INTRODUCTION

Banking is the backbone of every industry and technology plays an important role in every
industry. The role of technology is increasing day by day very rapidly, which is also boosting the
banking industry. Banking is one of the largest financial institutions that regularly explore the
opportunity of technology to provide better customer service. Over the year banking has evolved
from the traditional brick and mortar model of customers queuing up at banks for services to
modern banking where a bank can reach out to them at any stage for their services. In today's
business, technology is one of the biggest indicators of growth and competitiveness .The banking
industry today is in the midst of its revolution. Information technology is used in banking in two
different ways. One is communication and connectivity and the other is business process. Today,
banks have welcomed wireless and mobile technologies into their boardrooms to give their
customers the freedom to pay bills, plan payments while stuck in traffic jams, get updates on
various marketing efforts to provide a more personal and intimate relationship while attending a
party. This paper examines consumer perception and adoption of a new electronic payment
service as mobile banking and the positive and negative factors affecting the adoption of mobile
banking in India.Mobile banking (m-banking) has emerged as a popular form of banking in
many developed and developing countries. In India, there are approximately 13million mobile
banking users and this figure is expected to grow faster with mobile transactions outpacing credit
card transactions by the end of the decade. By some measures, India has more mobile phones
than bank accounts. A combination of two factors a large unbanked population and the
ubiquity of cell phones – is a catalyst for high mobile banking adoption. Mobile banking is
defined as "the provision of banking services to customers on their mobile devices", specifically
the operation of bank current and deposit or savings accounts. Mobile banking is an application
of mobile computing that provides the necessary support for customers to be able to bank
anywhere, anytime using mobile handheld devices and mobile services such as Short Message
Service (SMS). Mobile banking facility removes space and time constraints in banking activities
like checking account balance or transferring money from one account to another and saves time
when we go to the bank and do some banking activities. Internet banking helps customers to
access their banks anytime. Customers can check their account details, get their bank
statements, perform transactions like transferring money to other accounts and pay their bills at
the comfort of their own. Homes and offices. But the biggest limitation of internet banking is the
need of a personal computer with internet connection, which is definitely a big hurdle
considering most of the developing countries in Asia like India. Mobile banking addresses these
fundamental limitations of internet banking, as it reduces the need for customers to just a mobile
phone. Mobile usage has exploded in Asian economies like India. The main objective of mobile
banking scores over internet banking is that it enables 'anywhere anytime banking'. Requiring
customers to access a computer terminal to access their bank accounts

Mobile banking is a service provided by bank or other financial institution that allows its
customers to conduct financial transaction remotely using a mobile device such as
a Smartphone or tablet. Unlike the related internet banking it uses software, usually called
an app, provided by the financial institution for the purpose. Mobile banking is usually available
on a 24-hour basis. Some financial institutions have restrictions on which accounts may be
accessed through mobile banking, as well as a limit on the amount that can be transacted. Mobile
banking is dependent on the availability of an internet or data connection to the mobile device.
Transactions through mobile banking depend on the features of the mobile banking app provided
and typically includes obtaining account balances and lists of latest transactions, electronic bill
payments, remote check deposits, payments, and funds transfers between a customer's or
another's accounts. Some apps also enable copies of statements to be downloaded and sometimes
printed at the customer's premises. Using a mobile banking app increases ease of use, speed,
flexibility and also improves security because it integrates with the user built-in mobile device
security mechanisms

From the bank's point of view, mobile banking reduces the cost of handling transactions by
reducing the need for customers to visit a bank branch for non-cash withdrawal and deposit
transactions. Mobile banking does not handle transactions involving cash, and a customer needs
to visit an ATM or bank branch for cash withdrawals or deposits. Many apps now have a remote
deposit option; using the device's camera to digitally transmit cheques to their financial
institution.

Mobile banking differs from Mobile payment which involves the use of a mobile device to pay
for goods or services either at the point of sale or remotely,[2] analogously to the use of a debit or

credit cyard to effect an EFTPOS payment.

 According to this model mobile banking can be said to consist of three inter-related concepts:

 Mobile accounting

 Mobile financial information services

Most services in the categories designated accounting and brokerage are transaction-based. The
non-transaction-based services of an informational nature are however essential for conducting
transactions – for instance, balance inquiries might be needed before committing a money
remittance. The accounting and brokerage services are therefore offered invariably in
combination with information services. Information services, on the other hand, may be offered
as an independent module.

Why You Should Build A Mobile Banking App

Imagine that almost one-third (32%) of the global population utilizes mobile banking software.
Mobile Banking App is something that you cannot miss on your phone and here are the reason
why:

 In January 2023, mobile devices excluding tablets accounted for nearly 57% of web page views
worldwide. – Statista
 The worldwide number of mobile internet users is expected to rise by 908.4 million (+17.4%)
between 2023 and 2028. – Statista
 6 out of 10 mobile users prefer mobile apps over mobile websites and other platforms for
account management. – Thinkwithgoogle
 According to latest research, 90% of individuals use mobile banking apps to check their account
balance, and 79% use mobile banking apps to monitor recent transactions. – Statista

