introduction of mobile bankingcc v

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Introduction of Mobile Banking

The Internet is revolutionizing the way the financial industry

conducts business, empowering organizations with new business models and

new ways to interact with customers. The ability to perform bankingtransactions online has created new players in the financial industry, such as

online banks and brokers who offer personalized services through their Webportals. This increased competition is driving traditional financial

institutions to find new ways to add the value to their products and services,gain competitive advantage and increase customer loyalty while also

attracting new, high-value clients.

Mobile and wireless technology, combined with the wide variety

of portable devices available today, enables new revenue opportunities for

financial services organizations. This provides a new channel that can beused to refresh and expand the customer base, attract prime customers andenhance loyalty. With mobile and wireless technology, banks can offer a

wide possibilitiesof services to their customers, from the freedom of paying

bills while stuck in traffic, to receiving notification of a change in stockprice while having lunch, the convenience and time saving benefits of

wireless financial services are huge. The challenge, then, is how to turn these

possibilities into a reality for the customers.Benefits

A. Grow new customer base and markets :Developing wireless applications and services targeted at the mobile

mass market will allow attracting new, high-value customers into mobile

banking portal and expanding the reach to global markets.

B. Increase share of customer wallet :The convenience of having personalized wireless access to critical

financial information is an invaluable service for customers on the move.

Enabling the execution of time-sensitive financial transactions anywhere,anytime, provides the opportunity to strengthen the relationships with

existing customers. This ultimately results in an increased share of the

customers' transactions--preventing them from taking a portion of theirfinancial business elsewhere.


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C. Grow assets, number of transactions and fees :

Granting customers flexible access to financial information andaccounts enables them to perform transactions when it's most convenient for

them. As a result, they have the opportunity to conduct transactions more

frequently, driving increased revenue from fees.

D.Expand and enhance brand presence:Brand and reputation for convenience, service and innovation will be

strengthened and enhanced each time customers on the move stop to checktheir stock portfolio or to pay bills wirelessly. This also offers significant

potential to grow the market.


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MOBILE NETWORKS PROVIDE THE FOLLOWING

COMPETITIVE ADVANTAGES

1.Alwayson 24 7 access:

Mobile networks will provide the ability for consumers to betransaction- ready, much in the way cable access has facilitated online pc

access and reduced consumer dial up delays 3555.

2.Advanced penetration of mobile networks:

2G (second generation) networks already cover more than 90

percent of the population in the western world, and this number is growingsteadily.

3.Personalization:

Through SIM (Subscriber Identity Module) cards, mobile customershave a specific profile that enables customized functionality that directly

reflects the way they want to transact business over mobile devices. Throughthe convenient addition of a multi-application relationship card, mobile

customers will also have a built in platform for a host of other applicationservices, including security keys, virtual credits cards, and other customized

payment instruments.

4.Rapid evolution of global protocols such as WAP (wireless application

protocol):This enables the communication channel between computers andmobile devices. The WAP component essentially provides the facility for

reformatting data for display on wireless hands.5. Faster Data Processing Speeds:

Increases in bandwidth and data transmission a speed makes mobile

data services efficient and cost - effective in a real time environment.

6. Security

Effectively, the mobile banking transaction can be protected by aprivate key stored on SIM card and hence mobile phone can become a

wireless wallet to protect proprietary and financial information.


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Mobile banking applications

Examined applications

In the following, the main types of existing mobile banking applications are

introduced. These build standard types as each of them is representative for aseries of comparable applications. While WAP-banking and mobile banking

via PDA are generic, SMS-banking and mobile banking with SIM Toolkit

use specialties of the GSM standard.

WAP-banking

The most widespread solution for mobile banking is based on micro-

websites following the WAP standard (Wireless Application Protocol). Thefunction of WAP banking is in many ways similar to the function of

Electronic banking using http. The client sends a request and gets a responsewith page content, which is stored on or dynamically generated by a

standard web server. The main difference is in the usage of a WAP gatewayfor the conversion of the protocols. At banks must be considered that very

sensitive data is processed. While a normal content provider doesnt has toobserve special security precautions, and in some cases can even use the

services of extern providers, has to secure its web server and WAP Gateway

especially against unauthorized access. This is especially necessary becauseof the fact that inside the WAP Gateway the encryption protocol isconverted from SSL/TLS to WTLS with the effect that data is not encrypted

while it is processed. While authentication is assured via a PIN (personalidentification number) of the user, authorization for transactions is realized

via transaction numbers (TAN). This concept, known from the electronicbanking, forces the user to carry a TAN lists with him in order to make

transactions.

SMS-banking

The Short Message Service (SMS) is a GSM service to exchange text

messages up to 140 byte (or 160 characters of 7 bits). The transmission of

mobile-originated short messages is carried out by the short message servicecenter (SMSC) of the particular network operator. The SMSC is receiving

the message from the mobile device and routing it to the destination device.For generating mobile-terminated short messages, it is possible that a


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company or a special service provider runs an own SMSC. Thus, a bank

could generate SMS from bank data like account balance or accountmovements and send it to the mobile device of the customer. This technique

is used at SMS-banking: The customer sends an SMS with a request to the

bank, and gets the desired data as an answer.The customer has to include a PIN for authorization in every SMS he sends

to his bank. Alike the WAP banking, one should pay special attention on thesecurity of the location of the SMSC. Many service providers offer the

operation of SMSC as a service. The usage of such a service is out ofquestion for banks, because of the high sensitive character of the transmitted

data. For this reason it is mandatory for banks to run their own SMS-

Gateway and secure it from unauthorized access. The main problem withthis kind of transmission is the missing encryption of the data during the on-

the air transmission between the service center and the mobile phone. An

encryption of pure text-SMS is not possible (unless an application on themobile device would be able to decrypt the information).


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Mobile Payment: An Additional Role For the Mobile Phone?

The existing payment methods are dominated by cash and cards, because

they are convenient and secure and moreover, there are no betteralternatives. The articles opines that paying for goods and services through a

mobile phone could offer significant advantages over existing paymentmethod, both in shop and online. However, it says that problems related to

convenience and security, for both buyers and sellers, still need to beresolved.

Mobile paymentthe way forward?

