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O A perspective on the history
O Mobile banking
O Mobile banking in the world
O mobile banking in india
O Trends in mobile banking
O Models in mobile banking
O Features of mobile banking
O Mobile banking services
O Technologies behind mobile banking
O Advantages
O The disadvantages of mobile banking
O cici mobile banking
O sbi mobile banking
O Success stories
O Future functionalities in mobile banking
O Challenges for a mobile banking solution
O General surveys conducted by many firms
O onclusion
O Internet banking
O perspective on the history
O Internet banking
O nternet banking in india
O Avail the services through e-banking.
O advantages oI online banking
O isadvantages oI online banking:-
O is bank internet banking
O !nb net banking
O eneIits
O :t:re scope
O !roblems related to net banking in india
O oncl:sion
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A PERSPECTIVE ON THE HISTORY

The first mobile banking and payment initiatives were announced during 1999 (the same year that
Fundamo deployed their first prototype). The first major deployment was made by a company called
Pay box (largely supported financially by Deutsche Bank). The company was founded by two young
German's (Mathias Entemann and Eckart Ortwein) and successfully deployed the solution
in Germany, Austria, Sweden, Spain and the UK. At about 2003 more than a million people were
registered on Pay box and the company were rated by Gartner as the leader in the field. Unfortunately
Deutsche Bank withdraws their financial support and the company had to reorganise quickly. All but
the operations in Austria closed down. nitiatives in Norway, Sweden and France never got traction.
France Telecom launched an ambitious product based on a special mobile phone with an integrated
card reader. The solution worked well, but never became popular because of the unattractive, special
phone that participants needed in order to perform these payments.
Since 2004, mobile banking and payment industry has come of age. Successful deployments with
positive business cases and big strategic impact have been seen recently.

MOBILE BANKING
How many times you visit your bank or wait endlessly for a phone call to get through customer
care just to check your bank balance? You need not waste your precious time for these small
jobs anymore. Now you can access your bank account and conduct a host of banking
transactions and inquiries through Mobile Banking service. Mobile Banking is a service that
allows you to do banking transactions through your mobile phone without making a call, using
the SMS / WAP facility. You can check your balance, stop a cheque payment, or even pay your
utility bills. Mobile Banking service gives you account information and real-time transaction
capabilities from the mobile phones anywhere, anytime
MobiIe banking (also known as M-Banking, mbanking, SMS Banking) is a term used for
performing balance checks, account transactions, payments, credit applications and other
banking transactions through a mobile device such as a mobile phone or Personal Digital
Assistant (PDA). The earliest mobile banking services were offered over SMS. With the
introduction of the first primitive smart phones with WAP support enabling the use of the mobile
web in 1999, the first European banks started to offer mobile banking on this platform to their
customers. Mobile banking has until recently (2011) most often been performed via SMS or the
Mobile Web. Apple's initial success with iPhone and the rapid growth of phones based on
Google's Android (operating system) have led to increasing use of special client programs,
called apps, downloaded to the mobile device.


MOBILE BANKING IN THE WORLD


Mobile banking is used in many parts of the world with little or no infrastructure, especially
remote and rural areas. This aspect of mobile commerce is also popular in countries where
most of their population is unbanked. n most of these places, banks can only be found in big
cities, and customers have to travel hundreds of miles to the nearest bank. n ran, banks such
as Parsian, Tejarat, Mellat, Saderat, Sepah, Edbi, and Bankmelli offer the service. Banco
ndustrial provides the service in Guatemala. Citizens of Mexico can access mobile banking with
Omnilife, Bancomer and MPower Venture. Kenya's Safaricom (part of the Vodafone Group) has
the M-Pesa Service, which is mainly used to transfer limited amounts of money, but increasingly
used to pay utility bills as well. n 2009, Zain launched their own mobile money transfer
business, known as ZAP, in Kenya and other African countries. n Somalia, the many telecom
companies provide mobile banking, the most prominent being Hormuud Telecom and its ZAAD
service.Telenor Pakistan has also launched a mobile banking solution, in coordination with
Taameer Bank, under the label Easy Paisa, which was begun in Q4 2009. Eko ndia Financial
Services, the business correspondent of State Bank of ndia (SB) and CC Bank, provides
bank accounts, deposit, withdrawal and remittance services, micro-insurance, and micro-finance
facilities to its customers (nearly 80% of whom are migrants or the unbanked section of the
population) through mobile banking.
n a year of 2010, mobile banking users soared over 100 percent in Kenya, China, Brazil and
USA with 200 percent, 150 percent, 110 percent and 100 percent respectively. Dutch-Bangla
Bank (www.dutchbanglabank.com) launches the very first mobile banking service in Bangladesh
on 31 March, 2011. This service is launched with 'Agent' and 'Network' support from mobile
operators, Banglalink and Citycell. Sybase 365, a subsidiary of Sybase, nc. has provided
software solution. There are around 160 million people in Bangladesh, of which, only 13 per
cent have bank accounts. With this solution, Dutch-Bangla Bank can now reach out to the rural
and unbanked population, of which, 45 per cent are mobile phone users. Under the service, any
mobile handset with subscription to any of the six existing mobile operators of Bangladesh
would be able to utilize the service. Under the mobile banking services, bank-nominated
'Agents' perform banking activities on behalf of the banks, like opening mobile banking account,
providing cash services (receipts and payments) and dealing with small credits. Cash
withdrawal from a mobile account can also be done from an ATM validating each transaction by
'mobile phone & PN' instead of 'card & PN'. Other services that are being delivered through
mobile banking system are person-to-person (e.g. fund transfer), person-to-business (e.g.
merchant payment, utility bill payment), business-to-person (e.g. salary/commission
disbursement), government-to-person (disbursement of government allowance) transactions.

MOBILE BANKING IN INDIA

Mobile banking in ndia is in a position to fly into a rage since a research has shown that
approximately 43 million urban ndians have done mobile banking.


Among the urban ndians it is said to have reached 15% who have accessed banking services
using their mobile phones. Most prominent banking services used by them is said to be
checking account balances followed by checking the last few transactions and then by the
checking the status of their cheques. CC banks takes up the top position in the country
followed by HDFC as the biggest private lenders succeeded by State Bank of ndia
The amount of mobile banking in ndia depends on the various banks and also on the device
being used. Few banks which allow mobile banking in ndia only propose the customer
fundamental type of mobile banking known as text alerts or SMS which comprises of messages
sent to alert the customer's actions on their respective account such as withdrawals, usage or
credit card or ATM. Other banks also allow the customer to log in to their accounts from mobile
phones, and then make payments, receive a new PN, get a mini statement of their monthly
transactions.
Mobile banking in ndia specially is more convenient to the people here since it does not
necessitate the person to physically set off to the bank, instead they can log on from either their
computer or mobile but there are also concerns related to security in this mobile banking.
Expert advice in this mobile banking in ndia is to evade performing any large transactions over
mobile banking, and it is also suggestible to keep the PN safe during mobile banking by using
an alphanumeric password, also constant changes in the password in order to make their
accounts secure, though the bank server keeps all the information secure
TRENDS IN MOBILE BANKING
The advent of the nternet has enabled new ways to conduct banking business, resulting in the
creation of new institutions, such as online banks, online brokers and wealth managers. Such
institutions 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 GSM Association
and Ovum, the number of mobile subscribers exceeded 2 billion in September 2005, and now
(2009) exceeds 2.5 billion (of which more than 2 billion are GSM).
According to a study by financial consultancy Celent, 35% of online banking households will be
using mobile banking by 2010, up from less than 1% today. Upwards 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 contactless payments will make up 10%
of the contactless market by 2010. Another study from 2010 by Berg nsight forecasts that the
number of mobile banking users in the US will grow from 12 million in 2009 to 86 million in 2015.
The same study also predicts that the European market will grow from 7 million mobile banking
users in 2009 to 115 million users in 2015.Many believe that mobile users have just started to
fully utilize the data capabilities in their mobile phones. n Asian countries like ndia, China,
Bangladesh, ndonesia and Philippines, where mobile infrastructure is comparatively better than
the fixed-line infrastructure, and in European 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.
MODELS IN MOBILE BANKING

A mobiIe banking conceptuaI modeI:-n one academic model, 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:
O Mobile Accounting
O Mobile Brokerage
O Mobile Financial nformation Services
Most services in the categories designated ccounting and Brokerage are transaction-based.
The non-transaction-based services of an informational nature are however essential for
conducting transactions - for instance, balance inquiries might be needed before committing a
money remittance. The accounting and brokerage services are therefore offered invariably in
combination with information services. nformation services, on the other hand, may be offered
as independent module. Mobile phone banking may also be used to help in business situations
MobiIe banking business modeIs:-A wide spectrum of Mobile/branchless banking
models is evolving. However, no matter what business model, if mobile banking is being
used to attract low-income populations in often rural locations, the business model will
depend on banking agents, i.e., retail or postal outlets that process financial transactions
on behalf Telco's or banks. The banking agent is an important part of the mobile banking
business model since customer care, service quality, and cash management will depend
on them. Many Telco's will work through their local airtime resellers. However, banks in
Colombia, Brazil, Peru, and other markets use pharmacies, bakeries, etc.
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 Nonbank-Led.
Bank-focused modeI:-The bank-focused model emerges when a traditional bank
uses non-traditional low-cost delivery channels to provide banking services to its existing
customers. Examples range from use of automatic teller machines (ATMs) to internet
banking or mobile phone banking to provide certain limited banking services to banks'
customers. This model is additive in nature and may be seen as a modest extension of
conventional branch-based banking.