Mobile Banking is defined as “The provision of banking services to customers on their mobile
devices” (Sharma, Prerna, Bamoria & Preeti Singh, 2011). Mobile banking refers to the
provision and use of banking and financial services with the help of mobile telecommunication
devices. Mobile banking is a system that helps customers perform a number of financial
transactions with the help of their mobile devices. Mobile commerce is the natural successor of
electronic commerce. Where a mobile device is used to initiate, authorize and confirm the
exchange of monetary value in exchange for goods and services. Mobile devices may include
mobile phones, PDAs, wireless tablets and any other device that connects to a mobile
telecommunications network and enables payments. Banks provide mobile banking services to
their customers with the desire to increase their customer share by removing all barriers in the
way of adopting mobile banking services. The role of banking is very important in business as
well as industry functioning. As internet banking is still in its growth phase, mobile banking has
emerged as the next advance way of doing banking. The scope of services offered may include
conducting bank transactions, managing accounts and accessing customized information (Tiwari
and Buss, 2007) mobile banking is a form of financial services implementation, during which
the customer uses mobile communication techniques in conjunction with mobile devices in
electronic transactions (Pousttchi & Schurig, 2004). Mobile phones have become essential means
of communication for almost every person around the world. In India, where mobile customers
outnumber fixed line customers because of better mobile infrastructure compared to fixed line
infrastructure, mobile banking in India has become more attractive. Technology plays an
important role in the banking sector. A mobile phone is a common technology device that has
become a part of every person in the information age. Mobile banking is an emerging alternative
medium for providing banking services. India is the second largest telecom market in the world,
with high potential to expand mobile banking services.

Overview of mobile banking

The following is a brief overview of the mobile net banking application, which allows users to
perform a variety of banking activities online:

Overview of Mobile Banking

The following is a brief overview of the mobile net banking application, which allows users to
perform a variety of banking activities online:
 Parameters Mobile Banking
Device used Smartphones, tablets
Services offered Limited
How to access Customers only need a User ID and password to use online banking
services
Ease Easy to use and can be used on the go
Push notifications Customers are notified about banking promotions, exciting deals, and other
events
Other services SMS can be used to access mobile banking

Benefits of Mobile Banking

There are numerous benefits of mobile banking, a few among them are written below:

 Mobile banking apps allow you to access your banking accounts and conduct financial
transactions using a mobile device, anytime and from anywhere.
 With a mobile banking app, you can easily keep track of your transaction activities, such
as checking your bank passbook and everyday transactions.
 You can use the mobile app to make payments, transfer funds, track transaction history,
and add beneficiaries.
 Mobile banking apps offer a range of services, including the ability to recharge phones,
book train or flight tickets, and pay utility bills.
 Mobile banking apps are user-friendly and can be customized to meet your specific
needs.
 You can set up alerts to ensure that payments are made on time, and receive push
notifications about important deals and discounts.

Limitations of Mobile Banking Applications

Following are the limitations associated with mobile banking applications:

 To use a mobile banking app, it must be downloaded from an authorized app store and
installed on a smartphone.
 Mobile banking requires both a smartphone and an internet connection to function
properly.
 It is important to keep the mobile banking app up to date in order to ensure its security
and functionality.
 Logging into the mobile banking app from any third-party application or website may
pose a risk of fraud or hacking.
 Poor internet connectivity or app crashes may result in transaction failures.
 It is important to keep your banking credentials safe and secure to prevent the misuse of
your mobile banking app by unauthorized individuals.

Things to take care of when using a mobile banking application

A few things should always be taken care of when using a mobile banking application:

 Keep your login credentials to yourself and do not share them with anyone.
 Use a secure network connection for mobile banking. Avoid using public networks, a s
they may not be secure.
 Do not sign in to mobile banking from third-party websites or promotional emails.
 Avoid logging into your mobile banking app from someone else’s device.
 Remember that banks will never request login credentials or ask you to complete KYC
(Know Your Customer) procedures via SMS or phone calls. Do not share your
credentials through these channels.
 Make sure your smartphone has antivirus software installed to protect against malware
and other threats.
 Always log out of your mobile banking app after using it to ensure that no one else can
access your account.
 Mobile Banking Registration

Banking apps allow the users to analyse their income and pattern of expenditure on a daily,
monthly, or annual basis. With each passing year, the number of customers switching to mobile
banking is increasing in order to stay up to date about their banking account. This change in the
structure of banking would be the initial stages of a new banking world in the future. Thus, it
becomes of importance to be aware of the mobile banking Registration

8 Major stages to create a mobile banking app

Step 1: conduct research

Before you start mobile banking app development, it is essential to conduct market research to
identify the leaders and outsiders of the market, as well as their strengths and weaknesses.
Going forward, this will help you compile a winning and differentiating list of specifications for
your application.This stage usually takes a month or two. To optimize it, you can use generally
accepted strategies. For example, SWOT analysis — research aimed at identifying and assessing
the strengths and weaknesses of the project, its opportunities, and potential threats — is
broadly considered a go-to strategy. Opportunity is defined as something that gives a project a
chance to achieve something new: win new customers, introduce new technology, or rebuild
business processes. In contrast, threats are factors that can damage the project or deprive it of
its existing advantages, such as the emergence of new competitors, substitute products, etc.

Step 2: build a prototype

Since a banking application is a rather complex product, developers usually build a prototype
based on specifications drawn up after gathering insights from the client. Only after approving a
prototype do the developers begin the software development process.For the prototype to reflect
the functionality of the future product, you need to conduct a number of primary studies:
Interview with the product owner: During this step, the designer clarifies the expectations and
needs associated with the product
User stories: Typically, there are numerous user stories. The standard formula for a user story
looks like this: "being <role or user type>, I want to <perform an action> to <get the result>"

Jobs stories: This is where you have to focus on the needs of the user. To build them, use the
formula: "Situation" -> "Motivation" -> "Expected result"

Jobs-to-be-done: This is a comprehensive study that determines the scope of the upcoming work
and helps to design a product that meets all the needs of the user.

Step 3: provide the security

When it comes to mobile banking applications, you have the type of project that needs much
more security guarantors than other public applications. So, to ensure proper compliance, it’s
best to hire a team that is experienced in creating similar products.For example, for banking
software, the list of regulatory security requirements to safeguard sensitive data (such as GDPR,
PSD2, PCI DSS, CCPA, etc.) is significantly longer than in the case of ordinary applications.
This means that before starting to work on a product, it is critical to ensure that the planned
functionality complies with all these policies.

