Mobile Banking Standard Chartered Bank

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Problems and prospects ofMOBILE BANKING IN BANGLADESH


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Submitted to:

Course Instructor

Md. Ziaul Haque

Lecturer, Department of Business Administration

East West University

Assignment Prepared By:

NAME ID

Mithila Islam Tisha 2010-2-10-270

Supria Debnath 2010-2-10-122

Kazi Shakhawat Hossen 2010-2-10-121

Masuda Mustari 2010-2-10-272

Tanzila Hossain 2010-2-10-267


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Letter of Submission

13th

December 2011

Md. Ziaul Haque

Lecturer, Department of Business Administration

East West University

Subject: Submission of Term Paper

Dear Sir,

With the due respect it is our pleasure to present the term paper entitled Mobile Banking on

Standard Chartered. While preparing the report we have tried our level best to focus closely on

the topic and try to collect most complete and updated information available. We believe that it

will provide a clear idea about our analysis on Mobile Banking.

To prepare this term paper, we have given best effort to accumulate needed information.

We will be available to answer any question for clarification. Thank you for your sincere

support.

Yours sincerely, Signatures

Supria Debnath

Kazi Shakhawat Hossen

Mithila Islam Tisha

Masuda Mustari

Tanzila Hossain


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Acknowledgement

First, we would like to express our gratitude to Almighty for giving us the strength to complete

the project within the stipulated time.

We are deeply indebted to our course instructorMd. Ziaul Haque, Lecturer of EWU for his

guidance to prepare and to complete this report. Our special thanks to our course instructor for

direction of the layout of the report.

We are grateful to those employees of Standard Chartered and the users of Standard Chartered

who have helped us with their assistance and comments, feedbacks.

Last but not least, we like to convey our fellow classmates who always gave us good advice,

suggestions, inspiration and support.


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Table of Content

Contents Page No.

Introduction 06-07

Present Condition of Mobile Banking 07

Benefits of Mobile Banking 08

Disadvantages of Mobile Banking 09-10

Recommendations 11-12

Conclusion 13

References 14-16


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Introduction

Internet Banking helped 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.

The main reason that Mobile Banking scores over Internet Banking is that it enables Anywhere

Anytime Banking'. Customers don't need access to a computer terminal to access their bank

accounts, now the can do so on-the-go while waiting for the bus to work and traveling.


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E-banking is now a global phenomenon. It is an invaluable and powerful tool driving

development, supporting growth, promoting innovation and enhancing competitiveness.

Technological innovations have been identified to contribute to the distribution channels of

banks and these electronic delivery channels are collectively referred to as electronic baking. The

evaluation of banking technology has been driven by changes in distribution channels as

evidenced by automated teller machine(ATM), phone-banking,Tele-banking,PC-banking and

most recently internet banking. The developed country as a part and parcel of their economy is

now using electronic banking or online banking.

Mobile Commerce has gained increasing acceptance amongst various sections of the society in

previous years. The reasons for its growth can be traced back to technological and

demographical developments that have influenced many aspects of the socio-cultural behavior in

todays world. The need for mobility seems to be the driving force behind Mobile Commerce.

The launch of UMTS technology has provided Mobile Commerce with the necessary verve.

Mobile banking is practiced for performing balance checks, account transactions, payments,

credit applications and other banking transactions throughout a mobile device such as a mobile

phone or Personal Digital Assistant (PDA). The earliest mobile banking services had been

offered through short message service (SMS), but introduction of the first smart phone with

wireless application protocol (WAP) support made the use of the mobile web in 1999 possible.

Recently, mobile banking has been performed via SMS or the mobile web.

Mobile Banking presents an opportunity for banks to retain their existing, technology-savvy

customer base by offering value-added, innovative services and to attract new customers from

corresponding sections of the society.

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. Extensive spectrum of

mobile/branchless banking models is embryonic. Conversely, business model is not so important.

Mobile banking is being used to attract low-income populations often in rural locations. The

business model will depend on banking agents' retail or postal outlets that practice financial

transactions on behalf of telecoms or banks.