Mobile payment means:

Executing a payment transaction using a wireless device, e.g. mobile

phone or personal digital assistant.

Mobile device becomes an electronic payment device. Its Mobility is itsbig advantage: it enables payments to be transected regardless of place and

times, and for both bricks and morterand Internet purchases.

Announcements about new mobile payment solution appear regularly at

the moment. Potential players form partnership and fight to win a place inMobile Payment. This player includes mobile operators, banks credit cardcompanies, mobile device manufactures, smart card manufacturer and a

whole range of mobile payment start-ups.

Existing mobile payment solutions are based on one of three distinct

payment options:

Prepaid Direct from credit card or current account Paid through phone bill

The three payment options vary in what is required before the payment, the

Payment process itself, and technology is used.


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Mobile commerce

STRATEGIC IMPLICATIONS FOR BANKS

Just When Financial institutions began to consolidate their E-Commerce activities, A new challenges has emerged-Mobile Commerce.

This article attempts to clarify what Banks are currently doing, whatadditional opportunities and risks exist, and what should be done to extract

maximum from the M-Commerce markets.

1. Today, banks across the world are delivering a wide range of core banking

services through the mobile channel.

a) In Singapore, users can check balances, pay bills and transfer funds. Theycan also view the latest deposit and foreign exchange rates, get the lateststock market information as well as their personal watch. Banks also use

mobile technology to transfer important financial information to theircustomers (e.g., Home loan application approval, fixed deposit Maturity

Reminder, IPO Application Results and IPO Share financing and AllotmentResults).

b) In the US, Charles Schwab offers trades, quotes, alerts and notification

both through the mobile phone display, and by means of an interactive voice

quote.

c) MeritaNordbanken of Scandinavia has established Solo, a WAP-Based

payment system, which enables customers to purchase from 700 virtualstores and pay directly from their bank account by entering username,

password and transaction number.

d) Banks are exploring the potential of mobile phones as an

on- the-spot payment device, which incorporates both debit and credit card.

Functionally.

2. In addition to being a new distribution channel for financial services,M-commerce presents the opportunity for banks to significantly expand

their customer relationships.


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3. Challenges lifestyles and an increasing preference for speed and

convenience are eroding the traditional affinity between customers andbranch offices. As new technology disinter mediates traditional channel, the

core value proposition of a bank becomes fulfilling customer needs.

Delivering this value proposition hinges on owning or earning the customerinterface, through understanding individual customer needs and preferences,

and bringing the customer a complete solution which satisfies his financialneeds and gives him maximum conveniences.

Instant access to customers through a user-specific device

enables the delivery of targeted personalized services the very nature

of mobile access devices ( i.e., input/output constraints) encouragestailoring and bundling of services. For example: A middle income

consumer would not want to receive an advertisement to buy a BMW.

On other and, a high income banking customer might wish to receivethe offer to buy the BMW at a special price, bundled with car loan,insurance, and the option of a monthly garage maintenance services.

4.Banks can transcend their traditional role as a channel forbanking/financial services and become providers of personalized and

localized information, which facilitates the purchase of a wide range of

goods and services.

Banks, which successfully leverage M-commerce can,

Increase customer loyalty, in terms of acquisition, retention andcross-selling, by providing tailored bundles of products andservices to specific customers.

Exploit additional sources of revenue from subscription,transaction and third party referrals.


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Terms and conditions governing the use of SMS- SIB Mobile Service,

the Mobile Banking Service (Push Alerts & Pull Requests)

1.Definitions:

"Customer" shall mean a Customer of Mobile Banking.

Pull Request facility means the facility granted by the Bank of access toinformation relating to the savings/current account/overdraft/cash credit

account (or any other type of account, that the Bank may permit later), of the

customer and usage of products and/or services as may be made available onmobile phone by the Bank from time to time.

Push Alert facility means the facility provided by the Bank whereby a

customer can obtain specific information pertaining to his account/s on hismobile phone number.

"Alert(s)" means the customized messages sent to the customer over hismobile phone as short messaging service ("SMS") in response to the

Triggers set by the customer.

"Triggers" means the customized triggers that are required to be set or

placed by the user with the Bank, which shall enable the Bank to send thecorresponding Alerts to the user for specific event/transactions relating to his

Account.

Mobile phone means the handset and SIM card along with the accessoriesand necessary software for GSM phones and handsets and software for

CDMA phones, which is owned by the mobile subscriber.

Mobile Banking or Facility or service shall mean the Push Alert

and/or Pull Request facilities offered by the Bank as SMS.

User means the customer of the Bank having registered for the MobileBanking facility and authorized by the Bank to use the Mobile Banking

facility.


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Primary account means the main Savings/Current/Overdraft/Cash Credit

account of the customer, from which the Bank may deduct any servicecharges related to the service.

"Personal Information" shall mean the information about the user obtainedin connection with the Facility.

System refers to the Centralized Banking system, Mobile Banking system

or any other automated system/s deployed by the Bank.

In this document all reference to user in masculine gender shall be deemed

to include the feminine gender also.

2.Eligibility

1. Any customer having a (resident/NRE) Savings /Current /CashCredit/Overdraft account with any branch of the Bank with Centralized

Banking facility is eligible to avail the Mobile Banking/Alert facility, subject

to all conditions mentioned in this Section (Eligibility). The Bank mayextend the facility (partially or completely) to other accounts including term

deposits and loan accounts if the customer has at least one Savings/Current

/Overdraft/Cash Credit account.

2. The Customer desirous of using the Facility should both be the account

holder and sole signatory or be authorized to act independently. In case ofjoint accounts, the facility shall be provided to the account holder/s only if

the mode of operations is Either or Survivor, Former or Survivor. Eachapplicant will have to register separately for availing the facility. All the

joint account holders would have to sign in the Declaration authorizing the

Bank to provide the facility to the applicant. In such cases, instructions of all

the joint account holder/s authorizing the user to use the Facility would berequired. All or any transactions arising from the use of the Facility in the

joint account shall be binding on all the joint account holders, jointly and

severally. An account in the name of the minor, in which a minor is a jointaccount holder or any account where the mode of operation is jointly, is

not eligible for the Facility.

