INTRODUCTION

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

Internet banking (or E-banking) means any  user with a personal computer and
a browser can get connected to his banks website to perform any of the virtual
banking functions. In Internet banking system the bank has a centralized database that i s
w e b - e n a b l e d . Internet banking is the term used for new age banking system. Internet
banking is also called as online banking and it is an outgrowth of PC banking. Internet
banking uses the internet as the delivery channel by which to conduct banking activity,
for example, transferring funds, paying bills, viewing checking and savings account
balances, paying mortgages and purchasing financial instruments and certificates of
deposits. Internet banking is a result of explored possibility to use internet application in
one of the various domains of commerce. It is difficult to infer whether the internet tool
has been applied for convenience of bankers or for the customers’ convenience. But
ultimately it contributes in increasing the efficiency of the banking operation as well
providing more convenience to customers. Without even interacting with the bankers,
customers transact from one corner of the country to another corner. There are many
advantages of online Banking. It is convenient, it isn’t bound by operational timings,
there are no geographical barriers and the services can be offered at a minuscule cost
(IAMAI’s, 2006). Electronic banking has experienced explosive growth and has
transformed traditional practices in banking.
In its very basic form, e-banking can mean the provision of information about a bank and
its services via a home page on the World Wide Web (WWW). More sophisticated e-
banking services provide customer access to accounts, the ability to move their money
between different accounts, and making payments or applying for loans via e-Channels.
The term e-banking will be used in this book to describe the latter type of provision of
services by an organization to its customers. Such customers may be either an individual
or another business. To understand the electronic distribution of goods and services, the
work of Report and Sviokla (1994; 1995) is a good starting point. They highlight the
differences between the physical market place and the virtual market place, which they
describe as an information-defined arena. In the context of e-banking, electronic delivery
of services means a customer conducting transactions using online electronic channels
such as the Internet? Many banks and other organizations are eager to use this channel to
deliver their services because of its relatively lower delivery cost, higher sales and
potential for offering greater convenience for customers. But this medium offers many
more benefits, which will be discussed in the next section. A large number of
organizations from within and outside the financial sector are currently offering e-
banking which include delivering services using Wireless Application Protocol (WAP)
phones and Interactive Television. Many people see the development of e-Banking as a
revolutionary development, but, broadly speaking, e-banking could be seen as another
step in banking evolution. Just like ATMs, it gives consumers another medium for
conducting their banking. The fears that this channel will completely replace existing
channels may not be realistic, and experience so far shows that the future is a mixture of
“clicks (e-banking) and mortar (branches)”. Although start up costs for an internet
banking channel can be high, it can quickly become profitable once a critical mass is
achieved.
Fig.1.1 E-Banking Services
EVOLUTION OF E-BANKING
There have been significant developments in the e-financial services sector in the past 30
years. According to Devlin (1995), until the early 1970s functional demarcation was
predominant with many regulatory restrictions imposed. One main consequence of this
was limited competition both domestically and internationally. As a result there was
heavy reliance on traditional branch based delivery of financial services and little
pressure for change. This changed gradually with deregulation of the in-E-Banking
Management IGI Global, distributing in print or electronic forms without written
permission of IGI Global is prohibited industry during 1980s and 1990s, whilst during
this time, the increasingly important role of information and communication technologies
brought stiffer competition and pressure for a faster pace of change. The Internet is a
relatively new channel for delivering banking services.

INTRODUCTION TO MOBILE BANKING

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

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

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

The ability to offer financial transactions online has also created new players in the
financial services industry, such as online banks, online brokers and wealth managers
who offer personalized services, although such players still account for a tiny percentage
of the industry.

Over the last few years, the mobile and wireless market has been one of the fastest
growing markets in the world and it is still growing at a rapid pace. According to the
GSM Association and Ovum, the number of mobile subscribers exceeded 2 billion in
September 2005, and now exceeds 2.5 billion (of which more than 2 billion are GSM).