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What is Mobile Banking:

Mobile banking is a term used for performing balance checks, account transactions, payments,

credit applications and other banking transactions through a mobile device such as a mobile

phone or Personal Digital Assistant (PDA). It is also known as M-Banking,SMS Banking.The

earliest mobile banking services were offered overSMS. With the introduction of the first

primitive smart phones with WAP support enabling the use of the mobile web in 1999, the first

European banks started to offer mobile banking on this platform to their customers.

Mobile banking has until recently (2010) most often been performed via SMS or the Mobile

Web. Apple's initial success with iPhone and the rapid growth of phones based on Google's

Android (operating system) have led to increasing use of special client programs, called apps,

downloaded to the mobile device.
http://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/SMShttp://en.wikipedia.org/wiki/Smart_phoneshttp://en.wikipedia.org/wiki/Wireless_Application_Protocolhttp://en.wikipedia.org/wiki/Mobile_webhttp://en.wikipedia.org/wiki/1999http://en.wikipedia.org/wiki/2010http://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Android_%28operating_system%29http://en.wikipedia.org/wiki/Android_%28operating_system%29http://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/2010http://en.wikipedia.org/wiki/1999http://en.wikipedia.org/wiki/Mobile_webhttp://en.wikipedia.org/wiki/Wireless_Application_Protocolhttp://en.wikipedia.org/wiki/Smart_phoneshttp://en.wikipedia.org/wiki/SMShttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Mobile_phone


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Present situation in Bangladesh of Mobile

Banking

Bangladesh started believing in mobilebanking, which was introduced on May 15 by

Dutch Bangla Bank Ltd (DBBL). BRAC Bank

introduced the service on July 21. Mercantile

Bank and Trust Bank are also going to

introduce m-banking throughout the country .

Banks and other financial institutions are

exploring the use of mobile commerce to

allow their customers to not only access

account information, but also make

transactions, such as purchasing stocks,remitting money via mobile phones and other

mobile equipments. This service is often

referred to as m-Banking. Since cellular networks has become an essential component of the

economic and social infrastructure of the developed and developing countries, a new subset of

electronic banking has created, mobile banking (m-Banking). m-Banking refers to that

technology which covers account management via mobile devices. Bangladesh is amongst the

poorest countries in the world, with 50% of people living in poverty and a gross national income

(GNI) per capita of $470. Despite of the difficult business environment, the mobile

communications sector is growing rapidly and is cited as the fastest growing industry in

Bangladesh. The mobile communications sector began in Bangladesh with the licensing of a

single company, Pacific Bangladesh Telecom Ltd in 1991. In 1996, three national GSM (Global

System for mobile communication) licenses were granted and this opened upon the mobile

communications sector to a wider subscriber base [10]. Currently, six mobile network operators

are currently licensed to operate in Bangladesh. Geographic coverage increased from 48% in

December 2004 to over 85% in December 2007 including rural and Chittagong Hill Tract areas.

In Bangladesh the numbers of GSM mobile subscribers 44.64 million at the end of January, 2009

while number was 36.42 million at the end of January 2008. So, mobile devices become

prominent to every level of people of Bangladesh. [3]. And gradually people accept mobile not

only their communication device but also an information transfer media which is highlynecessary for their livelihood [2].The fall in prices of handsets, SIM and calling services,

primarily due to reductions in handset import duties and the SIM activation tax alongside the

impact of competition, has increased the affordability of mobile telephony and lead to the

observed increase in penetration rates. Among different services of mobile phones short

Messaging Service (SMS) has become the most popular and cheapest service. It permits us

sending message of alphanumeric characters between mobile phones. Considering these issues,


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SMS technique can be integrated in Bangladesh banking sector. It is the nature of human being

to get services within short time. In our country, several private banks such as Dutch Bangla

Ltd, Brac Bank Ltd and STB have introduced the facilities of online banking, phone banking and

at last SMS banking with too limited services. But our national banks such as Sonali Bank,

Janata Bank, Agrani Banks and other specialized financial institutions like Krishi Bank do not

provide such facilities. A huge amount of our country people are the clients of these banks. In

this paper, a m-Banking system has been proposed depending on the current extent of todays

banking transactions of Bangladeshi banks. To make our proposed m-Banking system more

enriched, robust and secure, PUSH and PULL nature of SMS has been adopted. Through this

proposed SMS based m-Banking system, a bank customer can be authorized to carry out any

financial transaction from remote place only sending PULL service SMS or receiving PUSH

service SMS. It saves not only customers time and energy but also gives a mental satisfaction by

providing updates of his/her account related information. The key challenges of m-Banking are

security, usability and data failover [6] which are handled more efficiently without any severe

system congestion, performance and throughput loss.

