`

FINAL PROJECT REPORT

“A STUDY OF IMPACT OF MOBILE TECHNOLOGY IN SBI BANK;

SUBMITTED BY

MAYUR GANDHI

B.COM (ACCOUNTING & FINANCE)

ROLL NO-28

ACADEMIC YEAR:2018-2019

UNDER THE GUIDANCE OF

Prof –PRATAP KADAM

UNIVERSITY OF MUMBAI

NCRD’S STERLING INSTITUTE OF MANAGEMENT STUDIES

PLOT NO. 93/93 A , SECTOR -19 NERUL ( E ) , NAVI MUMBAI 400706

 NCRD’S STERLING INSTITUTE OF MANAGEMENT STUDIES

PLOT NO. 93/93 A , SECTOR -19A NERUL ( E ) , NAVI MUMBAI 400706.

Institute Certificate

This is to certify that MR. MAYUR GANDHI ROLLNO. 28 is a bonofide student studying in

Bcom ( Accounting and Finance ) program Finance specialization , Sem- VI of the

Year university of Mumbai in this institute for the year 2018-19.As a part of the university

Curriculum he has completed a final project title as , “ A STUDY OF IMPACT OF MOBILE

TECHNOLOGY IN SBI BANK “under our guidance.

Prof- Pratap Kadam Dr. M.G.Gonda

Faculty Guide Principle

Place: Nerul, Navi Mumbai

Date:
 NCRD’S STERLING INSTITUTE OF MANAGEMENT STUDIES
PLOT NO. 93/93 A , SECTOR -19A NERUL ( E ) , NAVI MUMBAI 400706.

DECLARATION

I MAYUR GANDHI hereby declare that project work entitled “ A STUDY OF IMPACT ON
MOBILE TECHNOLOGY IN SBI BANK” is the original work done by
me under Prof. PRATAP KADAM faculty member,NCRD’S Sterling Institute of arts
commerce and science. Without the support and encouragement making this
report would have been impossible for me.

I would also like to thank the respondents who provided me their best
knowledge and co-operation throughout the project.

Signature

MAYUR GANDHI
B.com(Accounting & Finance) Roll
No:-28
Batch:-2018-2019
 ACKNOWLEDGMENT

I take this opportunity to express my profound gratitude and deep regards to my guide Prof.
PRATAP KADAM for his exemplary guidance, monitoring and constant encouragement
throughout the course of this thesis. The blessing, help and guidance given by him time to time
shall carry me a long way in the journey of life on which I am about to embark.

I Am obliged to TY BAF members of NCRD’S Sterling Institute of commerce, for the valuable
information provided by the min the irrespective fields. I am gratefulfor their
cooperationduring the period of my assignment.

Lastly, I thank almighty friends and college faculty for their constant encouragement
withoutwhichthisassignment would not be possible.
 EXCUTIVE SUMMARY

This report basically focuses on the “A STUDY OF IMPACT OF MOBILE TECHNOLOGY IN SBI
BANK”. This Bank provide service to their customer. Mobile banking continues to
demonstrate its potential to fundamentally change the way bank in developing markets
engage and deliver financial service to their customer.

The entire report has been prepared by us and gives opinion which is purely ours and facts
which exists and seen by us and completed within the limits imposed on us in the
form of time and data.
 INDEX

CHAPTER PARTICULAR PAGE NO

NO.

1 STUDY ON MOBILE TECHNOLOGY IN SBI BANK

1.1 Introduction 9

1.2 Design Of The Study 10

1.3 Scope Of The Study 11

2 INDIAN VIEW ON MOBILE TECHNOLOGY IN SBI BANK

12
2.1 History
15
2.2 Features
17
2.3 Advantages & Limitation
20
2.4 Hypothesis 21

3 LITERATURE REVIEW 22

RESEARCH DESIGN 24-25

4
4.1 Types Of Research

4.2 Research Method

4.3 Types Of Data

4.4 Sample Size

4.5 Sample Method

4.6 Data Collection Method

5 26-35
ANALYSIS & INTERPRETATION

36-37
ANNEXURE:QUESTIONNAIRE
6

MOBILE BANKING TECHNOLOGY AND

7 VARIOUS ADOPTION MODELS IN SBI
BANK

7.1 Mobile Banking Integration

38
7.2 Componenets Of Mobile Banking
39
Platform

7.3 Mobile Banking Technology 41

7.4 Mobile Banks Adoption Moels 49

8 SERVICES PROVIDED BY SBI bank

8.1 Mobile Banking New Age Idea 57

8.2 process of registering 59

61
8.3 services by SBI BANK
66
8.4 future functionalities in SBI bank
70
8.5 evolution

9 Findings, suggestions & conclusion

75
9.1 findings & suggestions
77
9.2 conclusion

10 Bibliography 79
 Chapter 1

Study On Mobile Technology in SBI Bank

Introduction:-
State Bank if India (SBI) is the largest bank with a network of more than 25000 branches spread
across India. The bank also has presence in 36 counties across the globe. The bank offers wide
range of products and services to both corporate and retail customers. The bank also has one of
the largest network of more than 59,000 ATMs spread across geographical locations. Bank also
provides services to its customers through alternate channels such as mobile banking, internet
banking etc. to expand further reach, bank is also forging ahead with cutting edge technologies
and innovative new banking models.

SBI invites expression of internet from companies wishing to be considered for short listing for
participating in bidding process of the proposed procurement of multi modal biometric
authentication (recognition of finger / face/ voice) for login and /or authentication of
transaction (financial/ Non financial transaction) For mobility channel transaction here in after
referred to as the solution in state bank of india here in after collectively referred to as state
bank of india or the bank. The proposed solution should be compatible to various mobile
banking products, such as mobile banking and wallet, UPI and to be provided by a bidder as
described in the scope of work.

9
 Design Of The Study

Objective:-

 To examine the various services provided by SBI.

 To identify the factors those influence of SBI banking services.
 To study the level of customer satisfaction towards the services provided by SBI bank
 To examine the expectations and the level of satisfaction of the customers towards the
service rendered by SBI.
 To make suggestions for improving the bank’s customer services.

10
Scope of the study:-

 Maximum usage of mobile internet is done by students as well as they are ready
to accept technological changes immediately. So, SBI bank may introduce
special promotional schemes for young users of E-Banking can become more
convenient for housewife so, special promotional schemes/ training leads to
higher level of acceptance of E-banking services among housewife.

 SBI Banks needs to develop effective system for mobile alerts. Where,
customers can get information about transaction in their accounts as well as
services/ offers available to them. This will increase customer satisfaction as well
as reduce chances of frauds.

 For senior citizens it is difficult to adopt new technologies. So, onsite/ physical
help should be arranged by SBI banks for E-Banking for this class of customer,
similar arrangement can be done for first time users also.

 Online bill payment provides convenience to customer as it is time saving.

However customers face various issues while payment of various bills online.
Bank. should handle these issues and take appropriate actions.
 Bank need to create effective customer care linkage where customer grievances
can be resolved promptly by customer care executives.

 The scope of offered services may include facilities to conduct bank and stock
market transactions, to administer accounts and to access customized in format.

11
 CHAPTER-2

Indian View On Mobile Technology In SBI Bank

History:-

Mobile banking is a services provided by SBI bank that allows its customers to conduct
financial transactions remotely using a mobile device such as a smartphone or tablet. Unlike
the related internet banking it uses software, usally 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.

Corporate customer

Firm/company/institution collecting payment from their beneficiaries.

User

The beneficiary making a payment to F/C/I for the services/goods availed.

Bank shall not be responsible, in any way, for the quality or merchantability of any
product/merchandise or any of the services related thereto, whatsoever, offered to the user by
the corporate customer. Any disputes regarding the same or delivery of the service or
otherwise will be settled between corporate customer and user.

Transactions through mobile banking depend on the features of the mobile banking app
provided and typically includes obtaining account balances and list of latest transactions,
electronic bill payments, remote check deposits, P2P payments, and funds transfers between a
customers or another accounts. Some apps also enable copies of statements to be downloaded
and sometimes printed at the customer’s premises.

The earliest mobile banking services used SMS, a services known as SMS banking. With the
introduction of smartphones with WAP support enabling the use of the mobile web in 1999, the
first European banks started to offer mobile banking on this platform to their customer.

12
Mobile banking before 2010 was most often performed via SMS or the mobile web. Apple’s
initial success with iPhone and the rapid growth of phones based on Google’s Android have led
to increasing use of special mobile apps, downloaded to the mobile device. Mobile banking may
also be used to help in business situations as well as financial.

There are a large number of different mobile phone devices and it is a big challenge for banks
to offer a mobile banking solution on any type of device. Some of these devices support SIM
Application toolkit, a web browser, or only SMS.

As with most internet-connected devices, as well as mobile-telephony devices, cybercrime rates

are escalating year-on-year. The types of cybercrimes which may affect mobile-banking might
range from unauthorized use while owner is using the mobile banking, to remote hacking, or
even jamming or interference via streams.