Step 4: design the UI/UX

The app design of a mobile banking application usually precedes the implementation of business
logic and functionality, and allows developers to demonstrate a primitively functioning version
of the product to the client.

When designing mobile banking applications, it is very important for them to provide web
accessibility, which is regulated at the legislative level in some countries. Most web accessibility
laws are based on WCAG 2.0 guidelines.

Step 5: choose a tech stack

Before starting to implement the underlying technology that supports a banking mobile app’s
functionality, the developers choose a tech stack, largely focusing on the client's business goals
and budget. Which software tools developers will use depends on the functionality of the
application and the chosen mobile OS.

Step 6: develop the app

After the final approval of what’s in place immediately before this phase, developers begin to
implement the application functionality. As the separate stages of work on the application are
completed, repeated testing is done to ensure the application operates as needed and expected. In
order for the product to meet your expectations as much as possible, it is essential to regularly
interact with the development team and give them feedback. This will reduce the number of edits
and speed up team workflows. Depending on the complexity of the functionality, product
development can take from three to six months.

Step 7: release and maintain

After successful testing, the product is launched into release and is supported by specialists from
the developer's side so that technical issues can be promptly eliminated if they occur. Public
applications are typically uploaded into Google Play and the App Store, depending on the OS for
which they were created. It is important to remember here that at the stage of transferring the
application to public access, the costs do not end: you will periodically have to pay for server
capacity, support for some technologies, integration with payment gateways, etc.

Step 8: improve and update

As the client’s business develops and market requirements grow, the application can be
optimized and supplemented with new functionality.New marketing research will help you
determine potential areas of improvement or optimization (see Step 1). Thus, the entire software
development process can be considered cyclical.

How to Register for Mobile Banking

The core procedure of registration, as mentioned above, varies among the financial providers.
But, some of the common steps involved in mobile banking registration are as follows:

Step 1: Some providers demand a duly-filled registration form from the customers.
Step 2: You may need to provide the financial company with your identity proof along with the
registration form.

Step 3: You need to download and install the mobile banking app of your bank/financial
provider based on your handset.

Step 4: Some financial providers will allow you to activate your mobile application with a
Personal Identification Number (PIN), while some banks will voluntarily provide you with an
MPIN and SMS.

Step 5: You need to enter the PIN every time you wish to log in to your mobile banking account.

Step 6: Additionally, after the activation, you would need to enter your net banking ID and
password in order to access your banking account.

How to update Mobile Banking Password

The process to update mobile banking password may differ from bank to bank. Below-mentioned
is the standard process to update mobile banking password:

 Open mobile banking application of your bank.

 Click on ‘Forgot Password’.
 In the next step, enter your user/customer ID.
 Then you need to enter the account details such as account number, linked debit card, and
PIN of the debit card. (In many cases, the bank may not ask for these details)
 Now, you need to proceed further and enter a new password twice.
 Once you enter the new password, your mobile banking app will be updated with the new
password that you have created.

How to transfer fund using Mobile Banking

To transfer funds through mobile banking, banks offer their customers three ways:

 NEFT – It may take up to 30 minutes for fund transfer

  RTGS – For transactions above Rs. 2 Lakh
 IMPS – For transactions up to Rs. 5 Lakh using mobile

How to use payment using Mobile Banking

Payment feature that allows users to make payments just by tapping their chip card or mobile
phone to execute a transaction. If your debit card or credit card is activated for contactless
payments, you can normally make the payment by just tapping your card against the POS
machine. When you use the Pay facility, you can use your smartphone to make the payment
through the virtual card using net banking instead of the card. This feature adds a safety net to
your debit or credit card as it cannot be used for skimming or any fraudulent activity using your
smartphone’s Pay. Pay service through mobile will only work if NFC is switched on your phone.
Also, the merchant where you are using this service to pay should also have NFC-enabled
device.To start using Pay, an individual must set up his/her mobile phone for this feature
beforehand. The below-mentioned process explains how to access this feature.

 To access this service, users need to download their respective mobile banking app.
 Click on Pay icon if given in your mobile banking app and add a card from the list of
cards in your account.
 Upon adding the card, a virtual card will be created which can be used for quick NFC
payments.
 Now, while making the payment through Tap and Pay, you need to open your mobile
banking app, click on Pay service, hold your phone near the merchant terminal and your
payment will be done.

Major Banks Providing Mobile Banking Services

Mobile Banking services provided by banks

 SBI Mobile Banking Axis Bank mobile banking
ICICI Mobile Banking HDFC Bank Mobile BANKING
Bank of India Mobile Banking Kotak Mahindra Mobile Banking
Indian Bank Mobile Banking UCO Bank Mobile Banking App

How to use a Mobile Banking App

To use a mobile banking app from your smartphone or tablet, you need to download the
application from the app store. Once the app is installed on your device, you need to add your
bank account details for registration, followed by activation, and create an MPIN—which stands
for mobile banking personal identification number—to login.

Registration , activation , and login requirements to use a Mobile Banking

App

Depending on your bank with whom you have a savings account, there are primarily three ways
of registration. This process is important for banks to recognize their existing customers .

 NET BANKING : If you are using the net banking service provided by your banking
institution, you can use the login details—customer ID and password—to register.
 DEBIT CARD : Enter the debit card number, expiry date, and ATM Pin.
 OTP – BASED REGISTRATION : Enter your mobile number registered with the bank,
and the OTP will be sent to you via SMS for registration. The registration process is
followed by activation, and this includes creating a mobile banking personal
identification number (MPIN) — a four to six digit passcode required to access the
banking account via mobile banking app. Once the MPIN is set up, you can proceed to
login to access your banking account. Remember, you will be required to enter the MPIN
each time you login to your mobile banking application.