How many bank serve mobile banking:

DUTCH BANGLA BANK LIMITED

The Opening of DBBL Mobile Banking by Bangladesh Bank Governor.


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BRAC BANK

MERCANTILE BANK LIMITED

BANGLADESH POST OFFICE

TRUST BANK also on the way to introducing mobile banking.

Rules Of Mobile Banking:

To use the banking service, subscribers must own a cell phone from any provider.

The bank gives subscribers a four-digit PIN. By using the PIN, subscribers can use a

number of banking services.

Customers may hand over cash to agents in the bank's network, and agents can coordinate

the transaction from their mobile phones.

Customers can deposit or withdraw money up to five times per day, up to Tk 5,000 per

day
http://en.wikipedia.org/wiki/Personal_identification_numberhttp://en.wikipedia.org/wiki/Personal_identification_number


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What does Mobile banking offer?

Customer Registration

Cash-in (cash deposit)

Cash-out (cash withdrawal)

Merchant Payment

Utility Payment

Salary Disbursement

Foreign Remittance

Air-time Top-up

Fund Transfer

Where to register?

Customer can register at any authorized agent point of - at present these are the retailers of

Citycell & Banglalink throughout the country who can display DBBL Agent Certificate andMobile Banking Banner.

How does it work?

Customer fills up the KYC Form and submit to agent along with his photograph &

National ID (NID)

Agent checks the Application Form, photograph & NID

Agent goes to Customer Registration Menu in his/her mobile and insert customers

mobile number


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Customer receives a call through IVR or USSD prompt and in reply, s/he gives a 4-digit

PIN number of his/her

Choice (please remember your PIN)

A Mobile Account is created in the system which is his/her mobile number + one check

digit

Customer receives an SMS which contains his/her Mobile

Account number (please remember your check digit)

Why PIN is required?

PIN is required to be inputted during cash withdrawal from an Agent or ATM. PIN ensures

security of your money and protects fraudulent transactions.

Why PIN is strictly confidential?

PIN is the key for transaction of Mobile Banking. Only correct match of PIN & Mobile Number

can access the Mobile Account. PIN is needed to verify the A/C owner by the system. If a PIN is

disclosed, respective account is at risk; therefore, PIN should be handled very carefully.


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Why check digit?

Mobile number is public and known to many people. Without knowing your check digit, none

will be able to deposit money at your account, thus it helps to keep your mobile account

confidential. On the other hand, a check digit eliminates typing error, thus protects sending or

depositing money to a wrong account.

Which Telcos Mobile can be registered?

To activate the SMS based m-Banking system and getting its facilities, the customers have to be

registered according to proposed model. Due to increase of mobile crime, to ensure a secure

SMS based m-Banking system, the customer must be registered. For this, at first the bank server

broadcasts

SMS giving a notification of their SMS based m-Banking service. When a customer wants to

register for this service, he/she has to send SMS with a specified syntax to bank with account

number and password as shown in below:

The SMS Request for registration from Remote Customers Mobile

Retrieving original Sender number by Re-swapping through the server modem after

receiving customers SMS, the required information for registration procedure is

truncated. Then the encoded information of customers mobile number, registration

request command (reg) with provided account no. and password are decoded. In decoding Process, the customer (sender) mobile no. is decoded first and store in banks

database. Since during the sending SMS, the sender number is encoded by swapping so

original sender number is retrieved by re-swapping. Then from the SMS, the registration

request textual syntax part is decoded and segments are separated by using conversion of

HEX(Hexadecimal) to ASCII (American Standard Code for Information Interchange)

value method. Here the decoding and separation of user provided account number and

password data. For the validity of the decoded actual account number, a checking

procedure is done on the database of bank which is developed in MYSQL .If the

customer account is valid, then bank server broadcast a positive acknowledgement to

customers mobile.

