SCHOOL OF SOCIAL SCIENCE AND LANGUAGES DEPARTMENT OF

COMMERCE

FALL SEMESTER 2023

J COMPONENT REPORT ON
MOBILE BANKING SYSTEM
FOR THE COURCE
CCA2708-BANKING THEORYAND PRACTICE

SUBMITED TO

DR. M. MUTHUMEENAKSHI
Associate Professor, Department of commerce

BY

S. DHANUSH VARMA (21BCC0018)

V. JAI PRAKASH (21BCC0060)
S. AJAY (21BCC0219)
K S. SAAHIL AHMED (21BCC0011)
K. MOHAMMED FAREEDUDDIN (21BCC0259)
NOVEMBER 20223
1
 CONTENTS

PAGE
TITLE
NO.

CONTENTS
i

LIST OF CHARTS
ii-iii

LIST OF TABLES
iv-v

CHAPTER I INTRODUCTION

CHAPTER II OBJECTIVES OF MOBILE BANKING SYSTEM

CHAPTER III REVIEW OF LITERATURE

CHAPTER IV DATA ANALYSIS AND INTERPRETATION

CHAPTER V FINDINGS, SUGGESTIONS AND

CONCLUSION

REFERENCE

2
 CHAPTER I
INTRODUCTION

3
MOBILE BANKING SYSTEM (MBS):-
What is Mobile Banking System?
Mobile banking is the act of making financial transactions on a mobile
device (cell phone, tablet, etc.). This activity can be as simple as a bank sending fraud
or usage activity to a client’s cell phone or as complex as a client paying bills or
sending money abroad. Advantages to mobile banking include the ability to bank
anywhere and at any time. Disadvantages include security concerns and a limited
range of capabilities when compared to banking in person or on a computer.

Benefits of mobile banking system: -

 Accessing the bank 24/7

Unlike a bank branch, mobile banking conveniently gives you access to your account
anytime you like — with some exceptions, such as planned maintenance updates and
unexpected outages. This ease of accessibility saves you time. Mobile check deposit,
for example, a feature most banking apps offer, allows you to deposit a check on the
go or from the comfort of your couch. Mobile banking can also help alleviate
concerns for those who might have experienced in-person discrimination.

“For people whose identity might still not be well received especially in smaller
towns or for trans or [nonbinary] people, the idea of being able to do everything via
your phone is super attractive because it allows you a certain layer of safety and
convenience that branch banking just can’t provide,” says Billie Simmons, co-founder
and chief of staff at Daylight, a digital-banking startup for LGBTQ communities.

 Making it easier to save

The best mobile banking apps have evolved to help you manage your money with less
effort. For example, the Ally Bank app offers several savings features, including
automatic transfers to a savings account and round-ups that move rounded up change
into your savings. The U.S. Bank app alerts customers when its algorithms spot
money-saving opportunities or situations when an account is at risk of being
overdrawn.
Some online banks are also offering innovative savings features through their apps.
Varo Bank, a popular online bank, offers a Save Your Pay feature that automatically
stashes away a pre-set percentage of your paycheck each time it deposits. Spending
alerts are another way mobile banking apps can help you optimize your money.“You
are seeing a lot of people say, ‘Hey, I want to know every time there is a transaction
over $150 or over $250 or whatever that threshold the consumer happens to care about
is,” says Zach Bruhnke, co-founder at HMBradley, a challenger bank. “A lot of people
want to go and understand things like ‘What are my daily limits?’ Things you’d
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probably ask your banker or call a branch for, now you are [the] one to do it. The push
is for more and more information to be available at customers’ fingertips prints.”

 Paying IOUs
When you are logged into your mobile banking app, it’s esy to pay back someone you
know. Banks across the country partner with Zelle so that you can send someone
money in minutes through the bank’s mobile app rather than paying people with cash
or a check.
You only need to know recipients’ email addresses or phone numbers to send them
money. If your bank doesn’t offer Zelle, it usually lets you transfer funds to someone
else’s bank account if you know their routing and account numbers.

 Strengthening security
Banks are in the business of guarding your assets — including transactions made using
their mobile apps. Though nothing is foolproof, there are ways you can step up
security precautions if you’re concerned about mobile banking security. Financial
institutions often require a username and password to sign into a mobile app and offer
additional safety features to further safeguard your account. Multi-factor
authentication, for example, requires at least two kinds of verification to prove that it’s
really you. The first are the account credentials (your username and password)
followed by a text with numeric code sent to your phone that needs to be submitted to
gain access to the account. Further, some mobile devices — and some bank apps —
let you log in by scanning your face or fingerprint as yet another way to protect your
digital bank account without trading convenience.

A growing number of banks, such as Wells Fargo, Ally Bank, Chase and Bank of
America let you use their mobile apps 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 toll-free number is not required if you want to turn your card back on,
either.

 Offering clarity about where your financial data is going

Many consumers share bank data to use services like Venmo and Mint. Depending on
how many outside apps you use, it can be quite taxing to remember which company
has what bank data. So a number of banks are trying to help customers understand
where it’s going by changing the way data is shared behind the scenes.