Mobile Banking App

Once you’ve logged in to your mobile banking app, the dashboard will give you a tour to help
you use the mobile application. This includes where you can view your account balance, check
statement, access debit card details, and many more. Otherwise, you can take a peek into services
by selecting tabs that are available on the dashboard, or use the search bar for specific queries.
Forbes Advisor India evaluated mobile banking applications of two major banking institutions of
India to help you understand the type of banking, transaction, investment, and other services in
the offing. However, the features may differ among banks providing mobile banking services.

Banking Services Via Mobile App

 Update profile: Add photo, edit address, connect with relationship manager, etc.
 Account Service : View personal account detail , Passbook, view offer and reward,
etc.
 Card Services : Block or unblock Debit card , modify card limit , upgrade to cradet
card , generate debit or credit card PIN , etc.
 Cheque Book Services : Stop or issue cheque books , cheque status , etc
 Tools: Change MPIN , or add biometric authentication , call, from app , refer a friend ,
help , feedback , app version etc.

Transaction , investment , insurance , and travel services available on mobile

banking apps

 Manage standing instruction, add or manage payees, send money using NEFT
and RTGS, transfer overseas etc.
 Pay credit card bills, insurance premium, FASTag, domestic gas and water, etc
 Apply for a pre-approved credit card, personal loan, home loan, auto loan.
 Create a term deposit account, manage PPF account, current account, etc.
 Usie UPI payments to send money to contact, mobile number, or scan a QR,
etc.
 Access term life insurance, health, and travel insurance plans.
 Book train, flight, and bus tickets as well as hotel room.
 Is online Banking Safe?

Every Banking institution applies different security features to ensure that customers can
seamlessly have a safe and secure mobile banking experience. These include authentication via
OTP, grid based , and biometric authentication.

Here are a few tips to safeguard your mobile banking application.

 Set up a password to access your mobile handset or tablet.

 Register for SMS alerts to keep track of your banking transactions.
 Delete banking messages received regularly via SMS and email .
 Keep your mobile operating system and applications updated with latest security patches
and upgrades.
 Do not enable auto-fill for log-in, or save mobile banking login details.
 Log out from the mobile banking application as soon as you complete your
transaction.

Objectives of the study

1. To understand the basic concept of Mobile Banking in India.
2. To study customer perception toward the mobile banking .
3. To study the challenge comes in front of user while adopting mobile banking.
4. To analyze the positive and negative factors of mobile banking.

Features and Benefits of Mobile Banking

 Mobile banking enables you to pay your bills without the need to go out physically.

 Allows you to view all your transactions clearly in one place so that you can keep a track
of your finances.

 There is no need to get your bank statements updated physically with internet banking

 You can get offers, discounts on purchases and transactions

  Internet banking works instantly, allowing you to conduct monetary transactions within
seconds

 With 24/7 availability, mobile banking can be carried out anytime and anywhere

 You also get several value-added services with internet banking such as mobile
recharges, bill payments, etc.

 You can also use mobile banking for investment purposes in the form of securities,
pension accounts, etc.

Types of Mobile Banking Services

M-banking allows banks to offer a range of financial services to customers. From accessing
account information to utilizing transaction, investment, loan, and support services, m-banking
has assumed all roles traditionally requiring the help of a bank representative.

Account Information : The account holders can:

 Extract the details related to accounts like bank statements

 Enable or disable SMS alerts of transactions
 Manage the fixed deposits and recurring deposits
 Know the loan details and statements
 Get debit card
 Understand and invest in insurance detailssss

Transaction : Customers can transfer funds between self-operated accounts, make payments
to third-party bank account holders, and undertake utility bill payments,premium payments, and
loan repayment using the mobile-based application. Moreover, many banking apps also integrate
online shopping for the ease of customers laced with offers, cash backs, and rewards upon using
these services

Investment : Many banks offer the facility of managing the investments like deposits,
insurance, and equities from their m-banking interface embedded in the app.
Loan : Banks provide the window of loans management to their customers. Customers can
check the status of their loans, pay their EMIs, and even avail small digital loans using the app-
based mobile utility.

Customer support : All banks provide a dedicated menu in their m-banking app to submit
requests for services like cheque book, debit & credit card, and loan applications. The account

holders can also check their ATM card and credit card reward points from the banking app.

Mobile Banking Features

Mobile banking has features that ensure customers can access their accounts and carry out
financial transactions on the go. Some key features of mobile banking are:

Accessibility : Mobile banking offers 24-hour access to all customers. Customers can log in to
their app and view and track their account balance anytime. Besides, they can engage in fund
transfers even during bank holidays.

Security : The banks recognize the importance of providing a secure environment to customers
for transactions based on the banking app. Hence, m-banking asks for SMS access, location
access, biometric access, and application password from the customers to ensure their privacy
and security

Transferability : Transferring funds from one bank account to another is the most basic m-
banking activity. All the banking app-based transfers are now secured using two-step verification
via app password and OTP-based transactions. The two-step verification is applicable in fund
transfers, utility bill payments, and online shopping for the safety and convenience of customers.

