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CHAPTER - 1: INTRODUCTION

Now a days, the bank customers were depending on the net or the bank straightly for all their account details and cant able to involve in the bank process directly. This Problem can be solved through Mobile banking System. The title of the project is MOBILE BANKING. The main aim of the project is to mobilize the Bank Process that is used to reduce the customer transaction-time as well as user can able to access from anywhere through mobile. Mobile banking enable customer to access the information from his personal mobile and can able to view his account details. This system also used to transact money to another client through the keypad of the mobile itself. The user can also verify his Cheque and demand draft details if another person may pass a demand draft or Cheque. The Mobile Banking System runs in a Mobile Browser (Nokia Simulator). The software consists of two parts viz. the server part and the client part. The server part is present in Mobile Banking server in the form of Downloaded Application module. The client part is present at each clients mobile the server and the client are connected to each other over the Internet using WAP technology. Mobile Banking provides a system for the user to access his bank account through his Mobile. The system also enables the user to pay his EB Bill, Telephone Bill through his mobile as well as pay for some other services, which he has availed. The Mobile banking system is not just for payment but a user of the system can also transfer money to another account holder through this system. He can receive from his bank or from his business associates or friend or other person who is also connected to the system. After Internet Banking, Mobile Banking or M-Banking has become the buzz word in the industry. It's a fact that Internet Banking has given a boost and has shown a successful way to consider it as a good alternative procedure against physical branch banking. Now where ever you are, you can access your bank account and you can do lot more things like checking your account balance, transfer money to some other account, pay your utility bills online and so on, just by comfortably sitting at your home or office. But, the technical disadvantage of Internet Banking is, you have to have internet connectivity and a computer. Definitely it's not a big hindrance in US or Europe or in the other developed countries, but if one considers the developing economies, then it's a genuine problem and more specifically in the tier II cities. And here Mobile Banking comes into the picture to address the basic limitation of Internet Banking. If we only consider Asian developing countries, the availability of mobile connectivity is
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really huge. Where one may not find out a landline telephone or an internet connection, but still in those remote places getting mobile connectivity is not a major issue today. So, Mobile Banking has given the traditional banking a newer look "Anywhere Banking". Now you don't need a PC or a laptop with internet connectivity, just you need your cell phone with you. Considering the Asian economy countries like China, India and Korea have seen the mobile boom in last one decade. A projected value of mobile connectivity in India shows that it will touch 180 Million subscribers by the end of 2008, where it was pegged at around 2 Million in the year 2000. In Korea, more than 70% of the entire population is carrying mobile devices. Mobile Banking activities can be categorized in two different manners: 1. By the Nature of Service: It can be any of the two, either Enquiry Based or Transaction Based. For example, Account Balance Enquiry or a Cheque Book Requisition can be the good examples of Enquiry Based Services where a Fund Transfer or a Bill Payment is a Transaction Based activity. 2. Depending on the Originator: Again there can be two different types of services; Push and Pull, depending on the nature of the originator. A Push based service is from the Bank to the Client and vice versa. For example, Bill Payment Alert can be a Push based service, when getting Recent Account History is a Pull based one. In different countries, Mobile Banking has already gained its popularity. For example, in the South Korean market LG Telecom teamed up with Kook min Bank to provide their Mobile Banking services in 2004 and since then they have seen a nice and steady growth. In India, Reliance Infocomm has started providing Mobile banking services to ICICI Bank and HDFC Bank through their R-World environment. The Mobile Banking services will become more popular once the availability of the smart phones or PDA phones shall increase as Smart Phones come with larger screens and bigger memory size. In the application development front, both J2ME and BREW have done excellent work and industry expects by the year 2012, more than 80% of the mobile handsets will be able to run stand alone Mobile Banking applications and that time it will be "Anywhere Banking" in real sense.

1.1 Historical Background


For 30 years, financial institutions have been on a quest to satisfy their customers need for more convenience. First came the Automated Teller Machine (ATM), which New Yorks Chemical Bank introduced to the American public in 1969. It did little more than dispense cash at first, but the ATM evolved over time to become a true bank-away-from-bank, providing a full suite of financial transactions.

