c c
c


The principal objective of this report is to provide the readers a thorough

understanding of the concept of

Telebanking.

After going through many articles, websites, books and publications, I have

been able to

enhance knowledge and clear my doubts regarding the concept.

This project is aimed at understanding the

telebanking in India. The project

is an attempt to trace the development of

e-banking services in India and

the response of producers and insurance companies ³ .

The project starts with a brief understanding of size and scale of the

Indian

banking sector

This project gives an understanding about the evaluation of telebanking

services in India . the advantages and diaadvantages of telebanking services

Contents

?erial

no.

Chapters.

Page

 

1)
G)

3)

4)

5)

6)

7)

8)

9)

10)

11)

rowth of Tele- Banking

A Tele Banking Conceptual Model

TELE Banking In India

Advantages and Disadvantages of Tele

Banking

Sms Banking

I.T in Banks

Case Study of tele banking of OBC

Mobile banking ICICI Bank

Examples

Conclusion

Bibliography

6-9

10 ± 16

17 ± G0

G1 ± G3

G4 ± 31
3G ± 36

37 ± 38

39± 59

60 ± 64

65 ± 73

74 ± 75

75

 owth of TELE Banking in India

INTRODUCTION
Telephone banking

is a service provided by a

a
 al
 
, which

allows its customers to perform

a
a
over the telephone.

Most telephone banking services use an automated phone answering system

with phone keypad response or voice recognition capability. To guarantee

security, the customer must first

ae
 aethrough a numeric or verbal

a 

or through security questions asked by a live representative With

the obvious exception of cash withdrawals and deposits, it offers virtually all

the features of an

a aeellea
e: account balance information

and list of latest transactions,

ele
 llaye
,


a

e

between a customer's

a 
, etc.

Êsually, customers can also speak to a live representative located in a

all

e
e

or a a
, although this feature is not always guaranteed to be

offered G4/7. In addition to the self-service transactions listed earlier,

telephone banking representatives are usually trained to do what was

traditionally available only at the branch:

l a
applications,
ee


purchases and redemptions,

eqe orders, e areplacements,

change of address, etc.

Banks which operate mostly or exclusively by telephone are known as


ea


. They also help modernize the user by using special

technology.

Telephone banking is a service feature offered by many banking institutions.

The process involves using the keypad on a touch-tone telephone to perform

a variety of banking functions. Along with traditional banks, phone banking is

also utilized extensively by

l
ea

ginstitutions, including banks that

conduct business primarily with the use of telephone technology.

The concept of telephone banking has been around for several decades.

Initially, the process required manual intervention by a bank employee.

Customers would call into the bank, answer questions to verify their

identities, and submit

qe eto the service representative. While

somewhat

la 
e
 e, this approach did make it possible to conduct a

number of banking transactions from the comfort of home.

With the advent of touch-tone services, the idea of telephone banking took

on a new direction. Instead of connected with a live bank representative,

customers could use the keypad on a touch-tone phone to enter an

automated system and obtain information on bank accounts as of the latest

posting day. One advantage of this newer approach is that bank customers

could call any time of the day or night and check the status of their accounts.

As technology continued to progress, the scope of functions that could be

performed with the automated system expanded, making the service even

more valuable to customers.

There are several ways that a telephone banking service may be configured.

?ome function off a validation process that includes

 ee g


before access to the customer accounts is granted. Other systems make use

of login credentials such as user names and pass codes that must be entered

using the telephone keypad. Once the customers enters the correct data, the

automated system makes it possible to perform a wide range of functions in

relation to the accounts connected with the login credentials.

The typical bank telephone customer can access his or her accounts to

perform a variety of functions. Balances can be checked and the latest

activity can be reviewed. The customer can also transfer funds between

accounts using telephone banking, as well as order more checks, make loan

payments, or request information on other services the bank offers.

In addition to use by traditional banks, telephone banking is also utilized by

virtual banks that rely heavily on telephone and Internet access to process

transactions and provide information to customers. Telephone banks

generally function primarily by establishing access credentials that can be

used on any telephone with touch-tone service. In addition, the transactions

or queries can be conducted around the clock, an advantage that allows the

telephone bank to seek clients in any area of the world where the bank is

authorized to conduct business.

MOBILE BANKING (also known as M- banking, ?M? banking etc.) is a term

used for performing balance checks, account transactions, payments etc. via

a mobile device such as a

  le
e. Mobile banking today (G007) is

most often performed via

or the   le
e
ebut can also use

special programs called clients downloaded to the mobile device.

ORIGIN: Mobile banking probably had its origin in November 1946.In India,

the first bank on wheel was launched by the bank of Patiala in 1950

Internet banking helped give the customer's anytime access to their bank

s. Customer's could check out their account details, get their bank

statements, perform transactions like transferring money to other accounts

and pay their bills sitting in the comfort of their homes and offices. However

the biggest limitation of Internet banking is the requirement of a PC with an

Internet connection, not a big obstacle if we look at the Ê? and the European

Mobile banking ± The Future White Paper Overview Abstract This paper

describes the basic concepts, services offered, market survey and

technology which enables Mobile banking. Over the last few years, the

mobile and wireless market has been one of the fastest growing markets in
the world and it is still growing at a rapid pace. This opens up huge markets

for financial institutions interested in offering value added services. With

mobile technology, bank s can offer a wide range of services to their

customers such as doing funds transfer while traveling, receiving online

updates of stock price or even performing stock trading while being stuck in

traffic. Mobile devices, especially smart-phones, are the most promising way

to reach the masses and to create ³stickiness´ among current customers,

due to their ability to provide services anytime, anywhere, with high rate of

penetration and potential to grow.


TH  MBILE BANKIN :-

Mobile commerce has also increased significantly Cell phone banking

is cheap, secure, efficient and, more than anything, convenient.

ATM? and internet banking have been around in India for a while.

While both modes have had some success, penetration and use levels have

been moderate.

While ATMs offer convenience, they pose a perceive security threat in

India given instances of mugging around them. ?enior citizens and women

appear reluctant to use ATMs if they have a choice to go to a branch and

withdraw money in safety. The security situation in India shows little sign of

improvement and therefore a large scale proliferation of ATMs will remain a

challenge. Internet banking, on the other hand, relies on PC and internet

penetration. Estimates suggest that there are approx 40 million internet

users which is expected to rise to 100 million soon ± despite this growth,

penetration and use levels remain low, especially in non-metro areas.

Research also suggests that internet banking is picking up amongst the

target user group.

While internet penetration and use in India is relatively low, mobile

phone penetration is much higher and growing rapidly. There are over G00

million mobile phone subscribers in India and the number continues to

explode. Financial services companies are now working with mobile payment

players like mChek to offer innovative mobile phone solutions to urban and

rural Indian population. Reserve bank of India has restrictions on non- bank

involvement in money transfer. Therefore, development of mobile financial

services applications is being sponsored primarily by bank s in India.