“We are seeing a lot more banks offer that functionality that gives consumers
proactive control over where their data is going,” says Rob Morgan, senior vice
president of emerging technologies at the American Bankers Association. “It’s not
just the added security … But it’s also the importance of transparency so you see

5
where your data is going, how it is being used and [controlled], the ability to turn off
this thing when you are no longer using the service.”

 Tracking expense
When it comes to managing and sticking to a budget, tracking all of your expenses is
the part that requires the most labor, and it may lead you to give up on budgeting
altogether. Mobile banking apps can do much of that labor for you, by keeping track
of your expenses tied to a particular account and organizing them into spending
categories. You can see a breakdown of total expenses for things like utilities, dining,
transportation and more.

By reviewing your spending patterns, you should gain a clearer understanding of

where your money is going and can identify areas where you may need to make
adjustments. Some apps even come with built-in budget creation. Regions Bank, for
example, offers a suite of budgeting tools through a feature in its app called My
GreenInsights. Users have the ability to set up a budget in the app, sync multiple
accounts to it and monitor their spending progress.

 Giving you tailored options

If you are looking for a like-minded community, mobile banking provides a variety of
options to serve specific pockets of the population. Daylight, for example, is a digital
bank focused on addressing financial issues facing LGBTQ communities, such as
lower mortgage approval rates. Daylight has also partnered with Visa to offer a debit
card that features account holders’ chosen names rather than their birth names, a
feature that may appeal to those who have transitioned their gender. Rob Curtis, co-
founder and CEO of Daylight, says going into a bank as an LGBTQ person is largely
an exercise in futility. “They won’t understand who you are,” Curtis says. “They will
ask you the wrong questions and they will give you a service that is designed for
people that don’t act like us.”

There are also startups building mobile financial tools for Black communities, young
adults, women and other groups.

Advantages of Mobile Banking: -

 Convenience – Mobile banking is incredibly convenient, allowing you to access
your bank account from anywhere, at any time. This means you can check your
account balance, make transfers, and pay bills without having to visit a bank
branch or use a computer

 Speed – Mobile banking transactions are typically processed much faster than
traditional banking methods. This means that you can quickly transfer funds,
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 pay bills, and make other transactions, without having to wait for processing
times or checks to clear.

 Security – Mobile banking is highly secure, with many banks using advanced
encryption and authentication technologies to protect your information. This
means that you can conduct banking transactions with confidence, knowing that
your data is safe and secure.

 Flexibility – Mobile banking offers a wide range of features and services,

including the ability to view account activity, deposit checks, and even apply for
loans. This flexibility makes it easy to manage your finances on the go, without
having to rely on traditional banking methods.

 Cost Savings – Mobile banking can help you save money, by reducing the need
for paper checks, stamps, and envelopes. It can also help you avoid costly fees
associated with traditional banking methods, such as ATM fees and overdraft
fees.

Disadvantages of Mobile Banking:-

 Security Concerns – One of the main concerns with mobile banking is the
potential for security breaches. Cybercriminals may attempt to steal personal
information or access bank accounts through mobile apps, which can leave
users vulnerable to identity theft and financial fraud.

 Technical Issues – Mobile banking apps may experience technical glitches or

downtime, which can prevent users from accessing their accounts or conducting
transactions. This can be frustrating and inconvenient, especially if you need to
make a payment or transfer funds urgently.

 Limited Features – While mobile banking offers many features and services,
some users may find that it does not provide the same level of functionality as
traditional banking methods. For example, you may not be able to speak with a
customer service representative or receive paper statements.

 Dependence on Technology – Mobile banking requires a reliable internet

connection and a compatible mobile device. If your device malfunctions or your
internet connection is disrupted, you may not be able to access your bank
account or conduct transactions.
 Fees – While mobile banking can help users save money, some banks may
charge fees for certain services or transactions. It is important to read the fine
print and understand the fees associated with mobile banking before signin

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 CHAPTER II
OBJECTIVES OF MOBILE BANKING SYSYTEM

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Objectives of Mobile Banking System: -
This digital system is now used by all of us and has a number of benefits. In this
section, we will discuss the reasons that add to the importance of mobile banking. Let
us get started.

 24 x 7 banking services
This is one of the biggest benefits of mobile banking. As a bank customer, you may
have an urgent need for transferring or withdrawing money. This is where digital
services like mobile banking play a huge role. There is no need to visit the bank
branch, wait in long queues or delay an urgent transaction. You can do that instantly
through your mobile phone. You can even do bill payments anytime.

 Instant Transactions
Instant transactions are one of the biggest plus points of this type of banking. If you
rely on visiting the bank branch, you will be unable to conduct urgent transactions
outside bank hours. You can instantly transfer funds at any time of the day regardless
of day and night or bank holidays.