A woman counts her cash after a withdrawal from the first cash point machine in London, in 1967. Then came Internet banking in the mid-1990s, which enabled consumers to access their financial accounts using a home computer with an Internet connection. Despite its promise of ultimate convenience, online banking saw slow and tentative growth as banks worked out technology issues and built consumer trust. Today, Internet banking has reached a critical mass, with about 35 percent of U.S. households conducting bank transactions online. Yet banking at the living room computer still has some serious limitations. First, only 62 percent of American households have a computer, according to a 2003 study conducted by the
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U.S. Census Bureau. And only 28 percent of Americans have broadband Internet access, which is essential to efficient, convenient service [source: GAO]. The biggest issue, however, is mobility. They can be carried anywhere and are -- by an enormous number of people. More than 238 million people in the U.S. have mobile phones. Thats a whopping 78 percent of the population and worldwide there are more than 3.25 billion mobile phone subscribers, with penetration topping 100 percent in Europe. If mobile phones only delivered voice data, then their use as a vehicle to deliver banking services would be limited. Most phones, however, also provide text-messaging capabilities, and a growing number are Web-enabled. That makes the mobile phone an ideal medium through which banks can deliver a wide variety of services. Banks classify these services based on how information flows. A pull transaction is one in which a mobile phone user actively requests a service or information from the bank. For example, inquiring about an account balance is a pull transaction. So is transferring funds, paying a bill or requesting a transaction history. Because banks must respond or take some action based on the user request, pull transactions are considered two-way exchanges. A push transaction, on the other hand, is one in which the bank sends information based on a set of rules. A minimum balance alert is a good example of a push transaction. The customer defines the rule -- "Tell me when my balance gets below $100" -- and the bank generates an automatic message any time that rule applies. Similar alerts can be sent whenever there is a debit transaction or a bill payment. As these examples illustrate, push transactions are generally one way, from the bank to the customer. You can also classify mobile banking based on the nature of the service. Transaction-based services, such as a funds transfer or a bill payment, involve movement of funds from one source to another. Inquiry-based services dont. They simply require a response to a user query. The chart below summarizes these various types of mobile banking services.

Push

Pull Funds transfer, Bill payment, Share

Transaction Minimum balance alert Inquiry Credit/debit alert

trade, Check order Account balance inquiry, Account statement inquiry, Check status

Bill payment alert inquiry, Transaction history Clearly, push transactions are not as complex as their pull counterparts. Mobile banking solutions also vary in their degree of complexity, and some only offer a fraction of the services you would find in a bricks-and-mortar branch. In this respect, mobile banking isn't always full-service banking. The factors that affect this are the type of phone being used, the service plan of the mobile subscriber and the technology framework of the bank. Well look at these technologies next.

1.2 Trends in Mobile Banking


The advent of the Internet has enabled new ways to conduct banking business, resulting in the creation of new institutions, such as online banks, online brokers and wealth managers. Such institutions still account for a tiny percentage of the industry. Over the last few years, the mobile and wireless market has been one of the fastest growing markets in the world and it is still growing at a rapid pace. According to the GSM Association and Ovum, the number of mobile subscribers exceeded 2 billion in September 2005, and now (2009) exceeds 2.5 billion (of which more than 2 billion are GSM).According to a study by financial consultancy Client, 35% of online banking households will be using mobile banking by 2010, up from less than 1% today. Upwards of 70% of bank center call volume is projected to come from mobile phones. Mobile banking will eventually allow users to make payments at the physical point of sale. "Mobile contactless payments will make up 10% of the contactless market by 2010. Another study from 2010 by Berg Insight forecasts that the number of mobile banking users in the US will grow from 12 million in 2009 to 86 million in 2015. The same study also predicts that the European market will grow from 7 million mobile banking users in 2009 to 115 million users in 2015.Many believe that mobile users have just started to fully utilize the data capabilities in their mobile phones. In Asian countries like India, China, Bangladesh, Indonesia and Philippines, where mobile infrastructure is comparatively better than the fixed-line infrastructure, and in European countries, where mobile
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phone penetration is very high (at least 80% of consumers use a mobile phone), mobile banking is likely to appeal even more.