3. The Bank shall extend the facility to the guardians of Guardian Operated

Minor Accounts.


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4. The final discretion to offer this Mobile Banking facility to a customer

rests with the bank and if the bank decides, may withdraw such a facility atany time without notice and without giving any reasons.

3. Mobile Banking facility

A. Pull Request Facility

1. The Bank reserves the right to decide on the services to be offered to aparticular user and different services may be offered to different users

through mobile Banking.

2. The Bank also reserves the right to make any additions or deletions or

revisions in the services offered through Mobile Banking at any time.

3. The user shall, as a matter of customer protection, use a 4-digit codenumber (PIN-Personal Identification Number) in addition to the keyword to

access the mobile Banking service. At present, the User has the option to

choose any four-digit number/character as his PIN for the Mobile Bankingservice.

4.The User shall not disclose his PIN, if any allotted by Bank, to any personor write / record it at any place whereby some other person can come to

know his PIN. In case the User fails to follow / adhere to this, he shall be

solely responsible for consequences arising thereon.

5.The Bank may, at its discretion, allow the customers to send instructionsthrough Mobile Banking, which would have to be executed. The instructions

of the User shall be effected only after confirming the authenticity of the

User by means of validation of the mobile number of the User and/or

through verification of PIN/ password allotted by Bank to the User orthrough any other mode of verification as may be stipulated at the discretion

of the Bank.

6. Bank shall endeavour to carry out the instructions promptly, but the Bank,

shall not be responsible for the delay in carrying out the instructions or not

carrying out the instructions, due to any reason whatsoever including failureof operational system or due to any requirement of law.


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7. The User is also responsible for the accuracy and authenticity of the

instructions provided to the Bank and the same shall be considered to besufficient for availing of the services under the Facility. Where Bank

considers the instructions to be inconsistent or contradictory it may seek

clarification from the User before acting on any instruction of the User or actupon any such instruction as it may deem fit, or not carry out the

instructions. The User and Bank shall have the right to suspend the servicesunder the Facility if Bank has reason to believe that the User's instructions

may lead to direct or indirect loss or may require an indemnity from the Userbefore continuing to operate the Facility.

8. Bank reserves the right to offer the Facility for those Users, who areavailing the services of specific cellular service providers only.

9.The access of the User to the Facility shall be restricted to User availing ofthe Facility on the specific Mobile Phone Number registered with Bank forthe Facility.

B. Mobile Banking Alert facility

1. The last updated mobile number in the records of the Bank would be

used to send the Alerts. Alerts are presently not available for two Mobilenumbers for the same account. However, more than one account may be set

on a particular mobile number.

2.The Alerts will be available to the users only if the user is within the

cellular service range of the particular cellular service provider or withinsuch area, which forms part of the roaming network of such cellular service

provider providing services to the User.

3. Alert shall be available only when the system of the Bank is available.Every day the push alerts shall not be available for atleast 10 hours or more,

during which the system will be used for backups and shall not be available

for inquiry. However the Bank shall endeavour to provide pull requestsduring this period also.


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4. Registration for Mobile Banking/Alert facility.

1. Eligible customers of the Bank desirous of availing the services should

submit an application in the specified form, duly completed, at the branch of

the Bank, where the customer has his primary account.

2.Customers of the Bank shall be allowed to use the facilities only afterhis/her/their application has been processed and the information

furnished registered with the Bank. The processing of the application formshall require a minimum of 10 days from the date of submission of the

application.

3.Customer will have to activate the service after the Bank sends the

necessary instruction/user guide to the customer. Unless activated, the

customer shall not receive any alerts or request pull services.

4.These terms and conditions together with the application made by the

Customer and as accepted by the Bank shall form the contract between the

Customer and Bank, and shall be further subject to such terms as Bank mayagree with any other third party providing such services to Bank which shall

facilitate providing of the Facility by Bank to the User. These terms and

conditions shall be in addition to and not in derogation of the terms andconditions governing any Account of the user and /or any other

product/services provided by the Bank to him.

5.The Customer undertakes that the Customer shall provide accurate

information wherever required and shall be responsible for the correctness ofinformation provided by him to Bank at all times including for the purposes

of availing of the Facility. Bank shall not be liable for consequences arising

out of erroneous information supplied by the Customer. If the Customer

suspects that there is an error in the information supplied by Bank to him, heshall advise Bank as soon as possible. Bank will endeavour to correct the

error wherever possible on a best effort basis.

6. The Bank shall have the right to reject the application of any person

without assigning any reasons.


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5. Authorization

1. The user expressly authorizes the Bank to disclose to the mobile service

provider / ASP all user information in its possession, as may be required bythem to provide the services to the user.

2. The Customer irrevocably and unconditionally authorizes Bank to access

all his Accounts for effecting Banking or other transactions of the Customerthrough the Facility.

3. All records of Bank generated by the transactions arising out of use of theFacility, including the time of the transaction recorded shall be conclusive

proof of the genuineness and accuracy of the transactions. The authority to

record the transaction details is hereby expressly granted by the User toBank.

4. The user authorizes the Bank to add, remove or change any service in

mobile Banking, partly or wholly, at Banks discretion.

5. User authorizes Bank to send any message such as promotional, greeting

or any other message that the Bank may consider appropriate to the user.

6. The User authorizes Bank to send any rejection message, if it finds that

the request sent by the User is not as per the Banks format/requirement.

7. The Bank shall make all reasonable efforts to ensure that the userinformation is kept confidential. The Bank however shall not be responsible

for any divulgence or leakage of confidential user information.

8. The user expressly authorizes the Bank to carry out all request(s) ortransaction(s) for and/or at the request of the user as are available to the user

through mobile Banking facilities without the Bank having to verify the

authenticity of any request or transaction purporting to have been receivedfrom the user through Mobile Banking.


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6. Setting Triggers and Receiving Alerts

1. The user can enter his choice of alerts (as listed by the Bank) in the

Mobile Banking registration form. For any change in these parameters, he

can separately request in writing. At a later stage, Bank may provide thisfacility through Internet Banking screen.

2. The User shall notify the Bank, in writing, if he desires to change his

Primary account.

