MOBILE BANKING SERVICES

Mobile banking is a system that allows customers of a financial institution to conduct a number of financial transactions through a mobile device such as a mobile phone or personal digital assistant. Mobile banking refers to the use of a smartphone or other cellular device to perform online bankingtasks

while away from your home computer, such as monitoring account balances, transferring fundsbetween accounts, bill payment and locating an ATM.

Mobile banking differs from mobile payments, which involve the use of a mobile device to pay for goods or services either at the point of sale or remotely, [1] analogously to the use of a debit or credit card to effect an EFTPOS payment. The earliest mobile banking services were offered over SMS, a service known as SMS banking. With the introduction of smart phoneswith 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.[2] Mobile banking has until recently (2010) most often been performed via SMS or the mobile web. Apple's initial success with iPhoneand 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. With that said, advancements in web technologies such as HTML5, CSS3 andJavaScript have seen more banks launching mobile web based services to complement native applications. A recent study (May 2012) by Mapa Research suggests that over a third of banks [3] have mobile device detection upon visiting the banks' main website. A number of things can happen on mobile detection such as redirecting to an app store, redirection to a mobile banking specific website or providing a menu of mobile banking options for the user to choose from.

n today world Mobile Banking is a popular term. Mobile Banking means a financial transaction conducted by logging on to a bank's website using a cell phone, such as viewing account balances, making transfers between accounts, or paying bills. It is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a mobile phone. In recent time Mobile banking is most often performed via SMS or the Mobile Internet but can also use special programs called clients downloaded to the mobile device. Mobile banking is a facility using which customers can access their bank account using their mobile phone. They don't have to visit the bank or the ATM to check their balance or to perform other banking transactions. This is especially useful for businessmen and professionals who cannot get to visit banks during weekdays (Since they've got their own jobs to take care of) and need to use the banking facilities.

Mobile banking can be defined as the ability to conduct bank transactions via a mobile device, or more broadly to conduct financial transactions via a mobile terminal (Drexelius & Herzig, 2001). This definition is a suitable working one as it includes not only basic services such as bank account statements and funds transfer bur also electronic payment options as well as information based financial services (e.g. alerts on account limit or account balance, access to stock broking). It compares ell with the definition found in (Kiesnoski, 2000) where mobile banking is referred to as the ability to bank virtually anytime, anywhere. This definition needs to be expanded to include the two different types of customer account access: a Web based interface and a simple text-messaging interface. This addition is important as it differentiates between the two network infrastructures for mobile commerce: the global, public, and free Internet, and the cluster of regional, public, and paid wireless telecommunication networks. Is there a need for mobile banking? The answer is a firm yes. Although consumer demand for more sophisticated mobile services has not been very strong, demand for basic mobile banking is more pronounced compared to the general demand for mobile commerce services (Bansai, 2001). The number of wireless digital device users worldwide will reach 0.5 billion by 2003, according to some projections (Kiesnoski, 2001), and an estimated number of 40 million wireless users will have access to mobile financial services during the same period. Accordingly, financial institutions are planning to spend on the development and marketing of wireless devices (about US$40 million in 2003)iii. Many predict that mobile banking is going to be the most important mobile commerce application. Viewed as an additional channel to enhance customer relationship management, mobile banking enables both financial institutions and telecommunication network operators to strengthen their relationship with existing customers, to extend their general user-base and at the same time to target specific, more lucrative niche market segments (Horton, 2001). The widely quoted report (Muller-Veerse, 1999) classifies mobile financial services as a key commercial driver for mobile commerce. Based on survey by Datamonitor, which predicts that in 2004 about 16 million Europeans will conduct their banking in a mobile way, the editor of the Credit-Suisse publication Bulletin Online classifies mobile banking as the killer application for mobile commerce (Maier, 2001). As already indicated provision of mobile banking relies on a mobile end-user device; currently there are in fact two basic types of mobile end- user devices the mobile (cellular, cell) phone and the portable handheld computer

known as Personal Digital Assistant (PDA).

