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Introduction
Introduction
Origin of the Report
Objectives of the Report
Importance of the topic
Methodology
Source of Data
Scope of The Report
Limitation
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1.1 Introduction
Generally by the word “Bank” we can easily understand that the financial institution deals
with money. But there are different types of banks like; Central Banks, Commercial Banks,
Savings Banks, Investment Banks, Industrial Banks, Co-operative Banks, Mobile Banks etc.
The latest banking technology is introduced mobile banking. Mobile banking stocks indicates
that you can do with your mobile. This technology is more attractive as bank shares are held
within walking distance of the fingers of users. Also referred to as M-banking and SMS
banking.
The amount of the bank or transfer amount varies by bank. The most common type of M-
banking is the act of SMS alerts sent by the bank when deposits or withdrawals are made.
Some banking stocks including M-money deposits, transfers, checks bank account and much
more. This service is offered only by selected banks. As mobile banking has made bank
stocks easy expert tips for not making payments or large transactions through mobile
banking. Keep the pin and change the password is often a good idea. Use the user of banking
technology and suitable to be cautious in their transactions through mobile.
Dutch-Bangla Bank Limited (DBBL) is Bangladesh's most innovative and technologically
advanced bank. DBBL stands to give the most innovative and affordable banking products to
Bangladesh. Dutch-Bangla Bank Limited (DBBL) has for the first time introduced its mobile
banking service expanding the banking service from cities to remote areas. Mobile Banking is
a Banking process without bank branch which provides financial services to unbanked
communities efficiently and at affordable cost. To provide banking and financial services,
such as cash-in, cash out, merchant payment, utility payment, salary disbursement, foreign
remittance, government allowance disbursement, ATM money withdrawal through mobile
technology devices, i.e. Mobile Phone, is called Mobile Banking.
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1.2 Origin of the Report
This is the last part of MBA program. As a professional degree it is essential to fulfill all, the
requirements the program demand. According to the requirements of the internship, I am
assigned with a selected topic “Mobile Banking Practices of Dutch Bangla Bank Limited”.
I prepare this report from my practical experience, I earned at the time of my internship (14 th
March 2010 to 10th June) in DBBL at Rampura Branch, which should be submitted on 2011.
1.3 Objectives
To fulfill the requirement of the Internship Program.
To acquaint with mobile banking functions.
To know the new terms in mobile banking of DBBL.
To explore the benefits of mobile banking.
To observe the working environment in mobile banking
To apply theoretical knowledge in the practical filed.
To study the existing overall banker customer relationship.
1.4 Importance of the Topic
The topic that has been assigned by the supervisor is “Mobile Banking Practices of Dutch
Bangla Bank Ltd”. The importance of this topic is given below:
To describe the Mobile Banking process of DBBL
To know what does DBBL mobile banking offer.
To know the operation of mobile banking in Bangladesh
To be accustom with the management policy or process of DBBL in Bangladesh
Give an idea regarding mobile banking system and financial performance.
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1.5 Methodology
Methodology includes direct observation, face to face discussion with employees of different
departments, study of files, circulars etc. and practical work. This study includes both
quantitative and qualitative data. However, this report is basically qualitative in nature. In all
the cases depending on the requirements data have been collected from different sources.
1.6 Source of Data
This report is based on both primary and secondary source of information. For theoretical
development of this report, the data has been collected from the various sources like different
publications, library sources, books, articles, internet etc. For collecting primary data, I had to
ask the respective officers. Others are like
Exposure on different desk of the bank
File study
The secondary sources are:
Annual report of Dutch Bangla Bank Ltd.
Periodicals published by Bangladesh Bank
Different publications regarding banking functions, foreign exchange operation, and
export-import policies.
1.7 Scope of the Report
This report covered the over all Mobile banking system of DBBL and also includes the
relationship of the customers with the bank as well as the principals covered by the bank as a
general banking system.
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1.8 Limitation:
The present study was not out of limitations. But as an intern it was a great opportunity for
me to know the banking activities of Bangladesh especially Dutch Bangla Bank Ltd. Some
constraints are appended bellow:
Like any other research, this report is limited to time and resource and only three month is
not enough to cover such wide area of banking as well as preparing this report which may
takes more than a year.
Lack of adequate information of banking institution for preparing this report. So this
report is based on only publicly available information.
Every organization has their own secrecy that is not revealed to others. While collecting
data i.e. interviewing the employees, they did not disclose much information for the sake
of the confidentiality of the organization
Difficulty in gaining accesses to financial sector.
Non-availability of the most recent statistical data
Since the bank personals were very busy, they could provide me very little time.
The clients were too busy to provide me much time for interview.
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Overview of the Organization
2.1 Organizational Profile
Organizational Profile
Vision
Mission
Corporate Slogan
Features of Dutch Bangla Bank Ltd.
