08/08/11

Term Paper
Mobile Banking Group: Annihilators

MIS 101

Submitted To

Md. Ziaul Hoque Zia Lecturer East West University

Submitted By

Shanjida Sharmin Khan 2010-3-10-130 Sayedur Rahman 2010-2-13-011 Shatil Hasan 2010-3-10-166 Md.Jahirul Khan 2010-2-10Muhibullah Milon 2010-2-13-061 Zubair Hossain 2010-3-10

Letter of Transmital:

TABLE OF CONTENTS
Title Number Page

Introduction Mobile Banking Services

1. 2. 3. 4. 5. Account information Payments, Deposit, Withdraw & Transfer Investments Support Content Services

05 06

Present Condition of Mobile Banking in BD Mobile Banking Process Problems of Mobile Banking 1. Security 2. Compatibility 3. Cost Recommendations Conclusion References

08 10 11

12 13 14

Introduction

The last time that technology had a major impact in helping banks service their customers was with the introduction of the Internet banking. Internet Banking helped give the customer's anytime access to their banks. Customer's could check out their account details, get their bank statements, perform transactions like transferring money to other accounts and pay their bills sitting in the comfort of their homes and offices. However the biggest limitation of Internet banking is the requirement of a PC with an Internet connection, not a big obstacle if we look at the US and the European countries, but definitely a big barrier if we consider most of the developing countries of Asia like China and India. Mobile banking addresses this fundamental limitation of Internet Banking, as it reduces the customer requirement to just a mobile phone. Mobile usage has seen an explosive growth in most of the Asian economies like India, China and Korea. In fact Korea boasts about a 70% mobile penetration rate and with its tech-savvy populace has seen one of the most aggressive rollouts of mobile banking services.

Still, the main reason that Mobile Banking scores over Internet Banking is that it enables Anywhere Banking'. Customers now don't need access to a computer terminal to access their banks, they can now do so on the go when they are waiting for their bus to work, when they are traveling or when they are waiting for their orders to come through in a restaurant.

The scale at which Mobile banking has the potential to grow can be gauged by looking at the pace users are getting mobile in these big Asian economies. According to the Cellular Operators' Association of India (COAI) the mobile subscriber base in India hit 40.6 million in the August 2004. In September 2004 it added about 1.85 million more. The explosion as most analysts say, is yet to come as India has about one of the biggest untapped markets. China, which already witnessed the mobile boom, is expected to have about 300 million mobile users by the end of 2004. South Korea is targeted to reach about 42 million mobile users by the end of 2005. All three of these countries have seen gradual roll-out of mobile banking services, the most aggressive being Korea which is now witnessing the roll-out of some of the most advanced services like using mobile phones to pay bills in shops and restaurants.

Mobile Banking Services

Mobile banking can offer services such as the following: Account Information 1. 2. 3. 4. 5. 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 6. Mutual funds / equity statements 7. Insurance policy management 8. Pension plan management 9. Status on cheque, stop payment on cheque 10. Ordering cheque books 11. Balance checking in the account

12. Recent transactions 13. Due date of payment (functionality for stop, change and deleting of payments) 14. PIN provision, Change of PIN and reminder over the Internet 15. Blocking of (lost, stolen) cards Payments, Deposits, Withdrawals, and Transfers 1. 2. 3. 4. 5. 6. Domestic and international fund transfers Micro-payment handling Mobile recharging Commercial payment processing Bill payment processing Peer to Peer payments 7. Withdrawal at banking agent 8. Deposit at banking agent A specific sequence of SMS messages will enable the system to verify if the client has sufficient funds in his or her wallet and authorize a deposit or withdrawal transaction at the agent. When depositing money, the merchant receives cash and the system credits the client's bank account or mobile wallet. In the same way the client can also withdraw money at the merchant: through exchanging sms to provide authorization, the merchant hands the client cash and debits the merchant's account. Investments 1. Portfolio management services 2. Real-time stock quotes 3. Personalized alerts and notifications on security prices Support 1. 2. 3. 4. 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 ATM Location

Content Services 1. General information such as weather updates, news 2. Loyalty-related offers 3. Location-based services

Present Condition of Mobile Banking in BD

2

Currently there are three banks that have the mobile banking technology. They are Dutch-Bangla Bank Ltd. Islami Bank Ltd. Brac Bank Ltd. Dutch-Bangla bank has fully started their operations of mobile banking while the other two banks are still is process of opening Mobile banking.

The Opening of DBBL Mobile Banking by Bangladesh Bank Governor.