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A mobile banking conceptual model[edit]

In one academic model,[4] 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 inter-related 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. Mobile banking may also be used to help in business situations as well as financial

Mobile Banking activities can be categorized in two different manners. 1.By the Nature of Service: It can be any of the two, either Enquiry Based or Transaction Based. For example, Account Balance Enquiry or a Cheque Book Requisition can be the good examples of Enquiry Based Services where a Fund Transfer or a Bill Payment is a Transaction Based activity. 2.Depending on the Originator: Again there can be two different types of services; Push and Pull, depending on the nature of the originator. A Push based service is from the Bank to the Client and vice versa. For example, Bill Payment Alert can be a Push based service, when getting Recent Account History is a Pull based one. In different countries, Mobile Banking has already gained its popularity. For example, in the South Korean market LG Telecom teamed up with Kookmin Bank to provide their Mobile Banking services in 2004 and since then they have seen a nice and steady growth. In India, Reliance Infocomm has started providing Mobile banking services to ICICI Bank and HDFC Bank through their R-World environment. The Mobile Banking services will become more popular once the availability of the smart phones or PDA phones shall increase as Smart Phones come with larger screens and bigger memory size. In the application development front, both J2ME and BREW have done excellent work and industry expects by the year 2012, more than 80% of the mobile handsets will be able to run stand alone Mobile Banking applications and that time it will be "Anywhere Banking" in real sense.

Mobile banking services[edit]

Typical mobile banking services may include:

Account information[edit]
1. 2. 3. 4. 5. 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

6.
7.

Payments, deposits, withdrawals, and transfers[edit]

1. 2. 3. 4. 5. 6. 7. Cash-in, cash-out transactions on an ATM Domestic and international fund transfers Micro-payment handling Mobile & Direct to Home package recharging Purchasing tickets for travel and entertainment Commercial payment processing Bill payment processing Peer to Peer payments (e.g., Popmoney, Isis)

8.

9.

Withdrawal at banking agent

10. Deposit at banking agent

Mobile Banking Services Mobile banking can offer services such as the following: * 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 * Status on cheque, stop payment on cheque * Ordering check books * Balance checking in the account * Recent transactions * Due date of payment (functionality for stop, change and deleting of payments) * PIN provision, Change of PIN and reminder over the Internet * Blocking of (lost, stolen) cards * Domestic and international fund transfers * Micro-payment handling * Mobile recharging * Commercial payment processing * Bill payment processing * Peer to Peer payments * Withdrawal at banking agent * Deposit at banking agent
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 merchant's account. Kenya's M-PESA mobile banking service, for example, allows customers of the mobile phone operator Safaricom to hold cash balances which are recorded on their SIM cards. Cash may be deposited or withdrawn from M-PESA accounts at Safaricom retail outlets located throughout the country, and may be transferred electronically from person to person as well as used to pay bills to companies. One of the most innovative applications of mobile banking technology is Zidisha, a US-based nonprofit microlending platform that allows residents of developing countries to raise small business loans from web users worldwide. Zidisha uses mobile banking for loan disbursements and repayments, transferring funds from lenders in the United States to the borrowers in rural Africa using nothing but the internet and mobile phones.[5] In Cte d'Ivoire (and 9 other countries in Africa and the Middle East), Orange has a commercial offer called Orange Money which includes:

money transfers (users can send money using their phone to any other customer in the country), deposit and withdrawal; financial services, including solutions facilitating savings and insurance (according to the country); payments, giving users a way to pay their bills (and buy mobile phone credit) and to pay for goods at shops that accept Orange Money electronically without cash.

Investments[edit]
1. 2. 3. Portfolio management services Real-time stock quotes Personalized alerts and notifications on security prices

Support[edit]
1. 2. 3. Status of requests for credit, including mortgage approval, and insurance coverage Check (cheque) book and card requests Exchange of data messages and email, including complaint submission and tracking

4.