Bank-Ied modeI:-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 / chain store) having experience and target market distinct
from traditional banks, 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. n this model
customer account relationship rests with the bank


Non-bank-Ied modeI:-The non-bank-led model is where a bank has a limited role in
the day-to-day account management. Typically its role in this model is limited to safe-
keeping of funds. Account management functions are conducted by a non-bank (e.g.
Telco) who has direct contact with individual customers.



EATURES O MOBILE BANKING
We are always looking at ways of providing you with the best service possible.With Mobile
Banking you have access to all the online banking features you expect plus more, including
increased online security with the BOQ Security Token.
Key features :-All the key features of Mobile banking are explained
for you:
O balance and transaction history search
O transfers
O pay bills with BPAY

O pay anyone payments
O existing nternet banking daily limits packages for BPAY
and pay anyone
O extra online security with the BOQ Security Token
Business features :-
f you have a business, Mobile Banking can assist you with:
O payments file upload authorization
O direct debit and multi payments authorization
O related account access
O multi user transaction authorization and privilege delegation


MOBILE BANKING SERVICES
Mobile banking can offer services such as the following:
Account Information
1. Mini-statements and checking of account history
2. 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. Mutual funds / equity statements
7. nsurance policy management
8. Pension plan management
9. Status on cheque, stop payment on cheque
10. Ordering cheque books
11. Balance checking in the account
12. Recent transactions
13. Due date of payment (functionality for stop, change and deleting of payments)
14. PN provision, Change of PN and reminder over the nternet
15. Blocking of (lost, stolen) cards
Payments, Deposits, WithdrawaIs, and Transfers
1. Domestic and international fund transfers
2. Micro-payment handling
3. Mobile recharging
4. Commercial payment processing
5. Bill payment processing
6. Peer to Peer payments
7. Withdrawal at banking agent
8. Deposit at banking agent
A specific sequence of SMS messages will enable the system to verify if the client has sufficient
funds in his or her wallet and authorize a deposit or withdrawal transaction at the agent. When
depositing money, the merchant receives cash and the system credits the client's bank account
or mobile wallet. n the same way the client can also withdraw money at the merchant: through
exchanging sms to provide authorization, the merchant hands the client cash and debits the
merchant's account.
Investments
1. Portfolio management services
2. Real-time stock quotes
3. Personalized alerts and notifications on security prices
Support
1. Status of requests for credit, including mortgage approval, and insurance coverage
2. Check (cheque) book and card requests
3. Exchange of data messages and email, including complaint submission and tracking
4. ATM Location
Content Services
1. General information such as weather updates, news
2. 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.

Based upon the above classifications, we arrive at the following taxonomy of the
services listed before.

Push Based PuII Based
Transaction
Based Fund Transfer
Bill Payment
Other financial services like

Enquiry Based Credit/Debit Alerts. Account Balance Enquiry
Recent Transaction History Account Statement Enquiry
Minimum Balance Cheque Status Enquiry.
Bill Payment Alerts Cheque Book Requests.



Some of the Services that are available through Mobile Banking are:
O You can get your Balance details
O Get last 3 Transaction details
O Request for a Cheque Book
O Stop a Cheque payment
O nquire about a cheque status
O Request an account statement
O Get Fixed Deposit details
O Get Bill payment details for Electricity, Mobile phone and Telephone services
O Pay your bills
What you have to do is:
O Designate a particular account linked to your Cust-id as the Operative Account.
O Balance inquiry will give you information on all accounts linked to your Customer
dentification Number.
O All other transactions will give you information on your Operative Account.



TECHNOLOGIES BEHIND MOBILE BANKING

Technically speaking most of these services can be deployed using more than one Channel.
Presently, Mobile Banking is being deployed using mobile applications developed on one of the
following four channels:-

1. VR (nteractive Voice Response)
2. SMS (Short Messaging Service)
3. WAP (Wireless Access Protocol)
4. Standalone Mobile Application Clients

IVR - Interactive Voice Response
VR or nteractive Voice Response service operates through pre-specified numbers that banks
advertise to their customers. Customer's make a call at the VR number and are usually greeted
by a stored electronic message followed by a menu of different options. Customers can choose
options by pressing the corresponding number in their keypads, and are then read out the
corresponding information, mostly using a text to speech program. Mobile banking based on
VR has some major limitations that they can be used only for Enquiry based services. Also, VR
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 (as in WAP or
Standalone clients).One way to enable VR is by deploying a PBX system that can host VR dial
plans. Banks looking to go the low cost way should consider evaluating Asterisk, which is an
open source Linux PBX system.

SMS - Short Messaging Service
SMS uses the popular text-messaging standard to enable mobile application based banking.
The way this works is that the customer requests for information by sending an SMS containing
a service command to a pre-specified number. The bank responds with a reply SMS containing
the specific information. For example, customers of the HDFC Bank in ndia can get their
account balance details by sending the keyword 'HDFCBAL' and receive their balance
information again by SMS.However there have been few instances where even transaction-
based services have been made available to customer using SMS. For instance, customers of
the Centurion Bank of Punjab can make fund transfer by sending the SMS 'TRN (A/c
No) (PN No) (Amount)'.One of the major reasons that transaction based services have not
taken of on SMS is because of concerns about security. The main advantage of deploying
mobile applications over SMS is that almost all mobile phones are SMS enabled. An SMS
based service is hosted on a SMS gateway that further connects to the Mobile service providers
SMS Centre. There are a couple of hosted P based SMS gateways available in the market and
also some open source ones like Kannel
.
MobiIeBankingthroughSMS
Mobile Banking with SMS is conducted through SMS codes sent to a particular number as
directed by your bank. You will receive the response in the form of a text message on your
mobile phone screen within a few seconds. For example to get details of your HDFC bank
account you will use codes like HDFCBAL, HDFCTXN, HDFCSTM, HDFCSTP<6 digit cheque
no.>, etc. for balance enquiry, last transaction details, account statement, stop cheque payment
etc. respectively.
Howitworks?
The message sent by you travels from your mobile phone to the SMS Centre of the Cellular
Service Provider, and from there it travels to the Bank's systems. The information is retrieved
and sent back to your mobile phone via the SMS Centre, all in a matter of a few seconds.



WAP - WireIess Access ProtocoI

WAP uses a concept similar to that used in nternet banking. Banks maintain WAP sites which
customer's access using a WAP compatible browser on their mobile phones. WAP sites offer
the familiar form based interface and can also implement security quite effectively. Bank of
America offers a WAP based service channel to its customers in Hong Kong. The banks
customers can now have an anytime, anywhere access to a secure reliable service that allows
them to access all enquiry and transaction based services and also more complex transaction
like trade in securities through their phone A WAP based service requires hosting a WAP
gateway. Mobile Application users access the bank's site through the WAP gateway to carry out
transactions, much like internet users access a web portal for accessing the banks services.
The following figure demonstrates the framework for enabling mobile applications over WAP.
The actually forms that go into a mobile application are stored on a WAP server, and served on
demand. The WAP Gateway forms an access point to the internet from the mobile network.

MobiIeBankingthroughWAP
Once you log onto your Bank's WAP site through your WAP/GPRS enabled mobile phone, all
you need to do is enter your Customer D and Net Banking PN. Then go to the Transactions
Menu after selecting your account. Select any one of the Transactions like Balance nquiry, Mini
Statement, Statement Request( A Statement of Accounts for the selected account for the
current period will be mailed to your address on record with the bank), Cheque Book Request (t
will be mailed to your address on record with the bank), Stop Payment, Cheque Status
nquiry(will tell you if the cheque has been paid/unpaid/stopped/invalid), Fixed Deposit nquiry(
can get information on account number, principal amount, rate of interest, maturity date and
maturity amount) etc.