3. If the facility has been suspended for a particular user, the Bank in its sole

discretion may re-activate the service. In such cases, a written request mayalso be insisted from the User.

4. The Bank will not acknowledge receipt of any instructions or Triggers norshall the Bank be responsible to verify any instructions or Triggers or theuser PIN or password or mobile phone number. The Bank will endeavour to

give effect to instructions and Triggers, on a best effort basis and as soon as

practically possible for the Bank. The Bank shall not be responsible for anydeficiency or delay in effecting the service or in effecting modification

of the triggers.

5. The Bank may, in its discretion, not give effect to any Triggers if the

Bank has reason to believe (which decision of the Bank shall be binding on

the user) that the triggers are not genuine or otherwise improper or unclearor raise a doubt or in case any Triggers cannot be put into effect for any

reasons whatsoever.

6. The user acknowledges that to receive alerts, his mobile phone number

must be active and accessible. The user acknowledges that if the users

mobile phone number is inaccessible or inactive continuously the user maynot receive the Alert message sent by the Bank.

7. The Bank will process Triggers/Modification of triggers after receiptand the Bank shall have the discretion to determine the time taken to process

such request. The user acknowledges that there shall be an intervening

period between receipt of Triggers by the Bank, process of the Triggersand the time that the Alerts are sent.


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Customer requirements for mobile banking applications

Set of customer requirements

Technical requirements Usage is possible with both kinds of devices Adaptation to device Usage regardless of network operator Small amount of transmitted data Usability requirements Possibility to work offline Simple data input method Resumption of usage at the same point One-Click-Request Design requirements Possibility to personalize the application Possibility to scale the application Announcement of events Wide range of functionality

Security requirements Encrypted data transmission Authorization of access Simple Authorization


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Could Mobile Banking Go Global

People who have never had a bank account could enjoy basic banking

facilities for the first time due to mobile financial services. Basic mobile

financial services are already available in developed countries. However, thearticle explains that it makes more sense for mobile financial service

providers to target emerging markets where mobile devices will make moreimpact since this markets have limited wire networks. The services are

cheaper to build and offer customer have fewer alternatives. To cash fullpotential of emerging markets, requires a right kind of alliance with leading

financial firms and telecom companies including merchants and retail

chains.

Emerging markets: The greater opportunities

Mobile financial services are just that: financial service delivered throughthe medium of mobile handset. Users can make basic inquiries about their

balances or, in a more complicated maneuver, their Payments. Basic services

are already widely available in developed countries and in the moresophisticated emerging markets, such as Hong Kong and South Korea. So

far, though, user in this market remains unimpressed by the services, and

providers havent been able to charge anywhere near what they cost todeliver.

Consumers and business in emerging markets are likely to find mobilefinancial services more attractive than do their counterparts in developed

markets, because they have fewer alternatives. For many remote or lowincome consumers, mobile handsets and mobile internet could first times,

provide access to financial service such as basic banking and electronic

payment; otherwise financial providers find such segment impossible to

serve cost- effectively. Mobile networks are cheaper to build than fixed linesnetworks, and mobile services are generally to roll out than their precursors;

a mobile payment network, for example, can cost less to create and operate

than an electronic point- of- sale (pos) merchant networks. This means thatsome countries will be able to leapfrog over intermediate technologies and

move directly from a paper based payments systems to a mobile one,

without ever having to build an extensive wired POS or Automated teller-machine network.


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Mobile Banking: No wires, No worries, New Customers

Mobile communication devices are revolutionizing banking

transactions over wireless network and the Internet. To attract and retain

customers, bank need to exchange their full range of services across a widerange of Mobile, wireless devices without having an impact on their current

infrastructure and the delivery channels it currently supports. WirelessNetworks, Mobile Gateways, Wireless Application Protocol (WAP) &

Wireless Markup Language (WML) all play an important role in bringingmobile banking strategy to the market.

In addition to established traditional channels, including branchbanking and ATM banking, most major banks in today market now offers e-

banking as an extension to their existing array of services & conveniences of

wired consumers & businesses, the next phase in the revolution is wireless-mobile-banking that is available anytime anywhere from always-on mobiledevices like mobile phones and personal digital assistant (PDA). With the

proliferation & cost effectiveness of mobile delivery channel, banks have a

built-in delivery mechanism that can offer services & 247 access regardlessof where the customer happens to be. Unlike PC-Based E-banking, M-

banking provides banks with the unprecedented opportunity to reach their

customers in an unrestricted environment. The big benefits for banks?Higher customer satisfaction & loyalty, no transaction-based fee revenue,

lower cost of ownership and integrated customer relationship management

channels.

General considerations

A mobile banking application is, first of all, a mobile application. To

conceptualize a mobile application, additional informational added values

have to be targeted, using mobile added values [14]. In other words, it is far

from sufficiency to just porting an existing Internet application on a mobiledevice. Mobile applications have to be specifically made-to-measure on the

one hand side to the needs and expectations of the mobile user and on the

other hand side to the specific restrictions of mobile communicationtechniques and mobile devices. In order to derive a set of requirements to

mobile banking applications we pursue two steps: Firstly we identify general

characteristics of the mobile use, which are relevant. Secondly we closelywatch the user and his context when wanting to use mobile banking.


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Mobile banking use cases

A mobile user has to be seen from his context when using the application.

Needs and expectations are not generic, but bound to this context.

As a typical mobile banking user, we consider someone who already is anelectronic banking user shows significant affinity to technology and often

finds himself in situations where he can not (or does not want to) rely aninfrastructure necessary for electronic banking.

In the following, we introduce four use cases. These have been developed inthe course of two group discussions; each group consisted of mobile banking

users and mobile commerce experts. The groups focused on identifying real-

life situations in which the use of mobile banking provides an informationaladded value. The resulting situations have been aggregated to the use cases

The use cases are not exhaustive, but representative: Each case stands for a

series of cases, which are similar in the depth of the desired informationand/or the conditions of the usage. For each use case we identify the mostimportant, concrete need that the user has in this particular situation.

Use case 1: Request of account balance.The user is in a mobile situation (e.g. in a department store) and intends

to know his account balance, e.g. to verify his account before realizing a

spontaneous purchase. Resulting need: Quick obtainment of accountbalance.