According to a study by financial consultancy Celent, 35% of online banking

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

Many believe that mobile users have just started to fully utilize the data capabilities in
their mobile phones. In Asian countries like India, China, Bangladesh, Indonesia and
Philippines, where mobile infrastructure is comparatively better than the fixed-line
infrastructure, and in European countries, where mobile phone penetration is very high
(at least 80% of consumers use a mobile phone), mobile banking is likely to appeal even
more.
This opens up huge markets for financial institutions interested in offering value added
services. With mobile technology, banks can offer a wide range of services to their
customers such as doing funds transfer while travelling, receiving online updates of stock
price or even performing stock trading while being stuck in traffic. According to the
German mobile operator Mobilcom, mobile banking will be the "killer application" for
the next generation of mobile technology.
Mobile devices, especially smartphones, are the most promising way to reach the masses
and to create “stickiness” among current customers, due to their ability to provide
services anytime, anywhere, high rate of penetration and potential to grow. According to
Gartner, shipment of smartphones is growing fast, and should top 20 million units (of
over 800 million sold) in 2006 alone.
In the last 4 years, banks across the globe have invested billions of dollars to build
sophisticated internet banking capabilities. As the trend is shifting to mobile banking,
there is a challenge for CIOs and CTOs of these banks to decide on how to leverage their
investment in internet banking and offer mobile banking, in the shortest possible time.
The proliferation of the 3G (third generation of wireless) and widespread implementation
expected for 2003–2007 will generate the development of more sophisticated services
such as multimedia and links to m-commerce services.
MOBILE BANKING SERVICES
Mobile banking can offer services such as the following:
Account Information
1. Mini-statements and checking of account history
2. Alerts on account activity or passing of set thresholds
3. Monitoring of term deposits
4. Access to loan statements
5. Access to card statements
6. Mutual funds / equity statements
7. Insurance policy management
8. Pension plan management
9. Status on cheque, stop payment on cheque
10. Ordering check books
11. Balance checking in the account
12. Recent transactions
13. Due date of payment (functionality for stop, change and deleting of payments)
14. PIN provision, Change of PIN and reminder over the Internet
15. Blocking of (lost, stolen) cards
Payments, Deposits, Withdrawals, and Transfers
1. Domestic and international fund transfers
2. Micro-payment handling
3. Mobile recharging
4. Commercial payment processing
5. Bill payment processing
6. Peer to Peer payments
7. Withdrawal at banking agent
8. Deposit at banking agent
Especially for clients in remote locations, it will be important to help them deposit and
withdraw funds at banking agents, i.e., retail and postal outlets that turn cash into
electronic funds and vice versa. The feasibility of such banking agents depends on local
regulation which enables retail outlets to take deposits or not.
A specific sequence of SMS messages will enable the system to verify if the client has
sufficient funds in his or her wallet and authorize a deposit or withdrawal transaction at
the agent. When depositing money, the merchant receives cash and the system credits the
client's bank account or mobile wallet. In the same way the client can also withdraw
money at the merchant: through exchanging sms to provide authorization, the merchant
hands the client cash and debits the client's account.
Investments
1. Portfolio management services
2. Real-time stock quotes
3. Personalized alerts and notifications on security prices
Support
1. Status of requests for credit, including mortgage approval, and insurance coverage
2. Check (cheque) book and card requests
3. Exchange of data messages and email, including complaint submission and tracking
4. ATM Location
Content Services
1. General information such as weather updates, news
2. Loyalty-related offers
3. Location-based services

Based on a survey conducted by Forrester, mobile banking will be attractive mainly to

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

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

Utility of Mobile Banking from Banks’

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

Adapting to Requirements of Core Target Groups:

Banks, today, are increasingly confronted with technology-savvy customers who are
often on the move. As Wolfgang Klein, Private Customers Director at Postbank, a
leading German bank, puts it: “Today’s customers want to organise banking transactions
while on the move, irrespective of opening hours”.Banks are responding to this
development by introducing mobile services. Core target groups of Mobile Banking are
often divided in three categories:
a) The Youngsters: the segment of 14-18 years old youth has acquired an important role
in the growth of mobile telecommunications and related services. This group is
technology-savvy and willing to experiment with innovative products and services. The
youngsters, often on the move, demand ubiquitous, anytime service. Though the
youngsters as a group are hardly relevant for banks from a financial perspective, they
represent the prospective clientele of tomorrow and need to be cultivated in the middle to
long-term marketing strategy of the banks.