Digital Payment : mobile banking apps have a QR code reader for payment at merchant
locations. So the customer has to point at the QR code of the merchant at their shops and pay the
price of the goods using the account details from the QR code.
Customer service : Mobile banking personalized service to customers through live chat , phone ,
notification , atc . This helps customer to get the required assistance without visiting the bank
directly

Alerts: Register for InstaAlerts and stay on top of all your financial activities, available right at
your fingertips. Other than regular transaction banking, you can set alerts for bill payments and
expense tracking via your banking app. Customise your alerts, so that you that you
only receive an intimation for what is relevant to you whether it is the sweet ring of a salary
credit or the deadline for a bill payment!
Account history: No need to have your statement updated physically at a branch anymore.
Access your account history through your Mobile Banking app with a single click. With the
mPassbook you can access your account history anytime and anywhere, even without data
connectivity! The tagging feature allows you to add personalised remarks for any transaction,
search, filter and categorise all transactions.
Online shopping: The HDFC Bank MobileBanking App helps you compare prices across
service providers, and allows you to avail of discounts and CashBack, and redeem loyalty points.
Collaborations with the biggest and best shopping portals HDFC Bank customers to pay bills,
shop online, book air travel and hotel accommodation on a single exclusive pla

Mobile Banking Safe

 Password Updates: Make sure to update your password for the mobile banking account
regularly. This gives you an added layer of security against fraudulent elements seeking
to steal important information or even hack your account.
 Secure Network: Another important thing to remember is always to use a secure
network to open your mobile banking account. Never use a risky or unreliable server to
log in to your internet banking account.
 Avoiding Risky Sources: You must always avoid opening notifications or links from
risky sources. Make sure to avoid such sources for any type of bank-related information.
This is the most common source of fraud availed by unlawful elements.
 SMS Notifications: Always keep your SMS notification on for the purpose of
monitoring your account activity. If any unknown transfer has happened in your account,
you will be the first one to know about it. This way, issues can be rectified at the earliest.
 Clear Browser History: Make it a habit to regularly clear your mobile browser history
and cache. Deleting temporary files and cookies from your system allows you to be safe
from viruses and malware. It also provides security against fraudulent sources
 Risk : It’s difficult to find software or technology that is entirely risk-free, and that holds true
for mobile banking apps. The 2021 Nokia Threat Intelligence Report indicated that 50% of
banking malware is targeted toward Android users, because Androids run on a fully open-
source operating system. Cyberattacks triggered by hackers, unexpected glitches, and user
mistakes can all undermine an app’s security. Here are some of the more common mobile
banking app security issues to be aware of.
 Hacked Wi-Fi : Hackers may abuse unprotected public Wi-Fi hotspots to dispense malicious
software onto your device or steal login credentials. For this reason, avoid opening your
mobile banking apps while connected to public Wi-Fi if possible and consider using a VPN to
encrypt your connection
 Customisation: You don’t have to sift through pages of links to find what you are
looking for. Contemporary banking apps allow customisation of the menu so you can
easily access your frequently used services.
 Investments: Not just banking, your mobile app now allows you to make Term Deposits,
Mutual Fund investments, invest in IPOs, and manage your Demat holdings, all in one
place.

 Hacked Wi-Fi : Hackers may abuse unprotected public Wi-Fi hotspots to dispense malicious
software onto your device or steal login credentials. For this reason, avoid opening your
mobile banking apps while connected to public Wi-Fi if possible and consider using a VPN to
encrypt your connection.

 Data breaches : Data breaches occur when cybercriminals exploit website or system
vulnerabilities to gain access to sensitive information. A bank may experience a data breach if
 they don’t prioritize cybersecurity—and hackers can also use stolen data to compromise
mobile banking apps

 Fake mobile banking apps App marketplaces are filled with various mobile payment apps,
which allow users to find the right option for their preferences. But bad actors may
occasionally sneak fake banking apps that imitate trusted software onto these platforms.
Carefully read the description of any apps you plan on downloading, and only install apps
from your device’s native app store (the Apple App Store for iOS and Google Play for
Android).

 Most mobile banking apps encrypt, aka disguise, sensitive data like login information and
bank statements.
 Frequent software updates: Mobile banking apps regularly receive support from developers
that fix glitches and address vulnerabilities.

Mobile Banking Advantages

Improved customer Experience : When it comes to the banking business, a relationship
with a customer is key. By maintaining a good, respectful, and healthy relationship with the
client, you have higher chances to both keep them and attract new ones. Being available 24/7,
mobile banking is great for those who are not always able to visit the actual facility during its
working hours.
Time Efficiency : You can use a banking app to pay for your bills, rent, or utility fee online
and never worry about the possibility of your physical check getting lost in the mail. Most banks
have an option to set up payees, and once you fill-up the information, such as amount, credit card
info, and receiver you are ready to go. After that, you just choose that one paying option anytime
you have to pay.

As we’ve discussed already some of the pros and cons of mobile banking, here are essential
features of the mobile banking apps:
 24/7 access to your account

 Possibility of money transfers

 High-level security

 Fraud alerts

 Customer support line

 Cash back

 Loan payments

 Bill payment alerts

 Range of other services (e.g. pay for public transport)

Workload Capacity : Mobile banking eliminates the human factor during different work
operations. Plus it boosts productivity and quality and causes a lot of issues clients can fix by
themselves through an app

Managing funds The mobile banking app serves as a remote control for your funds. The app
allows you to perform tasks on your bank balance and send someone the money wherever you
are and whenever you want. Online banking also offers a feature to instantly deactivate your
credit card if it ever goes missing.Moreover, as a client, you can see and manage where you have
your credit cards stored. Also, you can manage your monthly subscriptions and cancel the ones
you do not use anymore. Another benefit of mobile banking suggests that you have 24/7 access
to your accounts, which allows you to keep an eye out on your funds.

Saves Time : One of the most significant advantages of mobile banking is how it saves you time.
Just imagine no never-ending lines at the bank or a trip just to check your account balance or
make some small transaction. You can do all these and even much more from any place and at
any time with your phone through mobile banking. This is, therefore, a game-changer for busy
people or whoever would not like to cut their daily important tasks with boring visits to the bank.

Value-added Services : What is more, most of these mobile banking apps offer additional
services that further add to the application’s utility. These could be the option of paying off
utility bills, buying insurance, topping up the mobile phone, and, at times, can also go to the
extent of getting the chance to invest in mutual funds or stocks.