Strategies
Aims and Objectives
Corporate Culture
Corporate Mission
Management of Dutch Bangla Bank Ltd.
Human Resources Practices in Dutch Bangla Bank
Ltd.
Recruitment
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Dutch Bangla Bank Limited (DBBL) is Banking Company registered under the Companies
Act, 1994 with its Head Office at Printers Building (2nd & 8th Floor), 5, Rajuk Avenue,
Dhaka-1000. The Bank started its operation from 3rd June 2001. Dutch-Bangla Bank Limited
(DBBL) is Bangladesh's most innovative and technologically advanced bank. DBBL stands
to give the most innovative and affordable banking products to Bangladesh. An Amonst
bank, DBBL is the largest donor in to social causes in Bangladesh. It stands as one of the
largest private donors’ involved in improving the country. DBBL is proud to be associated
with helping Bangladesh as well as being a leader in the country's banking sector
Dutch-Bangla Bank started operation is Bangladesh's first joint venture bank. The bank was
an effort by local shareholders spearheaded by M Sahabuddin Ahmed (founder chairman) and
the Dutch company FMO.
From the onset, the focus of the bank has been financing high-growth manufacturing
industries in Bangladesh. The rationale being that the manufacturing sector exports
Bangladeshi products worldwide. Thereby financing and concentrating on this sector allows
Bangladesh to achieve the desired growth. DBBL's other focus is Corporate Social
Responsiblity (CSR). Even though CSR is now a cliche, DBBL is the pioneer in this sector
and termed the contribution simply as 'social responsibility'. Due to its investment in this
sector, DBBL has become one of the largest donors and the largest bank donor in
Bangladesh. The bank has won numerous international awards because of its unique
approach as a socially conscious bank.
DBBL was the first bank in Bangladesh to be fully automated. The Electronic-Banking
Division was established in 2002 to undertake rapid automation and bring modern banking
services into this field. Full automation was completed in 2003 and hereby introduced plastic
money to the Bangladeshi masses. DBBL also operates the nation's largest ATM fleet and in
the process drastically cut consumer costs and fees by 80%. Moreover, DBBL choosing the
low profitability route for this sector has surprised many critics. DBBL had pursued the mass
automation in Banking as a CSR activity and never intended profitability from this sector. As
a result it now provides unrivaled banking technology offerings to all its customers. Because
of this mindset, most local banks have joined DBBL's banking infrastructure instead of
pursuing their own.
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Even with a history of hefty technological investments and even larger donations, consumer
and investor confidence has never waned. Dutch-Bangla Bank stock set the record for the
highest share price in the Dhaka Stock Exchange in 2008.
The main focus of Dutch Bangla Bank Limited Credit line/Program is financing business,
trade and industrial activities and mobile banking through an effective delivery system.
2.2 Vision
Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and athletics,
music and entertainment, science and education, health and hygiene, clean and pollution free
environment and above all a society based on morality and ethics make all our lives worth
living. DBBL's essence and ethos rest on a cosmos of creativity and the marvel-magic of a
charmed life that abounds with spirit of life and adventures that contributes towards human
development.
2.2 Mission
Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a
commitment to social responsibility. "Profits alone" do not hold a central focus in the Bank's
operation; because "man does not live by bread and butter alone".
2.3 Corporate Slogan
Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs
and satisfaction and to become their first choice in banking. Taking cue from its pool
esteemed clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that
upholds and epitomizes its vaunted marques "Your Trusted Partner"
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2.4 Features of Dutch Bangla Bank Ltd
There are so many reasons behind the better performance of Dutch Bangla Bank Ltd than any
other newly established banks.
Highly qualified and efficient professionals.
Dutch Bangla Bank Ltd has established a core Research & Planning Division comprising
skilled person from the very inception of the Bank.
Dutch Bangla Bank Ltd has become a member of SWIFT system to expedite foreign
exchange transaction.
The inner environments of the all branches of Dutch Bangla Bank Ltd have been
computerized to provide the promptly & frequently customer services.
Dutch Bangla Bank Ltd provides the attractive interest rate than the other financial bank.
The bank provides loan to the customers at lower interest rate with easy and flexible
condition than the others do.
Profit earning is not the main aim of the Dutch Bangla Bank Ltd the bank is responsible
to maintain the social duties.
The bank frequent arranges customers meeting to achieve their valuable suggestions.
Letter of Credit (L/C) commission and other change are very lower than the others bank
Strategies
To strive for customer satisfaction through quality control and delivery of timely services
To identify customers' credit and other banking needs and monitor their perception
towards our performance in meeting those requirements
To manage and operate the Bank in the most efficient manner to enhance financial
performance and to control cost of fund
To review and update policies, procedures and practices to enhance the ability to extend
better service to customers.