1.3 Mobile Banking Business Models


A wide spectrum of Mobile/branchless banking models is evolving. However, no matter what business model, if mobile banking is being used to attract low-income populations in often rural locations, the business model will depend on banking agents, i.e., retail or postal outlets that process financial transactions on behalf telcos or banks. The banking agent is an important part of the mobile banking business model since customer care, service quality, and cash management will depend on them. Many telcos will work through their local airtime resellers. However, banks in Colombia, Brazil, Peru, and other markets use pharmacies, bakeries, etc. These models differ primarily on the question that who will establish the relationship (account opening, deposit taking, lending etc.)to the end customer, the Bank or the NonBank/Telecommunication Company (Telco).Another difference lies in the nature of agency agreement between bank and the Non-Bank. Models of branchless banking can be classified into three broad categories - Bank Focused, Bank-Led and Nonbank-Led. Bank-focused 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
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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 has a limited role in the day-to-day account management. Typically its role in this model is limited to safe-keeping of funds. Account management functions are conducted by a non-bank (e.g. telco) who has direct contact with individual customers. Mobile banking can offer services such as the following: Account Information 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 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 Status on cheque, stop payment on cheque Ordering cheque books Balance checking in the account Recent transactions Due date of payment (functionality for stop, change and deleting of payments) PIN provision, Change of PIN and reminder over the Internet Blocking of (lost, stolen) cards

Payments, Deposits, Withdrawals, and Transfers


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1. 2. 3. 4. 5. 6. 7. 8.

Domestic and international fund transfers Micro-payment handling Mobile recharging Commercial payment processing Bill payment processing Peer to Peer payments Withdrawal at banking agent 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. Kenya's mobile banking service, for example, allows customers of the mobile phone operator Safari.com to hold cash balances which are recorded on their SIM cards. Cash may be deposited or withdrawn from M-PESA accounts at Safari.com retail outlets located throughout the country, and may be transferred electronically from person to person as well as used to pay bills to companies. One of the most innovative applications of mobile banking technology is Zidisha, a US-based nonprofit microlending platform that allows residents of developing countries to raise small business loans from web users worldwide. Zidisha uses mobile banking for loan disbursements and repayments, transferring funds from lenders in the United States to the borrowers in rural Africa using nothing but the internet and mobile phones. Investments 1. 2. 3. Support
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Portfolio management services Real-time stock quotes Personalized alerts and notifications on security prices

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 ATM Location

tracking

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

Based on a survey conducted by Forrester, mobile banking will be attractive mainly to the younger, more "tech-savvy" customer segment. A third of mobile phone users say that they may consider performing some kind of financial transaction through their mobile phone. But most of the users are interested in performing basic transactions such as querying for account balance and making bill payment. 1.4 Advantages of Mobile Banking The biggest advantage that mobile banking offers to banks is that it drastically cuts down the costs of providing service to the customers. For example an average teller or phone transaction costs about $2.36 each, whereas an electronic transaction costs only about $0.10 each. Additionally, this new channel gives the bank ability to cross-sell up-sell their other complex banking products and services such as vehicle loans, credit cards etc. For service providers, Mobile banking offers the next surest way to achieve growth. Countries like Korea where mobile penetration is nearing saturation, mobile banking is helping service providers increase revenues from the now static subscriber base. Also service providers are increasingly using the complexity of their supported mobile banking services to attract new customers and retain old ones. The biggest advantage Mobile Banking provides to the banks is that it helps to cut down the costs as it's even more economic than providing tele-banking facilities where banks have to keep hundreds of tele-callers. Additionally, Mobile Banking helps banks to upgrade the quality of services and nature of
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customer relationship management. Using Mobile Banking, banks can communicate to the defined cluster of clients. The offers can be customized and this personalization can give the banking industry a huge mileage, even at a lower cost. Again, using the same mobile channels, banks can up-sell and cross-sell their highly complex financial products to the specific set of customers which can be coupled with the selling strategies of Credit Cards, Home Loans and Personal Loans etc. On the contrary, the service providers can also accrue more business by providing the Mobile Banking services to their clients. Countries like Japan, Korea or Singapore where the mobile connectivity has already reached its saturation, the service providers can make handsome business by providing additional banking services to the same static client base.

1.5 Marketing for Mobile Banking


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 be the only option left. On the other hand a market heavily segmented by the type and complexity of mobile phone usage might be good place to roll of WAP based mobile applications. A WAP based service can let go of the need to customize usability to the profile of each mobile phone, the trade-off being that it cannot take advantage of the full breadth of features that a mobile phone might offer. Mobile application standalone clients bring along the burden of supporting multiple mobile device profiles. According to the Gartner Group, a leading wireless computing consulting organization, 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
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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.

1.6 Current Mobile Banking Providers


Although several financial institutions, including Wachovia, Washington Mutual, Wells Fargo and ING Direct, are launching mobile banking services, we are going to look at two of the largest and most developed -- Mobile Banking from Bank of America and Citi Mobile from Citibank.