Financial Management Tools: Another exciting thing is the complete set of tools involved in
financial management that mobile banking provides. Most of the apps are actually set to features
that help their users make budgets and set alerts for spending, then follow up with their savings.
These tools are meant to help one remain financially disciplined, make more intelligent choices
with finances, and carry on with an improved financial health state..

Mobile Banking Disadvantages

Security: Even though banks are trying their best to develop the safest, most secure system, they
usually fail to do so. The researchers state that 97% of banking apps presented insufficient code
protection. 90% of those experienced information leakages to other apps on devices, and 83% of
solutions using APIs just stored data mindlessly, letting hackers steal it. And in 80% of products,
the encryption methods were not efficient enough. After the COVID-19 crisis took over the
world, so did the criminals. In the wake of the global pandemic, hackers tend to perform illegal
activities much more often than before. A survey that was conducted CrowdStrike stated that
59% of participants did not believe that their business would experience any serious cybercrime
during the COVID-19 crisis, yet CrowdStrike has confirmed 100 times more COVID-19-related
malicious acts.

Dependency on technology: Smartphones and internet connectivity introduces barriers that

hinder access for certain user groups. In remote areas with limited network coverage, individuals
may face challenges engaging in mobile banking services, perpetuating a digital divide.
Smartphone affordability becomes a critical factor, as those unable to afford these devices are
excluded from the convenience offered by mobile banking platforms. Technological literacy
issues, especially among the elderly or those less familiar with digital interfaces, can impede
independent financial management. Additionally, device compatibility problems and the risk of
obsolescence may further limit accessibility, creating disparities in mobile banking adoption
based on economic and technological disparities.

Final Thoughts: One of the numerous benefits of mobile banking is saving up to 26 hours and
434$ per year. Furthermore, several major banks like Wells Fargo recently provided their users
with money guidance on their mobile apps,allowing them to save even more time and let the
machine do all the work. No counting, no paper mess everything you need right at your
fingertips, just one click away from you.All in all, using mobile banking is a huge improvement
in the day-to-day activities of anyone who deals with money starting with casual grocery
shopping and to stock traders. Yes, mobile banking has its own flaws and security the concept is
promising and has been successfully used worldwide by thousands of people.Mobile banking
user are at risk of receiving fake SMS messages and scams. Regular users of mobile banking
over time can accumulate significant charges from their bank. Modern mobile device like
smartphone and tablet are better suited for mobile banking then old model of mobile phone and
devices . The loss of a person’s mobile device often means that criminals can gain access to your
mobile banking PIN and other sensitive information.

Varying Features : The features offered in mobile banking apps can range far and wide. Some
provide more functionalities and varied services, but others provide access to only a minor
subcategory of banking tasks. This difference may affect your bank operations in some cases
where you need functionalities that your current app doesn’t provide. It is, therefore, essential to
choose the right mobile app for banking needs, and that can be pretty confusing at times.

Internet Connection Is A Must : The most significant disadvantage of mobile banking is its
total reliance on internet connectivity. In the absence of proper or robust internet connectivity, it
will be hard to use mobile banking services. This issue is particularly acute in areas where
internet service is patchy, potentially limiting access to crucial financial services precisely when
they’re needed the most.

Research Methodology

Research design : Descriptive Research design is followed for conducting the study.

Source of Data : Both Primary and Secondary data source have been used for the study.

Primary Data : Primary data has been collected using a questionnaire.

Secondary Data : Secondary data has been collected from books, journals, report, thesis,
websites, etc.

Sampling Design : The method of sampling design is convenient sampling.

Tools of data collection : Questionnaire is used for data collection.

Statistical tools used : Simple percentage analysis and pie chart is used for data analysis.

Data Analysis and Interpretation

Frequency

Question 1: Gender
 Frequency Percent Valid Percent Cumulative
percent

MALE 20 20 20 20

FEMALE 80 80 80 100.00

100 100.00 100.00

TOTAL

Interpretation :

The above pie chart demographic character of the study show that the male respondent 20% and
the female respondent 80%.

Question 2: Age

Frequency Percent Valid Percent Cumulative

 Percent

YES 98% 98 98 98

NO 2% 2 2 2

100% 100.00 100.00

TOTAL

Question 3: Educational Qualification

 Frequency Percent Valid Percent Cumulative
percent

High School 20 20 20 20

Intermediate 28 28 28 48

42 42 42 90
Under
Graduate
10 10 10 100

Post
100.00 100.00 100.00
Graduate

Total
Interpretation: The above pie chart is representation of the respondent educational
qualification to identify the demographic detail for the student it show that the educational
qualification of high school has 20% of the total respondent. Intermediate has 28% of the total
respondent. Undergraduate has 42% of the total respondent. Post Graduate has 10% of the total
respondent

Question 4 : Do you perceive mobile banking as secure?

Frequency Percent Valid percent Cumulative

percent

Very 50 50 50 50
Somewhat 24 24 24 74

Not at all 8 8 8 82

18 18 18 100.00
Not Secure

100.00 100.00 100.00

Total

Interpretation: The above pie chart is a representation of the respondent mobile banking
secure in order to identify the demographic detail for the study it shows that the frequency 1
group of very has 50% and 2 group Somewhat has 24% and 3 group Not at all has 8% and 4
group of Not secure has 18% of the total respondent.
 Question 5: Reason for using Mobile banking service offered by bank?

Frequency Percent Valid percent Cumulative

percent

Service are safe 40 40 40 40

Mobile Banking
provide anywhere 38 38 38 78
bill payment

Mobile banking
10 10 10 88
money transfer
facility

Mobile Banking 12 12 12 100.00

provide stop
payment for check
100.00 100.00 100.00
Total
Interpretation : The above pie chart is a representation of the respondent Reason for using
mobile banking service offered by bank in order to identify the demographic detail for the study
it shows that the frequency 1 group of Service are safe has 40% and 2 group Mobile banking
provides anywhere bill payment has 38% and 3 group Mobile banking provide stop payment for
cheque has 12% and 4 group of Mobile banking money transfer facility has 10% of the total
respondent.