Customer having any mobile from any Mobile Operator can be registered for Mobile

Banking at any agent point of Banglalink and Citycell. All these Mobile Account holders


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will be able to deposit and withdraw money from the Agents. However the customers

having mobile from operators other than Banglalink and Citycell will not be able to

initiate many self-initiated services like Balance checking, fund transfer, utility payment,

Air-time top up, PIN Change etc.

Customers having mobile from Banglalink and Citycell will be able to enjoy all the

servicesagent-initiated as well as self-initiated.

What type of Mobile set is required?

Any type of mobile set can be used for mobile banking.

How much initial deposit is required?

Customers can open a Mobile Account with an initial deposit of Taka 10/-(taka ten) only.

Can I deposit and withdraw money immediately after registration?

You can deposit money immediately after registration. However, you can withdraw after your

account is fully registered. Bank officer verifies the information on the registration form (KYC

form) and authorizes the account for full registration. Normally 1-2 working days are required

for full registration. After your account is fully registered, you will get an SMS notification.

How is Mobile Banking secured?

Mobile Banking is highly secured as it uses either USSD or SMS+IVR as its communication

channel. In case of USSD, both the instructions and PIN are communicated using USSD while in

case of Customers money is safe as none can withdraw his/her money without taking possession

of Mobile set, PIN and Check digit together.

None will be able to deposit unwanted money into a Mobile Banking. Mobile Banking is highlysecured as it uses either USSD or SMS+IVR as its communication channel. In case of USSD,

both the instructions and PIN are communicated using USSD while in case of SMS+IVR,

instructions are sent via SMS and PIN via IVR (voice channel) both the USSD and IVR are

secured for transmission of PIN Customers money is safe as none can withdraw his/her money

without taking possession of Mobile set, PIN and Check digit together.


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None will be able to deposit unwanted money into a Mobile Banking Account without knowing

the check digit (although the mobile number is publicly known).

Where to cash-out (cash withdrawal)?

Customer can cash-out (withdraw) at any authorized agent, ATMs and Branch.

How does it work?

Customer asks the Agent for withdrawal of an amount from his/her mobile account

Agent initiates the transaction from his/her mobile

Agent gets prompt menu and in reply agent enters customers mobile account number

(including check digit) and amount to withdraw

System sends prompt menu to the customers mobile (or IVR Call): You are going to

withdraw Tk. XXXX from your mobile account with DBBL. If you want to continue,

please enter your 4-digit PIN

Customer enters his/her PIN

System debits customers account and send an SMS to the customers mobile

Agent hands over money to the customer

Where to cash-in (cash deposit)?

Customer can cash-in (deposit) at any authorized agent.

How does it work?

Customer hands over cash to the Agent

Agent initiates the transaction from his/her mobile

Agent gets prompt menu and in reply agent enters customers mobile account number

(including check digit) and amount.

Agent enters his/her PIN


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System credits customers account for the same amount

Agent issues a receipt to the customer

System sends an SMS to the customers mobile

For security reason, customer needs to check the sending number of SMS and the

amount.

How foreign remittance can be sent to Mobile Account?

Exchange houses at abroad receive remittance against beneficiarys mobile account

number Exchange houses send the mobile account number and the amount to Agent.

Agent will centrally credit the amount against respective mobile account.

The beneficiary will get an SMS regarding such transaction.

The beneficiary can go to any office of agent or ATM or Branch for withdrawal of money

What is transaction limit?


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There may be scarcity of cash at agent points. We want to serve as many customers as possible

from each agent points. On the other hand, it is required to minimize fraudulent loss, if any. To

arrest all the above, a transaction limit in terms of frequency and amount have been set in the

system. According to DBBL Current limit for the customers are as under:

Cash-in frequency per day = 5 times

Cash-out frequency per day = 5 times

Cash-in / cash-out amount per transaction = 5,000/-

Cash-in frequency per month = 20 times

Cash-out frequency per month = 20 times

How to check your account balance?

Customer initiates the transaction from his/her own mobile

System sends prompt menu to the customers mobile (or IVR Call): Please enter your 4-

digit PIN to know your balance or press Cancel button to cancel the request

Customer enters his/her PIN

System sends the balance into his/her mobile

How to change PIN?