b) The Young Adults: Also this segment is thought to be technology- and innovation
friendly. Though this group too is financially not very strong, many members of this
group are known to be involved in stock market activities. Further, this group can be
expected to enter in short to medium-run a professional carrier so that it needs to be
cultivated in order to retain customers of this age-group even after they enter professional
lives.
c) The Business People: this group of customers, generally in the age group of 26-50
years, is thought to be the most important one for Mobile Banking. Members of this
group are generally well educated and economically well-off. They need to be
professionally often on the move and carry mobile devices to ensure accessibility. For
this reason they are ideal candidates to use services offered via mobile devices. From the
banks’ perspective this group is particularly attractive on account of its relative economic
prosperity and the need for financial services, e.g. home loans for young families. In
order to fulfil the requirements of these customer groups banks tend to look at Mobile
Banking as a promising option. However, these services also have their own utility for
the banks.
Mobile Banking as Distribution Channel
Mobile Banking enhances the number of existing channels of distribution that a bank
employs to offer its services. The efficiency of a distribution channel can be measured by
its fulfilment of three major objectives, which are closely related to each other.
Increasing Sales Volume
One of the primary tasks of a distribution channel is to increase the volume of demand for
products at profitable prices .This objective is arrived by increasing operational efficiency
so that those losses are minimized that are caused by delays in catering to customer
orders. Further, a favourable reputation of the firm’s logistical capacities may help
generate additional orders.

TECHNOLOGIES ENABLING MOBILE BANKING

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

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

3. WAP (Wireless Access Protocol)

WAP uses a concept similar to that used in Internet banking. Banks maintain WAP sites
which customer's access using a WAP compatible browser on their mobile phones. WAP
sites offer the familiar form based interface and can also implement security quite
effectively.
Bank of America offers a WAP based service channel to its customers in Hong Kong.
The banks customers can now have an anytime, anywhere access to a secure reliable
service that allows them to access all enquiry and transaction based services and also
more complex transaction like trade in securities through their phone.
A WAP based service requires hosting a WAP gateway. Mobile Application users access
the bank's site through the WAP gateway to carry out transactions, much like internet
users access a web portal for accessing the banks services.
4.STANALONE MOBILE APPLICATION CLIENTS
Standalone mobile applications are the ones that hold out the most promise as they are
most suitable to implement complex banking transactions like trading in securities. They
can be easily customized according to the user interface complexity supported by the
mobile. In addition, mobile applications enable the implementation of a very secure and
reliable channelof communication.
One requirement of mobile applications clients is that they require to be downloaded on
the client device before they can be used, which further requires the mobile device to
support one of the many development environments like J2ME or Qualcomm's BREW.
J2ME is fast becoming an industry standard to deploy mobile applications and requires
the mobile phone to support Java.
The major disadvantage of mobile application clients is that the applications needs to be
customized to each mobile phone on which it might finally run. J2ME ties together the
API for mobile phones which have the similar functionality in what it calls 'profiles'.
However, the rapid proliferation of mobile phones which support different functionality
has resulted in a huge number of profiles, which are further significantly driving up
development costs. This scale of this problem can be gauged by the fact that companies
implementing mobile application clients might need to spend as much as 50% of their
development time and resources on just customizing their applications to meet the needs
of different mobile profiles.
Out of J2ME and BREW, J2ME seems to have an edge right now as Nokia has made the
development tools open to developers which has further fostered a huge online
community focused in developing applications based on J2ME. Nokia has gone an
additional mile by providing an open online market place for developers where they can
sell their applications to major cellular operators around the world. BREW on the other
hand has seen limited popularity among the developer community, mostly because of the
proprietary nature of its business and because of the steep prices it charges
for its development tools.
Quite a few mobile software product companies have rolled out solutions, which enable
J2ME mobile applications based banking. One such product is Wireless I-banco . The
mobile user downloads and installs the wireless Ibanco application on their J2ME pone.
The J2ME client connects to the wireless I-banco server through the service providers
GSM network to enable users to access information about their accounts and perform
transactions. One of the other big advantages of using a mobile application client is that it
can implement a very secure channel with end-to-end encryption.
However countries like India face a serious obstacle in the proliferation of such clients as
few users have mobiles, which support J2ME or BREW. However, one of the biggest
CDMA players in the Indian telecom industry, Reliance Infocomm has about 7.01 million
users all of which have handsets, which support J2ME. Reliance has unveiled one of the
most ambitious data services deployment program in the country. On the other hand a
country like South Korea with its tech-savvy population has a widespread adoption of
the higher-end mobiles, which support application development.