Citi Mobile from Citibank


Citibank opted for the application-based approach to its mobile banking offering. Like Bank of America Mobile Banking, Citi Mobile requires that users spend some time on a PC getting the service set up. Citi Mobile customers must also download software -- a custom, Citibank-branded interface -- to their phones. Heres how the process works: Citibank customers sign on to their online banking accounts and enter their cell phone numbers, the name of their wireless carriers, and their cell phone models. This information is necessary because the Citi Mobile application must be customized to the make and model of the phone. After customers enroll, two text messages land in their cell phone inbox: The first with download instructions and the second with an activation key, which is required to set up the application on the phone. Customers download and install the application to their phone, a process that takes about two to three minutes. Next, customers launch the application and enter their activation keys and cell phone numbers to initiate the mobile banking service. They're ready to sign on. Every time they sign on, customers will need to enter their telephone access codes -- the same code they use to access Citibanks telephone banking service. The Citi Mobile interface provides access points into account information and activity, payments and transfers. It also allows users to find Citibank locations and to connect to customer service with a single click. Citibank is looking to push the boundaries of mobile banking with some innovative cell phone trials. One trial, a partnership with MasterCard, AT&T and Nokia, involves placing near field communications (NFC) chips in certain Nokia phones. By passing the phone within a few inches of a reader, the NFC chip can be used to charge a payment to the user's credit or debit card.
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Such a payment is called an m-payment, an exciting concept in the world of mobile banking. Mpayments will be possible even when the phones user doesnt have a bank account. In such a situation, a cell phone owner buys prepaid units from a mobile operator and then uses those units to pay for goods and services at a partnering service provider or retailer. Some see this type of transaction as a vital way to get basic financial services to populations in developing countries or in rural or remote areas, where people are more likely to have cell phones than bank accounts. So perhaps a future commercial for mobile banking will not show an American woman hanging from a cliff in the Utah badlands, but a Kenyan villager using her cell phone to make a money transfer in downtown Nairobi.

1.7 Case Studies


Powering International Operations with the Technology Advantage Bank of Baroda began its transformation journey by migrating to Finacle core banking and eBanking solutions that replaced 8 other disparate legacy systems across its branches in 18 countries. The banks One solution. One strategy stance was a strategic move to deter vendordependence that hampered the banks business users when they designed new products and updated business rules. Investment in Technology Yielding Rich Dividends Today Indias second largest bank and among the Top 250 in the world, ICICI Bank is a universal bank offering a well diversified portfolio of financial services. The bank has assets of over US$ 41 billion and over 14 million customers through a network of about 570 branches, 2000 ATM's and a 3200 seat call center. Technology Enabled Agile Banking IDBI Bank is the commercial banking venture of leading development and financial institution of India, IDBI. After a detailed and rigorous evaluation, Finacle was deployed at IDBI Bank to power its retail and corporate banking, trade finance, as well as consumer and business e-banking operations. 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
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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.

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Chapter-2 :Review of Literature


A brief review of some of the relevant literature is as under:

2.1 Indian review


Rangarajan Committee (1983) had drawn up in 1983-84 the first blue print for computerisation and mechanisation in banking industry and looked into modalities of drawing up a phased plan for mechanisation for the banking industry covering period 1985-89. The committee in its report in 1984 recommended introduction of computerisation and mechanisation at branch, regional office / zonal office and head office levels of banks. In 1988 another committee was constituted under the chairmanship of Dr. Rangarajan for making plans for computerisation for the next five years from 1990-94 for the banking industry. It identified the purpose of computerisation as improvement in customer service, decision making, house keeping and profitability. The committee observed that banking is a service industry and improved efficiency will lead to a faster rate of growth in output and help to expand employment all around. Saraf Committee (1994), looked into technological issues related to the payment system and to make recommendations for widening the use of modern technology in the banking industry. The Saraf committee recommended to set up institutions for electronic funds transfer system in India. The committee also reviewed the telecommunication system like use of BANKNET and optimum utilization of SWIFT by the banks in India. Shere Committee (1995),recommended framing of RBI (EFT system) regulations under 59 section 58 of the Reserve bank of India Act 1934 (RBI Act.), amendments to the RBI act and to the bankers book evidence act, 1891 as short term measures and enacting of a few new acts such as EFT act, the computer misuse and data protection act etc. as long term measures. Narasimhan Committee (1998) examines the various issues related to the technology upgradation in the banking sector, the Reserve Bank of India appointed Narasimhan committee in September
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1998. The committee consists of representatives from the Government, Reserve Bank of India, banks and academic institutions associated with the information technology. The committee dealt with the issues on technology upgradation and observed that the most of the technology that could be considered suitable for India in some form or the other has been introduced in some diluted form or as a pilot project, but the desired success has not been achieved because of the reasons inter-alia lack of clarity and certainty on legal issues. The committee also suggested implementation of the necessary legislative changes, keeping in the view the recommendations of Shere committee. The need for addressing the following issues was also emphasised: Encryption on Public Switching Telephone Network (PSTN) lines Admission of electronic files as evidence Treating Electronic Funds Transfers on par with crossed cheques/drafts for purposes of Income Tax etc. Electronic Record keeping Provide data protection Implementation of digital signatures Clarification on payment finality in case of EFT Taking into consideration the recommendations by various committees appointed by RBI and guidelines of RBI, banks have started using IT to automate banking transactions and processes. Jain and Hundal (2006) observed that rapid changes in the financial services environment increased competition by new players, product innovations, globalization and technological advancement - have led to a market situation where battle for customers has become intense. In order to rise up to the challenges, service providers are even more interested to enhance their understanding of consumer behavior patterns. This paper examines the forces that can act as barriers in mobile banking service adoption. A quantitative survey sheds more light on this research issue. The data was collected from a survey in the Northern region of India and includes 330 respondents.