Use case 2: Control of account movements

The user is waiting for an important cash receipt on his account. Heintends to have the exact details of the cash receipt. Resulting need:

Continuous control over movements on the account.

Use case 3: Instant payment.The user is in a mobile situation and intends to make a payment by bank

transfer from his account. Resulting need: Instant execution of a banktransfer.

Use case 4: Administration of the account.The user intends to use spare time (e.g. using a train or waiting on the

airport) to administrate his account. Resulting need: Quick and easy-to-use

execution of transactions and administration is possible.)


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Mobilizing Banking Solutions : Best Practices

Security in the Wireless world is complex and different from tethered

network security models. Greater demand to share information is

putting stress on companies to prevent information from falling intowrong hands. With the growth of Wireless phones, the demand for

Mobile banking services is escalating. To stay competitive, banks aredeploying compelling Wireless applications.

Mobile Banking Solutions:

Wireless applications offer the opportunity to provide secure,actionable, real-time data through a highly personalized service. Some

of the services are:

Offer account services: These applications allow banks customer toapply for new banking services, choose features of existing banking

services, and personalize banking services.

Provide account information: Customer-driven on-demand request for

a variety of account information including account balances, stock

portfolios and billing information.

Execute transactions: Transactional applications enable customer to

wirelessly transfer balances, pay bills and conduct foreign exchangeorders.

Provide transaction history and aggregate banking information:

Customers can review banking events for a number of accounts and

wirelessly retrieve banking and non-banking information.

Transmit banking alerts and reminder messages : Customer-controlled

alert profile enable rapid response to news and banking events,

Banking advice may also be distributed through these applications.

Enable Wireless messaging: Wireless messaging, including SMS, e-mail

and instant messaging, allows customers to interact with portfoliosmanagers, bank officials and other customers.


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Extend banking portals: Banking portals provide useful content for

customer and provide the banks the opportunity to cross-sell otherproducts or services.

Offer location-based banking services: These applications enablesubscribers to access services that are tailored to their geographic

location, such as the location of nearby offices, branches, agents andATMs.

Mobile Platform Selection Criteria :

To successfully support banking applications, mobile platform mustsupport a number of standards to allow banks to leverage existing

technologies for the subscribers that access them. A number of

standards are provided below:

Transactional interface with back-end data: Mobile banking

applications are not simple extension of internet. The procedure of

scraping Web-based information and transmitting it to wirelessdevices produces very fragile and unreliable banking applications.

Mobile platforms should connect directly to back-end data sources and

use open standard to support transactional applications.

Security : Mobile platform should support extremely high level of end-

to-end security including support for privacy, encryption, two-factorauthentication, data integrity, and non-repudiation. Different levels of

security will vary based on requirement that change for the size oftransaction, the parties involved, and the type of information

exchanged.


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Security for Mobile banking

It is clear that for the mobile phone to become a transactional device, the

security of all personal data transmitted through the wireless handset will be

critical. Just as e-commerce over fixed- line Internet device can hardly beexpected to flourish if frauds or theft is easy. Business and consumer

subscribers, commercial entitles and industries are unlikely to make full useof the potential of the new mobile communications media if they are

insecure.Although security is mainly a matter of technology, there are two other

important aspects, legal protection and consumer perception.

Technology:

Within the next few months some real improvements will appear in thesecurity of mobile payment technology platform. When analyzing thesecurity of a mobile payment transaction, we have to consider three distinct

areas: the buyer, the medium between the buyer and seller.

Security on the buyers side implies security of the access device. Because

mobile device belongs to an individual, it is inherently more secure then a

shared device. Solutions such as PKI (public key infrastructure) and SIM2(second ID Module) will be introduced to the market early in 2001,which

will significantly improve security for buyers.

Real improvement in the security of the medium between buyerand seller will occur when 3G networks becomes operational.These 3G networks are based on technology (already used in

current networks in the US, Japan and Korea) that using complex

encoding and decoding algorithms, originally developed by the

military. On the sellers side, acceptable level of security will also be

available in early 2001,when wireless Transport Layer Security

(WTLS) will be introduced. WTLS Is an Encryption technology,which makes sure that everything sent by the buyer, is received by

the seller.


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Legal issues:

There are two legal issues for mobile payment- customer protection and

non-repudiation. To build consumer confidence, customer protection against

fraudulent usage has to be well established and clear. To introduce newlaws, or adjust existing legislation, for a new payment method takes times,

as unanticipated issues can crop up. This is the main non-technologicalreason why the security of a payment method improves over time. The

second issue is on-repudiation of a transaction. While accepting credit cards,the seller uses the buyers signature to prevent repudiation. Legalising digital

signatures, as proof of purchase in the virtual world, will prevent buyers

from disputing their online transactions.

Perception:

The public perception of the security of a new payment medium is lessmanageable than the technology and legal aspects, yet can make or break it.

Both sender and recipients must have confidence that the information theytransfer will arrive securely and in confidence. There can be huge

differences in the perception of security between different cultures, whichmake the issue even more complex and less predictable. For example, in the

US the credit card is perceived as much more secure than in Europe a

major reason that the credit card took much longer to be accepted in Europe,and still is not as successful there as in the US.

Convenience

Convenience for buyers:

To make mobile payment an attractive substitute for existing

payment methods in the bricksand mortar world requires completely new

shopping concepts. For example, to make mobile payments more convenientthan, say, the smart card, the customer should be able to pay wherever he or

she is in the shop. In the e-commerce world a shortage of content is currently

the main inconvenience for buyers: both the choice of vendors and choice ofproducts and services is limited.


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Convenience for sellers:

The new shopping concepts required in bricks and mortar if buyers

are to make mobile payments at the sellers end, which may not be

sufficiently attractive as yet. An additional factor, which discourages andseller from investing, is the current lack of standards, which makes

investment very risky. However, industry standards for mobile payment arenow under development, and more are expected in the near future. These

standards will give direction to the (further) development of mobile paymentsystems. An example of a recently introduced standard is Electronic

Commerce Modeling Language (ECML), which addresses the issue of

general payment protocol combined with the ability for enders and brands toindividualise the mobile e-wallet options they provide for their own

customers.