Economic Times reports that Citigroup has tested a proposition which

allows brokerage to respond to margin calls or enhance credit limits, by

authorizing transactions over the mobile phone. Once the customer and

broker sign up for the application, the process is carried out by PIN

validations. A one-time PIN is generated for each transaction, which is

verified by the customer, after which the bank validates the transaction and

sends it to the broker. Once the transaction is completed, the customer is

intimated on his mobile phone again. City and m-Chek are also exploring the

possibility of a similar offer for mutual funds. They have also launched a

mobile application which enables farmers to receive money for sale of

produce through their mobile phones. These payments take the form of

µintent to pay¶ information that can be cashed at partner bank s. The paper

also reports that Visa recently announced the launch of its Visa Money

Transfer on Mobile service, which will enable money transfer via the mobile

phone. Initially, this service will be a pilot program available to Visa

cardholders of Corporation bank , HDFC bank and ICICI bank . The recipient

can be a Visa cardholder of any bank in India and the money can be

transferred to his/her mobile phone or Visa card.

Mobile banking has the potential to bring a whole host of people that
have no/little access to land lines/internet connections onto the electronic

platform ± an innovative way to generate financial inclusion. To do so

successfully will require customer training, technology stabilization and

managing carefully the µknow your customer¶.

One newspaper extracts represents the banker¶s sentiment on the

growth and concern towards mobile banking given below:

Mobile banking guidelines likely in a fortnight Mumbai

As Indian banks gear up to offer mobile banking as

the next step in payment systems, they also need to

address customer concerns with regard to security.

The dependence of bank s on mobile payment service

providers would place the knowledge of customers in public domain.

Therefore, banks would need to take adequate risk control measures to

manage such risks and protect sensitive customer data

P
eaay e
al y ae 

aey

eaeaae
a  lea

g ga
eya

e

Mobile Banking ConceptualModel

Ô. A mobile banking conceptual model

In one academic model,

Ë
 mobile banking is defined as:

"Mobile banking refers to provision and availment of banking- and

financial services with the help of mobile telecommunication devices. The

scope of offered services may include facilities to conduct bank and stock

market transactions, to administer accounts and to access customized

information."
According to this model Mobile banking can be said to consist of three

inter-related concepts:

  le  

g

  le eage

  le
a
 al

a
e e

Most services in the categories designated

 

gand

 eage

are transaction-based. The non-transaction-based services of an

informational nature are however essential for conducting transactions - for

instance, balance enquiries might be needed before committing a money

remittance. The accounting and brokerage services are therefore offered

invariably in combination with information services. Information services, on

the other hand, may be offered as an independent module.

G. Trends in mobile banking

The advent of the


e
ehas revolutionized the way the financial

services industry conducts business, empowering organizations with new

business models and new ways to offer G4x7 accessibility to their customers.

The ability to offer

a
 ala
a
online has also created new

players in the financial services industry, such as online bank s, online

brokers and wealth managers who offer personalized services, although such
players still account for a tiny percentage of the industry.

Over the last few years, the mobile and wireless market has been one

of the fastest growing markets in the world and it is still growing at a rapid

pace. According to the

   a
and , the number of mobile

subscribers exceeded G billion in ?eptember G005, and now exceeds G.5

billion (of which more than G billion are

).

According to a study by financial consultancy

l e
, 35% of
l
e

a

g

households will be using mobile banking by G010, up from less

than 1% today. Êpwards of 70% of bank center call volume is projected to

come from mobile phones. Mobile banking will eventually allow users to

make payments at the physical [[[point of sale]]. "Mobile


ale

aye


´ will make up 10% of the contact less market by G010. Ë

Many believe that mobile users have just started to fully utilize the

data capabilities in their

  le
e. In Asian countries like 
 a,


a

, a
glae, 

e aand P l 
e, where mobile

infrastructure is comparatively better than the fixed -line infrastructure, and

in

c ea
countries, where mobile phone penetration is very high (at

least 80% of consumers use a mobile phone), mobile banking is likely to

appeal even more.

This opens up huge markets for financial institutions interested in

offering value added services. With mobile technology, bank s can offer a

wide range of services to their customers such as doing funds transfer while

traveling, receiving online updates of stock price or even performing

 

a
g

while being stuck in traffic. According to the German mobile

operator Mobil COM, mobile banking will be the "killer application" for the

next generation of mobile technology.

Mobile devices, especially

a
e, are the most promising way

to reach the masses and to create ³stickiness´ among current customers,

due to their ability to provide services anytime, anywhere, high rate of

penetration and potential to grow. According to

a
e, shipment of

?martphone¶s is growing fast, and should top G0 million units (of over 800

million sold) in G006 alone.

In the last 4 years, bank s across the globe have invested billions of

dollars to build sophisticated internet banking capabilities. As the trend is

shifting to mobile banking, there is a challenge for CIO¶s and CTOs of these

bank s to decide on how to leverage their investment in internet banking

and offer mobile banking, in the shortest possible time.

[ a

eee]

10

The proliferation of the

(third generation of wireless) and

widespread implementation expected for G003±G007 will generate the

development of more sophisticated services such as multimedia and links to

m-commerce services.

^. Telebanking business models

A wide spectrum of Mobile/branchless banking models is evolving.

These models differ primarily on the question that who will establish the

relationship (account opening, deposit taking, lending etc.) to the end

customer, the bank or the Non- bank /Telecommunication Company (Telco).

Another difference lies in the nature of agency agreement between bank and

the Non- bank . Models of branchless banking can be classified into three

broad categories - bank Focused, bank -Led and Non bank -Led.

 a

e el

The bank -focused model emerges when a traditional bank uses nontraditional

low-cost delivery channels to provide banking services to its

existing customers. Examples range from use of

a a elle

a
e

(ATMs) to internet banking or mobile phone banking to provide

certain limited banking services to bank s¶ customers. This model is

additive in nature and may be seen as a modest extension of conventional

branch-based banking.

a
le el

The bank -led model offers a distinct alternative to conventional

branch-based banking in that customer conducts financial transactions at a

whole range of retail agents (or through mobile phone) instead of at bank

branches or through bank employees. This model promises the potential to

substantially increase the financial services outreach by using a different

delivery channel (retailers/ mobile phones), a different trade partner (telco /

11

chain store) having experience and target market distinct from traditional

bank s, and may be significantly cheaper than the bank -based alternatives.