StandaIone MobiIe AppIication CIients

Standalone mobile applications are the ones that hold out the most promise as they are most
suitable to implement complex banking transactions like trading insecurities. They can be easily
customized according to the user interface complexity supported by the mobile. n addition,
mobile applications enable the implementation of a very secure and reliable channel of
communication. One requirement of mobile applications clients is that they require to be
downloaded on the client device before they can be used, which further requires the mobile
device to support one of the many development environments like J2ME or Qualcomm's BREW.
J2ME is fast becoming an industry standard to deploy mobile applications and requires the
mobile phone to support Java. The major disadvantage of mobile application clients is that the
applications needs to be customized to each mobile phone on which it might finally run.
J2ME ties together the AP for mobile phones which have the similar functionality in what calls
'profiles'. Out of J2ME and BREW, J2ME seems to have an edge right now as Nokia has made
the development tools open to developers which has further fostered a huge online community
focused in developing applications based on J2ME. Nokia has gone ancon sell their applications
to major cellular operators around the world. Quite a few mobile software product companies
have rolled out solutions, which enable J2ME mobile applications based banking. One such
product is Wireless banco.The mobile user downloads and installs the wireless -Banco
application on their J2ME pone. The J2ME client connects to the wireless -Banco server
through the service providers GSM network to enable users to access information about their
Accounts and perform transactions. One of the other big advantages of using a mobile
application client is that it can implement a very secure channel with end-to end encryption.

However countries like ndia face a serious obstacle in the proliferation of such clients as few
users have mobiles, which support J2ME or BREW. However, one of the biggest CDMA players
in the ndian telecom industry, Reliance nfocomm has about 7.01 million users all of which have
handsets, which support J2ME. Reliance has unveiled one of the most ambitious data services
deployment program in the country. On the other hand a country like South Korea with its tech-
savv population has a widespread adoption of the higher-end mobiles, which support application
development




Who can avaiI MobiIe Banking services ?
To avail Mobile Banking services you must have:
O an account in a Bank that offers MobiIe Banking service e.g. HDFC Bank
O you must be a subscriber of any of the CeIIuIar Service Providers which have tie up
with your Bank
O You have to AppIy for MobiIe Banking through an appropriate Application Form with
your bank
O Most of the Banks offer Mobile Banking service absolutely FREE. Although SMS
Charges for outgoing messages would be charged as usual by your mobile phone
Service Provider.
MobiIe Banking AIerts Some banks also provide the facility of Mobile Banking Alerts where
you can get regular updates of transactions in your account as they happen. These include:
O Credits to your account ( you choose a threshold credit amount, above which you'd like
to be alerted )
O Debits to your account ( you choose a threshold debit amount, above which you'd like to
be alerted )
O Cheque returned ( Get to know every time a cheque deposited in your account is
returned )n the time to come we will see more and more banks offer services in ndia.


ADVANTAGES


GreaterCustomerconvenience
Finacle mobile banking solution empowers banking customers to make informed decisions
by providing them with an invaluable set of financial management tools on the mobile
handset. These tools help in quantitative and qualitative analysis, as well as in the selection
and comparison of financial products.

ReducedTurnaroundTime
Finacle mobile banking solution has a robust integration framework which allows it to
function in tandem with disparate host systems, core banking solutions, payment networks
and third-party applications. This translates into reduced go-to-market time for the bank as
well as support for legacy systems.

RobustIncIusivityramework
Finacle mobile banking solution leverages nfosys mConnect to smoothly hurdle the
challenges posed by the multiplicity of form factors and access mechanisms on multiple
devices to provide a contextagnostic view to the transaction server. This enables banks to
include, through the mobile channel, its various customer segments, ranging from the HNW
to specific unbanked communities, surmounting the complexities of diverse location and
dissimilar mobile devices.

MaximizeInnovation
Banks can leverage Finacle solution's indigenously developed middleware nfosys
mConnect, to configure an unlimited palette of services from any channel, to the mobile
space, with ease. The need for development of new back end services is precluded due to
the availability of a banking solution behind the mobile interface. Finacle also provides the
flexibility to deploy services over the existing online banking platform or through a
standalone delivery channel interfaced directly with the relevant host systems. This ensures
the rapid delivery of a comprehensive range of financial services, embellished with new
innovative features, on mobile devices.

RobustSecurity
The solution offers extensive application security features like URL encryption, referral URL
check and session management to provide a robust security framework. The solution also
supports OTP (one time password), which provides a two factor authentication mechanism
for users transacting with downloadable mobility client. This enables the bank to offer
products that are highly secure and geared to withstand the onslaught of security threats
associatedwitHmobiletransactions.

CostSavings
The solution presents banks with the advantages of reduced integration by leveraging
common interface messages, maintenance and deployment costs. This translates into
significant cost savings without banks having to compromise on features or the range of
devices supported. The mobile banking solution is inherently independent of the network
service provider, obviating the need to build a business model that involves costs and profits
sharing with them.

CIientVaIue
Finacle mobile banking solution enables banks to offer the convenience of comprehensive
anywhere anytime banking, using GPRS, mobile browser or SMS. t supports a wide range
of mobile devices and mobile browsers. Banking customers can query on account balances
and make fund transfers. Banks can also proactively send timely information to customers in
a completely secure environment, whenever a customer-defined event occurs. The
solution's self-service capabilities empower customers to manage their banking activities
better. The solution also addresses data transmission and storage related security concerns
adequately, delivering a truly streamlined customer experience.
Customer Retention and Acquisition Campaigns
Offering existing customers an additional, secure, easy to use banking channel is sure to
improve the IoyaIty or 'stickiness' of customers to your brand. t can also act as an
attraction point to new customers looking for ease of access and innovative services.
There are many practical ways of using SMS text messaging to increase the level of
service you offer customers:
O Use SMS transaction and fraud aIerts to guarantee their level of banking security.
O Allow customers to receive critical information and services via SMS messages.
O Allow your customers to communicate with you via SMS text message and set-up an
'inteIIigent customer caIIback service' that negates the need for customers to wait in
frustrating phone queues.
O Run SMS marketing campaigns to attract new customers to your institution; because
these campaign results are available immediately, the return on investment is
measurabIe.
O Allow customers the flexibility and peace of mind to access their bank accounts on the
go, receive their balance notifications and perform banking functions. A simple SMS
service offering 'point of saIe' SMS receipts contributes to customers feeling assured
that their money transactions are accurate and secure.
O MobiIe to mobiIe fund transfers are a very convenient way for customers to make
payments.
Just by implementing SMS mobile banking you will effectiveIy enhance the vaIue and reach
of your brand and build consumer confidence by offering them customer-centric service.
SMS mobiIe banking becomes a unique tooI for not onIy radicaIIy improving customer
service but aIso to generate additionaI revenue and aid in the prevention of fraud.A very
effective way of improving customer service could be to inform customersbetter. Credit card
fraud is one such area. A bank could, through the use of mobiletechnology, inform owners each
time purchases above a certain value have beenmade on their card. This way the owner is
always informed when their card is used,and how much money was taken for each
transaction.Similarly, the bank could remind customers of outstanding loan repayment
dates,dates for the payment of monthly installments or simply tell them that a bill hasbeen
presented and is up for payment. The customers can then check their balance
THE DISADVANTAGES O MOBILE BANKING



Many consumers use mobile banking on their cell phones or other portable device because it
allows them to quickly access information such as account balance and transaction history. The
benefits of this convenience are undeniable, but there are a number of disadvantages that
mobile banking users should be aware of. The technology's cost, compatibility issues and
security problems may cause you to think twice about using it.
1. SECURITY:-
Security experts generally agree that mobile banking is safer than computer banking because
very few viruses and Trojans exist for phones. That does not mean mobile banking is immune to
security threats, however.
Mobile users are especially susceptible to a phishing-like scam called "smishing." t 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.
Online banking is usually done through an encrypted connection so that hackers cannot read
transmitted data, but consider the consequences if your mobile device is stolen. While all
banking applications require you to enter a password or PN, many people configure their
mobile devices to save passwords, or use insecure passwords and PNs that are easy to guess.
2. COMPATIBILITY:-
.
Mobile banking is not available on every device. Some banks do not 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 RM Blackberry. Third-party mobile
banking software is not always supported.
f you do not own a smart phone, the types of mobile banking you can do are usually limited.
Checking bank account balances via text message is not a problem, but more advanced
features such as account transfers are generally not available to users of "dumb phones."
. 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. Some financial institutions
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.

ICICI MOBILE BANKING








mobile offers a range of services in a simple consolidated menu. Now you can make banking
transactions like funds transfer, bill payment, balance enquiry, locate a branch, view your last 5
transactions and much more.iMobile is a rich client based application that downloads instantly
onto your mobile phone and functions similar to any other mobile application menu. With its
newer features, smarter interface, quicker navigation and enhanced functionality, iMobile is as
simple as ABC....
Now iMobile powered with mShop not only gives you a convenient banking solution, but also
gives the facility to purchase and pay for goods or services using mobile phones.
eatures of iMobiIe:

1. Banking using iMobiIe: With its proficient user interface you can now make payments,
transfer funds, place request and access banking information with just a single click on your
Saving Accounts, Loan Accounts, Demat Accounts and Credit Cards.

2. It is Safe and Secure: You will need to enter your unique 4-digit PN every time you make a
payment transaction. This PN is selected by you at the time of registration. Click here to know
more about security features.