ATM Location

Content services[edit]
1. 2. General information such as weather updates, news Loyalty-related offers Location-based services

3.

A report by the US Federal Reserve (March 2012) found that 21 percent of mobile phone owners had used mobile banking in the past 12 months. [6] 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.

Future functionalities in mobile banking[edit]

Based on the 'International Review of Business Research Papers' from World business Institute, Australia, following are the key functional trends possible in world of Mobile Banking. With the advent of technology and increasing use of smartphone and tablet based devices, the use of Mobile Banking functionality would enable customer connect across entire customer life cycle much comprehensively than before. With this scenario, current mobile banking objectives of say building relationships, reducing cost, achieving new revenue stream will transform to enable new objectives targeting higher level goals such as building brand of the banking organization. Emerging technology and functionalities would enable to create new ways of lead generation, prospecting as well as developing deep customer relationship and mobile banking world would achieve superior customer experience with bi-directional communications. Among digital channels, mobile banking is a clear IT investment priority in 2013 as retail banks attempt to capitalise on the features unique to mobile, such as location-based services [7]. Illustration of objective based functionality enrichment In Mobile Banking

Communication enrichment: - Video Interaction with agents, advisors. Pervasive Transactions capabilities: - Comprehensive Mobile wallet Customer Education: - Test drive for demos of banking services Connect with new customer segment: - Connect with Gen Y Gen Z using games and social network ambushed to surrogate banks offerings Content monetization: - Micro level revenue themes such as music, e-book download Vertical positioning: - Positioning offerings over mobile banking specific industries Horizontal positioning: - Positioning offerings over mobile banking across all the industries Personalization of corporate banking services: - Personalization experience for multiple roles and hierarchies in corporate banking as against the vanilla based segment based enhancements in the current context. Build Brand: - Built the banks brand while enhancing the Mobile real estate.

Challenges for a mobile banking solution[edit]

Mobile banking has some limitations when compared to other types of banking systems, such as Internet banking. Mobile devices are limited in processing speeds, screen sizes and battery life. Mobile banking, like other types of traditional and online banking systems, is susceptible to security breaches. Some banks limit mobile banking services to balance inquiries, transaction alerts and service requests to limit and reduce security vulnerabilities and protect sensitive financial data from falling into the wrong hands. Mobile banking is the technology that enables customers to access banking and financial services through the use of their mobile phones. Since the use of mobile phones has greatly increased over the past few years, banks and financial institutions have set up mobile banking systems to allow customers to withdraw, transfer and deposit money to make banking more convenient and easier to access. Although mobile banking may offer benefits, there are also risks involved.

Key challenges in developing a sophisticated mobile banking application are :

Handset operability[edit]
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 supportJava ME and others support SIM Application Toolkit, a 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.

On January 2009, Mobile Marketing Association (MMA) Banking Sub-Committee, chaired by CellTrust and VeriSign Inc., published the Mobile Banking Overview for financial institutions in which it discussed the advantages and disadvantages of Mobile Channel Platforms such as Short Message Services (SMS), Mobile Web, Mobile Client Applications, SMS with Mobile Web and Secure SMS. [8]

Security[edit]
See also: Mobile 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. 2. 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. 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. Authentication of the device with service provider before initiating a transaction. This would ensure that unauthorized devices are not connected to perform financial transactions. User ID / Password authentication of banks customer. Encryption of the data being transmitted over the air. Encryption of the data that will be stored in device for later / off-line analysis by the customer.

3.
4. 5. 6.