The bank -led model may be implemented by either using correspondent

arrangements or by creating a JV between bank and Telco/non- bank . In this

model customer account relationship rests with the bank


a
le el

The non- bank -led model is where a bank does not come into the

picture (except possibly as a safe-keeper of surplus funds) and the non- bank

(e.g. Telco) performs all the functions

u. Tele & Mobile Banking Services

Mobile banking can offer services such as the following:

 
e 
y a


Phone Banking services are a combination of IVR and Agent offering,

depending on the type of transaction. For all transactions that cannot be

completed on the IVR such as reporting loss of cards, logging complaints,

requests & queries, Phone Banker-assisted services are available.

ey a 
ala
e

Get up-to-the-second details of your

?avings or Current Accounts and your Fixed Deposits. You can also get the

details of the last 5 transactions on your account, or have a mini statement

of last 15 transactions faxed across to you.

c
q e
eeqea

You can use Phone Banking to check on

the status of cheques issued or deposited from anywhere in India.

ea
eqe    
aee

Just call Phone Banking and

get your Cheque Book or latest Account ?tatement delivered at your

doorstep.

1G

 Paye


?top payment of a single cheque or a series of cheques, G4

hours a day.

! a

elaeqe e

Get details of the outstanding loan amount,

enquire about your loan account, request for an interest certificate and

repayment schedule, etc. Just call Phone Banking in your city, select your

preferred language and dial 4 to speak to our Phone Banker.

"ea
elae#e e

Get details of Account holding, Transaction

details, I?IN Number of a scrip, status of Depository ?lips, Client Master list

details, Charges for the account and others. Call Phone Banking in your city,

select your preferred language & dial 5 to speak to our Phone Banker.

e
a ee  

Talk to our Phone Banker to open a Fixed Deposit

over the phone, by simply authorizing a transfer of funds from your ?avings

Account

a

e
eee
a 


You can also transfer money from

one of your accounts to another. Both accounts must be linked to your

Customer ID. You can transfer amounts upto Rs 1 Lac in a single day.

Payy  ll

Pay your cellular, telephone, electricity bills through

PhoneBanking using Bill Pay, a comprehensive bill payments solution.

ege
ea
eqe
  "e aP ea

g

P$e

Call Phone Banking in order to regenerate your ATM / Debit card

PIN / Net Banking IPIN,etc.

e l 
y   "e  Pea 
a

If your ATM / Debit /

Prepaid Card is lost, call any Phone Banking number to hotlist / block your

card(s).

13

%   


a


1. Mini-statements and checking of account history

G. Alerts on account activity or passing of set thresholds

3. Monitoring of term deposits

4. Access to loan statements

5. Access to card statements

6.

al

/ equity statements

7. Insurance policy management

8. Pension plan management

9. ?tatus on cheque, stop payment on cheque

%Paye
&a

e

1. Domestic and international fund transfers

G. Micro-payment handling

3. Mobile recharging

4. Commercial payment processing

5. Bill payment processing

6. Peer to Peer payments

%
ee


1. Portfolio management services

G. Real-time stock quotes

14

3. Personalized alerts and notifications on security prices

%% 

1. ?tatus of requests for credit, including mortgage approval, and

insurance coverage

G. Check (cheque) book and card requests

3. Exchange of data messages and email, including complaint submission

and tracking

4. ATM Location

%'

e
e e

1. General information such as weather updates, news

G. Loyalty-related offers

3. Location-based services

Based on a survey conducted by Forrester, mobile banking will be

attractive mainly to the younger, more "tech-savvy" customer segment. A

third of mobile phone users say that they may consider performing some

kind of financial transaction through their mobile phone. But most of the

users are interested in performing basic transactions such as querying for

account balance and making bill payment.

15

ea

alle
ge
elea

g


 a
For the last ten years, technology has been the driving force in the banking
industry. As foreign and private banks poured huge sums of money to

counter the branch advantage of public sector banks, they discovered that

technology gives them a large competitive advantage. Technology is helping

the banks to reduce transaction cost and improve efficiency. ITE? becomes

Ênique ?elling Proposition (Ê?P) of the many players in the industry as it

facilitates the innovations in all functional management activities ± whether

accounting and finance, production and designing, marketing and customer

management, research and development activities, and so on. In the last

decade banks have invested heavily in the technology such as e-commerce,

data warehousing and data mining, customer relationship management

solution software, knowledge management systems etc.

?ome are investing in it to drive the business growth, while others are having

no option but to invest, to stay in business. The choice of right channel,

justification of IT investment on ROI, e -governance, customer relationship

management, security concerns, technological obsolescence, mergers and

acquisitions, penetration of IT in rural areas, and outsourcing of IT operations

are the major challenges and issues in the use of IT in banking operations.

The main challenge, however, remains to motivate the customers to

increasingly make use of IT while transacting with banks. For small banks,

16

heavy investment requirement is the compressing need in addition to their

capital requirements. The coming years will see even more investment in

banking technology, but reaping ROI will call for more strategic thinking.

Everyone today is convinced that the technology is going to hold the key to

future of banking. The achievements in the banking today would not have

make possible without IT revolution. Therefore, the key point is while

changing to the current environment the banks has to understand properly

the trigger for change and accordingly find out the suitable departure point

for the change.

Challenges for a Mobile banking Solution

Key challenges in developing a sophisticated mobile banking

application are :


e ea l y

There is a lack of common technology standards for mobile banking.

Many protocols are being used for mobile banking ±

(!, ) P,  P,

!

to name a few. It would be a wise idea for the vendor to develop a

mobile banking application that can connect multiple bank s. It would

require either the application to support multiple protocols or use of a

common and widely acceptable set of protocols for data exchange.

There are a large number of different mobile phone devices and it is a

big challenge for bank s to offer mobile banking solution on any type of

device. ?ome of these devices support JGME and others support WAP browser

or only

.

17

Overcoming interoperability issues however have been localized, with

countries like India using portals like R-World to enable the limitations of low

end java based phones, while focus on areas such as ?outh Africa have

defaulted to the Ê??D as a basis of communication achievable with any

phone.

The desire for interoperability is largely dependent on the bank s

themselves, where installed applications (Java based or native) provide

better security, are easier to use and allow development of more complex

capabilities similar to those of internet banking while ?M? can provide the

basics but becomes difficult to operate with more complex transactions.

ala l y&
el a l y

Another challenge for the

*and
of the bank s is to scale-up

the mobile banking infrastructure to handle exponential growth of the

customer base. With mobile banking, the customer may be sitting in any

part of the world (true anytime, anywhere banking) and hence bank s need

to ensure that the systems are up and running in a true G4 x 7 fashion. As

customers will find mobile banking more and more useful, their

expectations from the solution will increase. bank s unable to meet the

performance and reliability expectations may lose customer confidence.

l a
  


Due to the nature of the connectivity between bank and its customers,

it would be impractical to expect customers to regularly visit bank s or

connect to a web site for regular upgrade of their mobile banking

application. It will be expected that the mobile application itself check the

upgrades and updates and download necessary patches (so called

ee



updates). However, there could be many issues to implement this

approach such as upgrade / synchronization of other dependent

components.

18

Pe
al a


It would be expected from the mobile application to support personalization

such as :

1. Preferred Language

G. Date / Time format

3. Amount format

4. Default transactions

5. ?tandard Beneficiary list.