. iMobiIe mShop: With the new mobile shop you can now recharge your prepaid mobile
number, book movie tickets with Book My Show, book flight tickets with Make My Trip and
much more in just few clicks.


iMobile mShop service is available for customers who activated iMobile after 31st Jan 2010. n
case you have activated iMobile before the mentioned date, please upgrade the iMobile
application by clicking on the Upgrade option in the Options menu.

4. Continuous Updates: Features and services are continuously updated keeping you ahead
of the game always.

5. Higher funds transfer Iimit: t allows you to transfer funds to any bank account, pay bills
and do prepaid mobile recharge upto a new enhanced limit* of Rs. 50,000/- per day.

6. Diversity of handsets: CC Bank is the only bank covering more than 650 GSM and
CDMA handsets.

To know how to add and remove service from iMobile mShop the steps are as follows :-
Mobile mShop gives you the facility to add or remove service from the existing list as per your
need. Follow the process given below to know how to add services.

1. Open the iMobile application on your handset.

2. Login with your 4 digit pin and select mShop from the mail menu of iMobile.

3. When the mShop section is open, go to Options and click on More services.

4. Select the service you want to add and click on Add services.


Following are the steps to remove services from the existing list.

1Open the iMobile application on your handset.
.

2
.
Login with your 4 digit pin and select mShop from the mail menu of iMobile.

3
.
When the mShop section is open, select the service you want to remove and click Remove
Service.


Bank Account

Credit Card

Demat

Loan

Other Services
Funds Transfer* Balance Details Holding Enquiry Provisional
ncome Tax
Certificate
Movie ticket
booking*
Bill Payment+ Last Payment
Details
Transaction
Status
Final ncome
Tax Certificate
Prepaid Mobile
Recharge*
Balance Enquiry Payment Due
Date
Bill Enquiry Reset Letter Status of
Service Request
Raised
Cheque Book
Request
SN Enquiry Rescheduled
Letter
Locate ATM /
Branch
Last 5
Transactions
Loan Agreement
Copy
Phone Banking
Number
Stop Cheque
Request
Apply Now


* Financial transactions are only possible on iMobile. There is a limit of Rs.50000 per day for
financial transactions using Mobile Banking. Third Party Fund Transfer transactions will be
charged Rs.5.00 as Service Charge + applicable Service Tax.
* Transfer Funds to registered payees. To add payee, please login to www.icicibank.com and
add payee in Funds Transfer Option.
+ Transfer Funds to registered Biller. To add a biller, please login to www.icicibank.com and add
biller in Bill Pay section.

The telecom operator banks partnerships are quickly being closed: Vodafone Essar has inked
a partnership with CC Bank, ndia's largest private sector bank, to offer financial services
through the mobile phone. This isn't a joint venture, like the one State Bank of ndia and Bharti
Airtel formed yesterday. Like in case of the dea Cellular and Axis bank partnership announced
last month, Vodafone Essar will become a banking correspondent for CC Bank.
One phrase that caught our attention in the release: the companies will offer "a bouquet of
financial products such as savings accounts, pre-paid instruments and credit products through
a mobile phone based platform. By "pre-paid instruments, Vodafone is referring to the
impending launch of M-Pesa in ndia. Earlier reports had suggested that Vodafone was bringing
M-Pesa to ndia with HDFC Bank. M-Pesa will have to be bank agnostic, of course.
CC Bank will get access to Vodafone Essar's retail outreach of 1.5 million retail points for
acquiring customers. As per the release, both parties will work out the specific arrangements in
the coming few weeks and chart out a go-to-market plan.
UTURE ATM'S IN THE MAKING: ALL BANKS WITH ALL TELCOS
Remains to be seen who other two telcos with a large customer base Reliance
Communications and Tata Teleservices tie up with. HDFC Bank would be an obvious candidate,
given that it is among ndia's largest private sector banks. So far, the partnerships inked include:
deaCellularAxisbank(ourcoverage)
BhartiAirtelStateBankofndia(ourcoverage)
Vodafone Essar CC Bank
While arrangements might be exclusive to begin with, we expect this to eventually (within a few
years) move in an all-banks-all-telcos direction, perhaps with a nudge from the Reserve Bank of
ndia.That's when Telecom Operators will become like ATM's, and you'll be able to withdraw
money from any bank account from anywhere .
SBI MOBILE BANKING
SB mobile banking provides mobile banking services under the trade name SB-FreedoM which
has feature like balance enquires, fund transfers.Mobile services are provided by almost all the
banks such as CC, HSBC and HDFC however, SB (State Bank of ndia) though behind
schedule to catch up with these services has joined the bandwagon of these banks and have
started providing their own mobile banking services. SB FreedoM like all other banks provides
secure, anywhere and anytime mobile banking, these services can be benefited via WAP on
any mobile phones which are java or non java enabled, and have SMS/GPRS options. For this
the user has to first download the application onto the mobile handset. SB mobile banking
supports features like account related inquiries, request to issue a check book, enquiry for
balance remaining or even can get mini statements for entire month, transfer funds to SB or
other banks.

The user can activate SB mobile banking by first downloading the mobile banking application
onto the java enabled mobile devices for appropriate application execution. The application can
be downloaded in two ways either on to the computer first then transfer later on to the mobile or
if the mobile device has a GPRS connection, a simple SMS will do, a WAP link will be sent to
the mobile to download along with user id and MPN.
f the user downloads the application on to the system first and later on will be moved to a
mobile device where it is installed and run, the user has to register, so that the user gets an
SMS containing the user id and MPN to login to the application. The MPN can be changed by
the user after logging onto the application. When the user logons to the application, the system
has to be activated by registering for mobile banking under the ATM menu. Usage of SB mobile
banking is free of charge though the customer will be charged for any SMS sent.

SB has Iaunched mobile banking services under the brand name of SB-Freedom. Through this
you can carry out almost all transaction as you did on the nternet Banking .Here is how to get
SB Mobile banking on your mobile and instructions for Registration and Activation.
SBI MobiIe Banking-eatures:-
Presently in initial phase the mobile banking service SB-FreedoM have the following features-
O Balance enquiries and mini statements.
O Fund transfer to SB and other banks.
O Demat account related queries.
O Utility bills, merchandise and SB Life insurance premium payments.
O Request for check book issue.
Registration and Activation of SBI MobiIe Banking:-
You need to download the Mobile Banking Application to your mobile ,which must be java
enabled for proper functioning of the application. You can download the application in following
two ways-
O Method 1: Download the mobile banking application , transfer the application to your
mobile and install.
O Method 2:f you have a GPRS connection, then you can Send an SMS <MBSREG>
<Mobile Make> <Mobile Model> to 567676.For example if you have a Nokia N70 mobile
then send MBSREG Nokia N70 to 567676.On the reply you get a WAP link to download
the application as well as user id and MPN.
Using SBI reedoM MobiIe Banking
Once the application is installed, run it and click "Register link in case you have installed using
method 1 shown above(also shown in figure).Soon you should get an SMS which contains a
user id and MPN (Mobile PN).Login to the application using the given user id and MPN and
change the MPN immediately.
Now after first login the system needs to be activated. This activation can be down by either
your branch manager or by you at any SB ATM .n order to activate it using SB ATM, select
services on the ATM menu and press Register for mobile Banking .
The service should be activated within 24 hours ,after which you will be able to use the mobile
banking service.
Charges on SBI reedoM MobiIe Banking
The usage of SB mobile banking is FREE from SB however you will be charged for any SMS
the application sends as decided by your mobile carrier.
This mobile banking service is one more way to avoid those long queues at the SB branches so
download and enjoy the service.








SUCCESS STORIES

1. LG TeIecom, South Korea:-n terms of the evolution of services being offered on mobile
applications, South Korea is showing the way. The big push came when LG Telecom Ltd., the
smallest of Korea's three mobile service providers teamed up with the Kookmin bank to launch
the 'Bank on' service. Under this scheme mobile users were able to use smart chips embedded
in cell phones for accessing all of the transaction and enquiry based services. The chip-based
service automated the authentication of users when they accessed their bank's financial
services to make the whole process much faster and convenient. The icing on the cake came
with the ability of these chip enabled cell phones to be used simultaneously as cash cards. By
October 2004 there were already about 100,000 infrared readers adapted to take payment
directly from mobile phone handsets in Korea. Users can now use their cell phones to pay for
everything, from restaurant bills, travel tickets, merchandise and even haircuts.

2.ReIiance Infocomm, India:-When Reliance nfocomm, ndia rolled out its CDMA
network, (at the time the mobile market in ndia was still in its infancy, and data services were
almost never heard off) it made sure that all handsets supported Java. The Reliance application
platform, also known as R-World brought Java compatibility even to the lower
endphones.Reliance used a novel way to overcome the memory limitations of lower-end mobile
phones, which hampered deploying of multiple standalone J2ME based clients. nstead of
storing applications statically on their cell phones, users access a single menu based
application called R-World, which connects them to the Reliance servers. Using the menu
based user interface, mobile users select the application, which they want to run and download
them over-the-air to their cell phones. These applications are then executed locally on the
mobiles. From mid-2004 Reliance tied up with two of the popular private sector banks, HDFC
and CC, to provide a host of their enquiry and transaction based mobile banking services
through its R-World environment.