 Availability of all banking services

Through mobile banking, you can avail yourself of almost every banking service. You
do not need to visit the bank branch. For instance, you can transfer money, make
payments, create an FD in seconds, pay bills and get your bank statements through this
service. These features are so easily available that most of us can use them without
help.

 Breaks the linguistic barrier

Mobile apps of many financial institutions are available in multiple languages. This
makes it easier for most people to perform mobile banking on their own. This reduces
any confusion that you would otherwise face. These multilingual banking apps make
the country more banking centric as the rural population is also actively using them.

 Improved security in Mobile Banking Apps

These applications tighten security through features like multiple pins, face id,
fingerprint lock and multi-factor authentication. Through these security features, your
bank accounts become more secure against thefts. In case your phone gets lost or
stolen, banks offer the facility to disable the application remotely. Some banks even
allow you to share location to detect the location of fraud.

 Better control of finances

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Through mobile banking, you can always keep a check on your finances. You can
monitor your expenditure and prevent overspending. This can be a part of your budget
planning. Over time, you will become better at financial management and save more
money.

 Better Support
Banks offer customer care services that help confused customers in using the app.
Customers can call, chat or email their queries to the support team. You can report
fraudulent transactions and get your debit card blocked during suspicious transactions.
Challenges Associated With Mobile Banking: -

Some of the challenges associated with mobile banking include (but are
not limited to):

 Accessibility based on the type of handset being used

 Security concerns
 Reliability and scalability
 Personalization ability
 Application distribution
 Upgrade synchronization abilities

Mobile banking allows consumers to be able to access banking services from

anywhere. Businesses and business owners are now able to save time by making use
of mobile applications to process their payments or even receive funds from clients
directly to their phone numbers. It is particularly popular among small to medium-
sized enterprises (SMEs).

With mobile technology, banks are able to cut down on operational costs while still
maintaining client satisfaction. The fact that any client of a bank can make use of their
app to request a service, such as opening an account or even the ability to schedule
debit orders or other payments from an application, allows for larger transactional
volumes, eventually driving business growth.

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 CHAPTER III
REVIEW OF LITERATURE

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AUTHOR: Aijaz A. Shaikh
Electronic commerce (e-commerce) continues to have a profound impact on the global
business environment, but technologies and applications also have begun to focus
more on mobile computing, the wireless Web, and mobile commerce. Against this
backdrop, mobile banking (m-banking) has emerged as an important distribution
channel, with considerable research devoted to its adoption. However, this research
stream has lacked a clear roadmap or agenda. Therefore, the present article analyzes
and synthesizes existing studies of m-banking adoption and maps the major theories
that researchers have used to predict consumer intentions to adopt it. The findings
indicate that the m-banking adoption literature is fragmented, though it commonly
relies on the technology acceptance model and its modifications, revealing that
compatibility (with lifestyle and device), perceived usefulness, and attitude are the
most significant drivers of intentions to adopt m-banking services in developed and
developing countries. Moreover, the extant literature appears limited by its narrow
focus on SMS banking in developing countries; virtually no studies address the use of
m-banking applications via smartphones or tablets or consider the consequences of
such usage. This study makes several recommendations for continued research in the
area of mobile banking. This study provides a systematic review of literature on m-
banking adoption published from January 2005 to March 2014 (Inclusive). The 55
relevant studies appear in 48 journal articles and seven conference proceedings and
represent a reasonably deep view of the field of m-banking acceptance research. Since
2009, both empirical and conceptual research activities have increased and appear
likely to grow increasingly pervasive.

AUTHOR: Jarunee Wonglimpiyarat

This study investigates the competition and challenges of mobile banking system in
Thailand. The analyses of the competitive landscape of mobile banking innovations
are based on the Managing Migration Paths Model. The empirical study focuses on the
leading banks in Thailand: Bangkok Bank, Kasikorn Bank, Siam Commercial Bank,
Krung Thai Bank and Bank of Ayudhya. The study discusses the strategies, SWOT
analyses of the mobile banking industry in the move towards the m-money economy.
The results have shown that banks see mobile banking as a convenient delivery
channel to provide value-added services to the bank customers. The competition forces
banks to seek strategic alliances (network collaboration between the banking and ICT
industries) to offer innovative solutions in the payment market. The results provide
insightful implications on future challenges and increasing competition under 3G and
4G mobile phone networks whereby the e-payment market will get bigger when
Thailand would enter the ASEAN Economic Community (AEC — upcoming regional
competition in AEC countries) in 2015.This paper investigates the competition and
challenges of mobile banking system in Thailand. The analyses and discussions of the
12
competitive landscape of mobile banking innovations in Thailand based on Hamel and
Prahalad's (1994) Managing Migration Paths Model have shown the importance of
strategic alliances between the banking and ICT industries to offer electronic and
mobile payments (e-payments and m-payments).