13
 Smart money: How mobile technology is transforming
banking industry

Till a few years ago, nobody imagined that mobile phones would be used to transfer money and
completed shopping transactions. But now, one doesn’t really have to visit SBI bank, stop by at
an ATM, or carry a plastic credit or debit card to make purchases.

A new wave of mobile technology solutions, including SBI mobile banking apps that turn any
smartphones into a fully operational personal bank, is sweeping through the banking industry.
With cash transfer between mobile phones increasingly becoming a reality, mobiles banking
could soon become as commonplace as internet banking.

Banks are now increasingly choosing mobile payments models and commerce capabilities. For
instance, the SBI bank recently launched a new mobile app that lets customers view their
current balance and spot the location of the nearest ATM with ,mere swipes on their screen.
Using the app’s dial feature, account holders could also transfer money to other accounts. It
also enabled contactless payments using iOS, android, and windows 8 phones, besides letting
customers activate cards and update PINs. They could also shop through their mobile phones
by tapping them at countries- a smart pay tag on the phones allowed it to be used for NFC tap-
and-go payments. In which the device communicated with a reader directly.

As bank provided apps enable customers to view payments requested by retailers and instruct
banks to make the related payments, it creates a secure channel that doesn’t necessitate third
part validation or authentication. Using these apps, customers can also make informed choices
about their payments and the accounts that they will operate, thereby enabling them to
manage their finance more efficiently.

Technology has caused the biggest shift in the banking sector in hundreds of years, changing
the way that banks engage with customers and even with each other. interestingly, most
people have a different take on digital banking. There is a lot more to digital banking than just a
few features that we can see on the surface.

14
 FEATURES:-

1. Online Trading
The online banking feature provides you the luxury of banking anytime and anywhere.
Throughout the year, website services are offered round the clock for internet banking;
except for time needed for website maintenance. To facilitate online use, SBI Bank
that offer online banking provide a host of high quality, technological solutions that
make your banking experience easy and fast.
2. Personal Finance Planning
These days, there is a lot of competition in the banking sector, and most banks want to
have an edge over other banks to be successful. Therefore, the SBI banks come up with
advanced websites that have several banking options. Some of the sturdy features of
digital banking on advanced websites are loan calculators, premium calculators,
financial planning tools, tools to help analyze investment, budgeting, forecasting, and
also tax preparation, etc.
3. Mobile Banking Options
Mobile banking is a service provided by bank that allows its customers to conduct
financial transactions remotely using a mobile device such as a smartphone or tablet.
Bank come up with several advanced apps that help in online banking from the smart
phones.
4. Unified Payment System(UPI)

Depositing money into someone’s account used to be a considerable hassle. One had
to visit the nearest branch of the respective bank and then, fill a deposit form. Once that
process was done, he or she had to get in line and make the payment. This process was
full of hassles and time consumption.

5. Digital Wallet

15
 Gone are the days when people used to carry cash in order to shop. Now mobile
wallets(m-wallets), or virtual wallets, have become quite popular. With these mobile
wallets, you can pay just by using your smartphone.
6. Non-Interest Based Phone Banking
Consumer banking has also been made more convenient on devices that do not have
an interest connection. These services include SMS, missed call and USSD banking.
With SMS and missed call banking services you are only required to send a text or give
a missed call on some specific numbers.
7. Digital Coupons And Cash Back
In marketing, a coupon is a ticket or document that can be redeemed for a financial
discount or rebate when purchasing a product. SBI bank give discounts on numerous
items you use in your day to day life through coupons and cash back.
8. Rewards And Loyalty Programs(s)
Today, there are two performance differentiators in banking; product uptake and
customer engagement. The good news is that these don’t have to be mutually
exclusive, the better news is that digital rewards & loyalty programs can fulfill both
simultaneously.
9. Automatic Bill Payments
That’s a lot of bills to judge even if they come once per month! through online SBI
bank allow you to link your bills directly to your account and have them paid on time
automatically. For every bill you set up.
10.Mobile Top-Up
This is one of the necessary features of any m-commerce and mobile banking app. Users
can recharge their mobile top- ups and STVs (special Tariff Vouchers) Anytime with the
app. It also eliminates your dependence on specific mobile top-Up apps.
11.ATM/ Branch Locator
This is another new feature added to the app. With it, you can locate the SBI ATMs and
branches in your region. It also tells you the nearest branch or ATM from your location

16
using your phone’s GPS functionally. This is a highly useful feature as it can help you in
tricky situations.

Mobile Banking- Advantages:-

 when and where your customers want Be available you to be:

SBI Mobile banking doesn’t restrict your business to set times/locations. Be
available 24/7- anytime, anywhere!

 Empower your customers:

Your users will be able to transfer funds, invest or exchange currency without
interruptions/suggestions from anyone, waiting time and quick turnaround on
requests.

 Go green, go paperless:
Deliver paperless statements directly into customer email addresses, while
saving the cost of printing, paper and delivery. The less wastage of paper makes
this solution environment friendly.

 Have a single view of customers:

Link your mobile banking application with the existing core banking solution to
know your customers better. study the customer’s profile and account
information to understand their financial habits for offering personalized
products/services.

 Provide super-fast services to customers:

With smart features of smartphones like the camera, enable your customers to
simply click pictures and initiate requests. For example open a new account by
clicking and submitting KYC documents online instantaneously.

 Safeguard customer details:

Share real-time updates on transactions executed, configure multi-level security
features like OTP to registered mobile for authentication via the banking

17
 application. Allow your customers to get in touch with bank staff using the
banking app.

 Streamline the contact details:

Allow your customers to get in touch with bank staff using the banking app.
LIve them options to chat/call at any point of time for help and feedback when
they feel stuck or need personal assistance for particular financial services.

 Stay efficient and complaint:

Minimize human errors, automate processes and become competitive using a
good SBI mobile banking solution. Also follow rules and guidelines
recommended by the regulatory bodies consistently. For those already using
mobile banking but looking for ‘extra’ advantages, upgrade now and delight
your customers!

Limitation:-

 Security:
Security experts of SBI Bank generally agree that mobile banking is safer than
computer banking because very few viruses and Trojans exist for phones. That
doesn’t mean mobile is immune to security threats. Mobile users are especially
susceptible to a phishing-like scam called ‘smishing’. It happens when a mobile
banking user receives a fake text message asking for bank account details from
a hacker posing as a financial institution. Many people have fallen for this trick
and had money stolen through this scam.

 Compatibility:
Mobile banking is not available on every device. Some banks don’t provide
mobile banking at all. Others require you to use a custom mobile banking
application only available on the most popular smart phones, such as the apple
iphone and rim blackberry.

18
 Cybercrime:
Cybercriminals exploit communication technology to steal financial information
and perpetrate identity theft. They do this by installing illegal spyware on
Peoples computers without their consent, or by exploiting security
vulnerabilities on online merchants websites to steal customers bank and credit
card details. Hackers also send out phising emails, which direct customers to a
bogus website. Such as a fake banking websites. Viruses and worms cause
computers to malfunction, and hackers sometimes use unwitting people’s
computers to generate spam email.

 Cost:
The cost of mobile banking might not appear significant if you already have a
compatible device, but you still need to pay data and text messaging fees. For
this service bank charge an extra fee for mobile banking service. And you may
need to pay a fee for software. These extra charges quickly add up. Especially if
you access mobile banking often.

 Privacy:
Communication technology is used to store as well as transmit information. By
its essential nature, the technology raises concerns about data protection and
privacy. States and federal laws govern data protection, restricting access to
sensitive financial or medical information to personnel who have a need to
know. However, sensitive information stored on a computer can be
compromised through gossip, carelessness or by people who have a grudge
against their employers.

19
HYPOTHESIS:
The study is based on the following hypothesis.
H1: there is a significant difference between demographic profiles of mobile banking users in
SBI bank.
H2: there is a significant difference between reasons for customers adoption of SBI mobile bank
services.
H3: there is a significant difference between customer usage of SBI mobile banking facilities.
H4: there is no significant variation between customers satisfaction towards SBI mobile banking
services.

20
 CHAPTER-3

LITERATURE REVIEW
Many studies have been conducted by researchers at online banking services. The researcher
has attempted to present a brief review of the available literature, which is published as
research articles and technical papers published in newspapers, magazines and websites in the
related area. The literature review is used for theatrical analysis made in this study. This study is
designed to test the knowledge, acceptance and disadvantages of online banking.

Girdhari (1989) in his paper has narrated the growth of privates sector banks and public
sector banks as a whole for a period of three years – 1989 to 1991. The growth figures and
percentage wise is narrated both wise. Important variable considered in the study include –
paid up capital, deposits, advances, credit to priority sector, investment, income, expenses,
gains and also on deposits of employees, progress, profit, investment branch, expenses etc.

Bar (1986) identified three main factors that affect the rate of realization of the potential
of a new technology. The first factor in the ‘opportunity’, defined as the adequacy of the
activities undertaken in the field of applications users of the new technology. Of course this
affects the speed at which technology is initially adopted within an industry, but more
importantly in the long run, it affects the rate at which innovation in process and products can
be generated once technology has been introduced.