To promote organizational effectiveness by openly communicating company plans,
policies, practices and procedures to employees in a timely fashion
To cultivate a working environment that fosters positive motivation for improved
performance
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To increase direct contact with customers in order to cultivate a closer relationship
between the bank and its customers
2.5 Aims and Objectives
DBBL is always ready to maintain the highest quality of services by upgrading banking
technology prudence in management and by applying high standard of business ethic through
its established commitment and heritage.
Dutch Bangla Bank Ltd is always ready to maintain the highest quality of services by
upgrading banking technology prudence in management and by applying high standard of
business ethic through its established commitment and heritage.
DBBL is committed to ensure its contribution to national economy by increasing its
profitability through professional and disciplined growth strategy for its customer and by
creating corporate culture in international banking area.
The objective of DBBL is not only to earn profit but also to keep the social commitment
and to ensure its co-operation to the person of all level, to the businessman, industrialist
specially who are engaged in establishing large scale industry by consortium and the
agro-based export oriented medium & small scale industries by self inspiration.
DBBL is committed to continue its activities in the new horizon of business with a view
to developing service oriented industry and culture of morality and its maintenance in
banking.
DBBL has been working from its very beginning to ensure the best use of its creativity,
well disciplined, well managed and perfect growth.
DBBL is always pre-occupied to encourage the inventors for purchasing its share by
creating the opportunity of long-term investment and increasing the value of share
through prosperity as developed day by day
2.6 Corporate Culture
This bank is one of the most disciplined Banks with a distinctive corporate culture. Here we
believe in shared meaning, shared understanding and shared sense making. Our people can
see and understand events, activities, objects and situation in a distinctive way. They mould
their manners and etiquette, character individually to suit the purpose of the Bank and the
needs of the customers who are of paramount importance to us. The people in the Bank see
themselves as a tight knit team/family that believes in working together for growth. The
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corporate culture we belong has not been imposed; it has rather been achieved through our
corporate conduct.
2.6 Corporate Mission
Will become most caring, focused for equitable growth based on diversified deployment of
resources, and nevertheless would remain healthy and gainfully profitable bank. Dutch
Bangla Bank Ltd aims to become one of the leading Banks in Bangladesh by prudence, flair
and quality of operations in their banking sector. The bank has some mission to achieve the
organizational goals. Some of them are:
Its aim to ensure their competitive advantages by upgrading banking technology
and information system.
DBBL intend to provide better benefits to their customers and good returns to their
shareholders.
The bank intends to meet the needs of their clients and enhance their profitability by
creating corporate culture.
Dutch Bangla Bank Ltd provides high quality financial services to strengthen the well-
being and success of individual, industries, and business communities.
The bank believes in strong capitalization.
It maintains high standard of corporate and business ethics.
Dutch Bangla Bank Ltd extends highest quality of service, which attracts the customers to
choose them first.
The bank maintains congenial atmosphere for which people are proud and eager to word
with Dutch Bangla Bank ltd.
DBBL believes in discipline growth strategy.
2.7 Management of Dutch Bangla Bank Ltd
For any financial and non-financial organization, Management is the most valuable and
important resources of any kind of organization. And, a well-organize management provides
the organization to reach its ultimate goal. Management means planning, organizing,
staffing, directing and controlling of all financial and non-financial resources of an
organization. Different aspects of management practice in Dutch Bangla Bank Ltd are
discussed below:
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Planning
Dutch Bangla Bank Ltd has done its planning within the purview of the corporate plan. The
overall planning approach in Dutch Bangla Bank Ltd is top-down. Each branch can plan
according to the goal imposed by the corporate level. It doesn’t plan independently. And,
Dutch Bangla Bank Ltd has a planning division. This department is mainly responsible for
the overall planning.
Organizing
Dutch Bangla Bank Ltd is organized as per the existing business locations. It has twelve
branches, each of which is a separate entity. Each unit is responsible for own performance
and a Senior Vice President (SVP) followed by Manager Heads each. He is directly
responsible for the performance of their unit. Within each branch it is organized functionally.
Staffing
The recruitment in Dutch Bangla Bank ltd is done in two ways. One as a “Probationary
Officer” for the management program and it has a probation period of one year. Another one
is non-management level as “Trainee Officers”. Probationary Officer is recruited in officer
category and their career path is headed towards different managerial jobs.
Directing and controlling
The management approach in Dutch Bangla Bank ltd is top-down or authoritative.
Information just seeks through lower management layer. Works are designed in such a way
that one cannot leave without clearing the tasks as he is assigned for a day. Sitting
arrangement in all office is done in a way that the superior can monitor the subordinate all
time. Budgeting, rewarding, punishing, etc. are also practiced as control mechanism.