AUTHOR: Luvai F. Motiwalla

Mobile banking (MB) involving the use of mobile devices to access bank accounts for
conducting financial transactions has proliferated in recent years but inconsistently
among banking customers. This diversity of use increases the complexity of
uncovering unobserved heterogeneity bias in the success of MB systems. This
research, first, uses a study of objective measures to cluster 4478 MB users into three
homogeneous segments based on the system utilization behaviors captured in the log
data. The users were, then, surveyed using a field study of subjective measures based
on the information systems (IS) success model. A priori sample segmentation used for
facilitating the discovery of unobserved heterogeneity bias in the full sample. The
analysis of the subset with 445 users who responded indicated that the path coefficient
and explained variances (R2) of the IS model were higher in the segments compared
to the full sample; and the influence of success factors on satisfaction and intention to
use varied significantly among the segments. Our study, consisting of objective and
subjective measures, has theoretical and practical implications for MB usage. It
contributes to the IS success model by confirming the existence of unobserved bias in
full sample and inconsistent effects of the quality factors on satisfaction and continued
usage in the segmented samples. It also assists the banks in identifying MB features
that are more appealing to the varying user groups, which could help them with
customer retention. A limitation of this study is that our sample is sourced from a
single mid-size US bank. While the sample was large, and we collected data from two
sources (log data and a user survey) and conducted the analysis with the segmented
group, we cannot generalize the study to a broader banking consumer population.
Especially, these results may not extend to business and institutional customers that
use online banking services.

AUTHOR: Sang-Chul LeE

With the improvement of mobile technologies and devices, banking users are able to
conduct banking services at anyplace and at anytime. Recently, many banks in the
world have provided mobile access to financial information. The reason to understand
what factors contribute to users’ intention to use mobile banking is important issue of
research. The purpose of this research is to examine and validate determinants of
users’ intention to mobile banking. This research used a structural equation modeling
(SEM) to test the causalities in the proposed model.

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The results indicated strong support for the validity of proposed model with 72.2% of
the variance in behavioral intention to mobile banking. This study found that self-
efficiency was the strongest antecedent of perceived ease-of-use, which directly and
indirectly affected behavioral intention through perceived usefulness in mobile
banking. Structural assurances are the strongest antecedent of trust, which could
increase behavioral intention of mobile banking. This research verified the effect of
perceived usefulness, trust and perceived ease-of-use on behavioral intention in mobile
banking. The results have several implications for mobile banking managers . This
research integrates the fragmented models such as the extended TAM and the trust-
based TAM into a unified model of mobile banking. This model is empirically
demonstrated by using the actual data from mobile banking users in Woori Bank.
First, this study finds that explanatory power of the suggested model is much higher
than others and the validity of the model was strongly supported. Secondly, this study
verified the effect of perceived usefulness, trust.

AUTHOR : Saif M. Dewan

Mobile banking (m-banking) is an emerging topic with a growing number of
publications over recent years. In this paper, we present a literature review and
classification framework for existing m-banking research. The literature review
consists of 65 articles published between January 2000 and May 2010 in Information
Systems (IS) and IS-related journals, and major IS conferences. The articles are
classified into five main categories: mbanking overview and conceptual issues, m-
banking applications and cases, m-banking behavioural issues, infrastructures of
mobile users and networks, and strategic, legal and ethical issues. We hope that the
comprehensive list of references and the findings presented in this paper will provide
useful insights into the anatomy of young m-banking literature to anyone who is
interested in this field and help stimulate further interest. Mobile banking has been
attracting the attention of both practitioners and academics. Specifically, empirical
research activities on m-banking have increased since 2007 and we believe that m-
banking will become increasingly pervasive. In this review article, we identified 65
articles on m-banking published between 2000 and 2010. Although we do not claim it
to be exhaustive, it does provide a reasonable amount of insight into mbanking
research. The results presented in this review article have several important
implications:
• There is no doubt that m-banking research will prosper in the future given that m-
banking is a relatively
young research area and many issues, including the potential and pitfalls of m-
banking, are still unresolved.

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AUTHOR: Mousa Albashrawi Jongtae Yu
Understanding usage of behavior of emerging technologies in banking industry is of
great value and importance to both academicians and professionals. M-banking, which
is overtaking online banking as per industry reports, appears to be a good example and
hence, worthy to investigate. The purpose of this paper is to explore three stages of
usage behavior of m-banking, namely, intention to use, system actual use, and
continuance intention by employing IT acceptance models. Behavioral intention is
examined to find non-linearity relationships in UTAUT using universal equation
modeling. While system actual use is explored to disclose not only importance but
also
performance of IS success model’s factors using important-performance map analysis
and continuance intention is studied to reveal the impact of privacy and
personalization
in a m-banking context. Using an analytical approach to examine usage behavior of
m-banking can reveal a strategic value to practice as well as can address a knowledge
gap in theory. Since financial sector, specifically banks, have considered m-banking as
a strategic change and differentiation in their business model, it is critical for them to
understand how customers perceive and interact with this technology. Therefore, the
results of this research can be practically valuable to financial sector because they
would assist bank professionals to efficiently allocate their organization’s resources
and to effectively adopt a mechanism for resilient improvement of m-banking
services. This can help banks to sustaining their competitive advantage and, hence
increasing market share.