One-time password (OTPs) are the latest tool used by financial and banking service providers in the fight against cyber fraud.[9] Instead of relying on traditional memorized passwords, OTPs are requested by consumers each time they want to perform transactions using the online or mobile banking interface. When the request is received the password is sent to the consumers phone via SMS. The password is expired once it has been used or once its scheduled life-cycle has expired. Because of the concerns made explicit above, it is extremely important that SMS gateway providers can provide a decent quality of service for banks and financial institutions in regards to SMS services. Therefore, the provision of service level agreements (SLAs) is a requirement for this industry; it is necessary to give the bank customer delivery guarantees of all messages, as well as measurements on the speed of delivery, throughput, etc. SLAs give the service parameters in which a messaging solution is guaranteed to perform.

Scalability and reliability[edit]

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 Bankpublishing guidelines for mobile banking operations.

Application distribution[edit]
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[edit]
It would be expected from the mobile application to support personalization such as : 1. 2. 3. 4. 5. 6. Preferred Language Date / Time format Amount format Default transactions Standard Beneficiary list Alerts

Unsecure Information

There are some risks involved in mobile banking. Accessing financial services through mobile banking entails submitting personal information through a text messaging platform. Hackers can try to access those messages through unsecure Wi-Fi hot spots. Other risks involve the bank not investing in enough encryption security of its technology. This would leave the customers personal information open for interception.
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Regulatory Issues

Banking institutions employ telecom agents to manage their mobile banking services. The use of independent or franchised telecom agents makes it difficult for a countrys central bank to regulate banking operations to have a universal set of standards. This means that different banks can establish different mobile banking rules, use substandard banking security software and charge high fees for mobile banking. These issues can cause customer confusion.

Viruses

Banking institutions make sure that their channels are protected by a secure layer to ensure the safety of their customers information. However, some mobile phones are very vulnerable to viruses such as Trojans. These viruses provide hackers the opportunity to access your banking information through your mobile phone.

Security

Some banks offer more security for financial services through their branches vs. their mobile banking platforms. Some banks do not offer mobile banking services due to implementation costs or simply the risks associated with investing in the platform. Other risks include loss of a customer's mobile device. Customers who lose or have their mobile phone stolen risk losing their financial information. This opens up the customer to the possibility of fraud.

Mobile banking in the world[edit]