Reliance Communications, an Anil Dhirubhai Ambani Group company, has announced
introduction of money transfer through mobile phones across ndia with the help of CC
Bank as a joint venture partner. This new facility for the subscribers of Reliance
Communications is an easy to use alternative for account-to account transfer of money which is
normally associated with banks and other agencies. The money transfer market, according to R
Comm., is more than $24 billion annually including global transfers to ndia. This will help
customers having accounts with CC Bank to send and receive money anytime anywhere
using Reliance mobile phones. The service is made available to the masses on Reliance mobile
world enabled phones including the recently launched Reliance Classic range in the range of
Rs777 and Rs 1,234.R Comm.'s product head Mr. Anil Pande said ndia was the fastest
growing market in the world and the world's largest receiver of remittances. He said M-
commerce would be a big business in coming years. CC Bank's Reliance mobile customers
can go to the finance section. R-World Mobile Bank. M- Banking. CC Bank. Saving account.
The customers will be charged a mobile transaction fee of Rs 10 and can transfer money up to
Rs 5,000 with multiple transactions in a day

ABN Ambro, India
ABN AMRO Bank brings to the convenience of mobile banking using an application called
MPOWER. t allows customers to access their account for inquiry &transactions using simple
SMS messages. One can do the following using MPOWER:
Balance & Transaction nquiry
Share Holdings in Demat Account
Funds Transfers to ABN AMRO & other banks
Bill Presentment and Payment
Cheque nquiry & Stop Cheque
Online Fixed Deposit Opening
Request for Cheque Book & Statement
Request for new PN & change PN online

M-Banking: The Services Bouquet
ICICI Bank HDC Bank IDBI Bank HSBC Bank of America Citibank ABN Amro

BaIance enquiry yes yes yes yes yes yes yes


Last few transactions yes yes yes yes yes yes yes

Cheque payment yes yes yes yes yes
Status
Yes
Stop payment of
cheques

Statement request yes yes yes yes yes yes



Cheque book request yes yes yes












Citibank
Banks are hoping to extend mobile banking as technology improves. Citibank has
Two ongoing cell phone trials. The first is a partnership with MasterCard, AT&T, and
Nokia that places chips in cell phones allowing Citi debit and credit to make
Payments by waving the cell phone at a participating store's register.
City's other pilot is with Obopay that lets debit and credit customers transfer money
Between mobile phones. Analysts say even more revenue is possible in the coming
Years when more functions are added to cell phones like international transfers, and
Booking travel arrangements. While mobile banking is relatively new, the service has shown
some traction with customers. Citi Mobile says it had more subscribers than expected while the
service was being piloted around the country in the spring.
Wachovia Mobile says their service has been getting about 50,000 unique visitors a week since
its launch. Celent predicts that by the end of 2010, 35% of all online banking households will be
using mobile banking.


uture functionaIities in MobiIe Banking
Based on the 'nternational Review of Business Research Papers' from World business nstitute,
Australia, following are the key functional trends possible in world of Mobile Banking.
With the advent of technology and increasing use of smart phone and tablet based devices, the
use of Mobile Banking functionality would enable customer connect across entire customer life
cycle much comprehensively than before. With this scenario, current mobile banking objectives
of say building relationships, reducing cost, achieving new revenue stream will transform to
enable new objectives targeting higher level goals such as building brand of the banking
organization. Emerging technology and functionalities would enable to create new ways of lead
generation, prospecting as well as developing deep customer relationship and mobile banking
world would achieve superior customer experience with bi-directional communications.
llustration of objective based functionality enrichment n Mobile Banking
O Communication enrichment: - Video nteraction with agents, advisors.
O Pervasive Transactions capabilities: - Comprehensive "Mobile wallet
O Customer Education: - "Test drive for demos of banking services
O Connect with new customer segment: - Connect with Gen Y Gen Z using games and
social network ambushed to surrogate bank's offerings
O Content monetization: - Micro level revenue themes such as music, e-book download
O Vertical positioning: - Positioning offerings over mobile banking specific industries
O Horizontal positioning: - Positioning offerings over mobile banking across all the
industries
O Personalization of corporate banking services: - Personalization experience for multiple
roles and hierarchies in corporate banking as against the vanilla based segment based
enhancements in the current context.
O Build Brand: - Built the bank's brand while enhancing the "Mobile real estate.
ChaIIenges for a MobiIe Banking SoIution
Key challenges in developing a sophisticated mobile banking application are :
Handset operabiIity
There are a large number of different mobile phone devices and it is a big challenge for banks to
offer mobile banking solution on any type of device. Some of these devices support Java ME
and others support SM Application Toolkit, a WAP browser, or only SMS.
nitial interoperability issues however have been localized, with countries like ndia using portals
like R-World to enable the limitations of low end java based phones, while focus on areas such
as South Africa have defaulted to the USSD as a basis of communication achievable with any
phone.
The desire for interoperability is largely dependent on the banks themselves, where installed
applications (Java based or native) provide better security, are easier to use and allow
development of more complex capabilities similar to those of internet banking while SMS can
provide the basics but becomes difficult to operate with more complex transactions.
There is a myth that there is a challenge of interoperability between mobile banking applications
due to perceived lack of common technology standards for mobile banking. n practice it is too
early in the service lifecycle for interoperability to be addressed within an individual country, as
very few countries have more than one mobile banking service provider. n practice, banking
interfaces are well defined and money movements between banks follow the S0-8583
standard. As mobile banking matures, money movements between service providers will
naturally adopt the same standards as in the banking world.
On January 2009, Mobile Marketing Association (MMA) Banking Sub-Committee, chaired by
Cell Trust and VeriSign nc., published the Mobile Banking Overview for financial institutions in
which it discussed the advantages and disadvantages of Mobile Channel Platforms such as
Short Message Services (SMS), Mobile Web, Mobile Client Applications, SMS with Mobile Web
and Secure SMS.
Security:-Security of financial transactions, being executed from some remote location and
transmission of financial information over the air, are the most complicated challenges that need
to be addressed jointly by mobile application developers, wireless network service providers and
the banks' T 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. f the bank is offering smart-card based security,
the physical security of the device is more important.
2. Security of any thick-client application running on the device. n case the device is
stolen, the hacker should require at least an D/Password to access the application.
3. Authentication of the device with service provider before initiating a transaction. This
would ensure that unauthorized devices are not connected to perform financial
transactions.
4. User D / Password authentication of bank's customer.
5. Encryption of the data being transmitted over the air.
6. Encryption of the data that will be stored in device for later / off-line analysis by the
customer.
7. One-time password (OTPs) are the latest tool used by financial and banking service
providers in the fight against cyber fraud. nstead 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 SMS. The password is expired once it
has been used or once its scheduled life-cycle has expired.
8. Because of the concerns made explicit above, it is extremely important that SMS
gateway providers can provide a decent quality of service for banks and financial
institutions in regards to SMS services. Therefore, the provision of service level
agreements (SLAs) is a requirement for this industry; it is necessary to give the bank
customer delivery guarantees of all messages, as well as measurements on the speed
of delivery, throughput, etc. SLAs give the service parameters in which a messaging
solution is guaranteed to perform.
9. ScaIabiIity & ReIiabiIity:-Another challenge for the COs and CTOs of the banks
is to scale-up the mobile banking infrastructure to handle exponential growth of the
customer base. With mobile banking, the customer may be sitting in any part of the
world (true anytime, anywhere banking) and hence banks need to ensure that the
systems are up and running in a true 24 x 7 fashion. As customers will find mobile
banking more and more useful, their expectations from the solution will increase. Banks
unable to meet the performance and reliability expectations may lose customer
confidence. There are systems such as Mobile Transaction Platform which allow quick
and secure mobile enabling of various banking services. Recently in ndia there has
been a phenomenal growth in the use of Mobile Banking applications, with leading
banks adopting Mobile Transaction Platform and the Central Bank publishing guidelines
for mobile banking operations.
AppIication distribution:-Due to the nature of the connectivity between bank and its
customers, it would be impractical to expect customers to regularly visit banks or connect to a
web site for regular upgrade of their mobile banking application. t will be expected that the
mobile application itself check the upgrades and updates and download necessary patches (so
called "Over the Air" updates). However, there could be many issues to implement this
approach such as upgrade / synchronization of other dependent components.
PersonaIization t would be expected from the mobile application to support
personalization such as:
1. Preferred Language
2. Date / Time format
3. Amount format
4. Default transactions
5. Standard Beneficiary list
6. Alerts

GENERAL SURVEYS CONDUCTED BY MANY IRMS
Which option wouId you prefer-MobiIe or onIine Banking?