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 CHAPTER IV
DATA ANALYSIS AND INTERPRETATION

16
 Chapter IV
DATA ANALYSIS AND INTERPRETATION

4.1 Classification based on Gender of the respondents.

Chart – 4.1 Gender of the respondents.

Table- 4.1 Classification based on gender of the respondents

S.NO Gender Frequency Percentage

1 Male 35 70%

2 Female 15 30%

TOTAL 50 100%

Interpretation:

Table 4.1evealed the classification of the gender of the respondents where the frequency
is 38 are male, 14 are female. The collected data shows that 73.1% are male, 26.9% are female.
It shows the male respondent are more than the female respondent.

17
 4.2Classification based on Age group of the respondents.

Chart – 4.2 Age group of the respondents.

Table- 4.2 Classification on the basis of respondent’s age

S.NO Particulars Frequency Percentage

1 Under 18 5 10%

2 18-24 40 80%

3 25-34 2 4%

4 35-44 2 4%

5 45-54 1 2%

6 55 Above 0 -

TOTAL 50 100%

Interpretation:

Table 4.2 revealed the classification, based on the age of the respondents. 94.2% (49) of the
respondents belong to the age group of 18-28, 5.8% (3) of the respondents belong the age
group of belong the age group of below 18.

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 4.3 Classification based on the Occupation of the respondents.

Chart-4.3 Occupation of the respondents.

Table - 4.3 Classification based on the Occupation of the respondents.

S.NO Occupation Frequency Percentage

1 Student 30 78%

2 Graduate 10 12%

3 Employed 4 8%

4 Non-employee 6 2%

TOTAL 50 100%

Interpretation:

Table 4.3 revealed that the classification based on the occupation of the respondents where
the frequency in which 45 respondents are students, and 5 respondents are employed. It
shows that there are more students than employed respondents.

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 4.4 Classification based on the Occupation of the respondents.

Chart-4.4 Occupation of the respondents.

Table - 4.4 Classification based on the Occupation of the respondents.

S.No Annual income Frequency Percentage

1 ₹10,00,000 - ₹8,00,000 4 8%

2 ₹7,00,000 - ₹5,00,000 2 4%

3 ₹5,00,000 - ₹3,00,00 2 4%
4 ₹3,00,000 – ₹1,00,000 5 10%

5 Less than ₹ 1,00,000 37 74%

TOTAL 50 100%

Interpretation :

Table 4.4 revealed that the classification based on the occupation of the respondents where
the frequency in which 37(74%) have income less than 1,00,000, 5(10%) between 3,00,000
to 1,00,000, 2(4%) between 5,00,000 to 3,00,000, 2(4%) between 7,00,000 to 5,00,000 and
4(8%) between 10,00,000 to 8,00,000. Which shows the most of the respondents have
annual income less than ₹1,00,00

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 4.5 Classification based on the Occupation of the respondents.

Chart-4.5 Occupation of the respondents.

Table - 4.5 Classification based on the Occupation of the respondents.

S.No Visit to parent bank Frequency Percentage

branch

1 Once in a year or less 15 30%

2 Few times in a year 20 40%

3 Once in a month 10 20%

4 Once in a week or more 5 10%

TOTAL 50 100%

Interpretation :

Table 4.5 shows the respondents visit to their parent bank branch where the frequency is 15(30%)
visit once in a year or less, 20(40%) visit few times in a year, 10(20%) visit once in a month, 5(10%)
visit once in a week or more. The above table shows the respondents visit their particular parent
branch bank few times in a year.

21
 4.6 Classification based on the Occupation of the respondents.

Chart-4.6 Occupation of the respondents.

Table - 4.6 Classification based on the Occupation of the respondents.

Scale Frequency
1 2

2 3
3 1

4 3

5 11

6 5

7 12
8 10

TOTAL 50

Interpretation :
Table 4.6 shows that on the scale of 1 to 10 respondents 12 (24%) were satisfied with their services provided by the
bank, Scale 7 is the highest rating given by the respondents.

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 4.7 Classification based on the Occupation of the respondents.

Chart-4.7 Occupation of the respondents.

Table - 4.7 Classification based on the Occupation of the respondents.

S.No Use of mobile Frequency Percentage

banking services

1 Yes 44 88%

2 No 6 12%

Total 50 100%

Interpretation :

Table 4.7 shows that the use of mobile banking services by the respondents in which 44(88%) of the
respondents use the mobile banking services and 6(12%) of the respondents don’t use the mobile banking
services. Therefore the most of the respondents use the mobile banking services.

23
 4.8 Classification based on the Occupation of the respondents.

Chart-4.8 Occupation of the respondents.

Table - 4.8 Classification based on the Occupation of the respondents.