Security in the WAP Environments:

Just as security continues to be a barrier for Internet purchase and online

financial management, so too is it a foremost concern in a wirelessenvironment. To ensure success as a transactional device- which is exactly

how the latest generation of mobile handsets are positioned in the industry-

security standards will continue to play the leading role in swayingconsumer confidence and downplaying the omnipresent fear of fraud. The

senders and recipient must both have confidence that the information they

transfer arise securely and in confidence.

PKI (public key infrastructure) technology provides a security solutionthat is superior to standard SSL in that is protects both the integrity of the

data stream in addition to verifying the participates engaging in a private,

confidential transaction. In simplest terms, PKI involves private and public

keys shared between two parties engaging in a secure transaction. A third-party certificate authority signs a third element, the digital certificate.

In this scenario, if the users handset is equipped with a smart cardreader (which is an increasing trend), the private key could be downloaded

from the smart card on to the mobile phone. This obviates any potential

security risk that could be introduced when a public key is distributed online.Multi-application relationship cards/smart card are also efficient storage

centers for virtual credit cards, debit cards, and other payment instructions,providing a more tightly integrated personal device.


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The potential for success:

Mobile payment has the potential to become successful as convenient and

secure payment method after the barriers described above have been

removedprobably over the next two years. It seems certain that the mainsecurity will be overcome by the end of 2001,when new technologies are

available and and when the legal issues have been resolved in mostcountries.

In the Internet world, selling should take off quite soon after the

security issues have been resolved. At the moment there is a lack of content,

but if open standards are established soon, a lot of start-ups will probablyappear to deliver this content. In bricks and mortar the take -off of mobile

payment is expected to be slower, because of the huge investments required.

So most sellers will probably wait until standards are clearly defined andmobile payment has proved successful in e-commerce.

Introducing the mobile delivery channel into an integrated multi-

channel strategy is a challenge that will have lasting benefits in the future,providing financial institution with a channel readiness that enables quick

repose to emerging consumer trends. As In most successful initiatives in the

worlds of e-commerce and m-commerce, partnership with the righttechnology players is critical. These relationships will help to bring the

mobile banking channel to maturity, as the solution that best combines

convenience, security, portability, application richness, and the flexibilityrequired to bring new products and services to market quickly.

As global financial institutions are discovering today, the

infrastructure requirements can be challenging, but not nearly so challenging

as tiring to retain banking customers that are moving into the wireless age,

with or without their trusted service providers.


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Characteristics of the mobile use

The use of mobile applications underlies several specific restrictions. We

consider five characteristics of the mobile use to be particularly relevant as

they greatly influence the design of mobile banking applications and thesuitability of certain technical solutions. A mobile application is used via a

mobile device. For these devices (currently either a mobile phone or a PDA),special limitations are valid .For the mobile banking context; above all, these

are the limited input and display capabilities. The connection is provided bya mobile network operator (MNO). This is especially important if

applications need to access certain parts of the infrastructure, which are

under control of the MNO (e.g. the SIM card). In the case of negotiations,these have to be pursued with all MNO on the designated market. The use of

mobile data transmission is expensive. In the case of circuit-switched data

transmission.

(E.g. GSMCSD or HSCSD) this extends to the connection time, in the

case of packet-switched data transmission (e.g.GPRS) this extends to the

transferred data volume.Sensitive data is transmitted. This implicates the use of adequate security

measures. A disruption of the usage is possible at any time. This is

principally already true for electronic banking as well (the connection maye.g. be disrupted by a breakdown of the transmission or of the operating

system of the client Computer) and provides a special necessity to avoid

incomplete transactions.


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General conditions of mobile banking

Electronic banking is one of the most successful business- to-

consumer applications in electronic commerce (EC).

Banks greatly support this not only because they could meet theircustomers need for convenience but also because of the enormous

economic impacts in replacing a high-cost channel (bank clerks) through alow-cost channel (a central web server) for simple transactions, with the

additional benefit of eliminating the necessity for a media conversion.

Since users considered their mobile phone as a personal trusted device

making it to an integral part of their lives and more and more of these

devices became Internet- enabled, the regular conclusion was thetransformation of banking applications to mobiledevices as the next step ofelectronic banking development.

For mobile banking, the advantages even go much further than forelectronic banking: The high penetration of mobile phones reaches all social

levels; mobile applications disband the limitations of electronic banking as

they allow for a use anytime-anywhere and the subjective and objectivesecurity of the device is higher than that of a personal computer. Despite all

of this, more than four years after the start of the first mobile banking

applications customers simply do not use them and utilization figures stayvery far behind all expectations (e.g. [1]). Mobile banking as an established

channel still seems to be a distant prospect.

The reasons for this great disappointment are to be analyzed. Doing so

in the following sections, we do not intend to start with current applications

(which could mean biased) but from scratch, with an analysis of thecustomer requirements to such applications.


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Case study-HDFC bank

HDFC Bank Limited, a private sector bank, provides financial services to

corporations, and middle and upper-income individuals in India. It has threedivisions: Wholesale Banking, Retail Banking, and Treasury Operations.

The Wholesale Banking division provides loans, deposit products,documentary credits, guarantees, bullion trading, and foreign exchange and

derivative products. It also offers cash management services, clearing andsettlement services for stock exchanges, tax and other collections for the

government, custody services for mutual funds, and correspondent banking

services. The Retail Banking division provides various deposit products, aswell as loans, bill payment services, gold and silver credit cards, debit cards,

third party distribution, investment advisory services, card and automated

teller machine (ATM) acquiring transactions, and depositary services. TheTreasury Operations division offers foreign exchange and derivativeproducts for its clients. In addition, the bank provides telephone, Internet,

and mobile telephone banking services. As of March 31, 2005, it operated

467 branches and 1,147 ATMs in 211 cities. The company was incorporatedin 1994 and is headquartered in Mumbai, India.

Products :

All of our products support over 2,500 mobile devices across North

America, Europe, and Asia so no need to worry about compatibilityproblems!

HDFC Bank offers organization fast, easy, robust solutions for enterpriseslooking to streamline and integrate business operations onto mobile devices.

Our solutions are compatible with all mobile devices on the market.