Dixit and Datta (2010) traditionally internet banking refers to the development of a
website by a bank to provide basic information on their services and products. Today the word
‘internet banking includes providing services such as access to account to accounts, transfer
funds, and the purchase of financial products or services online’.

Basu in its research study presents a picture of the dynamic role that the commercial banking
system can play in assisting in the process of economic development in the country. The study
emphasizes detail the development of commercial banks in the period prior to nationalization
and paper sector diversified commercial banks have been called upon to perform in evaluated .

21
Rastogi in his study assessed trends in banking in India after nationalization. He made an
effort to determine how banks were able to meet the banking needs of the Indian masses.
Made an effort to suggest ways and means for the future development of banking. Data for the
study were collected from the reserve bank of India and various other directly or indirectly
involved in the task of developing banking institutions in the country. The reports of the various
committees and study groups appointed by the government of India and reserve bank of India
is also widely used in the study.

Yadav evaluated the work of the union bank in its northern and see if it was working on the
lines suggested by the government of India and reserve bank of India. With help of an analytical
and comparative study. researches tested whether syndicate bank has succeeded in the
northern part of the country and how far has been able to achieve the objectives of
nationalization by accelerating banking services in areas rural, remote and neglected areas.

22
 CHAPTER-4

RESEARCH DESIGN

1. TYPES OF RESEARCH: DESCRIPTIVE RESEARCH

Descriptive research can be explained as a statement of affairs as they are at present
with the researcher having no control over variable. Moreover, ”descriptive studies may
be characterized as simply the attempt to determine, describe or identify what is, while
analytical research attempts to establish why it is that way or how it came to be. It is
random research in which all the questionnaires are distributed among the customers
who have visited/used this product or service, by ensuring that all the answered
answers will be kept confidential. Through this type of research it made easy to analysis.

2. Research method
Survey, personal interview and questionnaire.

3. Types of data
The sources of data include both primary and secondary data

 PRIMARY DATA: primary data is collected with specific objective, especially to

address the research problem. The data is gathered by distributing a
questionnaire to the customer in the above mentioned bank.
 SECONDARY DATA: books, journal & internet.

23
4. Sample size
the sample size taken for the study is 22.

5. Sample method
To obtain the representative sample, a non probability sample can be drawn. In this
study he method of selecting sample is random i.e. it is non probable. Non probability
sampling is a sampling technique where the samples are gathered in a process that does
not give all the individuals in the population equal chances for being selected.

6. Data collection method

The tools used for analyzing data are rating method; graphs, pie chart etc. questionnaire
is distributed to the individual respondent and special care has been taken to make
him/her feel comfortable so that, he/she could answer all the questions. This method is
followed to get unbiased answers.

24
 CHAPTER-5

ANALYSIS & INTERPRETATION

1. Are you aware about mobile banking services offered by SBI bank?

Sr. No Option Respondents

1 Yes 21
2 no 1

Interpretation:
from the above chart we interpret that out of total sample respondent:

 95.5% of the respondent are aware

 And 4.5% of the respondent are not aware.

25
 2. What do you think about the bill payment services offered by SBI Bank?

Sr No. Option Respondents

1 Good 16
2 poor 1
3 average 5

Interpretation:
from the above chart we interpret that out of total sample respondent:

 72.7% of the respondents are think that bill payment services through mobile are good.

 22.7% of the respondents are think that bill payment service through mobile are poor.

 4.5% of the respondents are think that bill payment service through mobile are average.

26
 3. What do you think about the Stop Payment service offered by Mobile Banking
system of SBI Bank?

Sr No. Option Respondents

1 Good 7
2 Poor 3
3 average 11

Interpretation:
from the above chart we interpret that out of total sample respondent:

 52.4% of the respondent think it’s average if the bill payments services has been
stopped.
 33.3% of the respondent think it’s good for them.

 14.4% of the respondent think it’s poor for them.

27
4. Do you think mobile banking system is safe?

Sr no. Option Respondents

1 yes 17
2 No 5

Interpretation:

from the above chart we interpret that out of total sample respondent:

 77.3% of the respondent are saying that it is safe for them.

 22.7% of the respondent are saying that it is safe for them.

28
 5. Rate the overall satisfaction with Mobile Banking System of SBI Bank?

Sr No. Option Respondents

1 Satisfactory 15
2 Average 7
3 dissatisfactory 0

Interpretation:
from the above chart we interpret that out of total sample respondent:

 68.2% of the respondent are satisfied with the overall mobile banking system provided
by SBI bank.
 31.8% of the respondent are average satisfied with the mobile banking system provided
by SBI bank.

29
 6. Reason for using Mobile Banking services offered by SBI Bank?

Sr No. Option Respondents

1 Services Are Safe 11
2 Mobile Banking Provided 7
Any Where Bill Payments
3 Mobile Banking Provides 0
Stop Payments For
Cheques
4 Mobile Banking Money 4
Transfer Facility

Interpretation:
from the above chart we interpret that out of total sample respondent:

 50% of the respondents are saying that services are safe.

 31.8% of the respondent are saying that mobile banking provides any where bill
payments.
 18.2% of the respondent are saying that mobile banking provides money transfer
facility.

30
 7. What do you think about the Balance Enquiry Facility Provided by Mobile banking
facility?

Sr no. Option Respondents

1 Good 16

2 Average 5

3 poor 1

Interpretation:
from the above chart we interpret that out of total sample respondent:

 72.7% of the respondent are saying that balance enquiry facility provided by SBI is good
for them.
 22.7% of the respondent are saying that balance enquiry facility provided by SBI is
average for them.
 4.5% of the respondent are saying that balance enquiry facility provided by SBI is poor
for them.

31
 8. Are you using Mobile Banking services offered by SBI Bank?

Sr no. option respondents

1 yes 10

2 No 12

Interpretation:
from the above chart we interpret that out of total sample respondent:

 45.5% of the respondent are saying that they use mobile banking services offered by SBI
bank.
 54.5% of the respondent are saying that they did not use mobile services offered by SBI
bank.

32
 9. What do you think about the Money transfer facility offered by Mobile
Banking system of SBI Bank?

Sr no. Option Respondents

1 good 15
2 Average 7
3 Poor 0

Interpretation:
from the above chart we interpret that out of total sample respondent:
 68.2% of the respondent are saying yes about money transfer facility.

 31.8% of the respondent are saying no about money transfer facility.

33
10. Reasons for Not Using Mobile Banking Services offered by SBI Bank?

Sr no. Option Respondents

1 Not aware about the 6
services
2 Don’t think mobile service 4
are secure
3 Other reason 12

Interpretation:
from the above chart we interpret that out of total sample respondent:
 27.3% of the respondent are not aware about the services.

 18.2% of the respondent are don’t think that mobile service are secure for
them.

 54.5% of the respondent have some other reason.

34
 ANNEXURE: QUESTIONNAIRE

1. Are you aware about mobile banking services offered by SBI bank?
a) Yes
b) No

2. What do you think about the bill payment services offered by SBI bank?
a) Good
b) Poor
c) Average

3. What do you think about the stop payment service offered by mobile banking
system of SBI bank?
a) Good
b) Average
c) Poor

4. Do you think think mobile banking system is safe?

a) Yes
b) No

5. Rate the overall satisfaction with mobile banking system of SBI bank?
a) Satisfactory
b) Average
c) Dissatisfactory

6. Reason for using mobile banking services offered by SBI bank?

a) Services are safe
b) Mobile banking provides any where bill payments

35
 c) Mobile banking provided stop payments for cheques
d) Mobile banking money transfer facility

7. What do you think about the balance enquiry facility provided by mobile banking
facility?
a) Good
b) Average
c) Poor

8. Are you using mobile banking services offered by SBI bank?

a) Yes
b) No

9. What do you think about the money transfer facility offered by mobile banking
system of SBI bank?
a) Good
b) Average
c) Poor

10. Reason for not using mobile banking services offered by SBI bank?
a) Not aware about the services
b) Don’t think mobile service are secure
c) Other reason

36
 CHAPTER -4

MOBILE BANKING TECHNOLOGIES AND VARIOUS

ADOPTION MODELS In SBI Bank

The chapter contains the mobile banking technologies, empirical and theory based mobile
banking adoption models. These models like TAM, TRA, TBP, DTBP and IDT indicates were
regularly engaged to examine all influences factors of mobile banking adoption and other
mobile banking technologies like IVR, WAP, SMS, USSD, J2ME etc. originate core determinants
to define the adoption of mobile banking facility and its chapter also contains the components
the associates of mobile banking and participations of mobile banking services.

1. Mobile Banking Integration:-

The mobile banking technology is the most similar to the web banking paradigm. It requires
an applications either a browser based like opera mini, firefox, internet explorer and a more
advanced mobile phones to run it. A smartphone is a mobile device with more superior
computing capability and internet access applications. A smart device has a large display
menu with internet facility and a highly version operating system like android, capable of
running general purpose applications. In mobile banking services a lot of integration is
involved in different activities.
There are four primary players involves in delivery of a mobile banking services to
the customers.

37
  A Bank Organization
A financial establishment a bank invests finance deposited by customers, pays it out as
per requirement and bank accept deposits, clear check/money and other financial
transactions to customers.