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2.2 International Review


Janice et. al. (2002) based on interviews with four banks in Hong Kong noted that banks view the Internet as being a supplementary distribution channel for their products and services in addition to other forms of distribution channels such as Automated Teller Machines (ATMs), phones, mobile phones and bank branches. Basic transactions and securities trading are the most popular types of operations that customers carry out in Internet banking. Lustsik (2003) based on the survey of experts of e-banking in Estonian banks found that Estonia has achieved significant success in implementation of e-banking and also on the top of the list in emerging countries. All the major banks are developing e-business as one of the core strategies for future development. Awamleh et. al. (2003) found that banks in Jordan are not fully utilizing concepts and applications of web banking. In comparison to developed international markets, it is fair to say that this sector is largely undeveloped. Indeed, only two banks offered limited number of services through their web. The major challenge facing further development of web banking in Jordan is, for example, the high cost of telecommunication. Another element is the non-availability of information technologies, packages, solutions and human resources, which facilitates optimum use of technology. The study revealed that Jordanian banks have been successful in the introductory phase of web banking. However, Jordanian banks are required to move towards web banking usage with a view to conducting real financial transactions and improving electronic customer relations. Unnithan et al. (2001) studied the drivers for change in the evolution of the banking sector and the move towards electronic banking by focusing on two economies Australia and India. The paper found that Australia is a country with Internet ready infrastructure as far as telecommunication, secure protocols, PC penetration and consumers literacy is concerned. India, by comparison, is overwhelmed by weak infrastructure, low PC penetration, developing security protocols and consumer reluctance in rural sector. Although many major banks have started offering Internet banking services, the slow pace will continue until the critical mass is achieved for PC, Internet connections and telephones. However, the upsurge of IT professionals with growing demands is
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pressuring the government and bureaucracy in the country to support and develop new initiatives for a faster spread of Internet Banking. The economy is classically the catch-up one, trying to develop and catch up with leading economies. Waris (2007) concluded that the purpose of this research report is to analyse the mobile payment market size and its revenue basis, as well as adoption bottlenecks, in view of establishing the adoption and deployment of mobile banking services in The Netherlands. The research report describes various aspects with regard to mobile payments/mobile banking in The Netherlands. Issues like implementation, regulatory framework, estimated business case, deployment scenarios, recommended business model, a SWOT analysis of the technical solutions, organizational bottlenecks, an analysis of the reasons for success and failures, and open issues and challenges are addressed. The main aim is to try to answer the question whether there is a market in The Netherlands for mobile banking services, and providing an analysis of why M-banking services have not been so successful in The Netherlands. Siwinska (2009) concluded that The financial innovations and increased integration of capital markets have made the nature of balance of payments turmoil much more complex, than described by first generation models. The severe financial crises, which erupted in 1990's in many seemingly "invulnerable" economies that in most cases were characterized by a balanced budget and a modest public debt have turned away the attention of analysts and policymakers from fiscal variables towards other determinants. The fiscal factors, nonetheless, still remain among important causes of financial turbulences, especially in emerging markets, what has been manifested by the 1998/1999 crises of FSU (Former Soviet Union) economies. The purpose of this paper is to re-examine the theoretical and empirical links between fiscal sector and the emergence of financial crises, with an emphasis on transition economies. It outlines the main theoretical channels and seeks for the empirical evidence of the influence of fiscal sector on the vulnerability to currency crises in developing and transition countries. Using a large sample of developing and transition countries, it examines the pattern of fiscal variables before and during the crisis, to see whether, on average, the behavior of fiscal variables during a crisis is different form tranquil periods. The results indicate, that in the case of developing as well as Central European and CIS countries, the crisis is, on average preceded by