S.No Use of mobile banking Frequency Percentage

services

1 Daily 27 54%

2 weekly 7 14%

3 Monthly 5 10%

4 Rarely 9 18%

5 Never 2 4%

Total 50 100%

Interpretation :

Table 4.8 shows the often usage of mobile banking services of the respondents in which 47(54%) of the
respondents use the services of the mobile banking daily where has the least frequency of respondents 2(4%)
never used the services.

24
 4.9 Classification based on the Occupation of the respondents.

Chart-4.9 Occupation of the respondents.

Table - 4.9 Classification based on the Occupation of the respondents.

S.No Mobile banking apps Frequency Percentage

1 ICICI 7 14%

2 HDFC 7 14%

3 Bank of Baroda 3 6%

4 Axis 3 6%

5 Kotak Mahindra 6 12%

6 Indian 24 48%

TOTAL 50 100%

Interpretation :

Table 4.9 shows the usage of mobile banking apps that are used by the respondents in which 24(48%) of the
respondents use indian mobile banking whereas bank of baroda and Axis bank has the least repondents with
3(6%) each.
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 4.10 Classification based on the Occupation of the respondents.
Chart-4.10 Occupation of the respondents.

Table - 4.10 Classification based on the Occupation of the respondents.

S.No Feature of mobile Frequency Percentage

banking

1 Account balance 21 42%

checking

2 Fund transfer between 12 24%

a/c

3 Bills payments 10 20%

4 Mobile check deposit 2 4%

5 Others 5 10%

TOTAL 50 100%

Interpretation :

Table 4.10 reveals that the feature that the respondents found useful and important in the mobile banking
apps where the most of the respondents found the feature of checking account balance very important and
useful with 21(42%) and whereas the respondents found the feature least usefula and important is mobile
check deposit 2(4%

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 4.11Classification based on the Occupation of the respondents.

Chart-4.11 Occupation of the respondents..

Table - 4.11 Classification based on the Occupation of the respondents

S.NO User interface and ease Frequency Percentage

of use (scale 1-5)

1 01 2 4%

2 02 3 6%

3 03 22 44%

4 04 16 32%

5 05 7 14%

TOTAL 50 100%

Interpretation :

Table 4.11 shows that rating or scale of user interface and ease of use of the mobile banking apps to the respondents.
From the above data most of the respondents 22(44%) rated 3 and with least rating 1 with the repondents 2 (4%).

27
 4.12 Classification based on the Occupation of the respondents.

Chart-4.12 Occupation of the respondents

S.no Security concerns Frequency Percentage

1 Yes 23 46%

2 No 27 54%

TOTAL 50 100%

Interpretation :

Table 4.12 reveals that the most of the respondents didn’t experienced any security issues or concerns
towards their respective mobile banking apps with the number of 27(54%).

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 4.13 Classification based on the Occupation of the respondents.

Chart-4.13 Occupation of the respondents.

Table - 4.13 Classification based on the Occupation of the respondents.

S.NO Biometric Authentication Frequency Percentage

1 Yes 41 82%

2 No 9 18%

Total 50 100%

Interpretation :

Table 4.13 shows that the most of the respondents use the biometric authentication such as fingerprint,
Facial recognition to access their mobile banking system with 41(82%).

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 4.14 Classification based on the Occupation of the respondents.

Chart-4.14 Occupation of the respondents.

Table - 4.14 Classification based on the Occupation of the respondents.

S.no Customer support Frequency Percentage

1 Not important 2 4%

2 Somewhat important 29 58%

3 Very important 19 38%

TOTAL 50 100%

Interpretation :

Table 4.14 reveals the importance of customer support to the respondents in which 29(58%) of the
respondents found somewhat important.

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 4.15 Classification based on the Occupation of the respondents.

Chart-4.15 Occupation of the respondents.

Table - 4.15 Classification based on the Occupation of the respondents.

S.No Switching to different Frequency Percentage

mobile banking app
1 Yes 26 52%

2 No 24 48%

TOTAL 50 100%

Interpretation :

Table 4.15 shows switching of other mobile banking apps in which the respondents responded yes with 26(52%)
whereas 24(48%) responded with not willing to switch to the other mobile banking app.

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32
 CHAPTER V
FINDINGS, SUGGESTIONS AND CONCLUSION

33
 FINDINGS

 Table 4.1evealed the classification of the gender of the respondents where the frequency is 38 are male,
14 are female. The collected data shows that 73.1% are male, 26.9% are female. It shows the male
respondent are more than the female respondent.

 Table 4.2 revealed the classification, based on the age of the respondents. 94.2% (49) of the
respondents belong to the age group of 18-28, 5.8% (3) of the respondents belong the age group of
belong the age group of below 18.

 Table 4.3 revealed that the classification based on the occupation of the respondents where the
frequency in which 45 respondents are students, and 5 respondents are employed. It shows that there
are more students than employed respondents.

 Table 4.4 revealed that the classification based on the occupation of the respondents where the
frequency in which 37(74%) have income less than 1,00,000, 5(10%) between 3,00,000 to 1,00,000,
2(4%) between 5,00,000 to 3,00,000, 2(4%) between 7,00,000 to 5,00,000 and 4(8%) between
10,00,000 to 8,00,000. Which shows the most of the respondents have annual income less than
₹1,00,000.

