3%) , some are neutral (12%) , some are even strong disagree (38%).

Q8.5 Is it easy carry out banking operations through use of mobile banking
Interpretation

According to this situation mostly are agreed with this statement are that it is
easy to do operations through use of mobile banking because while sitting at home only or
any were we can do the transaction and all the operations easily other than this some are
strongly agree (25%), some are neutral (12%), some are even disagree (6%).

Q9.6 Do you trust the network connectivity while doing a transaction using
mobile banking ?
Interpretation

According to this situation mostly are agreed that they trust to the network
connectivity while doing a transaction using mobile technology rather its very risky also
other than some are disagreed with this situation also and strongly agree also.

Q10.7 Are you satisfied with level of Data & Information security provided
by bank in mobile banking technologies?
Interpretation

According to this report mostly are agreed with this statement that is they are
satisfied with data and information provided by the bank but as usual some are disagreed
also.

Q11.8 Do you feel comfortable using new technologies like Mobile

Banking?
Interpretation

According to this survey mostly are agreed with this situation that its ease to use
such technologies for them.

Q12.9 Do you find risky to share private & sensitive information in mobile
banking?
Interpretation

According to this situation mostly are agreed that they find risky to share private
information through mobile banking because due to hackers’ people are afraid, they are not
ease to share the information normally but those who are comfortable with this situation they
are disagree with this statement.

Q13.10 According to you “Which Service is Best”?

Interpretation

According this situation mostly has preferred that services provided by bank
through mobile banking is more comfortable rather serves is provided in bank by face to face

Conclusions
In the findings it was found that respondents believed they would use mobile banking if
it is easy to use because then it will be useful to them, therefore a conclusion made was
that perceived ease of use of mobile banking positively affects perceived usefulness of
mobile banking. Furthermore, respondents believed if mobile banking is easy to use, they
intend to adopt and use it, therefore a conclusion was made that perceived ease of use of
mobile banking positively affects the behavioural intention to use mobile banking. The
respondents also believed that if mobile banking is useful, they intend to adopt and use it
hence a conclusion was made that perceived usefulness of mobile banking has a positive
impact on the behavioural intention to use mobile banking.

Furthermore, this study found that gender is an influencing factor in mobile banking
usage because more males used mobile banking than females did. It can also be
concluded that age is another factor which influences the users' intention to use a certain
technology. The results of this were that young people used mobile banking more and as
age increases mobile banking usage declines.
With regards to the findings, it is recommended that for successful implementation
of mobile banking in the future, service providers should focus more on marketing of
the mobile banking technology to the elderly and make them understand the need
and the importance of using mobile banking services. Furthermore, they have to
come up with ways to ensure that the more active users of mobile banking which are
the youth are kept in using the technology.

Recommendation and Suggestions

Based on the following of the study the following recommendation are made;

In Mobile Banking Application whenever we need to avail financial services, we

have to enter user name and password for using our account transaction. After
completion of our task, customer have to log off these services. However, sometimes
for regular usage customers may forget or postponed to log off. At that time this
mobile application always keeps inside the corresponding customers account
database. If the customers mobile phones theft means, automatically hackers can
reveal all their transaction details very easily. This will become a very big issue.
Banking sector has to avoid this type of problems by using new energies technology.

At the same time customers also have to aware about the services like how to use
these apps, what are the security measures taken by the banking sectors and how to
avoid major risks from unauthorised persons.

The awareness creation among the existing customers and providing special benefits
for using the mobile banking will increase the mobile banking users. Once the
customers become confident on technology it will automatically increase the
adoption of mobile banking in mass.

Limitations of the study

 Lack of primary data
 Time consuming
  As the research mainly depends on secondary data, it may not be hundred percent
accurate.
 The study is limited to India only

SCOPE OF MOBILE BANKING AND NECESSITY OF RESEARCH

Based on survey, the following mobile banking scope were identified which would impact of
mobile banking services or payments for small grocery shop with reference to Kothrud, Pune
area in Maharashtra

1. Smartphone or Mobile compatibility

2. Acceptance of mobile banking payments

3. Availability of banking services

4. Security issues

5. Quality of banking services

6. Customization of banking services

Since Pune is PAN India (metro city) the need was felt to understand the changes that are
taking place for retail shopkeepers to change according to the scenario. Drastic changes are
we taken place in payments of goods like online, debit/credit cards, wallet, etc. but the
researcher

References

 Sharma, Prerna, bamoriya & Preeti Singh (2011)- Issues & Challenges in Mobile
Banking in India: A Customers Perspective
 http://www.trai.gov.in
 http://sbi.co.in
 http://rbi.org.in
 http://en.wikipedia.org
 www.iiste.org