 The customer
The bank organization and mobile network operator as to have taken an interest and
realized the potential value of exploring the mobile device amongst their respective
customer bases. Some private and public banks can realize the full potential of mobile
banking facility by offering customers experiences.
 The Mobile Network Operator
The customer is provided the mobile banking services through the mobile network
operator.
 The Mobile Banking Technologies Vendors
The mobile banking technologies vendors to communicate with customers via SMS
banking that are allowed by SBI bank. The bank facilitate like credit limit alert,
notification of transactions or other alert messages provided by mobile banking. Mobile
banking clients can withdraw money from authorizes banks when an ATM machine is
not available. They can use SMS to transfer money between accounts, pay various bills
and also move money between private individuals.

2. Components of mobile banking platform

There are following four components of mobile banking platform.
 Application development environment (ADE)
The application development environment offers the actual service to the customers,
such like bank menus and commands. The application development environment

38
 promotes the intelligence delivered to the customers handset, both side client or
service side.
 Network Bearer Channels(NBC)
The network bearer channels carries main data and other services. The aim of the
network bearer channels is to carry the contents of the bearer channels visibly between
the endpoints of the call. The bearer channel is the channel that carries the main data
and to facilitate the usage of the network’s bearer channels and the mobile service
would require integration into an MNO.
 Data Repository Store (DRS)
For the processing of financial transactions the data store has enough customer
information like Customer Name, Account Number and Total Amount etc. the data
repository would also have sufficient information to validate the customer in each and
every transaction. By housing transactional and consumer data, the repository would
also facilitate customer care and the settlement of certain financial transaction that use
the application development environment to fulfill services.
 Financial switch (FS)
The financial switch would act as the mediator to the banking system. Directions
composed by the application development environment through the MNO interface and
using data from the data repository are translated through the financial switch into a

39
 transaction format.

Data Repository

Mobile
Application
Network Bearer Banking
Development
Components

Financial Switch

Components of Mobile Banking Platform

3. Mobile Banking Technologies

Mobile banking technologies can be categorized into two environment:
Server side technology:
Server side technologies are those applications built on a server side away from the
customers SIM or Mobile devices. In server-side Applications, customer data that
enables the processing of transactions are typically, customers data that enables the
processing of transactions are typically stored in a highly secured environment, on a
server side. Examples of server-side technologies are Interactive Voice Response (IVR),
Short Messaging Service (SMS), Wireless Access Protocol (WAP) and Unstructured
Supplementary Service Data (USSD).
Mobile banking is being deployed using mobile applications developed on one
of the following six technologies.

40
 Interactive voice response(IVR)
Interactive voice response is the conventional technology. This is the form of customer
face to face interaction mobile banking technology. Interactive voice response is an
automated telephonic system that interacts with callers; collect information and routes
calls to the appropriate recipient.
An IVR system takes a combination of voice telephone input and touch-tone
keypad selection. IVR provides appropriate responses in the form of voice, fax, e-mail
and through other media. IVR applications are programs that control and respond to
calls on the IVR platform. IVR applications can either be developed by an enterprise, by
an IVR development shop or by other IT companies that offers IVR applications.
Interactive voice response have a pre specified numbers and IVR service operates
through pre-specified numbers that banks advertise to their customers. Customer’s
make a call at the IVR pre specified number and are usually greeted by a stored
electronic message followed by a menu of different options. Customers can choose any
required options by pressing the corresponding number in their keypads and then
interpret the corresponding information.
An IVR system consisting of telephonic device. Software applications, Backend
servers, which include databases, mainframes, java platform or other applications
servers, third part information services and a supporting infrastructure.

IVR includes some below information like:

 Bank and Stock account balances related information.
 Money transfer related information.
 Office calls routing, call center forwarding and entry transactions information.
 Telephony infrastructure includes telephone lines, call switching tools and call
center automatic distributors etc.

Limitations of IVR
IVR has some major limitation.

41
 IVR can be used only for enquiry based services.

IVR is more expensive as compared to other channels as it involves making a voice call
which is generally more expensive than sending an SMS or making data transfer.

Steps Of Using IVR

Before
contact
point

Post
At contact
contactv
point
point

During
Agent
interaction

During
transfer

Interactive voice response(IVR)

There are following steps of using IVR technology:

 Firstly IVR allows a telephone caller, to select options from a voice menu of SBI banking
and interact with the mobile device.
 After that a pre-recorded voice menu is displayed and the caller presses a number for
example press 1 button for yes, press 2button for no indication on a telephone keypad
to select an option.
 Then speech recognition machine can also understand the caller’s simple spoken answer
such as “yes”, “no” or a number as a valid response to the voice menu.

42
 After three steps IVR requires registered customers to make a call to a pressed
telephone number and be answered by a pre-recorded voice that represent a various
menu options to the bank customer.
 After that the IVR system would then take then necessary directions from the customer
by recording the tones of the customers enters on the key pad like yes/no or through
spoken commands and creates an instruction that is given to the service provider.

 The service provider would use the customer mobile number forwarded by the network
operator to identify as verification.

 Short messaging services (SMS)

SBI quick – MISSED CALL BANKING is a free service from the bank where in you can get
your account balance, mini statement and more just by giving a missed call or sending
an SMS with pre-defined keywords to pre-defined mobile numbers from your registered
mobile number. Please ensure that your mobile number is updated in your account to
be able to register for this service.
If you have an android, windows, iOS or blackberry phone, you can download SBI quick
appfrom the respective app store. SBI anywhere can avail SBI quick facility in the pre-
login section. With this app you need not remember the various keywords and
destination mobile numbers. Once app is installed, internet connection is not required
to use SBI quick, as the communication would happen over SMS or missed call. Note
that mobile app is not mandatory for using this facility.
 Balance Enquiry
 Last Few Transactions
 Cheque Paid Status
 Suspend ATM/Debit Card
 Loan Balance Enquiry
 Deposit Service

43
 SMS banking sends many alert facilities to customers. There are two types of
services available. SMS PUSH Alerts and SMS PULL Alerts.

A. SMS PUSH Alerts Services:

The largest lander in india, the state bank of india (SBI) ha on multiple occasions
taken various measures to make sure cash and digital transactions are carried out
properly so as to nip finance terrorism in the bud. After scrapping daily debit card
cash withdrawal limit at bank ATM, the lender has now moved to make sure that
there is transparency in terms of digital transactions. If you are and SBI customer,
then make sure have linked your SBI bank account with your phone number by end
of this month, as SBI has mentioned that the customers who have not registered
their mobile number with their bank account will not able to carry out internet
banking from next month.
SBI will not allow you to carry out any internet banking transactions from December
01, 2018 and what is more, you have to do the linkage before November 30, 2018.
However, your bank will continue to operate for you normally, it will be only your
internet banking access that will be banned.
Generally, you register your mobile number during bank account opening. However,
in case you have changed your phone number, then resident customers can
register/update their mobile number through online SBI.
You can also register your mobile number by visiting your branch, for NRI customers,
a written communication need to be sent to the branch through post.
 Your mobile number should be registered with SBI
 In the internet banking site, click the SMS Alerts link in the requests tab.
 You are displayed a list of your accounts.
 Select the account for which you wish to enable SMS alerts and click ok.
 To send an alert message when the account balance goes above the
maximum balance specified by the customers.

44
  To send an alert when the transaction amount is debited and when a cheque
is bounced.
 To send the end of day balance of the specified account given by the
customer.

B. SMS PULL Alert Services

 Account Balance Enquiry
 Mini Statement Request
 Various E-Bill Payments
 Foreign Currency Exchange Rates Enquiry
 Fixed Deposit Interest Rates Enquiry
 Transfer Between Customers Own Accounts
 Requesting For An Debit Credit Card To Be Suspended
 De Activating A Credit Or Debit Card When It Is Lost

Push
SMS Based

SBI Mobile pull

Banking
Application
Based All

Short Messaging Service(SMS)

 Wireless Access Protocol(WAP)

45
 Wireless access protocol uses a similar concept that used in internet banking. Bank
maintain WAP sites which customer’s access using a WAP compatible browser like
Google Chrome. Vista etc. on their mobile phones. WAP sites offer the familiar form
based interface and can also implement security quite effectively. WAP specifies an
application framework and protocols for wireless devices.
A WAP based service requires hosting a WAP gateway. Mobile applications
framework and protocols for wireless devices. WAP is a kind of fusion of mobile
networking technologies and internet technologies. The key features of WAP
including programming models and wireless markup language. This language is
especially for specifying and displaying content on WAP devices. Wireless telephony
application provides extensions for telephony services like call features control
mechanisms, voice mail, messaging, phone-book management etc.