2.7 Recruitment
The set-vice rule of Dutch Bangla Bank Ltd states the recruitment policy of the bank. In,
general the board of directors determines the recruitment policy of the bank from time to time.
The minimum entry-level qualification for any official position other than supportive
management is a Bachelors degree. However, informally the management prefers a minimum
master’s degree for the appointed of probationary officers in the Executive Officer position.
The recruitment for entry level positions begins with a formal written test which is conducted
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and supervised by the Institute of Business Administration, University of Dhaka. After
Successful completion of the written test, a personal interview is conducted for the successful
candidates by a panel of experts comprising of renowned bureaucrats and prominent bankers of
the country.
2.8 BOARD OF DIRECTORS
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MANAGING DIRECTOR K. Shamshi Tabrez
DIRECTORMr. Bernhard Frey
INDEPENDENT DIRECTOR Dr. Irshad Kamal Khan
:
CHAIRMAN Mr. Zaheed Hossain Khan
DIRECTOR FROM THE DEPOSITORDr. Syed Fakhrul Ameen
DIRECTOR Mr. Md. Fakhrul Islam Alhaj Md. Nurun Newaz
DIRECTORR FROM THE DEPOSITORMr. Chowdhury M. Ashraf Hossain
Mobile Banking Practices
Mobile Banking:
What is Mobile Banking
Mobile Banking Business Model
Mobile Banking Overview
Technologies behind mobile
banking
Component of Mobile Banking
Benefit of Mobile Banking
What does DBBL Mobile
Banking offer?
Process of Mobile Banking
activities.
Mobile Banking Services
Fees and other charges.
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3.1 Mobile Banking:
Dutch-Bangla Bank Limited (DBBL) has for the first time introduced its mobile banking
service expanding the banking service from cities to remote areas.
Bangladesh Bank Governor Atiur Rahman inaugurated the service in 1st April 2011 by
depositing Tk 2,000 and withdrawing Tk 1,500 through Banglalink and Citycell mobile
networks in Motijheel area.
Bangladesh Bank has already allowed 10 banks to initiate mobile banking. Of them DBBL
kicked off first.
When people are hard pressed for time, the need for "anytime anywhere" banking gains
utmost importance. Bearing this in mind, banks provide a novel service which gives retail
customers account information and real-time transaction capabilities from their cell phones.
With SMS 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
"Mobile banking is an alternative to the traditional banking through which banking service
can be reached at the doorsteps of the deprived section of the society,” the central bank
governor said at an inaugural press briefing at Hotel Purbani.
Mobile Banking is a Banking process without bank branch which provides financial services
to unbanked communities efficiently and at affordable cost. To provide banking and financial
services, such as cash-in, cash out, merchant payment, utility payment, salary disbursement,
foreign remittance, government allowance disbursement, ATM money withdrawal through
mobile technology devices, i.e. Mobile Phone, is called Mobile Banking.
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3.2 Mobile Banking Business Model:
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.) with the end customer, the Bank or the Non- Bank/Telecommunication
Company (Telco). Models of branchless banking can be classified into three broad categories
- Bank Focused, Bank-Led and Non Bank-Led.
Bank-focused model
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-led model
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. In
this model customer account relationship rests with the bank.
Non Bank-led model
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.
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3.3 Mobile Banking Overview:
In order to avail the services mentioned above, a user subscribing to a wireless carrier sends
an SMS with a predefined code to the bulk service provider’s number.
Fig 1: Mobile banking architecture
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 mobile banking applications to the bulk service provider who in turn forward it to the
valid user via SMS.
There are two ways in which a bank can communicate with a customer using SMS:
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
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o E-mail to mobile (E2M): In this method, the bank sends an email to the
mobile banking application through a specific email 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 SMS to the wireless
carrier which in turn forwards this message to the customer.
o Database to mobile (D2M) : Here a mobile banking application continuously
polls the banks 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 E2M case. This message is then forwarded to the wireless
carrier which in turn forwards this message to the customer.
2. 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
SMS to the Bulk SMS service provider’s registered mobile number. Depending on the
message code, the bulk SMS provider forwards the SMS to a PULL application in the
mobile banking server. The PULL 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 PULL application which in turn
forwards in to the customer via the service provider. As in the above cases the request
and the response for the PULL application may be a HTTP GET message with XML
tags in the query string.
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3.4 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. IVR (Interactive Voice Response)
2. SMS (Short Messaging Service)
3. WAP (Wireless Access Protocol)
4. Standalone Mobile Application Clients
1. IVR – Interactive Voice Response
IVR or Interactive Voice Response service operates through pre-specified numbers that banks
advertise to their customers. Customer's make a call at the IVR 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 IVR has some major limitations that they can be used only for Enquiry based
services. Also, IVR is more expensive as compared to other channels as it involves making a
voice call which is generally more expensive than sending an SMS or making data transfer
(as in WAP or Standalone clients). One way to enable IVR is by deploying a PBX system
that can host IVR dial plans. Banks looking to go the low cost way should consider
evaluating Asterisk, which is an open source Linux PBX system
2. 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 India 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
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made available to customer using SMS. For instance, customers of the Centurian Bank of
Punjab can make fund transfer by sending the SMS ‘TRN (A/c No) (PIN 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 IP based SMS gateways available in the market and also some open source
ones like Kannel.