Customer initiates the process from his/her own mobile.

System sends prompt menu to the customers mobile (or IVR Call): Please enter your

existing 4-digit PIN to proceed or press Cancel button to cancel the request.

Customer enters his/her existing PIN.

System asks for new 4-digit PIN.

Customer enters his/her new PIN.

The PIN is changed.

Fees & Service Charges

Registration Fee : Free

Cash-in Charges : 1% of the transaction amount or

Tk.5/-, whichever is higher


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Cash-out Charges : 2% of the transaction amount or

Tk.10/-, whichever is higher.

Objective:

This report focuses on the role of Mobile Banking and its potential to provide basic banking

services to the vast majority of unbanked people in world. The rationale for M-banking as an

appropriate tool for transforming banking stems from two observations;traditional retail banks do

not deliver services tailored to fit the currently unbanked

Features/Mobile Banking Services (In General):

Mobile banking can offer services such as the following

Account Information:

Mini-statements and checking of account history

Alerts on account activity or passing of set thresholds

Monitoring of term deposits

Access to loan statements

Access to card statements

Mutual funds / equity statements

Insurance policy management

Pension plan management

Benefits of Mobile BankingThere is a lot of benefit of mobile banking in Bangladesh. These are given below:

By providing electronic access to money, it is possible to ultimately

alleviate poverty, because of the following reasons. Our proposed m-Banking system opens a

new door of benefits for banking customers.


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It saves valuable time in this machine age where time is more care than money. In

Bangladesh,horrible traffic jam is a common scenario. By our proposed system m-

Banking customers will get better customer service and satisfaction at the just a press of

button on mobile wherever he / she might be.

Another benefit of our proposed system is multitasking opportunity. For example if the

customer goes to the bank physically he or she would have to be engrossed and give time

to one task, banking transaction. But in this case, while doing important official tasks if

needed, the businessman can request for executing financial transaction over SMS.

SMS is the most easiest and familiar application in mobile set. So customers need not

know any extra knowledge of how to access this m-Banking infrastructure. In case of

online banking, not only

additional knowledge but also extra cost of computer, modem and internet service has to beencountered. In case of our developed m-Banking

system the only cost for an existing mobile user, would be max 2.15Taka (including

VAT).Requirement here is very simple just a mobile set with connectivity. Compared to online

banking costs 29212.15 Taka (Personal Computer + Modem +Internet cost per minute =25,000

Taka + 4200

tk.+0.50Tk*10 min), SMS banking costs case of SMS banking , the solution is of 2500Tk mobile

set+300Tk /450Tk/800Tk SIM +50TK recharge card+2.15 TK SMS cost =

2852.15/3002.15/3352.15 TK. Compared to online banking cost of 25005Tk it will just costcustomers just 2852.15 TK for the setup, which are undoubtedly a benefit and a better

satisfaction.

Our proposed system can process Push and Pull service request at maximum 25 second.

That means within I hour, 144 banking transactions can be done (3600

seconds/25seconds=no. tasks one hours that would be executed). That is faster than

manual banking.

Real time on-line banking

Available anytime, anywhere throughout the country

It is convenient, affordable and secure

It is much more effective in developing savings habits

It will make access to banking and advanced payment transactions at affordable cost

It is much safer, speedy and safeguard against fraudulent transactions


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Disadvantage of mobile banking :

According to the Bangladeshi prospectus mobile banking users are facing many problems, like

Most of the people of Bangladesh are uneducated they can not use mobile properly

They dont know how to use it properly

Lack of information booth of mobile banking

There are many problems of mobile frequency or there is networking

problem

difficult to do the process of m-banking

There are more formalities for the transaction

In the Bangladesh mobile banking is not high secured .

There are many changes to loss password from the mobile

Banks agents may be wrong

Have to give extra charge

Banks dont know properly about the account user informations

Banks dont know who are using the account

Lack of promotion of mobile banking

Limitation of transaction

Limitation of money transfer

These are the main problem of using mobile banking in Bangladesh for these reason people of

Bangladesh are not interested to use mobile banking.