Mobile banking in India

Mobile banking is gaining popularity in India, mainly because the cell

phone usage has grown tremendously. People are mobile-savvy and are

always ready to try out advanced handsets and services. Mobile banking

also saves the time and effort of going to the bank , standing in queues etc.

According to bank survey, one out of every three persons was ready to

change his/her bank s to avail free mobile banking services. Around 50

percent of the people who were surveyed used cell phones to check their

bank balance. Awareness of mobile banking is also high in India.

19

e
a   lea

ge y+

People worry about frauds in

their accounts as they think it has a weaker security system than personal

banking. Even RBI is concerned about the security, especially when it comes

to verifying the bona fides of users accessing bank accounts from distant

locations.

ae
g+

bank s haven¶t marketed the service aggressively enough to

attract customers.

ae
e+

?ince it¶s a relatively new concept, many people are still

unaware of its existence, benefits and use. In the interiors of India, where

banking is still a new concept, mobile banking is a distant dream.

outure
Even bank s, cell phone companies and payment service providers are

working together to develop ways in which mobile banking services can

comply with India¶s regulatory requirements. For example, Obopay Inc. of

California and mCheck India Payment ?ystems Pvt. Ltd. of Bangalore, India

are working on a product that complies with the regulatory guidelines to

bring fast mobile payment services to customers in India. RBI is also

extending mobile banking services to make banking and financial services

G0

available to lower income groups. The GGP project in Andhra Pradesh will use

cell phones to ensure payments of pension and unemployment benefits - cell

phones with special features will be given to local agents and the recipient

will be given a smart card.

NXP ?emiconductors and A Little World have launched RFID-based

mobile payment solutions with seven bank s in India; this facility is available

in Mizoram, Êttarakhand, Andhra Pradesh and Meghalaya (?ource:

contentsutra.com). Barclay recently launched its µHello Money¶ scheme in

India, for customers with G?M handsets using Airtel, Idea or Vodafone

connections in 40 cities. (?ource: Business ?tandard).

Mobile banking is expected to become common and popular the

world over and replace traditional banking activities and facilities. In fact,

people have begun to prefer mobile banking to debit/credit cards, also

because the numbers of cell phone users are more than debit/credit

cardholders.

Security
?ecurity of financial transactions, being executed from some remote

location and transmission of financial information over the air, are the most

complicated challenges that need to be addressed jointly by mobile

G1

application developers, wireless network service providers and the bank s' IT

departments.

The following aspects need to be addressed to offer a secure

infrastructure for financial transaction over wireless network:

1.

Physical part of the hand-held device. If the bank is offering smart-card

based security, the physical security of the device is more important.

G. ?ecurity of any thick-client application running on the device. In case

the device is stolen, the hacker should require at least an ID/Password

to access the application.

3.

e
 a
of the device with service provider before initiating a

transaction. This would ensure that unauthorized devices are not

connected to perform financial transactions.

4.

Êser ID / Password ae
 a
of bank ¶s customer.

5.

c
y
of the data being transmitted over the air.

c
y


of the data that will be stored in device for late r / off-line

analysis by the customer.

- Advantages & Disadvantages of TeleBanking

GG
Advantages: -

The biggest advantage that mobile banking offers to bank s is that it

drastically cuts down the costs of providing service to the customers. For

example an average teller or phone transaction costs about $G.36 each,

whereas an electronic transaction costs only about $0.10 each. Additionally,

this new channel gives the bank ability to cross-sell up-sell their other

complex banking products and services such as vehicle loans, credit cards

etc. For service providers, Mobile banking offers the next surest way to

achieve growth. Countries like Korea where mobile penetration is nearing

saturation, mobile banking is helping service providers increase revenues

from the now static subscribers use. ?ervice providers are increasingly using

the complexity of their supported mobile banking services to attract new

customers and retain old ones. A very effective way of improving customer

service could be to inform customers better. Credit card fraud is one such

area. A bank could, through the use of mobile technology, inform owners

each time purchases above a certain value have been made on their card.

This way the owner is always informed when their card is used, and how

much money was taken for each transaction. ?imilarly, the bank could

remind customers of outstanding loan repayment dates for the payment of

monthly installments or simply tell them that a bill has been presented and is

up for payment. The customers can then check their balance on the phone

and authorize the required amounts for payment.

The customers can also request for additional information. They can

automatically view deposits and withdrawals as they occur and also preschedule

payments to be made or cheques to be issued. ?imilarly, one could

also request for services like stop cheque or issue of a cheque book over

one¶s mobile phone. There are number of reasons that should persuade
bank s in favor of mobile phones. They are set to become a crucial part of

the total banking services experience for the customers. Also, they have the

G3

potential to bring down costs for the bank itself. Through mobile messaging

and other such interfaces, bank s provide value added services to the

customer at marginal costs. ?uch messages also bear the virtue of being

targeted and personal making the services offered more effective. They will

also carry better results on account of better customer profiling. Yet another

benefit is the anywhere/anytime characteristics of mobile services. A mobile

is almost always with the customer. As such it can be used over a vast

geographical area. The customer does not have to visit the bank ATM or a

branch to avail of the bank ¶s services. Research indicates that the number

of footfalls at a bank ¶s branch has fallen down drastically after the

installation of ATMs. As such with mobile services, a bank will need to hire

even less employees as people will no longer need to visit bank branches

apart from certain occasions.

With Indian telecom operators working on offering services like money

transaction. Over a mobile, it may soon be possible for a bank to offer

phone-based credit systems. This will make credit cards redundant and also

aid in checking credit card. Fraud apart from offering enhanced customer

convenience. The use of mobile Technologies is thus a win-win proposition

for both the bank s and the bank¶s Customers. The bank s add to this

personalized communication through the process of Automation. For

instance, if the customer asks for his account or card balance after

conducting a transaction, the installed software can send him an automated

reply Informing of the same. These automated replies thus save the bank the

need to hire Additional employees for servicing customer needs. Êse

banking facilities anywhere, even far away from a bank .Easy operation ±

access accounts from a cell phone. Lower operational costs (for bank s) than

setting up ATM machines

G4

Disadvantage:
Back in days when Internet was introduced, it was a boon to th e

financial industry as it reduced all volumes by opening another self-service

channel for servicing customers. With mobile that advantage is not there as

already investments are made to reduce call volumes using Internet and

Internet is one of the technologies that is ever spreading in customer

community. Almost 80% of the people in Ê? already have internet

connection. Mobile banking would be another value added service that can

be provided by financial institutions, it may only bring good will. Depending

on the technological direction for enabling Mobile companies either have to

spend enormous amount of money in matching customers expectation or

maintaining another stream of technology applications.

Technology still has security issues and software distribution issues.

Uses

1) Pay bills

G) Transfer funds

3) Take mini-statements, conduct balance enquiries

4) ?et alerts for movement in accounts ± change in balance, payments of

bills set on auto payment mode etc.