3. WAP – Wireless Access Protocol
WAP uses a concept similar to that used in Internet 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.
4. Standalone Mobile Application Clients
Standalone mobile applications are the ones that hold out the most promise as they are most
suitable to implement complex banking transactions like trading in securities. They can be
easily customized according to the user interface complexity supported by the mobile. In
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
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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 API
for mobile phones which have the similar functionality in what it 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 an additional mile by
providing an open online market place for developers where they can 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 Ibanco. The mobile
user downloads and installs the wireless I-banco application on their J2ME pone. The J2ME
client connects to the wireless I-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 India 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 Indian telecom industry, Reliance Infocomm 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 likes South
Korea with its tech-savvy population has a widespread adoption of the higher-end mobiles,
which support application development
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3.4.1 Component of Mobile Banking:
The following diagram shows the recommended placement of the Mobile banking
components in the banking infrastructure.
In the above diagram, the E2M component is placed in the mail server which is present in the
Internet Banking DMZ. It receives the email message from the mail server which is then
forwarded to the service provider in the specified format over the SSL link. The D2M
component in placed in the inner core-banking segment as it continuously polls the banking
database for event related triggers as explained above. Finally the PULL component in placed
in the Internet Banking server as it receives the message from the bulk service provider
through a SSL link over the internet.
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3.5 Benefits of Mobile Banking:
Mobile banking through cell phone offers many advantages for customers as well as banks.
Some of them are as follows
Real time on-line banking
Available anytime, anywhere throughout the country
It is convenient, affordable and secure
It is much more effective in developing savings habits
It will make access to banking and advanced payment transactions at affordable cost
It is much safer, speedy and safeguard against fraudulent transactions.
Mobile banking has an edge over internet banking. In case of online banking, you
must have an internet connection and a computer. This is a problem in developing
countries. However, with mobile banking, connectivity is not a problem. You can
find mobile connectivity in the remotest of places also where having an internet
connection is a problem.
You can make transactions or pay bills anytime. It saves a lot of time.
Mobile banking thorough cell phone is user friendly. The interface is also very
simple. You just need to follow the instructions to make the transaction. It also saves
the record of any transactions made.
Cell phone banking is cost effective. Various banks provide this facility at a lower
cost as compared to banking by self.
Banking through mobile reduces the risk of fraud. You will get an SMS whenever
there is an activity in your account. This includes deposits, cash withdrawals, funds
transfer etc. You will get a notice as soon as any amount is deducted or deposited in
your account.
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Banking through cell phone benefits the banks too. It cuts down on the cost of tele-
banking and is more economical.
Mobile banking through cell phone is very advantageous to the banks as it serves as a
guide in order to help the banks improve their customer care services.
Banks can be in touch with their clients with mobile banking.
Banks can also promote and sell their products and services like credit cards, loans
etc. to a specific group of customers.
Various banking services like Account Balance Enquiry, Credit/Debit Alerts, Bill
Payment Alerts, Transaction History, Fund Transfer Facilities, Minimum Balance
Alerts etc. can be accessed from your mobile.
You can transfer money instantly to another account in the same bank using mobile
banking.
3.6 What does DBBL Mobile Banking Offer?
Customer Registration
Cash-in (cash deposit)
Cash-out (cash withdrawal)
Merchant Payment
Utility Payment
Salary Disbursement
Foreign Remittance
Air-time Top-up
Fund Transfer
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3.7 Process of Mobile Banking Activities
Customer Registration Process:
Customer can register at any authorized agent point of DBBL – at Present these are the
retailers of Citycell & Banglalink throughout the Country who can display ‘DBBL Agent
Certificate’ and ‘DBBL Mobile Banking Banner’.Customer fills up the KYC Form and
submit to agent along with his photograph & National ID (NID). Agent checks the
Application Form, photograph & NID. Agent goes to Customer Registration Menu in his/her
Mobile and insert customer’s mobile number. Customer receives a call through IVR or USSD
prompt and in reply, s/he gives a 4-digit PIN number of his/her choice (please remember your
PIN). A Mobile Account is created in the DBBL system which is his/her mobile number +
one check digit. Customer receives an SMS which contains his/her Mobile Account number
(please remember your check digit).
Why PIN is required?