Analysis:

According to the survey sheet, in the Bangladeshi prospectus most of the people who are the

users of mobile banking their age average over30 years old. Most of the users are male and most


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of them are service holder. They are the educated person and they are well known about mobile

phone. They are basically use advanced technologys mobile phone. Most of the m-banking user

use m-banking to know about account balance enquiries, reports of potentially fraudulent

transaction and stock market information.

Their opinions of advantage of m-banking are 1.Ubiquitous conducting of bank and 2.Overviewover the accounts. They think about the disadvantage of m-banking are risk and complicated. In

todays busy environment, with so many deadlines to fulfill, appointments to keep and meetings,

customers of a bank have little time to visit a branch or to wait for customer services operator to

come on phone line. m-Banking is a provision and availment of

banking and financial services with the help of mobile communication devices. In context of

Bangladesh, introduce of m-Banking in our national and private banking sector can be more

promising and beneficial one. SMS based m-Banking is a technology-enabled service offering

from banks to its customers, permitting them to operate selected banking services over their

mobile phones using SMS messaging thats cost is low enough. In this

paper, a newly proposed cost effective push pull services officering SMS based mobile banking

concept has been illustrated for 24 hours banking convenience which helps customers stay on top

of any recent changes made in their current or deposit account or loan through SMS. One of most

attractive features of our proposed banking system is push pull methodology

which is not only fast service provider but also of low cost, secure and easier to handle for bank

authority and customers. The sub classified broadcast, scheduling and event category push

services provides customers all time update of their current and deposit accounts along with any

major change in banking policy and status without customers request. By the pull services,

customers can pay deposit premium, electricity or mobile bill on due date by sending SMS in a

predefined nformat from remote. In our proposed system,

services are implemented and synchronized in a service table with help of XML such a technique

that if new services need to be added, it can be added

efficiently by determining which group it satisfy without any interruption of other services.

Through our proposed system, customers would not face problems due to server failure while the

server was in processing with

customers SMS. Because if bank server become out of order due to some accidental causes , a

track of data failure has been kept to handle this situation without any congestion in SMS server.

In future we have a plan

to convert our system into a decision support which would be able to make actions against

unexpected and unauthorized financial transactions.


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Recommendations

If the banks follow the given suggestions, the usage rate and the satisfaction level of SMS

banking customers will increase keeping pace with the growth rate of SMS banking customers.

Employees of customer service department of banks should be co-operative for registration and

educating the customers this technology-based service.User guide should be provided to all

intended customers.The Pull service charge should be cheaper.Bank should provide Pull service

instantly.Banks should use all mobile service operators available in Bangladesh.More services

should be included in SMS banking.Banks should focus on the rural areas.Developing E-

commerce and M-commerce in Bangladesh.Rules and Regulations must be stricken about mobile

banking.

Conclusion

The study comes to the conclusion that Mobile Banking presents a sizeable opportunity

for banks to retain their existing,technology-savvy customer base by offering value-

added,innovative services and to attract new customers from corresponding sections of

the society.The customer survey provides evidence that such sections in the meanwhile

include the affluent and financially relevant groups of the society. Time seems to be ripe


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to convert this non-negligible customer interest into business-driving customer demand.

A proactive attitude on the part of the banks seems to be therefore recommendable.

The empirical survey of the customer acceptance conducted under the ambit of this

study detected a large-scale customer interest in Mobile Banking. The customer interest

and the willingness to pay however varied for individual services and target groups. For

instance, over 92% of all survey participants were willing to remit money and conducttransactions via mobile phones. Nearly 60% of survey participants were even willing to

pay extra fee in order to utilise mobile remittance facilities. On the other hand, services

perceived to be complicated, and thus requiring expert opinion, received a relatively

poor response, e.g. the option of subscribing insurance policies via mobile devices was

rejected by almost two-thirds of the participants.

Mobile banking is poised to become the big killer mobile application arena. However, banks

going mobile the first time need to tread the path autiously. The biggest decision that banks need

to make is the channel that they will support their services on. Mobile banking through an SMS

based service would require the lowest amount of effort, in terms of cost and time, but will notbe able to support the full breath of transaction-based services. However, in markets like India

where a bulk of the mobile population users' phones can only support SMS based services, this

might be the only option left.