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 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." 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. Atiur Rahman said through mobile banking various banking services including depositing and withdrawing money, payment of utility bills and reaching remittance to the recipient would be possible. By going to the DBBL-approved Citycell and Banglalink agents throughout the country the subscribers on showing necessary papers and payment of a fee of Tk 10 can open an account. To avail of the banking service a subscriber will require owning a cell phone of any provider and he will be given a four-digit PIN. By using the PIN he can operate all types of banking services including depositing and withdrawing money maintaining security and secrecy of his account. The customer will hand over cash to the agent and the agent will initiate the transaction from his mobile phone, the agent will help the account holder to do the banking using his PIN. A customer can deposit or withdraw money five times a day and he can deposit or draw Tk 5,000 per day. One percent of the transaction account or Tk 5, whichever is higher, will be taken as cash-in-charges. In case of cash out the charge will be 2 percent of the transaction amount or Tk 10. However, the registration fee, salary and remittance disbursement services will be provided free of cost. The other banks are also in process of introducing mobile banking.

The Inauguration of Islami Bank Mobile Banking

The Inauguration of Brac Bank Mobile Banking

The Process

Problems of Mobile Banking

There are many problems related to Mobile Banking. They areTA BL Security: Security experts generally agree that mobile banking is safer than computer banking because very few viruses and Trojans exist for phones. That does not mean mobile banking is immune to security threats, however. Mobile users are especially susceptible to a phishing-like scam called "smashing." It happens when a mobile banking user receives a fake text message asking for bank account details from a hacker posing as a financial institution. Many people have fallen for this trick and had money stolen through this scam. Online banking is usually done through an encrypted connection so that hackers cannot read transmitted data, but consider the consequences if your mobile device is stolen. While all banking applications require you to enter a password or PIN, many people configure their mobile devices to save passwords, or use insecure passwords and PINs that are easy to guess.

Compatibility: You need a smart phone to get the most out of mobile banking.

Wallet and mobile phone image by Pavel Bernshtam from Fotolia.com Mobile banking is not available on every device. Some banks do not provide mobile banking at all. Others require you to use a custom mobile banking application only available on the most popular smart phones, such as the Apple iPhone and RIM Blackberry. Third-party mobile banking software is not always supported. If you do not own a smart phone, the types of mobile banking you can do are usually limited. Checking bank account balances via text message is not a problem, but more advanced features such as account transfers are generally not available to users of "dumb phones."

 Cost: Network service charges quickly add up.

Network service charges quickly add up. VanHorn from Fotolia.com The cost of mobile banking might not appear significant if you already have a compatible device, but you still need to pay data and text messaging fees. Some financial institutions charge an extra fee for mobile banking service, and you may need to pay a fee for software. These extra charges quickly add up, especially if you access mobile banking often.

Recommendations
Mobile banking (also known as M-Banking, SMS Banking) is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA). The earliest mobile banking services were offered over SMS. To improve it, following initiative may be taken. 1. 2. 3. 4. 5. Developing E-commerce and M-commerce in Bangladesh. Developing the Network and Internet. Assuring security for mobile network and M-commerce Cutting the cost of M-Banking and its related technology Develop mobile manufacturing and contemplating on making smart phones for future.

Conclusion

References

"DBBL branches to reach 79, ATMs 850 by yr-end". Financial Express. http://www.thefinancialexpress-bd.com/2009/09/29/80133.html. Retrieved 2009-09-02. 2. Dutch Bangla Bank (DBBL) introduced Fast Track amazing The HungryCoder's Blog 3. DBBL Introduced Internet Payments in Bangladesh The HungryCoder's Blog 4. DBBL introduces Mobile Banking for the first time in Bangladesh BankInfoBD Banking Information Portal
1. 1. "Dutch Bangla Bank official site". http://www.dutchbanglabank.com. 2. "127 students get DBBL scholarships". The Daily Star.

http://www.thedailystar.net/2005/03/23/d50323100191.htm.
3. "Dutch-Bangla Bank support to HIV positives". The Daily Star.

http://www.thedailystar.net/2006/06/23/d606230607103.htm.
4. "Dutch Bangla Bank grants scholarhips". The Daily Star. 5. 6. 7. 8. 9.

http://www.thedailystar.net/2004/04/04/d40404051058.htm. "Tk 31 lakh Dutch-Bangla aid for acid, dowry victims". The Daily Star. http://www.thedailystar.net/2006/04/06/d60406061477.htm. "Dutch-Bangla Bank distributes blankets". The Daily Star. http://www.thedailystar.net/2003/12/23/d31223100473.htm. "Tk 4 crore Dutch-Bangla donation for Cancer Hospital". The Daily Star. http://www.thedailystar.net/2004/07/13/d40713100689.htm. "Dutch-Bangla Bank stands by acid victims, divorcees". The Daily Star. http://www.thedailystar.net/2005/04/03/d50403061280.htm. "Dutch-Bangla Bank distributes blankets". The Daily Star. http://www.thedailystar.net/2003/12/23/d31223100473.htm.