PIN is required to be inputted during cash withdrawal from an Agent or DBBL ATM. PIN
ensures security of your money and protects fraudulent transactions.
Why PIN is strictly confidential?
PIN is the key for transaction of Mobile Banking. Only correct match of PIN & Mobile
Number can access the Mobile Account. PIN is needed to verify the A/C owner by the
system. If a PIN is disclosed, respective account is at risk; therefore, PIN should be handled
very carefully.
Why check digit?
Mobile number is public and known to many people. Without knowing your check digit,
none will be able to deposit money at your account, thus it helps to keep your mobile account
confidential. On the other hand, a check digit eliminates typing error, thus protects sending or
depositing money to a wrong account.
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Which Telco’s Mobile can be registered?
Customer having any mobile from any Mobile Operator can be registered for DBBL Mobile
Banking at any agent point of Banglalink and Citycell. All these Mobile Account holders will
be able to deposit and withdraw money from the Agents. However the customers having
mobile from operators other than Banglalink and Citycell will not be able to initiate many
self-initiated services like Balance checking, fund transfer, utility payment, and Air-time top
up, PIN Change etc. Customers having mobile from Banglalink and Citycell will be able to
enjoy all the services – agent-initiated as well as self-initiated.
Cash In (Cash Deposit) Process:
Customers can open a DBBL Mobile Account with an initial deposit of Taka 10/- (taka ten)
only. Customer can cash-in (deposit) at any authorized agent of DBBL (at present Citycell &
Banglalink agents) or DBBL Branch. Customer hands over cash to the Agent. Agent initiates
the transaction from his/her mobile. Agent gets prompt menu and in reply agent enters
customer’s mobile account number (including check digit) and amount. Agent enters his/her
PIN. System credits customer’s account for the same amount. Agent issues a receipt to the
customer. System sends an SMS to the customer’s mobile for security reason; customer needs
to check the sending number of SMS and the amount. SMS will be sent from 16216.
Cash Out (cash withdrawal) Process:
Customer can cash-out (withdraw) at any authorized agent of DBBL (at present Citycell &
Banglalink agents), DBBL ATMs and DBBL Branch. Customer asks the Agent for
withdrawal of an amount from his/her mobile account. Agent initiates the transaction from
his/her mobile. Agent gets prompt menu and in reply agent enters customer’s mobile account
number (including check digit) and amount to withdraw. DBBL system sends prompt menu
to the customer’s mobile (or IVR Call): “You are going to withdraw Tk. XXXX from your
mobile account with DBBL. If you want to continue, please enter your 4-digit PIN” Customer
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enters his/her PIN. System debits customer’s account and send an SMS to the customer’s
mobile. Agent hands over money to the customer.
Transaction limit:
There may be scarcity of cash at agent points. We want to serve as many customers as
possible from each agent points. On the other hand, it is required to minimize fraudulent loss,
if any. To arrest all the above, a transaction limit in terms of frequency and amount have been
set in the system. Current limit for the customers are as under:
1. Cash-in frequency per day = 5 times
2. Cash-out frequency per day = 5 times
3. Cash-in / cash-out amount per transaction = 5,000/-
4. Cash-in frequency per month = 20 times
5. Cash-out frequency per month = 20 times
How to check account balance?
Customer initiates the transaction from his/her own mobile. DBBL system sends prompt
menu to the customer’s mobile (or IVR Call): “Please enter your 4-digit PIN to know your
balance or press Cancel button to cancel the request” Customer enters his/her PIN. System
sends the balance into his/her mobile.
How to change PIN?
Customer initiates the process from his/her own mobile. DBBL system sends prompt menu to
the customer’s mobile (or IVR Call): “Please enter your existing 4-digitPIN to proceed or
press Cancel button to cancel the request”. Customer enters his/her existing PIN. DBBL
system asks for new 4-digit PIN. Customer enters his/her new PIN. The PIN is changed.
Everybody can deposit money immediately after registration. However, he/she can withdraw
after his/her account is fully registered. Bank officer verifies the information on the
registration form (KYC form) and authorizes the account for full registration. Normally 1-2
working days are required for full registration. After his/her account is fully registered, he/she
will get an SMS notification.
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How is DBBL Mobile Banking secured?
DBBL Mobile Banking is highly secured as it uses USSD or SMS+IVR as its communication
channel. In case of USSD, both the instructions and PIN are communicated using USSD
while in case of SMS+IVR, instructions are sent via SMS and PIN via IVR (voice channel)
both the USSD and IVR are secured for transmission of PIN Customer’s money is safe as
none can withdraw his/her money without taking possession of Mobile set, PIN and Check
digit together. None will be able to deposit unwanted money into a Mobile Banking Account
without knowing the check digit (although the mobile number is publicly known).
The following is a diagram shows a structural design for the mobile banking security.