Mobile banking is used in many parts of the world with little or no infrastructure, especially remote and rural areas. This aspect of mobile commerce is also popular in countries where most of their population is unbanked. In most of these places, banks can only be found in big cities, and customers have to travel hundreds of miles to the nearest bank. In Iran, banks such as Parsian, Tejarat, Mellat, Saderat, Sepah, Edbi, and Bankmelli offer the service. Banco Industrial provides the service in Guatemala. Citizens of Mexico can access mobile banking with Omnilife, Bancomer and MPower Venture. Kenya's Safaricom (part of the Vodafone Group) has the MPesa Service, which is mainly used to transfer limited amounts of money, but increasingly used to pay utility bills as well. In 2009, Zain launched their own mobile money transfer business, known as ZAP, in Kenya and other African countries. In Somalia, the many telecom companies provide mobile banking, the most prominent being Hormuud Telecom and its ZAAD service. Telenor Pakistan has also launched a mobile banking solution, in coordination with Taameer Bank, under the label Easy Paisa, which was begun in Q4 2009. Eko India Financial Services, the business correspondent of State Bank of India (SBI) and ICICI Bank, provides bank accounts, deposit, withdrawal and remittance services, micro-insurance, andmicro-finance facilities to its customers (nearly 80% of whom are migrants or the unbanked section of the population) through mobile banking.[10] In a year of 2010, mobile banking users soared over 100 percent in Kenya, China, Brazil and USA with 200 percent, 150 percent, 110 percent and 100 percent respectively.[11] Dutch Bangla Bank launched the very first mobile banking service in Bangladesh on 31 March 2011. This service is launched with Agent and Network support from mobile operators, Banglalink and Citycell. Sybase 365, a subsidiary of Sybase, Inc. has provided software solution with their local partner Neurosoft Technologies Ltd. There are around 160 million people in Bangladesh, of which, only 13 per cent have bank accounts. With this solution, DutchBangla Bank can now reach out to the rural and unbanked population, of which, 45 per cent are mobile phone users. Under the service, any mobile handset with subscription to any of the six existing mobile operators of Bangladesh would be able to utilize the service. Under the mobile banking services, banknominated Agents perform banking activities on behalf of the banks, like opening mobile banking account, providing cash services (receipts and payments) and dealing with small credits. Cash withdrawal from a mobile account can also be done from an ATM validating each transaction by mobile phone & PIN instead of card & PIN. Other services that are being delivered through mobile banking system are person-to-person (e.g. fund transfer), person-to-business (e.g. merchant payment, utility bill payment), business-to-person (e.g. salary/commission disbursement), government-to-person (disbursement of government allowance) transactions. In May 2012, Laxmi Bank Limited launched the very first mobile banking in Nepal with its product Mobile Khata. Mobile Khata runs on a third-party platform called Hello Paisa that is interoperable with all the telecoms in Nepal viz. Nepal Telecom, NCell, Smart Tel and UTL, and is also interoperable with various banks in the country. The initial joining members to the platform after Laxmi Bank Limited were Siddartha Bank, Bank of Kathmandu, Commerz and Trust Bank Nepal and International Leasing and Finance Company. Currently, the users of Hello Paisa can Buy movie tickets, shop online, buy mobile recharge, pay bills (for services such as ADSL, DTH service, landline phone, postpaid mobile), make merchant payments, transfer money etc. On June 2013, one of the leading money transfer service provider in Nepal, "Prabhu Money Transfer", joined Hello Paisa to offer its Financial Services through Hello Paisa network. Prabhu Money Transfer will add 3500 agents across the nation to the Hello Paisa network. Hello Paisa platform is interoperable between multiple banks and multiple telecoms, and is the first of its kind in the world of Mobile Banking so far. The platform was nominated as one of the top three innovators of the year 2012 by SIDA in IAP program.
MOBILE BANKING SERVICES State Bank FreedoM Your Mobile Your Bank Away from home, bills can be paid or money sent to the loved ones or balance enquiries done anytime 24x7!!! That is what State Bank FreedoM offers -convenience, simple, secure, anytime and anywhere banking. The service is presently available on java enabled mobile phones over SMS/ GPRS/ WAP as also non java phones with GPRS connection. The service can be availed over the free GPRS facilities offered by various mobile service providers. The services for other non-Java mobile phones are under development and will be offered using Unstructured Supplementary Services Data (USSD). The following functionalities will be provided in the Phase I:

Funds transfer (within and outside the bank using NEFT) Enquiry services (Balance enquiry/ Mini statement) Request services (cheque book request)

Bill Payment (Utility bills, credit cards) M Commerce (Mobile Top Up, Merchant payment, SBI life insurance premium) Business Rules Governing Mobile Banking Services: The Mobile Banking Service will be available to all the customers having a satisfactory running account (Current/ Savings). The customers will have to register for the services. Daily transaction limits for fund transfer and bill/ merchant payment will be Rs.50,000/-per customer with an overall calendar month limit of Rs.2,50,000/ The service will be carrier-agnostic i.e. all customers can avail the mobile banking service with the Bank irrespective of the service provider for their mobiles. The service is free of charge. However, the cost of SMS / GPRS connectivity will have to be borne by the customer. Download Guide Registration Terms User FAQ-Mobile Banking & Conditions of Mobile Banking to Mobile using Bluetooth Banking / Application datacable Process Services Guide

IMMEDIATE PAYMENT SERVICE (IMPS)

National Payment Corporation of India (NPCI) has offered Banks and Financial Institutions a new payment service called Immediate Payment Service (IMPS). Our Bank has gone live on March 28, 2012 in IMPS through Mobile Banking Service.

Currently majority of interbank mobile fund transfer transactions are channelised through NEFT mechanism. Under NEFT, the transactions are processed and settled in batches, hence are not real time. Also, the transactions can be done only during the working hours of the RTGS system

IMPS offer an instant, 24X7, interbank electronic fund transfer service through mobile phones. IMPS facilitate customers to use mobile instruments as a channel for accessing their bank accounts and put interbank fund transfers in a secured manner with immediate confirmation features.