 Table 4.5 shows the respondents visit to their parent bank branch where the frequency is 15(30%) visit
once in a year or less, 20(40%) visit few times in a year, 10(20%) visit once in a month, 5(10%) visit
once in a week or more. The above table shows the respondents visit their particular parent branch
bank few times in a year.

 Table 4.6 shows that on the scale of 1 to 10 respondents 12 (24%) were satisfied with their services
provided by the bank, Scale 7 is the highest rating given by the respondents.

 Table 4.7 shows that the use of mobile banking services by the respondents in which 44(88%) of the
respondents use the mobile banking services and 6(12%) of the respondents don’t use the mobile
banking services. Therefore the most of the respondents use the mobile banking services.

 Table 4.8 shows the often usage of mobile banking services of the respondents in which 47(54%) of
the respondents use the services of the mobile banking daily where has the least frequency of
respondents 2(4%) never used the services.

 Table 4.9 shows the usage of mobile banking apps that are used by the respondents in which 24(48%)
of the respondents use indian mobile banking whereas bank of baroda and Axis bank has the least
repondents with 3(6%) each.

 Table 4.10 reveals that the feature that the respondents found useful and important in the mobile
banking apps where the most of the respondents found the feature of checking account balance very
important and useful with 21(42%) and whereas the respondents found the feature least usefula and
important is mobile check deposit 2(4%).

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 Table 4.11 shows that rating or scale of user interface and ease of use of the mobile banking apps to the
respondents. From the above data most of the respondents 22(44%) rated 3 and with least rating 1 with
the repondents 2 (4%).

 Table 4.12 reveals that the most of the respondents didn’t experienced any security issues or concerns
towards their respective mobile banking apps with the number of 27(54%).

 Table 4.13 shows that the most of the respondents use the biometric authentication such as fingerprint,
Facial recognition to access their mobile banking system with 41(82%).

 Table 4.14 reveals the importance of customer support to the respondents in which 29(58%) of the
respondents found somewhat important.

 Table 4.15 shows switching of other mobile banking apps in which the respondents responded yes with
26(52%) whereas 24(48%) responded with not willing to switch to the other mobile banking app.

35
 SUGGESTION

Customer acceptance of mobile banking apps and mobile banking services is on an

all-time high by both existing and emerging economies. However, the impact of a good
user experience is often underestimated. Research points out that nearly half the millennial
customers are dissatisfied with mobile banking and online banking services. With increasing
dependency on mobile banking apps should be a signal for banks to rethink their mobile
banking design. The digitization teams responsible for mobile strategy will have to include
user experience as a value-adding differentiator to increase customer satisfaction and
loyalty.

A recent study on user experience for mobile banking revealed that there is a correlation
between user experience and mobile banking. It states that these two needs to go hand in
hand to increase adoption and usage numbers, especially in the developing countries.

Emerging economies are utilizing mobile banking and hybrid-online payments services to
empower the bottom of the pyramid (BoY) population with financial inclusion. With over
3.9 billion BoY population worldwide ( 95% – South Asia, 68% Middle-East & Africa, and
27% Latin America). A mobile banking app with a combination of high functionality and
good UX design can assist in tapping the potential banking market. (Statistics source –
PwC)

Given the reason, it is imperative that a good UX experience is crucial for mobile banks to
be used and appreciated by its customers.
Here are 5 ways to improve user experience for mobile banking:-
Make security a top priority

It is quite a challenge to create a secure, yet user-friendly mobile banking app on two of the
major mobile operating systems – Android and iOS) since both are completely different.
Balancing security with a good UX is pivotal. Recent times has seen a surge in mobile
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banking trojans which topped the threats related to mobile banking. Although incorporating
a multi-factor authentication can be easy, user’s response is not favorable. Almost 74%
customers hated two-factor authentication to sign in.

One way of addressing this security issue can by introducing either fingerprint or voice or
facial recognition technology. This biometric technology analyzes physical characteristics
and behavioral patterns. This allows for a new level of security and usability by solving user
friction and security lapses. Nevertheless, it is good when developers adopt a “security first”
philosophy when it comes to UX design.
Bankable integration of legacy systems and customer interface

Almost 66% of customers who use mobile banking regularly demand easier and faster
services that many legacy banking institutions are straining to deliver, mainly due to the true
integration of the back-end systems and manual process with the front-end systems. This
lack of proper integration sets back the digital transformation goals of banking and financial
organizations by large measures. Not surprisingly, 50% shareholders responsible for digital
transformation, in a recent survey have said that legacy systems are one of the biggest
barriers to making the transformation take effect.

The current approach of integration is done by building a layer of applications around the
legacy systems to provide a customer interface because a 360-degree transformation would
involve replacing or extensively upgrading the existing back-end systems. For the future, the
usage of a middleware – a Java or a PHP based backend to converse between legacy
systems and mobile apps.