 Unstructured supplementary service data (USSD)

USSD is a session based technique and can provide an interface dialog between the
users and a certain set of applications. USSD is a menu driven technique of SMS
where a customer would receive a text menu on their mobile phone. USSD is a data
bearer channel in the GSM network like SMS, it transports small messages of upto
160characters between the mobile handset and the network. Mobile network
operator do, however, need to commercialize the product by establishing the
necessary bearer channel billing capability and promoting the use of USSD for value
added services.
There are two types of communication allows in USSD technique:
 USSD1 only allows one way communication to the network. The interaction
between the user and the service would be broken into each communication
segments, like SMS segments.
 USSD2 allows two way communication between the user and the network. It
would be held in the same session and allow for a flowing conversation
between the user and the service. This is similar to e-mail and instant

46
 messaging. E-mail waits for the recipient to read and respond while as
instant messaging allows for immediate dialogue.

Client- Side Technology

Client side technology is those application, solution and services offerings built
or embedded on a consumer SIM or Mobile handset. Example of client-side
application are SIM based applications toolkit and Java 2 micro edition. In client
–side application, the customer data is typically stored on the application or
entered by the customer side and encrypted by the application in the SIM. Most
of mobile banking services can be deployed using more than one technology or
channel.
 SIM Based Application Toolkit
the SIM based application Toolkit is a standard of the GSM system which enable the
SIM to initiate actions which can be used for various value added services. The SIM
application toolkit consists of a set commands programmed into the SIM card which
define how the SIM should interact directly with the customer and initiates
commands independently of the handset and the network. This enables the SIM to
build up an interactive exchange between a network application and the end user.
The SIM also gives commands to the handset, such as ‘display menu’.
 Java 2 Micro Edition
Standalone mobile application is a java 2 micro edition technique. It holds out the
most promise as they are most suitable to implement complex bank transactions like
trading in securities.
If mobile client wants to use standalone mobile application on their mobile device,
which require to be downloaded on that device, which further requires the mobile
device to support one of the many development environments like j2me or
Qualcomm’s BREW. J2ME is fast attractive technique to deploy the mobile
application and requires the mobile phone to support java platform. they can be

47
 easily customized according to the user interface complexity supported by the
mobile.
The demerit of mobile application client is that the applications need to be
customizes to each mobile phone on which it might finally run. J2me connect
together the application programming interface for mobile phones which have the
similar functionalities. API specify a set of functions that complete a specific task and
allowed to interact with specific software components.
Merit of using a mobile application client is that it can implement a very secure and
reliable channel of communication with end-to-end encryption.

4. Mobile Bank Adoption Models

The following three mobile banking adoption models:
According to the policy paper issued on regulatory frame work of mobile banking by SBI
there is only bank- led model allowed. Non-bank model will only be allowed afterwards
when players included in system get that much mature to have a limited control on a
system. Mobile banking can be implemented by using One-to-one model, One-to-many
and many-to-many model.
One-to-one model:
In this model only one bank gets in agreement with a telecom company to provide
mobile banking services to the customer. The scope is limited because the services is
specific to one telecom customers but good service standard, greater customization
and opportunity of co-branding and co-marketing.
One-to-many model:
In this model a bank is in agreement with many telecom companies and provides service
of mobile banking to their customers and everybody who has mobile phone can reach to
the mobile banking service. There are several drawbacks of this model one is the
telecom cannot prioritize the mobile banking SMS services in order to provide quick
transactions, secondly financial institution has to bear all expenses related to

48
 advert/marketing, lastly bank is responsible for the agreement of product distribution
and cash inflows and outflows.
Many-to-many model:
In this model many banks interact with many telecom companies in order to provide
services to all those customers who have bank accounts. System leads under this model
require a central transaction processing system which is handled by a financial
institution or a third party who had agreement with bank.

 Various apps provided by SBI

1. SBI Anywhere personal

What is state bank anywhere?
It is state bank of india retail internet banking application offered on mobile. The
application is available at Google play store, APPLE app store and blackberry app world
for android, apple and blackberry smartphones. SBI retail internet banking users can
download the application from respective application market places and access the
application with interne banking username and password. The hindi version of the
application state bank of India are also available in the respective market places.
What is m-passbook
m-passbook or mobile passbook is yet another innovative offering through state bank of
india. This is an electronic passbook, which can be used for strong and recording your
transaction account activities. Transactions can be synced/ updated manually into your
m-passbook at any time of the day after logging into your device. This is an added
convenience to viewing and monitoring your transactions history, without m-passbook
is absolutely free of charge is part of state bank anywhere, every SBI retail internet
banking user can download state bank anywhere from google play store and start using
m-passbook
what is m-passbook offline?

49
m-passbook offline is a newly introduced feature in state bank anywhere, whereby
users can view their m-passbook transactions, offline without the need for any network
connectivity. All the m-passbook offline, user need to enter internet banking
“username” and “M-passbook PIN.”
Create /reset m-passbook PIN
 As a one-time activity, login into state bank anywhere application, and go to
“settings” menu at the bottom create/reset m-passbook PIN.
 Once created kindly sync/update your account m-passbook so that you are able
to view them offline, anytime, anywhere without the need for any data
connectivity.
Viewing/using m-passbook offline
 The “m-passbook” link would appear on the login page itself, user would not be
required to login into internet banking account, to view m-passbook.
 Clicking on m-passbook link, user is prompted to enter “username” and the 4
digit PIN created earlier and “submit”
 After successful validation of the PIN locally, user is displayed the list of
transaction account numbers to select.
 Once the user selects the particular account, the m-passbook opens up in
landscape mode populating all the transactions, already synced earlier.
How secure is state bank anywhere?
State Bank Anywhere is a secure and robust application. The following measures are put
in place to protect our esteemed customers.
 No personal information is stored on your mobile phone or SIM card.
 The application force closes, if kept for 5 minutes.
 The application can only be accessed after proper authentication of customer
username and password.
 SSL encryption is used protect your communication with the bank.
 Your session ends as soon as you close the application.
 Your session also closes automatically after 5 minutes of idle time.

50
 What are the daily limits through this application?

Transactions Types Daily limit

Intra-bank, inter-bank up to a cumulative of rs.1000000 per uer

Up to a cumulative of rs.200000 per user

credit card (visa) bill pay

Quick transfer using IMPS 25000/- per transaction

Funds transfer Up to a cumulative or rs.5000 per day user

Instant term deposit

Up to a cumulative of rs.20000000/- per

Recurring deposit
user

Mobile top-up & DTH recharge Up to rs.50000 per user

Bill pay Up to rs.500000 per user

2. YONO ( You Only Need One)

YONO is an integrated digital banking platform offered by State Bank of india (SBI) to
enables users to access a variety of financial and other services such as taxi bookings,
online shopping, or medical bill payments. YONO is offered as a smartphone app for
both Android and Ios.
YONO was launched on Friday24 November 2017 by Arun Jaitely , THE Finance minister
of India. YONO offers services from over 60 e-commerce companies including online
shopping, travel planning, taxi booking, online education and offline retail. YONO also
offers conventional mobile banking services such as bank account opening, fund
transfer, cashless bill payments, and loans.

3. BHIM SBI Pay

51
 “BHIM SBI Pay (UPI app of SBI) is a payment that allows account holders of all banks
participating in UPI to send money, receive money and do online bill payments,
recharges, shopping, etc. using their smartphones.
Sending & Receiving Money
What is the upper transaction limit for sending or requesting money using BHIM SBI
Pay?
 Per transaction and per day limit is rs.100000/- in BHIM SBI pay, at present.
 You can do a maximum number of 20 transactions per day within the rs.100000/-limit.

Online shopping/bill payments

Whether I can make online shopping, bill payments, mobile recharge, etc through BHIM
SBI PAY?
 You can do online shopping, bill payments, mobile recharge and various other
activities through the APP.
 Users can avail various offers and benefits, which are offered by merchants and
shops by shopping through BHIM SBI pay?

Complaints
If have any issues with UPI transactions, how can raise a complaints ?
 Login to BHIM SBI pay

 Click on history to view all in recent transactions

 Select the transaction and click raise dispute button
 Select dispute type, enter remark
 Click submit
If there is any other query or complaint you can also write to support.upsbi.co.in

52
4. SBI Card
SBI card mobile apps is one of the highest rated in its category, both on android and iOS
and is completely secure. You can register directly via the app or access your account
using convenient login options like MPIN or touch ID or online credentials.
The SBI card mobile apps lets you.
Access your cad details:
 Account summary – details of dues, payments made
 Card statement
 Unbilled transactions
 Transactions and payment history by date
 Available limits for cash and credit
 Reward points summary, including available redemption offers
 Trending deals available on your card
 Access FAQ or self-help to sort queries immediately
Perform transactions on-the-go:
 Pay outstanding amounts
 Manage/redeem reward points or set goals
 Book travel directly through E-STORE with one click
 Can to pay using Bharat QR.

5. SBI Loans
Country’s largest lender State bank of India launched an online customer acquisition
solution through which one can apply for home, car, education and personal loans
online.
SBI chairperson arundhati bhattacharya launched the application that will help
customers gauge their eligibility and get a quote personalized to their requirement, the
bank said in a statement.
“customers will instantly get an e-approval on filling the online form. Thereafter, the
.bank officials will contact customers and complete all the loan formalities. Customers

53
 can also upload all necessary documents online. This will help in empowering the
customer and also educe the processing time of their loan,” it said.