ADVANTAGES OF MOBILE BANKING

The biggest advantage that mobile banking offers to banks is that it drastically cuts down
the costs of providing service to the customers. For example an average teller or phone
transaction costs about $2.36 each, whereas an electronic transaction costs only about
$0.10 each. Additionally, this new channel gives the bank ability to cross-sell up-sell
their other complex banking products and services such as vehicle loans, credit cards etc.
For service providers, Mobile banking offers the next surest way to achieve growth.
Countries like Korea where mobile penetration is nearing saturation, mobile banking is
helping service providers increase revenues from the now static subscriber base. Also
service providers are increasingly using the complexity of their supported mobile banking
services to attract new customers and retain old ones.
1. User experience of browsing the internet from a mobile device is familiar and offers a
rich UI experience.
2. Allows end user to access corporate association.
3. Secure connection can be established on most of the mobile browsers.
DISADVANTAGES OF MOBILE BANKING
· Many non-standards variables including handsets,browsers and operating system.
· Inconsistent user experience due to varying connection speed and different handset.
· User needs to have a data plan,which may be a barrier to adoption among price
sensetive demographics.
· No “offline” (out of the coverage) capability.
CHALLENGES FOR MOBILE BANKING

Key challenges in developing a sophisticated mobile banking application are :

Handset operability

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

banks to offer mobile banking solution on any type of device. Some of these devices

support J2ME and others support WAP browser or only SMS.

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

portals like R-World to enable the limitations of low end java based phones, while focus

on areas such as South Africa have defaulted to the USSD as a basis of communication

achievable with any phone.

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

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

allow development of more complex capabilities similar to those of internet banking

while SMS can provide the basics but becomes difficult to operate with more complex

transactions.

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

applications due to perceived lack of common technology standards for mobile banking.

In practice it is too early in the service lifecycle for interoperability to be addressed

within an individual country, as very few countries have more than one mobile banking
service provider. In practice, banking interfaces are well defined and money movements

between banks follow the IS0-8583 standard. As mobile banking matures, money

movements between service providers will naturally adopt the same standards as in the

banking world.

Security

Security of financial transactions, being executed from some remote location and

transmission of financial information over the air, are the most complicated challenges

that need to be addressed jointly by mobile application developers, wireless network

service providers and the banks' IT departments. The following aspects need to be

addressed to offer a secure infrastructure for financial transaction over wireless network :

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

the physical security of the device is more important.

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

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

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

would ensure that unauthorized devices are not connected to perform financial

transactions.

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

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

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

customer.

Scalability & Reliability

Another challenge for the CIOs and CTOs of the banks is to scale-up the mobile banking

infrastructure to handle exponential growth of the customer base. With mobile banking,

the customer may be sitting in any part of the world (true anytime, anywhere banking)

and hence banks need to ensure that the systems are up and running in a true 24 x 7

fashion. As customers will find mobile banking more and more useful, their expectations

from the solution will increase. Banks unable to meet the performance and reliability

expectations may lose customer confidence. There are systems such as Mobile

Transaction Platform which allow quick and secure mobile enabling of various banking

services. Recently in India there has been a phenomenal growth in the use of Mobile

Banking applications, with leading banks adopting Mobile Transaction Platform and the

Central Bank publishing guidelines for mobile banking operations.