Question 6: What do you think about the money transfer facility offered by
mobile banking system any bank?

Frequency Percent Valid Cumulative

percent percent
Good 54 54 54 54

Average 46 46 46 100
100 100.00 100.00
Total
Interpretation : The above pie chart is a representation of the respondent Reason for using
What do you think about the money transfer facility offered by mobile banking system any bank
in order to identify the demographic detail for the study it shows that the frequency 1 group of
Good has 54% and 2 group Average payment has 46% of the total respondent.

Question 7: What factors affect you to open mobile bank account?

Frequency Percent Valid percent Cumulativr

percent
Time saving 80 80 80 80

Cost saving 20 20 20 100.00

100 100.00 100.00
Total
Interpretation : The above pie chart is a representation of the respondent Reason for using
What Factor affect you to open mobile bank account in order to identify the demographic detail
for the study it shows that the frequency 1 group of Time saving has 80% and 2 group Cost
saving has 20% of the total respondent.

Question 8 : How did you get to know about mobile banking ?

Frequency Percent Valid percent Cumulative

percent
Internet 16 16 16 16
Friend 30 30 30 46
Bank itself 52 52 52 98
Newspaper 2 2 2 100.00
Total 100.00 100.00 100.00
Interpretation : The above pie chart is a representation of the respondent Reason for using
Hoe did you get to know about mobile banking in order to identify the demographic detail for the
study it shows that the frequency 1 group of Internet has 16% and 2 group Friend has 30% and 3
group Bank itself has 52% and 4 group Newspaper has 2% of the total respondent.

Question 9: Do you currently do any of you banking using a mobile app or

website on a mobile device?

Frequency Percent Valid percent Cumulative

Percent

Yes 84 84 84 84
No 16 16 16 100.00
Total 100.00 100.00 100.00
Interpretation : The above pie chart is a representation of the respondent Reason for using
Do you currently do any of your banking using a mobile app or website on a mobile device in
order to identify the demographic detail for the study it shows that the frequency 1 group of Yes
has 84% and 2 group No has 16% of the total respondent.

Question 10: How do you usually access your bank with your mobile device?

Frequency Percent Valid percent Cumulative

Percent
Using my 36 36 36 36

bank app

Using my
48 48 48 84
bank mobile
website

Using 16 16 16 100.00

different app
or website

Total 100.00 100.00 100.00

 Interpretation : The above pie chart is a representation of the respondent Reason for using
How do you usually access your bank with your mobile device in order to identify the
demographic detail for the study it shows that the frequency 1 group of Using my bank app has
36% and 2 group Using my bank mobile website has 48% amd 3 group Using different app or
website has 16% of the total respondent.

Question 11 : How often do you use a mobile banking app?

Frequency Percent Valid percent Cumulative

Percent

Every day 32 32 32 32

Once a week 42 42 42 74

22 22 22 96
Few time a month
4 4 4 100.00
Few time a week
Total 100.00 100.00 100.00

Interpretation : The above pie chart is a representation of the respondent Reason for using
How often do you use a mobile banking app in order to identify the demographic detail for the
study it shows that the frequency 1 group of Using my bank app has 36% and 2 group Using my
bank mobile website has 48% amd 3 group Using different app or website has 16% of the total
respondent

Question 12: What feature would you like to see in a mobile banking app?

Frequency Percent Valid percent Cumulative

percent
Easy account 36 36 36 36
access
32 32 32 68
Bill pay

Cheque 30 30 30 98
deposit
Fund transfer
2 2 2 100
Total 100 100.00 100.00

Interpretation : The above pie chart is a representation of the respondent Reason for using
What feature would you like to see in a mobile banking app in order to identify the demographic
detail for the study it shows that the frequency 1 group of Easy account access has 36% and 2
group Bill pay has 32% and 3 group Cheque deposit has 30% and 4 group Fund transfer has 2%
of the total respondent

Question 13: How frequently do you use of mobile payment (eg; GPay ,
Paytm) within a banking app?

Freqency Percent Valid percent Cumulative

percent

Frequently 20 20 20 20
 34 34 34 54
Rarely
30 30 30 84
Occasionally
16 16 16 100
Never
100.00 100.00 100.00
Total

Interpretation : The above pie chart is a representation of the respondent Reason for using
How frequently do you use of mobile payment (eg; GPay , Paytm) within a banking app in order
to identify the demographic detail for the study it shows that the frequency 1 group of Frequently
has 20% and 2 group Rarely has 34% and 3 group Occasionally has 30% and 4 group Never has
16% of the total respondent

Findings
 Mobile Banking is an easy and convenient service for its customer to operate their
banking transactions as per their convenience.
 It is found that mobile banking is a developing app for all type online banking
transaction.
 The bank’s which adopted mobile banking service has developed it as an app with
specialized feature .
 Most of the bank are adopting

 and implementing mobile based app for mobile banking transaction.
 Mobile banking is not only meant for banking transaction but also useful for investment
in mutual fund and also helpful for portfolio management.

Suggestion

 Convenienve : Mobile banking app enable 24\7 access to banking services , eliminating
branch visits.
 Easy to use : Mobile banking apps have user – friendly interface for easy navigation.
 Time saving : Mobile banking enable queue – free , fast , and efficient transaction.
 Security : Mobile banking apps provide secure authentication feature for user protection.
 Cost – effective : free mobile banking apps with lower transaction free than traditional
channels .
 Real- time updates : Mobile banking apps offer real – time notification for better financial
awareness.
 Access to financial service : Mobile banking apps offer bill payment, fund transfer, loan ,
investment.
 Sustainability : Mobile banking app are environmentally friendly, reducing paper based
transactions.
 Personalization : Mobile banking apps offer personalized financial advice based on user
transaction.