Base: 360
Source: DATAQUEST

According to research firm Ovum, mobile commerce is expected to grow to over $35 billion by
2007.And banking is going to be a major benefactor of the same. According to studies by some
global firms, one of the most Used services for mobile commerce would be mobile banking
with services like transfers, balance and trading Bringing in the revenues for mobile bankers. No
wonder then, banks are making their infrastructure "mobile-enabled". While, some like HDFC
Bank are riding on their existing infrastructure of Net-banking, others like the DB Bank are
making considerable investments to provide wire free banking experience. DB Bank's mobile
banking infrastructure is based on the GSM Data Suite of products that makes its services
accessible through any GSM operator across the world. The systems at DB Bank are also
interfaced online with its banking, Demat and payment systems. HDFC Bank, on the other hand,
does not have any separate infrastructure for mobile banking service. Rather, the bank uses the
same server/database as used for Net-banking. "We have a Web Server and Application Server
which runs on WebSphere4.04 on Win2000 using SQL 2000as the database for storing the
Profile information.


Have you heard about mobiIe banking?







Base: 360 T industry and corporate users of mobile phones and banks offering Mbanking
Source: DATAQUEST
Given the profile of the people surveyed, it's no surprise that over 26% of the sample had heard
about mobile banking services. ataquest did a mix of60:40 (non-T: T people) in the NCR
region. Awareness about mobile banking services was higher among 'T people'.HDFC Bank's
CN Ram agreed"We have 1.75 lakh registered users for mobile banking services. And we are
hitting 4, 000 transactions per day."

WouId you Iike to use mobiIe banking services?



Base: 265 respondent's not aware of m-banking services
Source: DATAQUEST
While awareness remains at26%, people are keen to try out mobile banking. 63% of the
respondents evinced interest in the services. Given the convenience factorthe fact that mobile
banking can be used from anywhere in the world as long as one can send and receive SMS'
most were interested. Since m-commerce is still about the core virtues of mobile
communication, issues like mobility, any-time access and ease of usage emerged as the driving
factors in the ongoing year.
.
CONCLUSION

Mobile banking is poised to become the big killer mobile application arena. However,
banks going mobile the first time need to tread the path cautiously. The biggest decision that
banks need to make is the channel that they will support their services on. Mobile banking
through an SMS based service would require the lowest amount of effort, in terms of cost and
time, but will not be able to support the full breath of transaction-based services. However, in
markets like ndia where a bulk of the mobile population users' phones can only support SMS
based services, this might be the only option left. On the other hand a market heavily
segmented by the type and complexity of mobile phone usage might be good place to roll of
WAP based mobile applications. A WAP based service can let go of the need to customize
usability to the profile of each mobile phone, the trade-off being that it cannot take advantage of
the full breadth of features that a mobile phone might offer. Mobile application standalone clients
bring along the burden of supporting multiple mobile device profiles. According to the Gartner
Group, mobile banking services will have to support a minimum of 50 different device profiles in
the near future. However, currently the best user experience, depending on the capabilities of a
mobile phone, is possible only by using a standalone client. Mobile banking has the potential to
do to the mobile phone what E-mail did to the nternet. Mobile Application based banking is
poised to be a big m-commerce feature, and if South Korea's foray into mass mobile banking is
any indication, mobile banking could well be the driving factor to increase sales of high-end
mobile phones. Nevertheless, Bank's need to take a hard and deep look into the mobile usage
patterns among their target customers and enable their mobile services on a
technology with reaches out to the majority of their customers.
Internet Banking


A PERSPECTIVE ON THE HISTORY

hile Iinancial instit:tions took steps to implement e-banking services in the mid-1990s, many
cons:mers were hesitant to cond:ct monetary transactions over the web. It took widespread adoption oI
electronic commerce, based on trailblazing companies s:ch as merica Online, mazon.com and eay,
to make the idea oI paying Ior items online widespread. y 2000, 80 percent oI U.S. banks oIIered e-
banking. :stomer :se grew slowly. t ank oI merica, Ior eample, it took 10 years to acq:ire 2
million e-banking c:stomers. However, a signiIicant c:lt:ral change took place aIter the Y2K scare
ended.
In 2001, ank oI merica became the Iirst bank to top 3 million online banking c:stomers, more than 20
percent oI its c:stomer base. In comparison, larger national instit:tions, s:ch as itigro:p claimed 2.2
million online relationships globally, while J.!. Morgan hase estimated it had more than 750,000 online
banking c:stomers. ells argo had 2.5 million online banking c:stomers, incl:ding small b:sinesses.
Online c:stomers proved more loyal and proIitable than reg:lar c:stomers. In October 2001, ank oI
merica c:stomers eec:ted a record 3.1 million electronic bill payments, totaling more than $1 billion.
In 2009, a report by Gartner Gro:p estimated that 47 percent oI U.S. ad:lts and 30 percent in the United
Kingdom bank online.


Internet Banking
Internet banking (or E-banking) means any :ser with a personal comp:ter and a browser can get
connected to his bank -s website to perIorm any oI the virt:al banking I:nctions. In internet banking
system the bank has a centralized database that is web-enabled. ll the services that the bank has
permitted on the internet are displayed in men:. ny service can be selected and I:rther interaction is
dictated by the nat:re oI service. The traditional branch model oI bank is now giving place to an
alternative delivery channels with TM network. Once the branch oIIices oI bank are interconnected
thro:gh terrestrial or satellite links, there wo:ld be no physical identity Ior any branch. It wo:ld a
borderless entity permitting anytime, anywhere and anyhow banking.

Internet banking in India

The Reserve ank oI India constit:ted a working gro:p on Internet anking. The gro:p divided the
internet banking prod:cts in India into 3 types based on the levels oI access granted. They are:
O Information Only System: General p:rpose inIormation like interest rates, branch
location, bank prod:cts and their Ieat:res, loan and deposit calc:lations are provided in
the banks website. There eist Iacilities Ior downloading vario:s types oI application
Iorms. The comm:nication is normally done thro:gh e-mail. There is no interaction
between the c:stomer and bank's application system. No identiIication oI the c:stomer is
done. In this system, there is no possibility oI any :na:thorized person getting into
prod:ction systems oI the bank thro:gh internet.
O Electronic Information Transfer System: The system provides c:stomer- speciIic
inIormation in the Iorm oI acco:nt balances, transaction details, and statement oI
acco:nts. The inIormation is still largely oI the 'read only' Iormat. IdentiIication and
a:thentication oI the c:stomer is thro:gh password. The inIormation is Ietched Irom the
bank's application system either in batch mode or oII-line. The application systems
cannot directly access thro:gh the internet.

O :lly Electronic Transactional System: This system allows bi-directional capabilities.
Transactions can be s:bmitted by the c:stomer Ior online :pdate. This system req:ires
high degree oI sec:rity and control. In this environment, web server and application
systems are linked over sec:re inIrastr:ct:re. It comprises technology covering
comp:terization, networking and sec:rity, inter-bank payment gateway and legal
inIrastr:ct:re.


O A:tomated Teller Machine (ATM): TM is designed to perIorm the most important
I:nction oI bank. It is operated by plastic card with its special Ieat:res. The plastic card
is replacing cheq:e, personal attendance oI the c:stomer, banking ho:rs restrictions and
paper based veriIication. There are debit cards. TMs :sed as spring board Ior
Electronic :nd TransIer. TM itselI can provide inIormation abo:t c:stomers acco:nt
and also receive instr:ctions Irom c:stomers - TM cardholders. n TM is an
Electronic :nd TransIer terminal capable oI handling cash deposits, transIer between
acco:nts, balance enq:iries, cash withdrawals and pay bills. It may be on-line or 0II-line.
The on-line TN enables the c:stomer to avail banking Iacilities Irom anywhere. In oII-
line the Iacilities are conIined to that partic:lar TM assigned. ny c:stomer possessing
TM card iss:ed by the Shared !ayment Network System can go to any TM linked to
Shared !ayment Networks and perIorm his transactions.

O Credit Cards/Debit Cards: The redit ard holder is empowered to spend wherever
and whenever he wants with his redit ard within the limits Iied by his bank. redit
ard is a post paid card. ebit ard, on the other hand, is a prepaid card with some
stored val:e. Every time a person :ses this card, the Internet anking ho:se gets money
transIerred to its acco:nt Irom the bank oI the b:yer. The b:yers acco:nt is debited with
the eact amo:nt oI p:rchases. n individ:al has to open an acco:nt with the iss:ing
bank which gives debit card with a !ersonal IdentiIication N:mber (!IN). hen he
makes a p:rchase, he enters his !IN on shops !IN pad. hen the card is sl:rped thro:gh
the electronic terminal, it dials the acq:iring bank system - either Master ard or VIS
that validates the !IN and Iinds o:t Irom the iss:ing bank whether to accept or decline
the transactions. The c:stomer can never overspend beca:se the system rejects any
transaction which eceeds the balance in his acco:nt. The bank never Iaces a deIa:lt
beca:se the amo:nt spent is debited immediately Irom the c:stomers acco:nt.