5)Purchase items ± e.g. ABNAmro¶s Mpower enables you to shop

G5

Although advanced/high-end transactions can be conducted using cell

phones, most mobile banking customers use it for basic activities like
balance enquiry, making payments of regular bills etc.

- SMS Banking
When people are hard pressed for time, the need for "anytime anywhere´

is banking gains utmost importance. Bearing this in mind, bank s provide a

novel service which gives retail customers account information and real-time

transaction capabilities from their cell phones. With ?M? banking the

following services can be obtained:

Get account balance details

Request a cheque book

Request last three transaction details

Pay bills for electricity, mobile, insurance etc.

SMS banking ve view

In order to avail the services mentioned above, a user subscribing to a

wireless carrier sends an ?M? with a predefined code to the bulk service

provider¶s number.

The service provider forwards this message to the bank ¶s mobile

banking applications. The mobile banking applications interface with the

core banking servers (that contain the user account information) that

service the request made by the user. The response is then sent by the

G6

mobile banking applications to the bulk service provider who in turn

forward it to the valid user via ?M?. Which is very well explain in the

following diagram.
There are two ways in which a bank can communicate with a customer using

?M?:

1.

In the first method the bank proactively sends data to customers in

response to certain transactions. For e.g. account to account transfer,

salary credit and some promotional messages. This data can be sent to

the customer in two ways

ca l   le,c-: In this method, the bank sends an

email to the mobile banking application through a specific email

G7

address. This email may consist of the message content together

with the mobile numbers of the customer. The mobile banking

application in turn sends this message in a specific format (for

e.g. XML tags are part of a HTTP GET message query string) to

the service provider¶s application server. From hereon the

information from the XML tags is extracted and sent as a ?M? to

the wireless carrier which in turn forwards this message to the

customer.

"aaae   le,"-: Here a mobile banking

application continuously polls the bank s database server and

whenever a relevant event happens, for e.g. an account to

account transfer, it forwards the specific message to the service

provider¶s application server. The message format may be the

same as the one used in the EGM case. This message is then

forwarded to the wireless carrier which in turn forwards this

message to the customer.

In the second method the bank sends data in response to specific

customer query such as account balance details. The customer first sends a

pre-defined request code via ?M? to the Bulk ?M? service provider¶s

registered mobile number. Depending on the message code, the bulk ?M?

provider forwards the ?M? to a PÊLL application in the mobile banking

server. The PÊLL application receives the request and forwards it to the core

banking application for further processing. The core banking server then

processes this message and sends the reply to the PÊLL application which in

turn forwards in to the customer via the service provider. As in th e above

cases the request and the response for the PÊLL application may be a HTTP

GET message with tags in the query string.

G8

Push and Pull Messages

?M? banking services are operated using both

Pa
Pll

messages. Push messages are those that the bank chooses to send out to a

customer's mobile phone, without the customer initiating a request for the

information. Typically push messages could be either

  leae
g

messages or messages alerting an event which happens in the customer's

bank account, such as a large withdrawal of funds from the

or a large

payment using the customer's

e a, etc.

Another type of push message is


e ea (OTPs). OTPs

are the latest tool used by financial and banking service providers in the

fight against cyber fraud. Instead of relying on traditional memorized

passwords, OTPs are requested by consumers each time they want to

perform transactions using the online or mobile banking interface. When

the request is received the password is sent to the consumer¶s phone via

?M?. The password is expired once it has been used or once its scheduled

life-cycle has expired.

Pull messages are those that are initiated by the customer, using a

mobile phone, for obtaining information or performing a transaction in the

bank account. Examples of pull messages for information include an account

balance inquiry, or requests for current information like currency

ea
ge

ae

and deposit
eeae, as published and updated by the bank .

The bank ¶s customer is empowered with the capability to select the

list of activities (or alerts) that he/she needs to be informed. This

functionality to choose activities can be done either by integrating to the


e
ea

g

channel or through the bank ¶s customer service all

e
e

G9

Typical Push & Pull Se vices offe ed unde SMS banking:

Depending on the selected extent of ?M? banking transactions

offered by the bank, a customer can be authorized to carry out either nonfinancial

transactions, or both and financial and non-financial transactions.

?M? banking solutions offer customers a range of functionality, classified by

Push and Pull services as outlined below.

Typical

ush Se vices would include:

Periodic account balance reporting (say at the end of month);

Reporting of salary and other credits to the bank account;

?uccessful or unsuccessful execution of a a

g e;

?uccessful payment of a eqeissued on the account;




 e


;

Large value withdrawals on an account;

Large value withdrawals on the ATM or on a e a;

Large value payment on a e aor out of country activity on app

credit card.p


e ea and authentication

Typical Pull Se vices would include:

Account balance inquiry ;

Mini statement request ;

J

cle
 llaye
;

Transfers between customer's own accounts , like moving money from

a savings account to a current account to fund a cheque;

?top payment instruction on a cheque;

Requesting for an aor e ato be suspended;

30

De-activating a credit or debit card when it is lost or the Pis knownpp

to be compromised;p

Foreign currency exchange rates inquiry ;

Fixed deposit interest rate inquiry .

Conce ns & Skepticism about SMS Banking

Many bank s would have some concerns when the prospects of

introducing ?M? banking are discussed. Most of these concerns could

revolve around security and operational controls around ?M? banking.

However supporters of ?M? claim that while ?M? banking is not as secure

as other conventional banking channels, like the ATM and Internet

banking, the ?M? banking channel is not intended to be used for very highrisk

transactions.

The Convenience acto

The convenience of executing simple transactions and sending out

information or alerting a customer on the mobile phone is often the

overriding factor that dominates over the skeptics who tend to be overly

bitten by security concerns.

As a personalized end-user communication instrument, today mobile

phones are perhaps the easiest channel on which customers can be reached

on the spot, as they carry the mobile phone all the time no matter where

31

they are. Besides, the operation of ?M? banking functionality over phone

key instructions makes its use very simple. This is quite different to Internet

banking which can offer broader functionality, but has the limitation of use

only when the customer has access to a computer and the Internet. Also,

urgent warning messages, such as ?M? alerts, are received by the customer

instantaneously; unlike other channels such as the post, email, Internet,

telephone banking, etc. on which a bank 's notifications to the customer

involves the risk of delayed delivery and response.

The ?M? banking channel also acts as the bank ¶s means of alerting

its customers, especially in an emergency situation; e.g. when there is an

ATM fraud happening in the region, the bank can push a mass alert (although

not subscribed by all customers) or automatically alert on an individual basis

when a predefined µabnormal¶ transaction happens on a customer¶s account

using the ATM or credit card. This capability mitigates the risk of fraud going

unnoticed for a long time and increases customer confidence in the bank ¶s

information systems.