On the other hand a market heavily segmented by the type and complexity of

mobile phone usage might be good place to roll of WAP based mobile applications. A WAP

based service can let go of the need to customize usability to the profile of each mobile phone,

the trade-off being that it cannot take advantage of the full breadth of features that a mobile

phone might offer. Mobile application standalone clients bring along the burden of supportingmultiple mobile device profiles. According to the Gartner Group, mobile banking services will

have to support a minimum of 50 different device profiles in the near future. However, currently

the best user experience, depending on the capabilities of a mobile phone, is possible only by

using a standalone client. Mobile banking has the potential to do to the mobile phone what E-

mail did to the Internet. Mobile Application based banking is poised to be a big m-commerce

feature, and if South Korea's foray into mass mobile banking is any indication, mobile banking


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could well be the driving factor to increase sales of high-end mobile phones. Nevertheless,

Bank's need to take a hard and deep look into the mobile

usage patterns among their target customers and enable their mobile services on a technology

with reaches out to the majority of their customers.

According to authors such responses underscore the necessity to design products in

strict adherence to the needs and wishes of relevant target customer groups. Mobile

Banking seems to have reached a stage to transcend from being a technology-driven

product into a business-focussed customer service.


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References

www.google.com

www.answer.com

The Daily star-Friday, July 22, 2011

http://www.thedailystar.net/newDesign/news-details.php?nid=195176

Dutch bangle bank ltd Mobile Bank

http://www.dutchbanglabank.com/electronic_banking/mobile_banking.ht

ml

Shirali S. and Shirali S. M. H., Mobile Banking Services in the Bank Area,"

Dhaka Bank launches mobile banking

http://www.hawker.com.bd/news_details.php?news_id=149963&news_category_id=5&v

al_lan=1

Mercantile Bank inks MoU to introduce mobile banking

http://www.thefinancialexpress-bd.com/more.php?news_id=134746&date=2011-05-06

BRAC Bank launches mobile banking service

http://www.thedailystar.net/newDesign/news-details.php?nid=195176

Bank Asia Ltd official site.

http://www.bankasia-bd.com/index.php?page_id=252

Trust Bank Ltd official site

http://www.trustbank.com.bd/mobile_banking/mobile_banking.php

Eastern Bank official site

https://www.easternbank.com/site/personal/banking/MobileBanking/Pages/MobileB

anking.aspx

Banks stepping into mobile banking

.http://www.thefinancialexpress-bd.com/more.php?news_id=151017&date=2011-09-

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http://www.google.com/http://www.google.com/http://www.answer.com/http://www.answer.com/http://www.thedailystar.net/newdesign/news-details.php?nid=195176/http://www.thedailystar.net/newdesign/news-details.php?nid=195176/http://www.dutchbanglabank.com/electronic_banking/mobile_banking.htmlhttp://www.dutchbanglabank.com/electronic_banking/mobile_banking.htmlhttp://www.dutchbanglabank.com/electronic_banking/mobile_banking.htmlhttp://www.hawker.com.bd/news_details.php?news_id=149963&news_category_id=5&val_lan=1http://www.hawker.com.bd/news_details.php?news_id=149963&news_category_id=5&val_lan=1http://www.hawker.com.bd/news_details.php?news_id=149963&news_category_id=5&val_lan=1http://www.thefinancialexpress-bd.com/more.php?news_id=134746&date=2011-05-06http://www.thefinancialexpress-bd.com/more.php?news_id=134746&date=2011-05-06http://www.thefinancialexpress-bd.com/more.php?news_id=134746&date=2011-05-06http://www.hawker.com.bd/news_details.php?news_id=149963&news_category_id=5&val_lan=1http://www.hawker.com.bd/news_details.php?news_id=149963&news_category_id=5&val_lan=1http://www.dutchbanglabank.com/electronic_banking/mobile_banking.htmlhttp://www.dutchbanglabank.com/electronic_banking/mobile_banking.htmlhttp://www.thedailystar.net/newdesign/news-details.php?nid=195176/http://www.answer.com/http://www.google.com/


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Documents

Mobile Banking Standard Chartered Bank