O Smart Card: anks are adding chips to their c:rrent magnetic stripe cards to enhance
sec:rity and oIIer new service, called Smart ards. Smart ards allow tho:sands oI
times oI inIormation storable on magnetic stripe cards. In addition, these cards are highly
sec:re, more reliable and perIorm m:ltiple I:nctions. They hold a large amo:nt oI
personal inIormation, Irom medical and health history to personal banking and personal
preIerences.


AvaiI the services through E-Banking.




Bill payment service : Yo: can Iacilitate payment oI electricity
and telephone bills, mobile phone, credit card and ins:rance premi:m bills as each bank
has tie-:ps with vario:s :tility companies, service providers and ins:rance companies,
across the co:ntry. To pay yo:r bills, all yo: need to do is complete a simple one-time
registration Ior each biller. Yo: can also set :p standing instr:ctions online to pay yo:r
rec:rring bills, a:tomatically. Generally, the bank does not charge c:stomers Ior online
bill payment.

:nd transfer: Yo: can transIer any amo:nt Irom one acco:nt to another
oI the same or any another bank. :stomers can send money anywhere in India. Once
yo: login to yo:r acco:nt, yo: need to mention the payee`s acco:nt n:mber, his bank
and the branch. The transIer will take place in a day or so, whereas in a traditional
method, it takes abo:t three working days. III ank says that online bill payment
service and I:nd transIer Iacility have been their most pop:lar online services.

Credit card c:stomers: ith Internet banking, c:stomers can not
only pay their credit card bills online b:t also get a loan on their cards. II yo: lose yo:r
credit card, yo: can report lost card online.


Railway pass: This is something that wo:ld interest all the aam janta.
Indian Railways has tied :p with III bank and yo: can now make yo:r railway pass
Ior local trains online. The pass will be delivered to yo: at yo:r doorstep. :t the Iacility
is limited to M:mbai, Thane, Nashik, S:rat and !:ne.


Investing thro:gh Internet banking: Yo: can now
open an online thro:gh I:nds transIer.Now investors with interlinked emat acco:nt
and bank acco:nt can easily trade in the stock market and the amo:nt will be
a:tomatically debited Irom their respective bank acco:nts and the shares will be credited
in their emat acco:nt. Moreover, some banks even give yo: the Iacility to p:rchase
m:t:al I:nds directly Irom the online banking system. Nowadays, most leading banks
oIIer both online banking and demat acco:nt. However iI yo: have yo:r emat acco:nt
with independent share brokers, then yo: need to sign a special Iorm, which will link
yo:r two acco:nts.

Recharging yo:r prepaid phone : Now j:st top-:p yo:r
prepaid mobile cards by logging in to Internet banking. y j:st selecting yo:r operator's
name, entering yo:r mobile n:mber and the amo:nt Ior recharge, yo:r phone is again
back in action within Iew min:tes.


Shopping: ith a range oI all kind oI prod:cts, yo: can shop online and the
payment is also made conveniently thro:gh yo:r acco:nt. Yo: can also b:y railway and
air tickets thro:gh Internet banking.

Online Check Images: Most banks will show yo: an image oI the
check, which makes it really easy to balance yo:r acco:nt iI yo: can`t remember what a
partic:lar payment was Ior. (Ideally, yo: sho:ld minimize the n:mber oI physical checks
yo: write to red:ce Ira:d.)


Ease of Opening New Acco:nts: Once yo: have an
acco:nt at the bank, yo: sho:ld be able to open additional acco:nts entirely
online and j:st transIer money into it. or eample, I set :p a traditional IR last
year and it took me abo:t 3 min:tes to set :p, deposit my money Irom checking
and invest it in an inde I:nd.


Reporting Tools :Most banks oIIer basic reporting tools that will let yo:
see how m:ch yo: have spent in each category yo:`ve created. This may not be an iss:e
iI yo: :se desktop money management soItware, b:t it still can be handy iI yo: are
traveling and want to see how m:ch yo:`ve paid on yo:r mortgage over the past 12
months.

Convenient Deposit Methods: Since yo: may not be
anywhere near the physical location oI yo:r bank, make s:re yo: :nderstand how to
deposit money. !ayroll can be set :p on direct deposit, b:t there will be times when yo:
need to deposit checks. oes the bank provide postage paid envelopes and deposit slips?
Some banks work with edE or U!S stores to allow yo: to send in a deposit
overnight Ior Iree.


Low ATM ees and Convenient Locations :
II yo: need to get cash, will the bank reI:nd the TM Iees? re there only
certain TMs that are Iree, and iI so, are they located near places yo: normally
go? re the TMs available nations wide so yo: can :se them on vacation?
hat are the Iees Ior :sing the TM internationally and how is the echange rate
handled?






Advantages of online banking incl:de the following:-

O Very convenient. Online banking is a totally easy thing to do. In the comIort oI
yo:r home or oIIices, yo: can do whatever monetary transactions yo: wish to do with
yo:r bank.
O &nlimited service day and night. The services and vario:s Ieat:res oI
yo:r bank are always available seven days a week and 24 ho:rs daily. The most
interesting thing here is that, everything can happen at j:st one click oI yo:r mo:se.
O No time constraint. Online banking is also stress Iree beca:se it never closes
:nlike the traditional banking that has c:t-oII time.
O Easy to access via PC. Using yo:r personal comp:ter, yo: can easily do
vario:s transactions with yo:r bank in view oI yo:r b:siness or any other personal or
Iinancial matters.
O Easy way of payment. ill payments can also be handled properly and
smartly. Instead oI waiting Ior certain d:e dates, yo: can easily pay all yo:r transactions
:sing yo:r comp:ter and in coordination with yo:r bank.
O Smart. Online banking is also :biq:ito:s or simply p:t smart. This enables yo: to
do tro:bleshooting regarding any problem that may arise Irom yo:r b:siness.
O Higher interest rate. nother great advantage oI online banking is the
interest rates which basically range between 5 to 3.40 ann:ally. Unlike the
traditional banking, online banking can earn yo: a better interest or ret:rn oI investment
both in yo:r savings and checking acco:nt.
O Easy transaction. nother advantage is the speed oI every transaction. Online
transactions, compared to TM or traditional banking, works Iaster. Th:s b:siness
matters co:ld beneIit so m:ch Irom this speed Ieat:re.
O anking online is both efficient and effective. ith j:st one sec:re site, all
yo:r Iinancial transactions can be managed orderly.



THE OLLOWING ARE THE DISADVANTAGES
O ONLINE BANKING:-



O irst is the slow processing Irom the moment yo: entered a Iinancial transaction with
yo:r bank via the comp:ter. Us:ally the bank will req:ire yo: to s:bmit certain doc:ments like
an identiIication card, signat:re and the like. Not only will the bank online req:ire yo: to s:bmit
doc:ments b:t also to provide special power oI attorney in cases where yo: want to do
transactions together with yo:r spo:se. concrete eample is when yo: want to manage all yo:r
wealth and reso:rces together as a co:ple and yo: wish to view it online. ertain technical
proced:res regarding online banking may be taing too and complicated.

O nother disadvantage is the so-called learning c:rve. This means, banking online especially in
locating the sites may be complicated and hard to Iind.

O nother disadvantage is bank site changes. II this occ:rs, the bank will req:ire yo: to re-enter
all yo:r inIormation again and other related data.

O inally is the tr:st aspect. Online banking sho:ld be entered very careI:lly iI yo: wish to enjoy
yo:r Iinancial liIe.

AXIS BANK INTERNET BANKING



Get control over yo:r acco:nt anytime, anywhere at yo:r comIort with is ank Internet
anking - a one stop sol:tion Ior all yo:r banking needs. View all yo:r acco:nts detail, s:bmit
req:ests and :ndertake a wide range oI transactions.
eat:res
O Acco:nt Details: View yo:r bank acco:nt details, acco:nt balance, download
statements and more. lso view yo:r emat, Loan & redit ard cco:nt etails too all
in one place.
O :nd Transfer: TransIer I:nd to yo:r own acco:nts, other is ank acco:nts or
Other ank acco:nt seamlessly.
O Req:est Services: Give a req:est Ior heq:e book, emand raIt, Stop heq:e
!ayment, ebit ard Loyalty point Redemption etc.
O Investment Services: View yo:r complete !ortIolio with the bank, reate ied
eposit, pply Ior I!O etc.
O Val:e Added Services: !ay Utility bills Ior more than 160 billers, Recharge Mobile,
reate Virt:al ards, !ay any Visa redit ard bills, Register Ior statement and sms
banking etc.
Net banking - Activating operating proced:re
When you open an accounL wlLh Axls bank lrrespecLlve of wheLher lL ls Savlngs accounL or CurrenL
accounL Lhe bank auLomaLlcally offers Lhe cusLomer neL banklng Servlces Loo So Lhere ls no need for
separaLe Axls bank neL banklng reglsLraLlon and flllng of Axls bank neL banklng form
They wo:ld also give yo: a separate doc:ment which wo:ld contain yo:r :stomer I n:mber
Ior Net anking !:rposes. In addition to the above, they wo:ld mail yo: a sealed envelope
within which yo: wo:ld Iind a semi-grey colored envelope again. This envelope wo:ld have
perIorations on its right side and leIt side ends. It wo:ld contain heading as is ank I
onnect Net banking !assword. areI:lly tear it along the perIoration on one side, and yo: will
Iind the password in it.
Net banking login
Then go to is ank ebsite which is http://www.aisbank.com/ and here yo: will Iind in the
top leIt corner a Raised Rectang:lar o which wo:ld be written as Logon. lick it & the page
will transition to Net banking Home !age. There will be provision to enter the :stomer I &
!assword (Remember, yo: got it Irom the semi-grey colored envelope) which yo: Iill into the
relevant Iields.