Compensating cont ols fo lack of Enc yption

The lack of encryption on ?M? messages is an area of concern that is

often discussed. This concern sometimes arises within the group of the bank

¶s technology personnel, due their familiarity and past experience with

encryption on the ATM and other payment channels. The lack of encryption

is inherent to the ?M? banking channel and several bank s that use it have

overcome their fears by introducing compensating controls and limiting the

3G

scope of the ?M? banking application to where it offers an advantage over

other channels. ?uppliers of ?M? banking software solutions have found

reliable means by which the security concerns can be addressed. Typically

the methods employed are by pre-registration and using security tokens

where the transaction risk is perceived to be high. ?ometimes ATM type PINs

are also employed but the usage of PINs in ?M? banking makes the

customer's task more cumbersome.

Technologies Employed fo SMS Banking

Most ?M? banking solutions are add-on products and work with the

bank ¶s existing host systems deployed in its computer and communications

environment. As most bank s have multiple backend hosts, the more

advanced ?M? banking systems are built to be able to work in a multi-host

banking environment; and to have open interfaces which allow for

messaging between existing banking host systems using industry or defacto

standards.

Well developed and mature ?M? banking software solutions normally

provide a robust control environment and a flexible and scalable operating

environment. These solutions are able to connect seamlessly to multiple

operators in the country of operation. Depending on the volume of messages

that are require to be pushed, means to connect to the ?M? could be

different, such as using simple modems or connecting over leased line using

low level communication protocols. Advanced ?M? banking solutions also

cater to providing failover mechanisms and least-cost routing op

- I.T IN BANKS
The reforms in the 1990s, which led to expansion, consolidation and

liberalization of the banking and financial sector in India, brought in many

changes and challenges. A number of private and foreign players entered

the Indian market with superior technologies that helped them service their

customers efficiently through multiple channels such as Atms and Online

33

banking. Indian bank s on the other hand have been using IT more out of

compulsion and primarily for transaction processing. They now need to adopt

IT to reposition bank s into the integrated financial services market.

The need for providing improved customer service, reducing

transaction costs and increasing productivity, shall be the main drivers for

banking sector to adopt IT. These considerations are particularly important

for public sector bank s in India, who are facing immense competition from

private and foreign bank s. IT can help them move from the present

scenario where they are working as isolated islands to providing a

centralized banking experience. There is a need today for IT and the

financial community to come together and develop customized IT solution to

make the Indian banking sector globally competitive.

IT adoption in the banking sector will provide real time availability of

transaction processing through multiple channels. It would enhance a bank

¶s ability to cross sell products, ensure better management and security and

safety of funds and increase efficiently through integration of systems across

various locations. It would also ensure efficient management of Non

Performing Assets (NPAs), minimize transactions costs, enhance ability to

conduct in-depth financial analysis and gather business intelligence.

Enhanced use of IT would also encourage the use of Internet to provide

access for online bill payments, fund transfers and e-statements in addition

to encouraging wireless mobile banking and e-commerce.

With growing competition faced by foreign bank s and financial

institutions, the public sectors bank s in co-operation with the Indian IT

industry would need to equip themselves for the next phase of introducing

the benefits of IT to their customers by providing a centralized banking

solution.

34

Opportunity for Indian banking sector in branch computerization

1. IT Networking

G. ?ystem Relationship Management

3. Customer Relationship Management (CRM) Applications

4. Back Office processing and Call Centers

5. Data warehousing/Data mining

6. Mobile banking and e- banking.

Diffe ent uses of Info mation Technology: -

a) Tele Banking

b) Any Time Banking

c) Automated Teller machine

d) ?hared Payment Network ?ystem

e) Customer ?ervice

f) Mobile banking

g) Home Banking

h) Electronic Fund Transfer

i) Plastic Cards as Media for Payment

1. Credit Card

G. Debit Card
3. ?mart Card

4. ATM Card

CASE STUDY
35

Tele Banking Services Oo Oriental Bank

Oo Commerce
The Bank has launched the Centralized Tele-banking services in G0

major cities. By using this wonderful & convenient technology, the

customer can have Anytime, Anywhere (G4 * 7) access to their

respective accounts. The Centralised Tele-banking facility can be

availed from any our Branches.

The Bank has planned to extend this facility to other major cities

as soon as the branches under these Cities are covered under the

bank¶s Centralised Banking ?olution (CB?) plan.

e e

ee gelea

g

.

 

elae
q y

Ø Online Balance Inquiry :

o Current balance in your selected Account

o Balance on a particular date

Ø Last five transactions.

Ø ?tatement of Account by Fax (On same fax machine or other

Fax Machines as directed by the Customer).

Ø ?tatement of Account by E-Mail.

Cheque ?tatus Inquiry

e
eal
q y
:-

Ø Bank¶s working hours & holidays Inquiry.

Ø Retail Product information.

Ø The information on deposit rates is also available as under.

One can request for sending the Deposit rates information by

Fax also.

o Domestic Term Deposit Rates

o Domestic Term Deposit ±Rates for ?enior Citizens

NRE & FCNR Rates

(  eelea

g.

Language ?election:- The Customer can interact with the

Telebanking system by selecting one of the four languages viz.

1. Hindi G. English 3. Tamil 4. Bengali.

When you dial the nearest City¶s Telebanking Phone

number, after the recorded welcome message, you need to

select the language to interact with Telebanking system. Next

36

you need to select either the option of 'Account Related

Information' to access your accounts Or you can choose the

General Information option. To Access the ³Account Related

Information´, you must enter your Customer ID and the secret

PIN (which is being issued to you by the bank). Key-in the

various numbers on your keypad, for the services of your

choice as directed by the IVR ?ystem. During the Interaction

session, you can Press/ dial 9 to repeat the previous menu, 0

for main menu and # to quit the Telebanking system.

e
 e"ea
Pe
ale


a


e,P-/

Customer-id is a unique Numeric Code allotted by the

Computerised ?ystem to identify the Customer and its details

such as Customer name, addresses and various types of

Accounts the Customer is operating with the Bank viz. ?B A/c.,

Overdraft A/c., Current Account etc. All the personal details of

the Customers are accessed using this Customer-ID.

The Personal Identification Number (called PIN), is a four

digit number generated by the Telebanking system, which a

customer needs along with the Customer-ID number in order

to access Telebanking system. The PIN is issued by the Bank

and sent to a customer through sealed PIN mailers.


ea e e

e
eye,
-/

IVR is the abbreviation for Interactive Voice Response ?ystem. This

technology helps the Customer to understand and execute the

various options available in the Telebanking system.

e y/

The Customers who have opted for Telebanking system are issued

secret PINs by the Bank, which are sent through sealed PIN Mailers.

When Customer uses the Telebanking system first time, he is

forced to change the PIN number to keep its secrecy. He further

has the option of changing the PIN number as and when required

by him. This enhances the security feature of this facility.