Another option would be to implement Infrastructure-as-a-Service (IaaS), through cloud

computing. Even a hybrid integration, can connect legacy systems to internal applications
and third-party applications through APIs.

Incorporate emerging technologies to enhance services

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With evolving technology such as AI and machine learning, mobile banks applications will
touch new degrees of sophistication especially with voice and facial biometrics, along with
growing confidence in the beneficial nature of chatbots.

It is predicted that by 2020, 50% of all searches will be voice-based. These voices searched
are predicted to be carried out by voice-enabled assistants powered by AI. Voice-enabled AI
can perform searches and even initiate payments. The voice-controlled mobile application is
already a reality. For example, the Royal Bank of Canada added Siri to their mobile app.
Many banks have already given a go-ahead to facial and image technology. The mobile user
interface and core banking systems are connected via an Enterprise Content Management
System. The inclusion of facial biometric technology as a part of user experience can ensure
significant time savings and increased productivity.

Banking chatbots are enjoying widespread acceptance, so much so that by 2020, 85%
customer interaction with banks will be through chatbots. Developing a conversation UI for
chatbots can lead to high engagement and lower abandonment rate. Some uses of chatbot
can extend beyond customer support and recommendations. For example, American Express
(AmEx) employs chatbots that can identify and terminate credit card fraud.

Personalized Services to improve satisfaction

The power of personalization services through mobile banking apps has not yet plateaued.
This includes both UX and content personalization. A UX personalization would involve
allowing users to customize home screens, choose colors and increase or decrease font sizes.
With additional how-to-guides and quick access to customer support (help buttons) would
assist customers who prefer self-service. Through content personalization, geo-fence based
notifications or reminders can be sent to customers when customers in near the vicinity of
the bank. This location-based user experience design in real-time can increase the app
engagement by 2x times.

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Personalization experience can also be included in the form of budgeting tools, financial
advisors for investment wisdom and even for scheduling appointments for VIP customers.
AI integrated design can perform these functionalities with ease. It can also be used to
extract data and financial records to cross-sell products to the right customer at the right
time.
Minimize effort with streamlined navigation and reduced customer input

A good mobile banking design should ideally include proper navigation and instant redirects
to point the customers to the content they are looking for. With landmarks and icons, such as
search boxes, section navigation tools and labels in the app, it can appear intuitive whilst
simple to use. Although, identifying where the customer is getting lost in the navigation
process through touch heat maps can be used to rectify the problem areas. It is also a good
guideline to tell the customer which screen they are looking at by highlighting the respective
icon.

A mobile banking app that avoids demanding too much effort from the customer is the first
to pleasing the customer. By automatically populating data or setting up defaults for
repetitive actions can greatly reduce customer effort and errors. Auto-suggestion, spell-
check and predictive text, without overdoing, can bring down the time spent on data entry.

For banks aiming to delight their mobile banking population, it is crucial to deliver high-
quality user experience. In the long run, a great user experience will likely be a good pay off
by increasing revenue through elevated customer satisfaction levels and by boosting
customer loyalty. Also, in the future, AI will become instrumental in bringing a refined user
experience in the mobile banking applications.

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CONCLUSION

40
 CONCLUSION

Mobile banking services may be defined as the mobile banking functions provided by the
banks or private monetary institutions to perform transactions without leaving your place.
This article concluded various types of mobile banking services and mobile banking
advantages which allow the better functioning of mobile banking.
As smartphones become more commonly used, and their capabilities expand, they may
increasingly be the means consumers use to access financial services and manage their
finances. Their constant presence also makes them a potentially useful tool for the delivery
of just-in-time financial information or as an aid in decisionmaking. Given the prevalence of
mobile phones--particularly smartphones--among minorities, low-income individuals, and
younger generations, mobile technology has the potential to empower consumers and
expand access to financial services for underserved populations.

The use of mobile banking has increased by more than a third in the past year, and it appears
likely to continue to increase as more and more consumers use smartphones. While still
small, the use of mobile phones to make payments at the point of sale has increased even
more rapidly. Over a quarter of mobile phone users express some interest in using their
phones to make payments at the point of sale, giving mobile payments substantial growth
potential as the ability to make these payments becomes more widespread.

The two factors limiting consumer adoption of mobile banking and payments are concerns
about the security of the technology and a sense that they don't offer any real benefits to the
user over existing methods for banking or making payments. With regards to security,
consumers have actually become more likely in the past year to report that they simply don't
know how safe it is to use mobile banking, suggesting that consumers need to be provided
with reliable and accurate information on the level of security associated with the various
means of accessing mobile banking. In terms of the value proposition to consumers, the
significant number of mobile users who reported an interest in using their phones to receive

41
discounts, coupons, and promotions or to track rewards and loyalty points suggests that
tying these services to a mobile payment service would increase the attractiveness of mobile
phones as a means of payment

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Motiwalla, L. F., Albashrawi, M., & Kartal, H. B. (2019). Uncovering

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