6. SBI Buddy App

State bank of india (SBI) introduced an e-wallet named SBI buddy in august 2016 to
promote cashless transactions amongst the citizens of the country. However few
people paid attention to it or other digital wallets until the day after the announcement
of demonetization. From November 9, 2016 onwards, Indians realized the necessity of
e-wallets and started downloading them on their smartphones. Some of these apps
have become quite popular since then and one of leading apps people are using
regularly is SBI buddy.
Here, we will answer a few commonly asked questions to help you become acquainted
with the SBI buddy app.
What is SBI buddy and how to download it?
SBI buddy, previously known as eRupee, is an e-wallet app that you can install from your
google play or apple store. You can start using it by simply registering your mobile
number. In fact, you do not even need to have an account in SBI to use SBI buddy.
One of the USPs of SBI buddy is that it is available in 13 languages. Once you have
downloaded the SBI buddy app, you can register your mobile number to start using it.
Being a digital wallet, you need to fund it by adding money to start making bill payments
or sending money.
It is a free app, you only need to be connected to the internet to use it.
Who is eligible for SBI buddy?
Any indian citizen above 10 years of age and holding a valid mobile number is eligible to
download and use the SBI buddy app and its services.
How to make payments using SBI Buddy?
SBI buddy is like any other prepaid e-wallet that you can use to transfer money to a
registered or new user or make payments while shopping. Since it is a semi-closed
prepaid wallet, you need to “load” your wallet using net banking. Credit or debit card to

54
use it for payment. You can also pay your bills, books tickets for movies, recharge your
phone, and shop online using SBI buddy.
All you need to do is, enter the mobile number of the receiver or scan his QR code and
enter the amount and description (reason for payment) to make the payment.
There is no minimum balance required in SBI buddy account. You can maintain it at a
zero balance without facing any penalties. However, there is a limit on the maximum
balance you can have submitted you KYC form, the maximum balance limit rs.50000 at
any point in time. If you have not submitted your documents, you can have a maximum
balance of rs.20000. in addition, your total reloads in a month cannot cross this limit.
The funds transfer limit oer transaction on SBI buddy for people who have submitted
their KYC documents is rs.5000. this is also the daily limit while the monthly limit is
rs.25000. for people who have not submitted their KYC documents, the limit per day as
well as per transaction is rs.2000. these people can transfer a maximum of rs.20000 in a
month through the SBI buddy app.
Yes. There will be a 3% free in addition to applicable service tax charges levied on the
amount you transfer from your SBI buddy account to your bank account.
The home screen of the SBI buddy apps has four buttons labeled ask money, send
money, add money and recharge and pay bills. This gives you easy accessibility to the
major features of the SBI buddy. Unlike many other e-wallets where you need to browse
to a different page to check your balance, it is visible at the top of the main screen in the
SBI buddy app.

55
 CHAPTER -5

SERVICES PROVIDED BY SBI Bank

After having discussed review of work done by various researches and research
methodology in the previous chapter, this chapter attempts to describe the services
provided by mobile banking.

1. MOBILE BANKING: NEW AGE IDEA

Mobile phones gave become an integral part of the 21 st century landscape with an
expected penetration of 4.5 billion by 2011. While North America and Europe have
the highest penetration rates, reaching 100% in many western countries, South
America and Asia represent the fastest growing mobile markets. In developing
countries, the role of the mobile phone is more extensive than in developed
countries, as it helps bridge the digital divide. The mobile phone is the one device
that people already carry at all times, and services beyond voice and text messaging

56
and booming all over the globe. Users want the same kind of services for their
mobile phone that they get through an internet-connected PC. But cost is an
important factor, as new services will be widely adopted, but pricing must be
carefully considered, since internet users have come to view the service as free.
people living in emerging markets or remote regions of Africa, South America and
Asia who don’t have a bank account or a computer still often own a mobile phone,
which can provide them with access to basic financial services.
Mobile phones represent a cost-effective solution for users, financial institutions and
operators ,allowing them to bridge the digital divide in places where traditional
banking and internet services are too expensive or simply nonexistent. Easy access
to financial services is widely accepted as a good thing: users have access to credit
and can securely manage their money, financial institutions expand their user base
and process more transaction, and governments benefit from the effect credit has
on lower-income sectors of the population and can better track funds distribution
within their country. Wireless devices can give users easy, 24/7, access to financial
services bringing the next market revolution – mobile banking, mobile payments,
mobile wallets, mobile money transfer and other financial services – to users
everywhere. Indeed, while the rate of internet banking user growth has stabilized,
mobile banking is spiking and market analysts say that more than 800 million people
will use the services by 2011. The dramatic increase in mobile usage has been
followed by an increase in mobile fraud, and although eager to use mobile financial
services, many subscribers are concerned about the security aspect when carrying
out financial transaction over the mobile network. In fact, lack of security is seen as
the biggest deterrent to the widespread adoption of mobile financial services.
Internet transactions suffer from the same problem, as do traditional payment
transactions….. fraud prevention has become a pressing need across all models of
financial transactions.
The last time that technology had a major impact in helping banks service
their customers was with the introduction of the internet banking. Internet banking

57
 helped give customer’s anytime access to their banks. Customer’s could check out
their account details, get their bank statements, perform transactions like
transferring money to other accounts and pay their bills sitting in the comfort of
their homes and offices. Mobile usage has seen an explosive growth in most of the
Asian economies like India.
Still, the main reason that mobile banking scores over internet banking is that it
enables ‘Anywhere Banking’.
2. Process of registering for the mobile service
 Register for getting User ID
 Send SMS<MBSREG>to9223440000 or 567676
 You will get a user ID and default MPIN and also a WAP link to download
the mobile banking application (if you have a GPRS connection)

 Downloading the mobile banking application onto your mobile

handset:
 Your handset should be java enabled
 If you have GPRS connection, you can download the application using the
WAP link that you received along with the user ID.
 ELSE, go to our website, www.sbi.co.in and click on services –mobile
banking. You can download the appropriate mobile banking application
using data-cable or Bluetooth.
 Based on the mobile phone it may be installed under applications/ gams/
installations.

 Login
 After downloading the mobile banking application, click on icon state bank
freedom.
 Enter your user ID

58
  Click on the option
 Choose login
 You will be prompted to accept terms and conditions of the service. After
accepting the terms and conditions, the screen change MPIN will appear.
 If not prompted, go to settings- change MPIN.

 Change MPIN
 Under old MPIN – enter the MPIN received over SMS
 Using scroll button go to the next field New MPIN
 Under new MPIN – enter a MPIN of your choice.(6characters/digits)
 Scroll down to the next field confirm new MPIN
 Click option. Choose change.
 Accept the terms and conditions.
 SMS – “Your MPIN is changed” is received
 Activation over online SBI
 After logging into “OnlineSBI”, selected ‘eservices’ and click on ‘state bank
freedom’ from the list on the left side. Ensure that the MPIN is changed
before this step and you receive a message that handset validation
completed. Select ‘Registration’ from the options available on top. The list of
accounts enabled for the onlineSBI user will be displayed. Select the account
(only SB/ CA) to be enabled for mobile banking service and submit. This will
be primary account for the service. Only one account can be registered
through OnlineSBI.
 If any other accounts are to be enabled for mobile banking, please visit your
branch. In such cases, all the enabled accounts (maximum5) have to be
linked for you to use them. This explained under manage self accounts.
 Business Rules

59
The daily ceiling is re.50,000per transaction per customer for fund transfer /
purchase of services/ goods and for bill payments with a calendar month limit of rs.
2,50,000 per customer

3. MOBILE BANKING SERVICES

Banks offering mobile access are mostly supporting some or all of the following
services:
1. Account Statement Enquiry
2. Cheque Book Requests
3. Fund Transfer Between Accounts
4. Credit/Debit Alerts
5. Recent Transaction History Requests
6. Bill Payment Alerts
7. Information Request Like Interest Rates/Exchange Rates
One way to classify these services depending on the originator of a service is
the ‘push’ is when the bank sends out information based upon an agreed set
of rules, for example your banks send out an alert when your account
balance goes below a threshold level. ‘pull’ is when the customer explicitly
requests a service or information from the bank. So a request for your last
five transactions statement is a pull based offering. The other way to
categorize the mobile banking services, by the nature of the service, gives us
two kind of services – transaction based service and enquiry based. So a
request for your bank statement is an enquiry based service and a request
for your fund’s transfer to some other account is a transaction- based
service. Transaction based services are also differentiated from enquiry
based services in the sense that they require additional security across the
channel from the mobile phone to the banks data services.

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 Classification Of Mobile Services
Push Based Pull Based

Transaction  Fund transfer

Based  Bill Payment

 Other financial services like
share trading.

Enquiry Based  Credit/Debit Alerts  Account Balance Enquiry

 Minimum Balance  Account Statement Enquiry
Alerts  Cheque Status Enquiry
 Bill Payment Alerts  Cheque Book Requests
 Recent Transaction History.

The mobile banking services are discuss hereby with taking state bank of India mobile
banking as an example.