! 
g
elea

ge e/

TeleBanking ?ervices gets Locked automatically for the Customers

in case they enter the wrong PIN continuously 3 times. In such

cases, Customer needs to give written request to the concerned

branch which will further request to Telebanking Cell for Ênlocking

of his/ her Account.

37

ea
e
Pe
ale

a
P/

In case Customer forget his/ her secret PIN, he/ she has to

give written request to the concerned branch for re-issuance of

PIN. The branch thereafter forwards the request to Telebanking

Cell at Head Office for re -issuance of PIN for the Customer.

The Telebanking ?ervices is growing fast in popularity and

the Bank is providing this facility to customers of all the

branches under the Core Banking ?olution (CB?).

Tele & Mobile Banking by ICICI Bank

Bank on the move with ICICI bank Mobile banking. With ICICI bank ,

banking is no longer what it used to be. ICICI bank offers the Mobile banking

facility to all its bank , Credit Card, Demat and Loan customers.

ICICI bank Mobile banking can be divided into two categories of facilities:

Alert facility: The ICICI bank Mobile banking Alert facility informs you

promptly of the significant transactions in your accounts. It keeps you

updated wherever you go.

ë
Request facility : ICICI bank Mobile banking Request facility enables

you to ask for your account information.

It¶s simple! It¶s easy!!

Êse any of the following modes to access Mobile banking:

For all G?M mobile operators and Tata Indicom users.

Êse ICICI bank ¶s downloadable menu.

If you are an Airtel, Vodafone or Idea customer.

38

Reliance Mobile Êser? Êse R-world.

Bank Account

With Mobile banking, you can remain updated while you are on the

move,

without even making a phone call or a visit to the Branch. The ICICI bank

Mobile banking service for bank accounts can be divided into two

categories:

Request Facility

Alert Facility

eqea l y

The ICICI bank Mobile banking Request facility enables you to enquire

information about your ICICI bank account or to perform banking

transactions. You can ask for:

 !- Your account balance


- The last three transactions in your account
J


- Cheque status



- ?top cheque instruction



- Cheque book


P - Change your primary account

P - Making payment for your bills.

39

c)- View your presented bills.pp

For specific information on the formats to be used, please select asp

 p
pp  p

Via sms - all G?M users

e
ae

ICICI bank 's Mobile banking Menu

Airtel GPR?

Vodafone GPR?

J
Idea GPR?

Reliance R-world

lea l y

Ênder ICICI bank Mobile banking Alert, you get alerted when the

events you have subscribed for get triggered. You can subscribe for receiving

?M? alerts on the following events:

?alary credit

Account getting debited* - When your bank account is debited Rs.5,

000 or more, as specified by you.

Account getting credited* - When your bank account is credited Rs.5,

000 or more, as specified by you.

Cheque return

When your balance rises above a limit

When your balance falls below a limit.

40

C edit Ca d

With Mobile banking, you can remain updated while you are on the

move, without even making a phone call or a visit or logging on the Internet.

ICICI bank Mobile banking for Credit Cards can be divided into two
categories:

Request Facility

Alert Facility

eqea l y

The ICICI bank Mobile banking Request facility enables you to check

the following information for your Credit Card:

 !

- Details of your balance


P

- Reward points available for redemption

!P

- Details of the last payment

P""

- Payment due datepp

For specific information on the formats to be used, please select as p

 p
pp  p

Via sms - all G?M users

e
ae

Airtel GPR?

Vodafone GPR?
J

Idea GPR?

Reliance R-world

Alert Facility

41

On subscription to Credit Card Alerts, you get alerted when the events

you have subscribed for get triggered. You can subscribe for receiving sms

alerts for the following events:

"e"ae
e
e- You receive an alert five days prior to the duepp

date. This would inform you the total and minimum amounts due andp

pp

pp p

Demat

With Mobile banking you can remain updated while you are on the

move, without even making a phone call or a visit or logging on the Internet.

ICICI bank Mobile banking for Demat Accounts can be divided into two

categories:

Request Facility

Alert Facility

eqea l y

Through the ICICI bank Mobile banking Request facility, you can

request information pertaining to your demat account anytime at your

convenience. You can ask for:

J
 !"± Balance enquiry


"- The status of a transaction

!!"± Bill enquiry

"- I?IN enquiry

4G

In the Request facility, to check your holdings you can use any scrip

descriptor like Company name, Web trade scrip code, N?E symbol, B?E code

in the message.

For specific information on the formats to be used, please select as

applicable from the following:

Via sms - all G?M users

e
ae

Airtel GPR?

Vodafone GPR?

Idea GPR?

lea l y

Through this facility, you will receive sms alerts from ICICI Demat on the

following events:
Demat account getting credited / debited

Pledge Creation / Closure

Rejection of ?ubmitted Instruction

Loans
ICICI bank Mobile banking for Loans enables you to ask for your loan

documents via your mobile phone. You can ask for:

 - Amortization schedule

P- Income Tax Certificate - Provisional

- Income Tax Certificate - Final


!- Reschedulement letter

43


!- Reset letter

!
- Copy of Loan Agreementpp

E.g. for the Amortization ?chedule of your Loan Account p

 p
 !p!p"#$pp !p p!

!p p

%% p p"#$p!pp& p p

'  p!p

( p!
p 
 p pp 
!p pp! p
 !p!p !p

 p
pp  p

Via sms - all G?M users

J

e
ae

Airtel GPR?

Vodafone GPR?

Idea GPR?

Reliance R-world

STEP 
MBILE BANKIN  ICICI BANK

-

  lea

g

ICICI bank Mobile banking informs you promptly of significant

transactions in your bank account, credit card account and demat account,

such as:

a
 le

- Cheque return, salary credit and debit/credit of large

amounts as specified by you

e 
a le

- Approaching credit limit and due date of payment of

your credit card bill.

"ea le

- ?hares debited and credited to your account, etc.

The ICICI bank Mobile banking facility keeps you updated while you are on

the move.

-

a
  lea

g le

44
ICICI bank Mobile banking Alerts is a facility through which you

receive the latest information about your bank account, credit card account

and demat account. Alerts are sent to your mobile phone number as

registered by you with the bank .

-

a
  lea

g

a l y

All ICICI bank customers having a ?avings bank Account, Credit Card

(not being an Add on Card) and Demat Account can avail of this facility. As

and when alerts are introduced for other ICICI bank products, inform can be

given by website, www.icicibank.com/pfsuser/channels/mobile/mobile.htm

%- le  e

Currently, we provide the following alerts depending on your

account(s) with us:

a

g le

1. Credit to your bank Account of any amount of Rs.5, 000 or more as

specified by you

G. Debit to your bank Account of any amount of Rs.5, 000 or more as

specified by you

3. ?alary Credit to the bank Account*

4. Cheque deposited in your bank Account but returned

5. Account balance above a specified amount

6. Account balance below a specified amount.

* ?ubject to the appearance of the word 'salary' in the narration of salary

credit.


e 
a le

1. Payment Due Date reminder on your next credit card bill

G. Your credit card spending reaches the limit set for your card (Approaching

credit limit).