In the above diagram the 2-way SSL link between the service provider and between the
mobile banking application and the service provider and also between the service provider
and the wireless carrier ensures confidentiality of data. The email message sent by the bank is
PGP encrypted and signed in order to ensure confidentiality and integrity of data.
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Salary Disbursement Process:
It is a process by which Corporate Office can disburse the salary of their employees and
Government can disburse different allowances like elderly allowance, freedom fighter
allowance to the people within a few moment in a hassle free way. The salary disbursement
processes are following way:
1. Corporate Office/ Government will send the list of mobile account numbers
(including check digit) and monthly salary/allowance to DBBL
2. DBBL will credit all the individual accounts by debiting corporate account
centrally by a batch process system
3. The employee/beneficiary will get an SMS regarding the transaction
4. The employee/beneficiary can go to any agent or DBBL ATM or DBBL
Branch for withdrawal of money
Benefits of Corporate Office/Government:
Time savings
Cost savings
No need of extra manpower
Probability of error is very low
Instant service is ensured
Benefits of employee/beneficiary:
Instant credit to the account
No hassle to collect salary/allowance
No queue
Money can be withdrawn from any agent or DBBL ATM or DBBL Branch
Foreign Remittance:
Most of the people of our country are living in abroad to earn money. They sent their
remittance in various ways. But they always scared about their money. So DBBL get a
golden opportunity to send their foreign remittance very easily and cheaply.
How foreign remittance can be sent to Mobile Account?
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Exchange houses at abroad receive remittance against beneficiary’s mobile account
number.
Exchange houses send the mobile account number and the amount to DBBL
DBBL will centrally credit the amount against respective mobile account
The beneficiary will get an SMS regarding such transaction.
The beneficiary can go to any agent or DBBL ATM or DBBL Branch for withdrawal
of money
3.8 Mobile Banking Services:
Banks offering mobile access are mostly supporting some or all of the following services:
Account Information
Mini-statements and checking of account history
Alerts on account activity or passing of set thresholds
Monitoring of term deposits
Access to loan statements
Access to card statements
Mutual funds / equity statements
Insurance policy management
Pension plan management
Payments & Transfers
Domestic and international fund transfers
Micro-payment handling
Mobile recharging
Commercial payment processing
Bill payment processing
Investments
Portfolio management services
Real-time stock quotes
Personalized alerts and notifications on security prices
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Support
Status of requests for credit, including mortgage approval, and insurance coverage
Check (cheque) book and card requests
Exchange of data messages and email, including complaint submission and tracking
Content Services
General information such as weather updates, news
Loyalty-related offers
Location-based services
One way to classify these services depending on the originator of a service session is the
‘Push/Pull' nature. ‘Push' is when the bank sends out information based upon an agreed set of
rules, for example your banks sends out an alert when your account balance goes below a
threshold level. ‘Pull' is when the customer explicitly requests a service or information from
the bank, so a request for your last five transactions statement is a Pull based offering. The
other way to categorize the mobile banking services, gives us two kind of services –
Transaction based and Enquiry Based. So a request for your bank statement is an enquiry
based service and a request for your fund's transfer to some other account is a transaction-
based service. Transfer based services are also differentiated from enquiry based services in
the sense that they require additional security across the channel from the mobile phone to the
banks data servers. Based upon the above classifications, we arrive at the following
taxonomy of the services listed before.
Push Based Pull Based
Transaction based Fund Transfer
Bill Payment
Other financial services like
share trading.
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Enquiry based Credit/Debit Alerts.
Minimum Balance Alerts
Bill Payment Alerts
Credit/Debit Alerts.
Minimum Balance Alerts
Bill Payment Alerts
Account Balance Enquiry
Account Statement Enquiry
3.9 Fees and service charge:
Sl.no Particular Result
1. Registration Fee Free
2. Cash-in Charges 1% of the transaction amount orTk.5/-, whichever is higher
3. Cash-out Charges 2% of the transaction amount orTk.10/-, whichever is higher.
4. Merchant Payment Free for customer
5. Mobile Top-up Free for customer
6. Salary Disbursement Free
7. Allowance Disbursement Free
8. Remittance Disbursement Free
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Success Story of other International Mobile Bank
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Reliance Infocomm, India
ABN Ambro, India
CitiBank
4.1 Reliance Infocomm, India
When Reliance Infocomm, India rolled out its CDMA network, (at the time the mobile
market in India 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 end phones.
Reliance used a novel way to overcome the memory limitations of lower-end mobile phones,
which hampered deploying of multiple standalone J2ME based clients. Instead 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
ICICI, to provide a host of their enquiry and transaction based mobile banking services
through its R-World environment.