Customers, employees and business partners can use their existing mobile

devices, which reduces application development costs and improve yourcompany's time to deployment.

Mobile Banker :

Mobile Banker enables a bank's account holders to directly interact with the

bank through their mobile phone, PDA or PC. It is a web-based service thatenables account holders to re-order checks, stop check payments, and make

account corrections. Through the SMS generator, customers can receiveinstant alerts for items such as rates for mortgage, CDs, and auto loans. This


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is an extremely powerful application when combined with our Mobile

Marketing Campaign component. Banks can now directly target theircustomers with new promotional offers right to their mobile phones. Mobile

marketing campaigns typically enjoy a 15% to 20% response rate so the

payback is instant.Customers can use their mobile handset to resolve a number of customer

service issues such as account corrections or transaction errors. Each servicerequest is tracked through real time updates in the work flow. Customers can

track the status of their service request right from their mobile phone, PDA,or PC. When the service request has been resolved an email or SMS alert

can be automatically sent to your customer right from the application. This

application can also be integrated with the mobile web site component whichallows banks to market their services to the growing mobile Internet

audience.

Mobile Workflow Manager - Issue tracker & workflow manager for mobileusers

Mobile Workflow Manager is a powerful web-based tool that allowscustomers, employees, and business partners the ability to submit and track

issues right from their mobile phone. Through simple and intuitive forms,

customers can conveniently make service requests right from their mobilephones. The application is flexible and can be customized for a variety of

industries. Using our Work Flow Engine, service requests will be

automatically tracked and routed to the correct department or person withinyour organization. Email or SMS alerts can be set up in the process flow to

notify customers, employees or business partners of the status of their issue.Using SMS short codes (text messaging), your targeted users can enroll,

subscribe or even be directed to WAP (web) page for additional information

or data collection.

Mobile Workflow Manager is a web-based mobile platform that provides:

Tracking - Tracking issues, services requests, claims, orders fromyour PC and / or mobile device.

Workflow - Automatic routing and notification to get issues resolved. Process Management - Managing your company's process for

Resolving issue.

Status - Real time status updates of issues for PC and mobile users.Accountability - History and audit trail.


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Mobility - Your customers can submit issue, service request, or claimfrom anywhere in the world using any mobile device.

Compatibility - Over 2,500 Internet ready mobile devices aresupported across North America, Europe, and Asia.

This solution supports customers in a broad range of industries such as

pharmaceutical, insurance, retail, hotel & restaurants, travel, airlines,transportation, consumer electronics, publishing, broadcast, entertainment,

government and education.

Mobile Patient Recruiter

Now you can integrate mobile messaging (SMS / text messaging) withother advertising efforts to accelerate the recruitment process. Our solution

can be easily integrated with your current print, radio, and TV

advertisements. A simple short code placed in your advertisementinstructing your audience to send a text message is all that is required. Thiscapitalizes on mobile marketing's greatest attribute, the ability to instantly

respond and receive timely information. Upon submission of the text

message, respondents can be sent a web link where they can privately readmore information about your study. Potential patients can then be prompted

to answer questions to pre-qualify them based on your requirements. When a

potential patient matches your criteria, their information will be forwarded tothe nearest investigator site for follow up. The collected data is instantly

available via the web for all project team members. Results can be analyzed

on daily basis to determine the most effective advertising medium such asprint or radio. Patient retention can also be improved by sending SMS alerts

to their mobile phones for appointment reminders. Our platform supports allInternet ready mobile device types and can be used across North America,

Europe, and Asia . When compared to traditional advertising alone, we have

seen mobile marketing response rates up to 5 times higher.

Mobile Patient Recruiter provides:

Message delivery is supported for mobile subscribers in over 180countries.

All major wireless carriers are supported. Short code acquisition & management. Interactive 2-way messaging. Real time web based reports to manage recruitment and analyze

media purchases.


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Mobile Delivery Management

Track-It-Stat -is a web based delivery management solution that integrates

Internet ready hand-held PDAs and mobile phones to monitor and trackshipments through any number of internal departments, branch offices, or

external locations. The solution is ideal for banks, couriers, transportation &logistics companies and any organization with a need to track shipments.

Mobile Video Portal :

The mobile video converter component can be combined with the MobileContent Management System (Mobile CMS) and provide a complete

storefront with mobile device download capabilities. The mobile CMS is a

pre-configured Internet portal with video download and streamingcapabilities. Customers can log on to your web site, browse video titles anddownload them directly to their mobile device.

Mobile Banking Alerts

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:

Credits to your account ( you choose a threshold credit amount,above which you'd like to be alerted ).

Debits to your account ( you choose a threshold debit amount,above which you'd like to be alerted ).

Cheque returned ( Get to know every time a cheque deposited inyour account is returned ) .
http://www.datawiztechnologies.com/mobilemanagement.htmhttp://www.datawiztechnologies.com/mobilevideoportal.htmhttp://www.datawiztechnologies.com/mobilevideoportal.htmhttp://www.datawiztechnologies.com/mobilemanagement.htm


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Conclusions and Outlook

In the preceding sections we analyzed the relevant customerrequirements to mobile banking. We examined general M-banking

conditions and identified relevant M- banking use cases as well as specialcharacteristics of the mobile use of an application. Based on these results we

derived a set of requirements, which we employed later to assess four state-

of-the-art standard types of M-banking applications in order to identify theirmajor shortcomings, show opportunities for their improvement and discuss

the upcoming new technology along with their possible impact. and an

explanation of major failure reasons along with opportunities for theirimprovement.

The major goal of the banks is to repeatand if possible expandthe

big success of Mobile banking. But the banks have to keep in mind that theusage of M-banking is taking place under completely different

circumstances - under the application of mobile commerce rules. None ofthe technologies can provide a M-banking solution that works completely

without problems and satisfies the customer.

The recommendation to the banks should be not to focus on one

technology only, but to use the advantages of different technologies. Onlywith a respective combination of new technologies it will be possible forbanks to achieve success in mobile banking in the long run.


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Application for Internet Banking, Phone Banking and Mobile Banking

(All fields with * are mandatory to be filled.)