Application distribution

Due to the nature of the connectivity between bank and its customers, it would be

impractical to expect customers to regularly visit banks or connect to a web site for

regular upgrade of their mobile banking application. It will be expected that the mobile

application itself check the upgrades and updates and download necessary patches (so

called "Over The Air" updates). However, there could be many issues to implement this

approach such as upgrade / synchronization of other dependent components.

Personalization

It would be expected from the mobile application to support personalization such as :

1. Preferred Language

2. Date / Time format

3. Amount format
4. Default transactions

5. Standard Beneficiary list

6. Alerts

Features of Mobile Commerce

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

advantages against conventional forms of commercial transactions, including Electronic

Commerce:

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

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

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

availment of services (the “anytime” feature). This feature is particularly attractive for

services that are time-critical and demand a fast reaction, e.g. stock market information.

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

allow companies to offer goods and services to the user specific to his current location.

LBS can thus cater to consumers’ needs and wishes for localised content and services.

iv) Instant connectivity: Ever since the introduction of the General Packet Radio Service

(GPRS) mobile devices are constantly “online”, i.e. in touch with the network (the

“always-on” feature). This feature brings convenience to the user, as time consuming

dialup or boot processes are not necessary.

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

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

products, and services, which he wants to be kept informed about. The Short Message
Service (SMS) can be used to send brief text messages to customers ensuring that the

“right” (relevant) information is provided to the user at the “right” place, at the “right”

time.

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

called Subscriber Identity Module (SIM). The SIM is registered with the network

operator and the owner is thus unambiguously identifiable. The clear identification of the

user in combination with an individual Personal Identification Number (PIN) makes any

further time-consuming, complicated and potentially inefficient authentication process

redundant.

Employment of Mobile Technologies in the Banking Sector

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

related financial services via mobile devices. It comprises of services in the field of

accounting, brokerage and financial information. Mobile Banking is increasingly being

employed by many banks around the world to generate additional revenues, reduce costs

or to increase customer satisfaction, often with very promising results. For instance, the

utilisation of transaction-based MFS of Finland-based Nordea bank grew by 30% in

2004.The number of France’s Société Générale customers using mobile services crossed

the mark of one million in year 2004, registering an impressive growth of nearly 200%

vis-à-vis 2003. These facts point toward a positive shift in the customer perception of

Mobile Banking. On the other hand, technological developments like Universal Mobile

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

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

lack of customer interest and unripe technologies, the time seems to be now ripe for

(re-)launching mobile services. Mobile Banking is usually defined as carrying out

banking business with the help of mobile devices such as mobile phones or PDAs [8; 11].

The offered services may include transaction facilities as well as other related services

that cater primarily to informational needs revolving around financial activities.

Considering these factors we can define Mobile Banking as following:

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

with the help of mobile telecommunication devices. The scope of offered services may

include facilities to conduct bank and stock market transactions, to administer accounts

and to access customized information.”

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

be categorized as following:

Mobile Accounting

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

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

Accounting services are however necessarily transaction-based. A more precise definition

of Mobile Accounting would therefore characterize it as “availment of account-specific

banking services of non-informational nature”. Mobile Accounting services may be

divided in two categories to differentiate between services that are essential to operate an

account and services that are essential to administer an account.

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

services related to the bourse, e.g. selling and purchasing of stocks. Mobile Brokerage

can be thus defined as transaction based, mobile financial services of non-informational

nature that revolve around a securities account. Mobile Brokerage, too, may be divided in

two categories to differentiate between services that are essential to operate a securities

account and services that are essential to administer that account.

Mobile Financial Information

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

services of informational nature. Mobile Financial Information services include subsets

from both banking and financial services and are meant to provide the customer with

anytime, anywhere access to information .The information may either concern the bank

and securities accounts of the customer or it may be regarding market developments with

relevance for that individual customer. The information may be customized on the basis

of preferences given by the customer and sent with a frequency decided by him. The

information should be provided, ideally, on both, pull and push basis. Information

services are an integral part of Mobile Accounting and Mobile Brokerage but they may

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

can be offered without offering Mobile Accounting or Mobile Brokerage but vice versa is

not feasible.