Benefits of Axis Bank net banking Service:-

ith is ank Net banking I onnect Services yo: can cond:ct almost all kinds oI
transactions. e have listed :nderneath, the most important ones.
O lock Iss:ed cheq:es Irom realization, iI yo: have any s:ch need
O !ayment e ommerce Gateway Ior online :tility and other bill payments
O Online transactions
O ccess to personal acco:nt inIormation
O heq:e ook req:ests
O irect credits and debits to yo:r acco:nt
O Mini statement oI past si transactions
O Money TransIers between any two oI its branches :pto Rs 200000/-
O alance enq:iry Ior savings acco:nt, c:rrent or corporate acco:nts, term deposits and
loan acco:nts
O Open ied eposits
O Move I:nds between Savings / to :rrent /
O Send a Mail to Relationship Manager oI is ank, pertaining to whatever yo: wish to
:nderstand
O Open emat cco:nt (or Maintaining all yo:r Stock Market Shares, ebent:res etc)
O !ay redit ard ills
O !ay Electricity, Telephone & Other Utility ills

PNB net banking

Today, PNB ( Punjab National Bank) is one of biggest four banks in India along with ICICI
Bank, State Bank of India and Canara Bank and the second largest government-run bank in
India. It has over 5000 branches in 764 cities serving more than 37 million
customers. Internet Banking is one of the most convenient and beneficial services offered
by the bank to its customers and free of cost i.e. fast, simple, 24 hours banking at free of
cost. Customers can manage their funds and account more effectively and efficient by
getting the online banking services offered by PNB Bank.

How to login/ :se pnb net banking
The PNB account holder will be provided a login ID and password which can be used to login
at the pnb Net banking website http://netpnb.com.After login for the first time it is
advisable to change the user ID and the passwords with some other login ID and passwords
which no one knows other than the customer himself.
eat:res
O Balance enquiry.
O ake online fund transfer between CBS accounts.
O nline account statement.
O njoy fast and safe payment options for air/railways tickets bookings, phone bill
payments, tds payment etc.
O #equest for cheque book.
PNB internet banking application form is available on the official website of the bank and
one can download it free of cost. therwise it can also be taken from various branches all
over the co:ntry.
P:njab National Bank has also started two specialized
services thro:gh online banking. These are -
O !ayment oI railway tickets that are reserved thro:gh IRT !ayment Gateway !roject
O !ayment oI :tility bills thro:gh internet banking. S:ch :tility bills incl:de electricity bills,
telephone and mobile bills and ins:rance premi:ms.

Benefits
ree
Safe & Sec:re
Convenient
Q:ick & Easy
Save Time
Less Trips to the

:t:re scope
ccording to a National OIIice Ior the InIormation Economy's latest :rrent State oI !lay report, the
n:mber oI Internet banking :sers in :stralia is steadily rising, :p Irom 1.37 million to 1.75 million Ior
the J:ne t"September 2000 q:arter.
Hit wise data shows a similar increase in pop:larity, with the n:mber oI page impressions directed at
banking sites as a percentage oI overall Internet traIIic rising dramatically over the past 12 months t"an
increase oI 77 percent.
anking is the most pop:lar :siness and inance s:b-category meas:red by Hit wise, acco:nting Ior
22.64 percent oI all traIIic to the category, ahead oI Stocks and Shares, Employment, and
Telecomm:nications. espite the implications oI borderless banking that online Iinancial services carry,
:stralians are Iar less likely to visit oIIshore instit:tions, preIerring to :se :stralian banks.
:rrent data shows that 94 percent oI traIIic to banking eb sites is directed at domestic sites.
Uns:rprisingly, the big Io:r banks dominate online, with their main sites and online banking Iacilities
occ:pying the top si places in the Hit wise :siness and inance t"anking and inancial Instit:tions
category Ior the month oI J:ly 2001, capt:ring 63.65 percent oI all traIIic to the category.
The leading online bank in :stralia is :nq:estionably the , which anno:nced its one millionth
Netank c:stomer in J:ne. The 's Net ank ranks ahead oI the main site as the most pop:lar
banking site in :stralia. The NZ, N, and estpac ro:nd o:t the top places, and oI the smaller
banks, St George, ING irect, and the endigo ank all make the top 10 sites.

!roblems Related to Net anking in India

Given that India is the IT and tech services o:tso:rcing hotspot oI the world, it's s:rprising that Internet
banking has not really taken oII. espite the advent oI a very tech-savvy and vast cons:mer class in recent
years, a mi oI ind:stry iss:es and :niq:e challenges contin:e to thwart the epansion oI net banking in India.
Technology challenges, IT practices, certain c:lt:ral iss:es, ind:stry lethargy, and workplace constraints have
aIIected widespread acceptance oI Internet banking.
Low roadband Internet !enetration
India has one oI the lowest broadband connectivity penetration rates in sia as compared to Japan, Taiwan,
Korea and Singapore. hile the bigger cities s:ch as M:mbai, elhi, hennai, and angalore have relatively
better broadband penetration rates, ! :sers in smaller cities and towns still :se dial-:p options to connect to
the Internet. Slow connectivity speeds oIten dampen the online banking eperience Ior many c:stomers eager
to :se s:ch services.
anks' mbivalent ommitment Levels
Internet banking did take oII in India at the t:rn oI the millenni:m b:t soon Ialtered d:e to lack oI takers. In
the middle oI this decade, m:ltinational and domestic private banks started oIIering net banking services as a
competitive diIIerentiator. Only recently, state-owned and p:blic sector banks have started doing likewise.
However, banks' ambivalent commitment levels and their rel:ctance to allocate h:ge b:dgets Ior net banking
branding initiatives, as well as a lack oI ind:stry advocacy eIIorts, have res:lted in poor acceptance levels oI
Internet banking by c:stomers.
:stomers' !reIerence Ior Traditional ranches
There are tho:sands oI highly active traditional bank branches in India's crowded cities and major towns.
OIIice workers take longer l:nch breaks to Iinish banking activities and transactions at these branches rather
than cond:ct them online. Most c:stomers preIer the personal to:ch and c:stomized service oIIered by staII in
brick-and-mortar bank branches. Many Indians are also averse to calling call centers and banks' c:stomer
contact lines to address iss:es related to online bank acco:nts.
ear oI Online Threats/Scams
Ubiq:ito:s and prevalent online threats abo:t hackers, identity theIt, stolen passwords, vir:ses, worms and
spyware tend to make c:stomers wary j:st like in any other co:ntry. onservative Indian bank c:stomers :sed
to years oI saving in an erstwhile mied-socialist economy are always IearI:l oI losing hard-earned savings in
online scams. These c:stomers are also not s:re abo:t the eIIicacy oI banks' websites and their commitment to
allocate I:nds Ior reliable encryption mechanisms and rob:st back-end technologies and systems.
Other !roblems
Workplace constraints and corporate policies about using external websites or pursing personal
activities such as online banking have affected its expected fast-paced acceptance among the
growing affluent class in ndia. Cultural issues, such as parents giving priority use of the home PC to
their children rather than using it themselves, stifle the potential growth of home access to nternet
banking services. Public sector banks with vast customer bases also don't tend to invest money in
training personnel for e-banking initiatives, resulting in poor customer service levels.

Concl:sion

Some cons:mers are still hesitant with banking online and most banks are aware oI this, th:s
they enco:rage their c:stomers` conIidence in their online Iacilities with ads and marketing
strategies. or instance, PNB internet banking promotes to their clients to pay their bills on
credit cards, cable companies and airlines via the cyberspace. There are even banks that oIIer
rewards and incentives Ior online bills payment. hile banking technology provides
convenience and many beneIits, the cons:mer sho:ld be aware oI its challenges and take
necessary care and preca:tion when doing online transactions.