The advantages of IMPS are that there is no need to register the payee / beneficiary and transfer of funds is real time. Customers can send / receive money using mobile number and an additional 7 digit Mobile Money Identifier (MMID) number.

MOBILE BANKING SERVICE FOR SME CUSTOMERS State Bank Freedom, our Mobile Banking Service, has been extended to customers of SME segment also. The Service is available over all the four modes, namely J2ME Application (GPRS or SMS) Wireless Application Protocol (WAP) USSD SMS The registration process is the same as is for P segment customers i.e. Send an SMS MBSREG to 567676 or 9223440000 to get user ID and default MPIN. Choose the mode of Service. If your handset is java enabled with GPRS connectivity, you may download the application using the link received along with user ID and default MPIN. Else, visit the Branch for downloading the application via cable/blue tooth. If your handset is non java, but having GPRS connectivity you may use the Service through WAP. If your handset is non java and not enabled for GPRS, use the Service over USSD (available over select GSM operators only) or through SMS. Change the default MPIN- Receive messages (i) confirming change of MPIN and (ii) completion of Handset validation. Visit the Branch; submit the application form for registration, clearly indicating whether you would like to exercise transaction rights or Enquiry rights only. Your account will be activated immediately. The usage is similar to the Service available for P Segment customers

State Bank FreedoM Your Mobile Your Bank Away from home, balance enquiries can be made and/or money sent to the loved ones or bills can be paid anytime 24x7!!! That is what State Bank FreedoM offers -convenient, simple, secure, anytime and anywhere banking.

1. Mobile Banking Service over Application/ Wireless Application Protocol (WAP) The service is available on java enabled /Android mobile phones (with or without GPRS) /i-phones where the user is required to download the application on to the mobile handset. The service can also be availed via WAP on all phones (java/non java) with GPRS connection. The following functionalities are available: Funds transfer (within and outside the bank) Immediate Payment Services (IMPS): Click here for details. Enquiry services (Balance enquiry/ Mini statement) Cheque book request Demat Enquiry Service Bill Payment (Utility bills, credit cards, Insurance premium), Donations, Subscriptions Mobile /DTH Top up M Commerce (Merchant payments, SBI life insurance premium)

Business Rules All Current/ Savings Bank Account holders in P segment and Current accountholders segment are eligible. All customers can avail the Service irrespective of their telecom service provider. The Service is free of charge. SMS/GPRS cost will be borne by the customer. in SME

Transaction limit per customer per day is Rs.50,000/- with a calendar month limit of Rs.2,50,000/-

2. Mobile Banking Service over SMS: The service is available on all phones (java/non java) with/without GPRS connection. No need to download the application. Ordinary SMS charges are applicable. The following functionalities are available: Enquiry Services (Balance Enquiry/Mini Statement) Mobile Top up DTH Top up/ recharge IMPS- Mobile to Mobile Transfer Change MPIN Business Rules All Current/ Savings Bank Account holders in P segment and Current accountholders segment are eligible. in SME

Transaction limit per customer per day is Rs.1,000/- with a calendar month limit of Rs.5,000/- . However, customers desiring to transact up to Rs.5000/- per day or Rs25,000/- per month may do so after obtaining an One Time Password (OTP) All customers can avail the Service irrespective of telecom service provider. The Service is free of charge. SMS cost will be borne by the customer. As a matter of abundant precaution, Customers are requested to delete all the messages sent to the number 9223440000, once the response for their request has been received.