MOBILE BANKING IN THE WORLD

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

population is unbanked. Countries like Sudan, Ghana and South Africa received this new

commerce very well. In Latin America countries like Uruguay, Paraguay, Argentina,
Brazil, Venezuela, Colombia, Guatemala and recently Mexico started with a huge

success.In Colombia was released with Redeban.In Iran banks like Parsian, Tejarat,

Mellat, Saderat, Sepah, edbi and bankmelli offer this service. Guatemala have the support

of Banco industrial.

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

company(MPower Ventures). Kenya's Safaricom (Part of the Vodafone Group) has had

the very popular M-Pesa Service - mainly used to transfer limited amounts of money, but

has been increasingly used to pay utility bills. Zain in 2009 launched their own mobile

money transfer business known as ZAP in Kenya and other African countries

CASE ANALYSIS

LG Telecom, South Korea

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

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

three mobile service providers teamed up with the Kookmin bank to launch the ‘Bank on'

service. Under this scheme mobile users were able to use smart chips embedded in cell

phones for accessing all of the transaction and enquiry based services. The chip-based

service automated the

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

whole process much faster and convenient. The icing on the cake came with the ability of

these chip enabled cell phones to be used simultaneously as cash cards. By October 2004
there were already about 100,000 infrared readers adapted to take payment directly from

mobile phone handsets in Korea. Users can now use their cell phones to pay for

everything, from restaurant bills, travel tickets, merchandise and even haircuts.

Reliance Infocomm, India

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

market in India was still in its infancy, and data services were almost never heard off) it

made sure that all handsets supported Java.The Reliance application platform, also

known as R-World brought Java compatibility even to the lower end phones. Reliance

used a novel way to overcome the memory limitations of lower-end mobile phones,

which hampered deploying of multiple standalone J2ME

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

single menu based application called R-World, which connects them to the Reliance

servers. Using the menu based user interface, mobile users select the application, which

they want to run and download them over-the-air to their cell phones. These applications

are then executed locally on the mobiles. From mid-2004 Reliance tied up with two of the

popular private sector banks, HDFC and ICICI, to provide a host of their enquiry and

transaction based mobile banking services through its R-World environment.

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

India and the extent of Internet banking services offered by Internet banks.  In addition, it

seeks to examine the factors affecting the extent of Internet banking services. The data

for this study are based on a survey of bank websites explored during July 2009. The

sample consists of 82 banks operating in India. Multiple regression technique is

employed to explore the determinants of the extent of Internet banking services. The

results show that the private and foreign Internet banks have performed well in offering a

wider range and more advanced services of Internet banking in comparison with public

sector banks. Among the determinants affecting the extent of Internet banking services,

size of the bank, experience of the bank in offering Internet banking financing pattern and
ownership of the bank are found to be significant. The primary limitation of the study is

the scope and size of its sample as well as other variables (e.g. market, environmental,

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

range of Internet banking services. The purpose of the study is to help fill significant gaps

in knowledge about the Internet banking landscape in India. The findings are expected to

be of great use to the government, regulators, commercial banks, and other financial

institutions, e.g. co-operative banks planning to offer Internet banking bank customers

and researchers. An understanding of the factors affecting the extent of Internet banking

services is essential both for economists studying the determinants of growth and for the

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

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

a developing country, i.e.  India.

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

of e-banking services among adult customers and also indicates level of concern

regarding security and privacy issues in Indian context. Primary data was collected from

200 respondents, above the age of 35, through a structured questionnaire. Statistical

analysis, descriptive statistics was used to explain demographic profile of respondents

and also Factor and Regression analyses were used to know trend of internet use and

factors affecting e-banking services among adult customer in India. The finding depicts

many factors like security & privacy, trust, innovativeness, familiarity, awareness level

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

shows that in spite of their security and privacy concern, adult customers are willing to
adopt online banking if banks provide him necessary guidance. Based on the results of

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

take their opinion and will provide them necessary guidance regarding use of online

banking.