"ea le

1. Demat account getting credited

G. Demat account getting debited

45

3. Pledge creation and closure

4. Rejection of submitted instructions.

We will be introducing more alerts, of which we will inform you through our

website, www.icici bank .com/pfsuser/channels/mobile/mobile.htm.

'-
ee 
geale

Depending on the type of alerts you select, you will receive the alert(s) as

and when the particular event happens. However, in the case of Approaching

Credit Limit, the alert is sent at the end of the day.

0- e 

a
  lea

gya
y
e

e

ll 
gea


You can subscribe to ICICI bank Mobile banking by any one of the following

means:

1) Logging into www.icici bank .com with your user ID and log-in password

and going to the Mobile banking section.

G) Calling up our G4-hour Customer Care and requesting subscription for

bank alerts and credit-card alerts. Our Customer Care representatives will

take you through the identification process and subscribe you to ICICI bank

Mobile banking.

3) For demat alerts, please fill and submit the Mobile Alerts Registration

Form to any ICICI bank branch offering demat services.

1-
y eeeq  e

aa l
g
e

a
  le

a

g
a l y

For Mobile Alerts, you also need to have a mobile phone with a connection on
which these ?M? alerts can be sent to you.

If your mobile phone service does not support the ?M? facility, please

contact your mobile phone service provider to enable it.

Ñ-ee eeg ee a
ya lae e  e 

ee e  le le

46

You need not be registered with any particular service provider. All

customers with mobile phones where the service provider supports the ?M?

facility will be able to avail of this facility.

2-eeae al
e

  le le

No, all you require is a normal G?M/CDMA mobile phone to receive Mobile

Alerts. The CDMA mobile phone service provider should have activated the

?M? facility for you to avail of our Mobile Alerts.

-
ee 
ga


a
  le le

Mobile alerts will be received on your mobile phone. The message alert tone

set by you will indicate that a new message has arrived.

- eealee
 e a a

You need to ensure that you have subscribed for international roaming

facility for your mobile phone connection and you have switched your mobile

phone on.

-
a
ge  le
e
e

For banking alerts and Credit Card alerts, you may simply log into

www.icicibank.com or contact our G4-hour Customer Care and update our

records.

For Demat alerts, please fill and submit the Mobile Alerts Registration Form

to any ICICI bank branch offering Demat services.

-
age
e
a l y
All ICICI bank Mobile banking request services are currently FREE.

When you receive information from ICICI bank Mobile banking in response

to your request, the service is FREE of charge.

However, mobile alerts initiated by the bank and reporting transactions in

your account are chargeable according to the tariff displayed in the section

"?ervice Charges & Fees" of our website.

All updates of the fees would be put up on our website www.icicibank.com

/pfsuser/channels/mobile/mobile.htm for your reference. ICICI bank reserves

the right to change the charges for this facility.

47

%- eqe eega
g 

a l y

Any queries on the ICICI bank Mobile Alert facility, you may write to the

Account Manager for clarification. To write to the Account Manager, log into

www.icicibank.com with your user ID and log-in password and select bank

--> Requests --> Write to ICICI bank .com.

Examples of ICICI bank Imobile

Mobile banking payments and mcommerce might finally get some

users in India.



a
has launched its Mobile banking Application

called

  leto all its users. The application can let you do most of the

actions you can perform over internet banking. Below is the main screen of

the application. As a security feature the application asks you to enter a PIN

48

before entering this screen. The PIN is set during the first use and when the

application is activated.

In order to tryout the application, I installed it over GPR? on my N8G

and then tried doing a prepaid mobile recharge. The experience was great.

Check below for the screenshots and more info.

Pea   le

eage

49

The application picked up my account no based on my phone number after

activation.

I entered the mobile number i want to recharge here.

Then it asked me enter the recharge amount, after which it showed a

confirmation screen.

50

It showed a couple of progress screens

51

e y
e

There¶s surely a huge amount of risk connected to mobile banking for

sure. That the main reason m commerce has always found very less

adoption. This app asks for some digits on your debit /credit card to

complete the transaction, this is to a feature to prevent misuse and also to

make sure the transaction is being carried out by the account owner.

5G

eee


I was impressed when i saw this screen. The greatest part is that when

I was seeing this screen on my mobile the other phone in the room was

beeping as the recharge had just happened. Amazing!! Isn¶t. It¶s another

example to demonstrate how mobile technology is making an impact on our

lives. It¶s such a cool thing to recharge another mobile from a mobile phone

application using GPR?!

ICICI bank allows all Internet banking transactions over cell phones.
Customers can now transfer funds to ICICI bank from other bank accounts.

?avings, dematerialized, credit card and loan accounts have been brought

under this facility. Customers can also pay their utility bills and insurance

premium through this facility."

Customer can also pay their ICICI Prudential policy premium through it.

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Conclusion
The banking today is re-defined and re-engineered with the use of

Information Technology and it is sure that the future of banking will offer

more sophisticated services to the customers with the continuous product

and process innovations. Thus, there is a paradigm shift form the seller¶s

market to buyer¶s market in the industry and finally it effected at the

bankers level to change their approach from ³conventional banking to

convenience banking´ and ³mass banking to class banking´. The shift has

also increased the degree of accessibility of a common man to bank for his

variety of needs and requirements

With the rapid development of transport and communication, people

and services are coming together as if they were just around the corner. If

this is the case for many services, then why should the banking industry lag

behind?

Internet banking, phone banking, e- banking and now mobile

banking all enable the bank to be better connected with the customer and

vice versa. A customer who is provided with a variety of additional services

feels appreciated and is more likely to be loyal to that bank , which is always

a good sign for a bank .

In the end mobile banking not only helps a bank to reduce costs but

also helps it to retain its valuable customers. And as far as customers are
concerned, this facility enables the customer to bank anywhere, at anytime

and in any condition, definitely a boon if a customer is stuck in the middle of

nowhere and requires banking services as soon as possible.

Thus mobile banking helps both, the customer as well as the bank ,

to lighten the burden of today¶s world and to save time, money and energy

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which is greatly required and appreciated. In a competitive world where

everyone is waiting to out do the other, a helping hand, in whatever forms

and from whatever source, is definitely god sent and should not go

unrecognized.

Bibliography
Websites:

1.www.wikipedia.com

1.

www.googleimages.com

G.

www.google.com

3.

www.icici bank.com

4. www.hsbcbank.co.in

0

www.bankofbaroda.com

Books:

1. Indian banking, Parmeswaran.

G. Financial markets and services, Gordon and Natrajan.

3. Financial institutions and markets, L.M.Bhole.

4. Environment of financial services, O.P.Agarwal.

?urvey sources:

1.ICICI Bank of Andheri

G.Bank of Baroda Andheri

3.H?BC Bank of Andheri

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