3. Mobile Banking Service over USSD (Unstructured Supplementary Service Data) The service is available on all phones (java/non java) with/without GPRS connection. No need to download the application. The following functionalities are available: Enquiry Services (Balance Enquiry/Mini Statement) Mobile Top up Funds Transfer (within Bank) Business Rules All Current/ Savings Bank Account holders in P segment and Current accountholders segment are eligible. in SME

Transaction limit per customer per day is Rs.1,000/- with a calendar month limit of Rs.5,000/-

The Service is available for subscribers of select telecom operators only. The Service is free of charge. USSD session charges will be borne by the customer. The service is session based and requires a response from the user within a reasonable time.

11 Advantages Of Using Mobile Banking Through Cell Phone

Mobile banking through cell phone is really catching up. Now you can access your account, transfer funds or make payments with your mobile.

Mobile banking provides banking services to inaccessible (mountainous and remote) areas. It provides financial services to clients, allowing them the flexibility of accessing their account details from anywhere in the world.
Mobile connectivity is vast and this makes mobile banking very successful.

According to Michael J. O'Farrell, John R. Levine and Jostein Algroy in the book Mobile Internet for Dummies, mobile banking is safer than Internet banking, with fewer reported frauds. Access to mobile bank accounts requires a PIN (personal identification number) and a secure password every time a user wishes to log in. All information sent from and received by a mobile phone has 128-bit encryption that protects the information during its broadcast.

Advantages Of Mobile Banking

Mobile banking through cell phone offers many advantages for customers as well as banks. Some of them are as follows:-

1.

Mobile banking has an edge over internet banking. In case of online banking, you must have an internet connection and a computer. This is a problem in developing countries. However, with mobile banking, connectivity is not a problem. You can find mobile connectivity in the remotest of places also where having an internet connection is a problem.

2. 3. 4. 5. 6. 7. 8. 9.

You can make transactions or pay bills anytime. It saves a lot of time. Mobile banking thorough cell phone is user friendly. The interface is also very simple. You just need to follow the instructions to make the transaction. It also saves the record of any transactions made. Cell phone banking is cost effective. Various banks provide this facility at a lower cost as compared to banking by self. Banking through mobile reduces the risk of fraud. You will get an SMS whenever there is an activity in your account. This includes deposits, cash withdrawals, funds transfer etc. You will get a notice as soon as any amount is deducted or deposited in your account. Banking through cell phone benefits the banks too. It cuts down on the cost of tele- banking and is more economical. Mobile banking through cell phone is very advantageous to the banks as it serves as a guide in order to help the banks improve their customer care services. Banks can be in touch with their clients with mobile banking. Banks can also promote and sell their products and services like credit cards, loans etc. to a specific group of customers. Minimum Balance Alerts etc. can be accessed from your mobile.

10. Various banking services like Account Balance Enquiry , Credit/Debit Alerts, Bill Payment Alerts, Transaction History, Fund Transfer Facilities, 11. You can transfer money instantly to another account in the same bank using mobile banking.

Mobile banking has become really popular owing to the convenience that it gives its customers. You can access your account, pay bills, and make cash transfers through cell phone banking. It offers many benefits over internet banking and banking in person. With the wide range of mobile connectivity, mobile banking through cell phone can be accessed by anyone.

The Impact of Mobile Banking on Banks

Mobile banking is one of the most significant technological innovations of the 21st century. It allows customers of a particular bank to do their daily banking on the go, which is important in this busy world. 1. Technology Improvements
o
Developers of applications, or "apps" as they are known, have improved the technology for mobile banking and have made it easier for consumers to have their daily banking needs meet.

Competition
o o
Mobile banking has led to increased competition for deposits, because banks with the best mobile banking features tend to gain more deposits than those that are less versatile.

Stock Trading
o
Mobile banking has led to an increase in stock trading, as investors do not have to be at a computer or call a broker to trade stocks.