Conclusion
A recent survey indicates an exceptionally high adoption rate among digital banking users, with
89% of customers using their mobile devices for banking operations. Among millennials, this
number rises even further to 97%. In conclusion, Mobile Banking has revolutionized how
customers access financial services and has become an essential part of everyday life. Mobile
Banking technology has evolved significantly over the last few years. The market penetration of
mobile banking is growing rapidly, with consumers having access to a wide range of mobile
banking delivery channels, including SMS, USSD, WAP, PWA, and Mobile Apps.

Mobile App Banking has become an essential part of the banking sector. Banks must choose a
reliable and innovative Technology service provider, such as Modefin , to stay safe and secure
while providing mobile banking services. Modefin provides an innovative Mobile Banking
solution that offers multiple delivery channels, including SMS, USSD, WAP, STK, PWA, and
Mobile Apps.

Review of literature
According to a study by Smith et al. (2023), the increasing popularity of mobile banking apps
has transformed the landscape of personal finance management. The study highlights the
convenience and accessibility offered by apps such as 'Bank Mobile' in facilitating seamless
financial transactions and account management on-the-go."

Rao and prathina (2008) Indian bank offering mobile banking service still have a long way to
go but there is huge potential of mobile banking in india.
Kolodinsky, Hogarth and hilgert (2004) in their study suggested that relative advantage ,
simplicity, risk , product investment are associated with adoption in mobile banking.

Delvin (1995) Customer literally have very limited time for activitites like visiting a bank and
want a higher degree of accessibility and convenience.

Roger’s (1995) innovation diffusion model which has used attributes like compatibility ,
complexity , relative advantage has been used in their study . The findings indicate that
compatibility , relative advantage , case of use has a significant effect on attitude to adopt mobile
banking service.

Nsoui Saleh M. and Schaechter andrea (2002) Even though customer benefit a lot
through electronic banking there are lots of risk such a regulatory risk reputational risk and
operational risk.

Gan clemes limsogunchal and weng (2006) indicate that perceived risk factors, the
service quality.

BIBLIOGRAPHY
Introduction ( Wikipedia . com)

 www.researchgate.com

 www.paisabazaar.com

 www.ijrar.com
  www.mobilebanking.com

foebes.com

Big commerce.com

https:\ www. Researchgate.net\ publication \ 347910870_ The_ Relationship _ Between _

monetary _ Incentives amd _ Job _ Performance .

Appendix

QUESTIONNAIRE

Name

Are you above 18?

 Yes
 No

Gender
 Male
  Female

Educational Qualification
 High School
 Intermediate
 Under Graduate
 Post Graduate
 Other

1. Do you perceive Mobile Banking as secure?

 Very
 Somewhat
 Not at all
 Not secure

2. Reason for using Mobile Banking service offered by Bank?

 Services are safe
 Mobile Banking provide anywhere bill payment
 Mobile Banking provide payment for cheque
 Mobile banking money transfer facility
3. What do you think about the Money Transfer facility offered by mobile banking
system any bank?
 Good
 Average
 Poor
4. What factors affect you to open mobile bank accout?
 Time saving
 Cost saving
5. How did you get to know about mobile banking?
 Internet
  Friend
 Bank itself
 Newspaper
6. Do you currently do any of your banking using a mobile app or website on a mobile
device (smart phone or tablet)
 Yes
 No
7. How do you usually access your bank with your mobile device?
 Using my bank's app
 Using my bank's mobile website
 Using different app or website
8. How often do you use a mobile banking app?
 Everyday
 Once a Week
 Few time a Month
 Few times a Wee
9. What feature would you like to see in a mobile banking app?
 Easy Account access
 Bill pay
 Cheque Deposit
 Fund Transfer

10.How frequently do you make use of mobile payment (e.g; GPay , Paytm) within a

Banking app?

Frequently
Rarely
Occasionally
Never
 MINOR PROJECT

ON

A STUDY ON CONSUMER’S PERCEPTION TOWARDS

MOBILE BANKING APPS

A report submitted in partial fulfillment of the requirement for the award of the degree of

BACHELOR OF COMMERCE (B.COM)

Supervisor by: Submitted by:

Anubha Saxena Shikha Arora
Roll no. 2110332010164
SHRI GURU NANAK GIRLS’ DEGREE COLLEGE,
LUCKNOW,
LUCKNOW UNIVERSITY

DECLARATION

I, Shikha Arora , hereby declare that the project report entitled “A STUDY ON
CONSUMER’S PERCEPTION TOWARDS MOBILE BANKING APPS” submitted
in partial fulfillment for the B.COM of Shri Guru Nanak Girls Degree College
affiliated to Lucknow University, is a record of bonafied research by under guidance
of Anubha Saxena (Assistant professor), Shri Guru Nanak Girls Degree College ,
Lucknow

I declare that this research is my own , unaided work . It has not been Submitted
before any other degree , part of degree or any of other University
 Date Shikha Arora

Place : Lucknow B.Com(NEP)

Roll no: 2110332010164

6th Semester

Acknowledgment

I Express my sincere gratitude to my faculty guide MS. Anubha Saxena for their able guidance
, continuous support and cooperation throughout without which the present work would not have
been possible

They always made themselves available for guiding me in my endeavors their inspiration is
immense . Indeed working with them was a memorable experience.

Shikha Arora
 Table of Content
SR.NO CONTENTS PAGE NO:
1. List of table

2. List of figures

3. Introduction 1-4
4. Review of literature 5-18
5. Theoratical framework 19-25
6. Data analysis and 26-33
interpretation

7. Findings, Suggestions and 34-38

conclusion

8. Biblography 39

9. Annexure 40