Polaris Software Lab (2010) had this study Polaris Software Lab Limited (POLS.BO),a

leading Financial Technology Company, launched Intellect(TM) PRIVACY based on

state-of-the-art technology and four patents filed by the Indian Institute of Technology

Madras. IndusInd Bank has become the first bank in India to implement Intellect(TM)

PRIVACY, an online and internet banking security card, for its internet banking

customers. The technology will protect customers and banks from practically all kinds of

phishing attacks, viz. deceptive e-mail, key/screen logger, brute force/dictionary attacks

and Trojans, etc .Intellect PRIVACY uses multi factor ,dynamic authentication

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

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

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

and the Department of Management Studies got particularly interested in designing an

internet security technology that is cost efficient and easy to use in a rapidly growing e-

commerce scenario, and transferring it commercially.

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

revolution altering the whole world has crucial impacts on the Tunisian banking sector.

Particularly, this study seeks some clues on which we can rely in order to understand the

customers' behavior regarding the adoption of electronic banking. To achieve this

purpose, an empirical research is carried out in Tunisia and it reveals that panoply of

factors is affecting the customers-attitude toward e-banking. For instance; age, gender

and educational qualifications seem to be important and they split up the group into

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

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

shows that despite the presidential incentives and in spite of being fully aware of the e-

baking’s benefits, numerous respondents are still using the conventional banking. It is

worthy to mention that the fear of loss because of transactions errors or hackers plays a

significant role in alienating Tunisian customers from online banking.

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

retail banks in many developed countries and there is wide agreement that this channel

will have a significant impact on the market. Aims to quantify the current provision of

electronic services by major retail banking organizations in the UK and the Republic of

Ireland. Additional in- sight into the banks' adoption of this new channel is gained by

exploring two areas important in the analysis of new offerings, that is: an organization’s

approach to innovation; and their view of the current and future markets. By use of a

mailed questionnaire, it was found that 25 per cent of the banks in the UK and the

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

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

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

cent of the respondents were in organizations not providing or developing such services.

It is also found that the organization’s vision of the future, their prediction of customer
acceptance, which tends to be very low, and their organizational culture of innovation are

the most important of the suggested factors in their adoption of electronic delivery.

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

banking users. She mentioned that it is commonly assumed that demographics do

influence the acceptance of electronic self-service tools, such as online banking. The

result of the study was that people who use such services are young, trendy and high

earning. They actively seek out online banking tools, and they want to conduct all

transactions through the same channel.

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

convenience. Clients now a day’s want instant results; they don't want to wait anymore,"

said Francisco M. Caparros, Jr., senior vice-president of Asia United Bank and president

of Banc Net. It's also turned out to be a more efficient way to process transactions, as e-

banking does away with most of the paperwork that clients have to accomplish. "A lot of

people don't like filling forms," Mr. Caparros added. "Online banking, in particular, relies

on usernames and passwords which need to be protected," said Ferdinand G. La Chica,

first vice- president and marketing group head for Sterling Bank of Asia. These anti- theft

barriers are at times supplemented by transaction passwords and "tokens", often a key

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

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

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

sari stores as third party agents where consumers can open new accounts and make large

payments. Such informal outlets will enable banks to reach out to small-income
businesses and individuals, particularly those in the agrarian sector, most of who are

based outside the city center.

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

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

Punjab. The respondents were equally divided among three bank groups namely, public

sector, private sector and foreign banks. The present study investigates the perceptions of

the bank customers regarding necessity of e-banking services, quality of e-banking

services, bank frauds, future of e banking, preference of bank customers regarding banks,

comparative study of banking services in various bank groups, preferences regarding use

of e-channels and problems faced by e-bank customers. The major finding of this study is

that customers of all bank groups are interested in e-banking services, but at the same

time are facing problems like, inadequate knowledge, poor network, lack of

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

account. Keeping in mind these problems faced by bank customers, this paper frames

some strategies like customer education, seminars/meetings, proper network and

infrastructure facilities, online shopping facilities, proper working and installation of

ATM machines, etc., to enhance e-banking services. Majority of professionals and

business class customers as well as highly educated and less educated customers also feel

that e-banking has improved the quality of customer services in banks.