Name of the applicant: Mr. /Ms. /Mrs. ___________________

_____________________ ______________________________________

First Name * Middle Name * Surname*

Address*________________________________________________________________________________________________________________

City *: ____________________ Pin Code:

Email Address *: ____________________ @_______________ Phone No.

Mobile No. : ________________________

Mother's Maiden Name *:

Date of birth *: _______/ _______/ ______

dd mm yy

I) In case of joint accounts, the applicant is required to obtain the attached

mandate from the joint account holder(s).

II) HDFC Bank accountholders can access their bank accounts through

HDFC Bank Internet Banking only where the mode of operation of HDFCBank account is Single/Either or Survivor/Anyone or Survivor.

Please tick one of the following:


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Questionnaires

A) Banking point of view :

1) Whether Mobile Banking is more convenient then Traditional

Banking?

a) Yes b) No c) Not yet experience

2) According to you, which category of community are relay onM-Banking?

a) Businessmen b) Common people c) Professional d) Other

B) Customers point of view :

1) With which facilities of banking you are most satisfied?

a) Traditional Bankingb) Internet Banking

c) Mobile Banking

d) Other

2) Are you satisfied with the facilities provided in Mobile Banking?


3) Which feature of Mobile Banking you like more?

a) Flexibilityb)Time savingc) Durabilityd)Easy accessibility

4) Do you feel Mobile Banking is Costlier then other modes of

Banking?


5) Whether you are facing any problems, while using M-BankingSystems?


6) Would you like to give any suggestions to prevent problems ofM-Banking?

a) Yes b) No c) No Suggestion


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Answers:

A) Banking point of view :

1) Whether Mobile Banking is more convenient then Traditional

Banking?

Explanation :

Mobile Banking is more better then Traditional Banking because it

offers more facility like Alert facility,SMS facility and customer canaccess to their bank blance at any time.

No,Mobile Banking is not convenient then Traditional Banking as it

involve more formalities and middle class, lower class customers can notaffored to Mobile Banking.

Not yet experience, As some customers are totally unaware of MobileBanking.

I conclde that, most of the customers of bank are feel thet MobileBanking is more convenient.

60%30%

10% Yes

No

Notexperience


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2) According to you, which category of community are relay on

M-Banking?

Explanation :

As per chart, 60% of Businessmen relay on Mobile Banking because, they

mostly involved in stock exchange so they required each and every update ofstock market which the get easily on their mobile by availing Mobile

Banking.

Only 10% of common customers of bank are availing Mobile Bankingservice because they are interested in depositing and lending of their money

in their account.

Professionals like Lawyer, Doctor, Engineers, are availing Mobile Bankingonly up to 20%.

We conclude that, most of Business customers of bank are using and relay

on Mobile Banking.B) Customers point of view :

60%10%

20%

10%Bussinessmen

Common

Professional

Other


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1) With which facilities of banking you are most satisfied?

Explanation :

As per chart, there is equal percentage for Mobile Banking and Internet

Banking because both offer wide services. Through Mobile Banking

customer can chack their account details on Mobile, whereas in Internet

Banking customers have to visit to cyber to check.

On other hand Traditional Banking is a used 10%of customer.

Conclusion is that, Mobile Banking and Internet Banking both are satisfyingcustomers.

2) Are you satisfied with the facilities provided in Mobile Banking?

10%

40%40%

10%

Traditional

Mobile

Internet

Other


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Explanation:

Yes, 70% of customers of bank are satisfied with Mobile Banking because

of its latest facility.

20% of customers are not satisfied because they are not comfortable withformalities of Mobile Banking.

10% customers have no idea about Mobile Banking so there is no question

of satisfaction.

0

10

20

30

40

50

60

70

Yes No Can't say


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3) Which feature of Mobile Banking you like more?

Explanation :

In todays modern world every customer has value of Time, so they

acquire latest facility which is time saving. There is 40% of customers areavailing Mobile Banking system for the sake of time saving.

30% of customers used this facility as flexibility offered by this system,

its easy for them to access any information on mobile like latest updatationof stock market, bank balance checking, Reminder facility etc. Mobile

Banking can be easily accessible and is Durable in nature.

30%

40%

15%

15% Flexibility

Time saving

Durability

Accessability


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4) Do you feel Mobile Banking is Costlier then other modes of

Banking?

Explanation :

Yes, Mobile Banking is costlier because this facility is availed by only thosecustomers of bank, which has,

1) Saving A/C of same bank

2) Demate A/C of same bank

3) Credit card of same bank

So middle class and lower class customers need not to have demate A/C and

Credit card & it also charge for Alert and SMS facility.

Some customers of bank required Mobile Banking and they deal in lakes so

they not feel that Mobile Banking is costlier.

9% of customers are not familiar with Mobile Banking and they are happy with

the Traditional Banking.After taking into account all factors I conclude that Mobile Banking is Costlier.

5) Whether you are facing any problems, while using M-Banking

50%41%

9%

Yes

No

Can't say


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Systems?

Explanation :

Yes, there is problem in Mobile Banking regarding lack of security, lack of

personal touch, lack of efficiency& some times problem in accessibility.

No, there is no problem in Mobile Banking. Everything is up to the satisfactionlevel.

I conclude that, in spite of various problems in Mobile Banking is best.

6) Would you like to give any suggestions to prevent problems ofM-Banking?

05

10

15

20

25

30

35

40

45

50

Yes No Can't say


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Explanation:

Yes, there should be personal touch i.e. instead of sending message, if there is

facility that we can solve our problems with bankers personally. SMS facility is

good but need to grow.

No, there are no suggestions regarding Mobile Banking, as everything is

perfect.

Somepersonnel didnt have knowledge about Mobile Banking so there are no

suggestions from their point of view.

At last I would like to conclude that with some innovations, Mobile Bankingcan become popular in middle class and lower class customers.

60%

35%

5%5%

Yes

No

Can't say


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Bibliography

1. E-banking: the global perspectiveGupta Vivek2. E-Commerce in Indian bankingBhasin

3. Banking and FinanceC.M.Chaudhary4. IT in Banks - Katury Nageshwara Rao.

5. Visiting HDFC branch at Andheri (west)

webiblography

1.www.google.com

introduction of mobile bankingcc v

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