4.2 ABN Ambro, India
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ABN AMRO Bank brings to the convenience of mobile banking using an application called
MPOWER. It allows customers to access their account for inquiry & transactions using
simple SMS messages. One can do the following using MPOWER:
• Balance & Transaction Inquiry
• Share Holdings in Demat Account
• Funds Transfers to ABN AMRO & other banks
• Bill Presentment and Payment
• Cheque Inquiry & Stop Cheque
• Online Fixed Deposit Opening
• Request for Cheque Book & Statement
• Request for new PIN & change PIN online
Mobile Banking: The Services Bouquet
ICIC Bank
HDFC Bank
IDBI Bank HSBC
Bank of America Citibak
ABN Amro
Balance Inquiry √ √ √ √ √ √ √Last few transaction √ √ √ √ √ √ √Cheque Payment Status √ √ √ √ √Stop Payment of Cheque √ Statement Request √ √ √ √ √ √
Cheque Book Request √ √ √
4.3 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.
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Citi’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.
4.4 Mobile Banking Users Exceeds 150 Million:
Though mobile banking system is completely new aspect in Bangladesh but internationally it
is very popular. In 14th January, 2009 there are more than 150 million people are get this
service. Mobile banking transactional users’ data are given bellow:
14th January, 2009
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UK: The number of mobile phone subscribers that use their phones for mobile banking
transactions will exceed 150m globally by 2011, according to a new study by Juniper
Research. These figures refer to additive banking which is focused on developed markets
rather than transformational banking.
The Juniper Research report determined that the mobile banking market is currently most
advanced in the Far East, but that growing numbers of mobile banking services are being
offered in North America and Western Europe. The developed nations of the Far East, North
America and Western Europe are forecast to account for over 70% of the user base by 2011.
4.5 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. In most of these places, banks can only be found in big
cities, and customers have to travel hundreds of miles to the nearest bank.
In Iran, banks such as Parsian, Tejarat, Mellat, Saderat, Sepah, Edbi, and Bankmelli offer the
service. Banco Industrial provides the service in Guatemala. Citizens of Mexico can access
mobile banking with Omni life, Bancomer and MPower Venture. Kenya's Safaricom (part of
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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. In 2009, Zain launched
their own mobile money transfer business, known as ZAP, in Kenya and other African
countries. In Somalia, the many telecom companies provide mobile banking, the most
prominent being Hormuud Telecom and its ZAAD service.
Telenor Pakistan has also launched a mobile banking solution, in coordination with Taameer
Bank, under the label Easy Paisa, which was begun in Q4 2009. Eko India Financial Services,
the business correspondent of State Bank of India (SBI) and ICICI Bank, provides bank
accounts, deposit, withdrawal and remittance services, micro-insurance, and micro-finance
facilities to its customers (nearly 80% of whom are migrants or the unbanked section of the
population) through mobile banking.
In a year of 2010, mobile banking users soared over 100 percent in Kenya, China, Brazil and
USA with 200 percent, 150 percent, 110 percent and 100 percent respectively
Recommendations and Conclusion
Recommendations
Conclusion
Bibliography
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Recommendations:
Though Dutch Bangla Bank Limited tries to give the best customer support, the have some
lake and linkage compare to other bank of the same generation. The recommendations for
this report are:
Mobile banking is a new concept for banking sector in Bangladesh. So it must
be campaign to the rural people.
Here only agreement with two mobile companies but it should be agreement
with other company.
Text only and limited to 140-160 characters per massages. So it could not
express all things in short massage.
Does not offer a secure environment.
Many non standard variables including handsets which is not necessary to
mobile banking services.
User needs to have a data plan which may be a barrier to adoption among
price sensitive demographics.
Some wireless operators do not support clickable WAP links in sms message.
Application and data entry must be controlled.
Mobile Banking should be more expanded in General Level of banking; they
should be adopted for depositing and withdrawal of money as well.
DBBL should set more ATM booth so that people can get their money at
shortest possible time.
As the clients are not in favor of introducing system, if possible the rule of
introducing to open an account should be changed. Because many people are
facing problem to arrange an introducer in the time of opening accounts
To make exchange process more prompt the authority should use modern
communication system. That means changing procedure should be informed
by Bank to the concerned through SMS, e-mail, fax etc.
Service campaign may arrange for letting the clients know the latest
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technology and it uses.
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 India where a bulk of the mobile population users' phones
can only support SMS based services, this might bathe 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.
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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 Internet.
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.
Bibliography
Annual Report of Dutch Bangla Bank Ltd.( 2010)
Several Booklets from Dutch Bangla Bank Ltd
Several Newsletters from Dutch Bangla Bank Ltd
Dutch Bangla Bank Ltd. Web site
Credit Operational Manual of Dutch Bangla Bank Ltd
Product and Services leaflet of Dutch Bangla Bank Ltd
News Paper in 1st April 2011.
Infogile.com
The juniper research report.
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