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

created novel ways of handling daily banking affairs especially via the online banking

channel. The acceptance of online banking services has been rapid in many parts of the
world and in the leading e banking countries the number of e banking contracts has

exceeded 50 percent. Investigates online banking acceptance in the light of traditional

technology acceptance model (TAM), which is leveraged into the online environment.

On the basis of the focus group interviewed with banking professionals, TAM literature

and banking studies we develop a model indicating online banking acceptance among

private banking customers in Finland. The model was tested with the survey sample of

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

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

banking acceptance.

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

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

factors affecting customer perception and attitude towards and satisfaction with e-

banking is an essential part of a bank's strategy formulation process in an emerging

economy like India. To gain this understanding in respect of Indian customers, the study

was conducted on respondents taken from the northern part of India. The major findings

depict that customers are influenced in their usage of e-banking services by the kind of

account they hold, their age and profession, attach highest degree of usefulness to balance

enquiry service among e-banking services, consider security &trust most important in

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

problem while using e-banking.

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

adopts different observational variables to identify innovation capital (training and R&D
density) and process capital (IT system sufficiency). The results show that human capital

has a direct impact on both innovation capital and process capital, which in turn affect

customer capital; while finally, customer capital affects business performance. In

addition, there is a negative relationship between process capital and customer capital in

the financial service sector. It suggests that in the financial service sector, customer

satisfaction relies on a sufficient degree of training and R&D density. Intemperate

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

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

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

intensity evidence a higher probability of adoption of this new technology. Banks with

lower market share also see the Internet banking technology as a means to increase the

market share by attracting more and more customers through this new channel of

delivery. Further, the adoption of Internet banking by other banks increases the

probability that a decision to adopt will be made .An understanding of the factors

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

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

understanding the factors determining the adoption of technology becomes highly

relevant from the policy point of view. Moreover, the studies on the adoption of financial

innovations are related to developed markets, e.g. US or European banking markets.

Hence, this paper contributes to the empirical literature on diffusion of financial

innovations, particularly Internet banking, in a developing country.

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

 
Research Methodology
A Marketing research design specific a procedure for  conducting and
controlling the research project. Every marketing research must explicitly
state its plan about collection and analysis of data. It is the conceptual framework
within which the study is conducted and deals with the procedures used in the
study for the purpose of investigation. Research Methodology in the context of the
topic includes the partial study of the Bank Account holders of India city; it
will also include various professionals and  businessmen who are having their
mobile banking accounts.

 
Methods of Data collection:
The analysis tools would be of both types which include
1. Primary data.
a) Questionnaire. 
b) Personal Interview.
2. Secondary Data.
a) Newspaper & Magazines 
b) Internet & Journals.
Sample Area & Size:
The sample area of the study will be restricted to the India city only and the sample size would be of 100
respondents.
 Gender

34%
Males
Females

66%

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

34%
29%
 Qualification
29% 7%
22%
12th
Graduate
Post Graduate
Professional

42%

INFERENCE:

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

41%

Public
Private

59%

M-Banking Users
35%

Yes
No

65%
 ANNEXURE 1

Questionnaire

1. Name:

2. Gender:

Male Female

3. Age Group:

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

4. Educational Qualification:

o 12th
o Graduate
o Post Graduate
o Professional

5. Occupation:

o Student
o Service
o Business man
o Retired Individual
o Others please specify:

6. Are you aware of M- Banking services?

o Yes
o No

7. Do you use M- Banking services?

o Yes
 o No

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

o Never heard of internet banking

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

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

o Public Sector Bank

o Private Sector Bank

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

o The brand name of the bank

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

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

o Less than a month

o 1 to 6 months
o 6 to 12 months
o More than a year

12. What is the frequency of usage of M-Banking?

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