Mobile Banking Risks

Print this article Share By Louise Balle, eHow Contributor

Mobile Banking Risks

Many banks now offer you the option to perform various banking transactions on your cell phone; this is called mobile banking. You can check balances and receive updates when your funds are low. The number of mobile banking users is projected to grow to over 40 million by 2012, according to the research firm TowerGroup. But with convenience sometimes comes risk. There are a number of vulnerabilities that may be involved when you use your phone to process bank transactions 1. No Anti-Virus Programs
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Many mobile phones are like mini-computers, yet they do not have the same capability as regular computers to host antivirus and anti-spyware programs. The phone will not be able to recognize a situation where your device's files and programs have been compromised by malware. So when you perform banking activities on your mobile phone frequently, you could be leaving yourself vulnerable to spying.

Text Message Security

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Some mobile banking services text you updates regarding your account. These text messages are not encrypted, so any third party, including strangers and the people around you, can read them. If you leave your phone unattended or lose it, someone can easily access information about your account by reading your message inbox. However, one way to prevent this problem it to set a password on your phone so that you are the only person who can view your text messages. You can also delete the messages as soon as you finish reading them.

Hard to Prove Fraud

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If your phone falls into the wrong hands and someone is able to process transactions using the device, there is no telling what your bank will do. It could be difficult to prove that you were not the person who performed the action on your phone. Because mobile banking is a relatively new service, some banks do not yet have clear procedures to address this potential problem.

Mobile banking in India does not need a one-size-fits-all solution

Thursday, May 3, 2012, 8:00 IST | Place: Mumbai | Agency: DNA Shalini Mehta With relevant technologies in place, banking on mobile handsets should lead to more transactions on the move; increased reach and last-mile connectivity are better achieved via mobiles.

Mobile banking is a new generation platform available to customers for conducting balance inquiries, account transactions, utility payments, and other banking activities using a mobile handset. Mobile banking services in India started with SMS banking way back in 2002. With an increasing mobile subscriber base in India, mobile banking has picked up steam in recent years. Today more than half the population in India has a mobile phone. However, less than 1% of that uses mobile phone as a medium for banking. Though mobile banking is synonymous with the word convenience banking, its usage is not anywhere close to its potential. With the advent of smartphones and ever growing usage of internet on mobile handsets, application based banking has emerged as a new concept within this space. Other than SMS banking, banks are now offering banking services on mobile handsets through WAP-based internet websites and application based mobile banking services. However, despite efforts made by Indian banks to expand the scope and usage of mobile channels, there are very few consumers who are actively using the same. Some of the reasons contributing to this include the lack of adoption of mobile as a channel for banking despite the push, limitations of services on mobile banking, non-replication of mobile banking services in varied languages in India, etc. Now, banks have started offering mobile banking services through another innovative method called USSD. This platform works on menu-based banking model on mobile handsets where users can perform mobile banking services by recalling the menu and simply dialing a number. Greater acceptability and usage of users are yet to reach a critical mass. With the RBI relaxing the limit on the value of mobile-based transactions from `50, 000 per day to any limit and allowing nonbanks to offer banking services as business correspondents appointed by banks, the focus is to drive banking services in rural areas where a large population is still devoid of banking facilities. This will also allow banks and non-banks to offer payment solutions using a mobile phone with the development of near field communication, barcode and sound wave technologies. This will help us reach the goal of financial inclusion in India. With these technologies in place, banking on mobile handsets should lead to more transactions on the move as increased reach and last mile connectivity is better achieved via mobiles compared to traditional banking channels like branches and ATMs. Innovations like IMPS are evolving by the day and once the medium gains higher acceptability, the number of transactions will grow exponentially. In an environment which has surfeit of advanced technology and mobile handset capabilities , one size fits all kind of a solution does not work. Therefore, banks need to make investments to offer mobile banking services to cater to various mobile / tablet platforms like IOS, Android, Windows, BlackBerry which are available on high-end phones / tablet platforms with good processing capabilities while at the same time offer services to the low-end segment having java based phones with limited data processing capabilities. Mobile-based payments and the commerce eco-system is still at a nascent stage and hence, acceptance among merchants and customers is currently low but is bound to increase over a period of time.

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