Balance enquiry

Until the mobile app and net banking services were offered to people, the account
passbook and ATM were the two main options for people to do a balance enquiry. Until
the demonetization drive initiated by the indian government, many people that even
had registered for net banking still used ATMs to check account balance .
send as SMS ERG XXXXXXXXX to 09223488888, where XXXXXXXXXX is your SBI account
number. Make sure you send the SMS from the mobile number registered with your
bank. After you get a confirmation message, you will be able to use toll free numbers to
get mini statement, account balance and other details about your bank account.

There are plenty of reasons why balance enquiry is carried out more frequently by
people as compared to other banking transactions, such as:

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  To ensure that the account has sufficient funds for money transfer, cheque
payment, etc.
 To check if the money sent by the receiver has been credited to the account.
 To make sure that the amont debited for a transaction that failed has been
credit back.
 To see if the interest (in a savings accounts) has been deposited by the bank on
time

Mini statement

Nowdays all the banks provide android and iOS apps to make sure their users can easily
access their account information without even paying a visit to their banks. But some
banks like State bank of India (SBI), also provide missed call banking services. They
provide toll free numbers, which when dialed, returns users their account’s which when
dialed, returns users their account’s mini statement, account balance and many other
account details in the form of text messages. SBI also allows its customers to sebd
messages to a particular number, with a particular text to get desired information.
Give a missed call to 09223866666 and you will receive a mini statement for your bank
account free of cost. You can also send a text message with the text MSTMT to
09223766666 to receive a mini statement.

Fund Transfer

Fund Transfer is transferring money from your own enrolled accounts(savings and
current accounts) to any savings and current accounts. However, transferring to
another person’s account requires an enrollment. Time deposit and consumer loan
accounts cannot be used as a source or destination accounts for fund transfer. MBS
offer following fund transfer facilities: fund transfer from your account enabled for
mobile banking to a registered payee, having account with banks.

Imps- Interbank Mobile Payment Service

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This facilitates fund transfer to accounts based on the mobile number and an identifying
number called MMID. No registration of payee is required. You should know the
beneficiary’s mobile number and MMID for transfer to accounts with other banks
happens instantaneously.

 Log on to SBI anywhere personal

 Click on fund transfer -- IMPS- mobile no & MMID
 Select debit account and credit account
 Enter the amount to be transferred and click on submit
 Click on confirm button
 Approve the transaction using OTP (one time password) received on your
registered mobile number by clicking on submit button.

DEMAT Account Service:

A demat is to your shares what a bank account is to your money. Simply put, it is the
account that holds all your shares in electronic or dematerialized from. Like the bank
account, a demat account holds the certificates of your financial instruments like shares,
bonds, government securities, mutual funds and exchange traded funds (ETFs). You
cannot trade in the stock market without a demat account. There are two depositories
in India – the CDSL and NSDL. They hold all the demat accounts. The central depository
holds details of your shareholding on your behalf like banks. Each demat account has a
unique number for identification purposes. This is the number you need to provide for
transaction. The number will help the exchange and companies identify you and credit
the shares in your account.

Cheque Book Request

You can request for a cheque book online. Cheque book online. Cheque book can be
requested for any of your savings, current, cash books with 25, 50 or 100 cheque leaves.
You can either collect it from branch or request your branch to send it by post or courier
. cheque nook will be dispatched within 3 working days from the date of request.A

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cheque is a document that orders a bank to pay a specific amount of money from
person’s account to the person in whose name the cheque has been issued. A cheque is
a payment instrument that is issued by a bank account holder for making payments to
an individual or company and cash withdrawals from the bank. Apart from that, it also
facilitates funds transfer to another bank account. For instance, you can make cash
payment for a utility bill or you can do it by writing a cheque. The biggest benefit of a
cheque is that it allows high value transactions which may become a bit cumbersome if
hard cash was used instead.

Bill Pay

you can pay your utility bills using SBI mobile banking Apps. The facilities under this are
get help, add billers, view bill, pay bill, view scheduled bills, cancel scheduled bill etc. for
utilizing the bill pay services, you have to know the biller’s ID and the format required
for registering the billers for the services as the same vary from centre to centre. You an
get the biller ID and format as under:

Get format: each biller requires the input to be given in a certain format for registration
of the same. To get the format for each biller:

 Enter the city and biller ID in the biller name and choose get format from
options.
 You will get a SMS with the format e.g. format for a viva is policy no, client ID.
Mobile Top Up
Top-up & recharge your mobile phones, DTH and data cards with over 15 billers
in a single click, and cherish the joy of simplified living.
 Receive SMS and e-mail alerts on new biller additions and payments
 Get freedom from long queue and delayed bill payments

PAY NOW

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  Click on log in now and then click on top up & recharge on the left navigation
bar
 From the list provided, select the biller category
 Choose the biller you want to make the payment to.
 Accept the disclaimer and T&Cs. You will now be asked to provide your bill
details and subscribe ID.
 Enter SBI card details to process payment.

4. FUTURE FUNCTIONALITIES IN SBI MOBILE BANKING

Banking is becoming increasingly less personal, and customers seem to like it
that way. At a time when bank branches are disappearing by the hundreds.,
many folks don’t seem to care. In fact, an expansive are far better off
concentrating on creating great mobile experiences than on upgrading their
physical locations. The preference show up in a variety of ways: customers are
one-third more likely to enjoy a mobile transaction than a bank visit; those who
use branches are three times more likely to switch banks than those are
infrequent than using an app. Those results came from a bain financial services
practice survey of 114,696 consumer in banks across the world. More than half
the millennials are already using non-traditional payment methods such as
PayPal. The major driver for this increased usage is convenience and ease. less
than 30% consumers of advanced age, however, use non-traditional payments.
Gen y is therefore more likely to use mobile wallets than their predecessors are.
With better penetration , better transaction support is required. 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

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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 capitalize on the features
unique to mobile, such as location-based services.
The Social Scenario
Peer-to-peer transfer, loans and other transaction are likely to increase and the
finance industry is perking up to make the best of it. Person to person lending
yields lucrative return on investment and the industry is poised to take full
advantage. P2P affords efficient transfer and once regulations are in place,
traditional banks will have to reconsider.

New Opportunities For Cross Selling

Cross selling put in simple terms means value addition to the customer. It can
help both the bank and customer.
Let us consider that you are maintaining a balance of 10000 in our SBI SB
account. It is roughly calculated that it costs around 2500 to the bank to
maintain this amount. This includes stationery costs, interests offered to you,
services offered through ATM, cheque book and so on. But bank gets only 500 in
return for this amount. So to add the value and to reduces the difference, bank
focuses on cross selling like selling insurance products, mutual funds etc..
As a customer, we will also get benefitted by taking insurance policies and
investing in mutual funds and so on. Also, customer may get attracted by looking
at the various products offered and he may stick with the bank in the future.
Something More Than Knowledge

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Knowing does not endear the consumer to mobile banking. Trust and confidence
that are achieved through experience will endear the consumer. Bank need to
invest more in this area by familiarizing them with the benefits and ease of
mobile banking. Today’s consumer is aware of the dangers of the internet.
Reassurance that their money is safe will go a long way to increase mobile wallet
use.
The Free Mobile Wallet
A free gift is always attractive. SBI bank should collaborate with mobile service
providers to devise new plan for mobile money transfers. Payment with plastic
card is a familiar and easier option to the mobile wallet. Most customers prefer
to be safe using a procedure with which they are familiar. New plans with no
additional costs will encourage customers to use the cheaper option of mobile
wallets.
Separate The Tablet And The Mobile
Which both the tablet and the mobile phone are considered mobile devices, they
differ in usage and the type of customers who use them. Tablet users are
generally older and more mature than mobile users. They share a longer lasting
relationship with bank. They are generally affluent and well-placed individuals.
Recognizing the difference and understanding it can provide better opportunities
to both the bank and their customers.
Changing Approach
The approach to retail selling is changing as stores strive to meet the diverse
demands of the mobile customer. The consumer now demands rather than
accepts the features of the mobile banking apps of the relatives. Demands vary
from simplicity to complex all-inclusive apps that provide entertainment, save
time, and yet are simple to use.
New Shop Windows
Mobile apps are becoming the new shop windows. These windows showcase
products and services right inside the customers’ homes. According to forrester

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research, banks indulge in very little marketing and product research. Even so
popular belief has it that customers will now search or financial products just as
they do other products on smart phones and tabs. Mobile play stores are
becoming the single window for every product and service. Applications via
mobile stores will increase and the Gen Y consumer who seeks advice and not
advertisement will shape the future of mobile money according to Gina Bleedorn
of Adrenaline.
Mobile Wallet Acceptance
Although the mobile wallet is yet to catch on, Capgemini says that m- payments
will grow in future. Apple pay and similar services are the payment method of
choice for the Gen Y set. What is required is proper back-end to support the m-
pay process. Says David Brear of Gartner, banks and other financial institutions
have to establish new channels of communication with the consumers. Domic
Venturo of U.S. bank seconds this by saying that although wearable device
solutions for meeting the consumer demands will be basic to begin with, the
move to contact fewer terminals is a given outcome of mobile banking.
As mobile banking gives firms the ability to fully engage in conversations with
customers through their mobile devices, coordination of a “business workflow”
across different banking systems is required. In order to accomplish this, mobile
banking providers must establish open ways to access these different sources of
information. This “connectivity” is crucial to delivering fully mobile banking. By
opening up the mobile channel to multiple back-end and third-part systems or
networks such as VisaNet, mobile payments hubs such as CashEdge or PayPal,
remote check-deposit capture technologies such as those offered by Mitek, or
contextual marketing determining when to present offers, banks can capitalize
on the full systems capabilities of the mobile phone as a consolidation point of
all other existing bank channels – e-mail, online, customer service, and mobile-
specific SMS or push notification alerts. In order to provide authoritative value
to customers and produce strong adoption (and with it, definitive ROI), third-

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 generation mobile banking solutions must empower institutions to use the
mobile channel as an extension of and integrative point for existing technologies.
This will instantly resolve consumer issues and complete tasks faster and more
economically – making alerts fully actionable. many financial institutions and
mobile vendors today, however, still are tied to basic core functionality, either
because they developed a non-scalable, non adaptable elementary mobile
solution, or because they signed binding contracts with core financial technology
providers in order to rush a baseline mobile solution to market. The smart
mobile banking solutions of tomorrow must anticipate the future expectations of
consumers and recognize the potential that the mobile channel represents – a
technology set to increase customer loyalty and satisfaction via conversation
creation.
5. The Evolution of Mobile technology in SBI Bank
Mobile devices are reshaping the world as we know, gradually transforming our
lives, daily behaviors, and how we do business with banks. Together with the
evolution of mobile technologies, customers are evolved, pushing bank to be
more consumer-driven.

 Fulfilling customer needs

In the beginning of the smartphones era almost a decade ago, it was easy
to impress customers with the possibilities new devices and technologies
provided; the leap of progress was huge, even maybe it was a small
change presented as a new way of dealing with the convenience. Over
the years, customers shifted to mobile devices, adopting new
technologies with the goal of simplifying their lives and demanding more
from bank. Mobile banking stands out from the rest of the industries
affected by mobile technology due to millennials’ willingness to use
feature- rich banking apps. A study by the federal that millennials’ mobile
banking usage in now close to 70% compared to 18% of consumers aged
60 or over. As the way in which we handled our finances changed,

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 banking also needed to keep up with mobile trends to survive in a
mobile- first customer environment by tailoring their businesses to suit
customers’ needs and creating SBI mobile apps.

 Improving Customer Experience

Not long ago, it was a common practice to go directly to bank branch
to make a simple transaction or transfer funds. Then came
telebanking, and then bank finally spruced up their websites and
started offering services on the web. However, with the mobile
evolution, opening a mobile bank app on a smartphone is a strong
alternative to going to bank branch. The ability to access information
in just a few clicks from our smartphones changed how we access our
bank accounts. With a mobile banking app, customers can check their
bank balances, transfer funds, or make payments in just a few seconds.
In a recent Nielsen survey, nearly half of the global respondents (47%)
said they had checked an account balance or conducted a transaction
on their mobile devices in the past six months, and 42% said they had
paid a bill using their mobile devices.

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 Creating new sales and communication channel
Customers have evolved from passive recipients to hyper- informed
one, constantly looking to get more from their mobile devices.
Therefore, SBI mobile banking needed to extend the portfolio of
services offered by mobile apps, resulting in new sales and
communication channels. By adding some simple services to their
mobile apps, such as checking bank balances and transferring funds,
realized the enormous potential those apps have for their customers
and their business. Banks started building mobile apps with more
complex services available, such as requesting loans, opening savings
accounts, or making mortgage payments. The report also showed a
trend of customer opening new accounts through opening new
accounts through mobile apps, with sales increasing by 50% over the
previous year. Tracking customer behavior in apps by interpreting
collected data creates a chance for banks to offer products and
services that better fit their customers need.

 Reducing operational costs

Banking apps are not only fulfilling customers needs but also
lowering bank operational costs by reducing the need for physical
branches. However, this does not mean that jobs at bank branches
will disappear; these employees will simply need to jump into
different roles. Customers still have positive perceptions of physical
branches due to the human touch they provide when it comes to
long- term financial decisions, such as mortgages. the shift will
require employees nad bank to open new, customer-oriented
departments to provide individual and personalizes support,

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 focusing on small business loans, personal investment advice, and
help with the onboarding process and mobile issues.

 Mobile banking experience

Mobile banking is growing and evolving rapidly, pushing
innovation in the first plan. We are witnessing the dawn of new
mobile solutions that are trying to change the mobile banking
experience from the inside out. Simple and moven are working on
changing the banking experience as we know it. Their mobile
solution include all the regular services you would expect from a
banking app, such as tracking expenses and making mobile
payments. However, they are paving the way and raising the bar
for other players on the market by building apps and integrating
exciting new features. With simple you can create goals. A goal is
a digital envelope that allows you to save and stash away funds
daily. Users can set aside discrete amounts of money for specific
purposes and effectively hide money from themselves before they
spend it. On average, simple customers who use these goals save
twice as much as those who do not. Moven’s mission is to change
how people engage with their banks by delivering mobile-first,
customer- centric solutions. Moven is a financial service provider
that creates digital bank accounts and provides an innovative app
that provides real- time insights to empower users to make
informed decisions that directly affect how they save and spend
money.

 The new breed: mobile- only banks

SBI Mobile banking adoption resulted in a few banks trying to
position themselves as pioneers of a new type of banks: mobile-
only. While all major banks provide some form of mobile banking,
with either a smartphone app or a mobile websites, these new

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 banking players only offer digital solutions and do not have a single
physical branch.

 The future of mobile banking

The evolution of mobile banking has begun, with biometric
security, smart automated savings, and deep expense analyses
being introduced. So, what can we expect in the near future? With
the rise of virtual digital assistants, such as siri, Cortana AND
Google Now, and apps being opened up to third- party developers,
mobile banking will become completely consumer-centric.as digital
assistant capabilities become smarter with every OS update, users
will not even need to tap on their users to manage their bank
accounts, make payments, and analyze their spending. Bankers will
need to acquire a much deeper understanding of their customers
and push services that go beyond transactional. Connecting data
from third-party apps, learning about customer’s saving habits,
and analyzing customer’s spending behaviors will allow banks to
create complete profiles of individuals and lead to powerful
intelligent interfaces. This will result in complex portfolio
management tools that allow users to obtain complex risk analyses
on long-term investment and assistance when applying for
mortgages, high-yield bonds, or stock market bonds. Over one-
third of the world’s population now owns a smartphone, and in the
next four years, that piece of the pie will expand to 70%. With one
in three adults relying on mobile banking by 2020, customers will
push banks in one direction if they want to survive: going mobile.

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 Chapter-6

Findings, Suggestions and conclusion

Findings & suggestions:

Based on findings and suggestions on mobile technology awareness, adoption, experience and
satisfaction, the following suggestions are made to make further improvements in these
aspects of mobile technology.
1. The SBI bank have to initiate steps to educate the customers about new banking
services/ new products, ATMs, online banking, mobile banking etc. the banker may have
to conduct different programs like customers day, customer meet and customer
campaign in which they can directly interact with their customers and educate them
about their new products/ services.
2. Bank should take prompt and timely action to ensure the smooth functioning of ATMs.
Customers should be relived from their apprehensions and make them feel comfortable
while using ATMs.
3. For adoption of internet banking, it is necessary that the banks offering this service
make the consumers aware about the availability of such a service and explain how it
adds value to their banking needs.
4. Since mobile banking has great growth potential in the future as it provides greater
accessibility to the bank customers, bank should initiate urgent steps to encourage the
customers to avail of the wide range of services delivered through mobile banking now.
Bank should grow from initial level of SMS banking to WAP banking as it opens up more
opportunities to the customers to conduct any banking transaction through their mobile
handsets.

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5. User ID and password is one of the major struggle faced by the customers because it
requires to using alphanumeric combinations in the user ID. It is found very difficult for
the customers to use the alphanumeric letter, number and symbol used in their
password. Therefore the bank should allow to adopting any one format whether
number or letter with proper security measures.
6. It is recommended that the bank website are updated with the dat to day charges for
services and made user friendly.
7. SST (self service technology) usage can be motivated by conducting awareness
programs.

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Conclusion:
Mobile banking usage was predominant among younger age groups who had completed at
least higher secondary level of education. It was used mainly for checking SMS alert on bank
transactions. The customers felt that mobile banking was easy to learn but wanted the banks
to be fair in customer service policies following transactions. They also expected security in the
usage of mobile banking. Bank have to work in the minimization of risk related to day to day
transactions performed through mobile devices to enables customers to build up trust in the
banking services being offered. In the advent of IT revolution, innovative and quality services
are the survival factors to meet the requirement of global competition.

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 BIBLIOGRAPHY & WEBLIOGRAPHY

WEBLIOGRAPHY:
 www.google.com
 www.wikipedia.com
 www.sbibank.com
 www.rbi.org.in

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