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larger, than in normal times, fiscal deficits and higher level of public debt. The paper also assesses the recent series of financial crises that have emerged in FSU economies. These turbulences, have once again demonstrated the crucial role of fiscal sustainability in the overall vulnerability to negative external developments. The FSU countries, which experienced a crisis, did, on average, exhibit more widespread fiscal weaknesses and/or their external liabilities were more vulnerable to turbulences than other countries in that group. However, the fiscal imbalances of FSU economies were not just a consequence of the conducted fiscal policy. They were also a manifestation of the deeper structural shortcomings and the lack of consistent reforms: soft budget constraints across the economy, weak governments, inefficient tax systems, Soviet-type budget expenditures. Overall, empirical research indicates that in developing and transition countries, fiscal variables remain among factors that increase the likelihood of exchange rate and financial pressures. Jakubiak and Kaczorowski (2009) found that Saving, Investment, Financial Integration and FDI in Central Europe: Evidence on domestic savings and investments in industrialised countries indicates that capital markets are not perfectly integrated. On the contrary, various measures of financial integration prove that capital has become highly mobile. This paper presents theoretical explanations for this fact, data on the European Union "Northern" and "Southern" states and estimations of the saving-investment relation for some emerging Central and Eastern European countries (CEECs). It was found that domestic investments in Poland, Hungary, Estonia, and the Czech Republic have been partly financed by FDI inflows in recent years. A similar situation was taking place in the so-called "Southern" Europe in the 1980s. There has been a geographical shift in FDI inflows from Southern EU countries to more developed CEECs in the mid-1990s. It seems possible that fast growing FDI inflows in Poland and in Estonia could hamper the future growth of saving rate. The Interactions between Private Savings and Governments Budget Deficits: This paper attempts to assess the influence of government budget deficit on private saving rate, with special emphasis on Poland and other transition economies. The theoretical predictions concerning the direct impact of budget actions on private savings are given by the Ricardian-Barro Equivalence Theorem and the Neo-classical view. Existing empirical research on the correctness of the Ricardian versus the Classical view is largely inconclusive. A simple empirical analysis for Poland indicates that in years 1991-1997 there was no strong Ricardian-type relationship between the government net lending and private savings. There is however a possibility of the existence of
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a weak form of Ricardian Equivalence in Poland, when one assumes, that the social security is treated differently than the rest of government net lending, and therefore social security balance is excluded from government budget balance. However, much longer time series is needed to draw any strong conclusions. Influence of Interest Rates on Credits and Deposits of Non-financial Sector in Poland: The main purpose of this paper is to analyse factors that influence the magnitude of credits and deposits held by households and enterprises. The analysis is performed for the period 1994-1998 using quarterly time-series data. The magnitude of credits and deposits was initially supposed to depend on GDP, real interest rate, real exchange rate, and M2/H ratio (explaining the development of banking sector in Poland). Authors conclude that the growth rate of zloty denominated deposits held both by households and by enterprises is positively correlated with real interest rate, and that this relation is stronger in the case of households. It can be said that the development of banking sector in Poland influences the growth of credits and deposits held by households, but it does not affect the behavior of firms. It seems that GDP influences the growth rate of deposits, while it has no effect on the demand for credits in Poland. A change in the real interest rate matters only for corporate actions. domestic savings, investments, capital markets, government budget deficit, transition countries, Poland, magnitude of credits and deposits. Toarski (2009) described the dynamics and structure of public external liabilities in Baltic countries: Estonia, Latvia, Lithuania and in selected countries of the Commonwealth of Independent States: Kazakhstan, Kyrgyz Republic, Moldova, Russian Federation, Ukraine. The main finding of the paper is that although the present level of external public debt of these countries is not large, its growth rate has been very high. The most rapid growth over the whole 1992-1996 period, in percentage points, was observed in Kyrgyz Republic and Moldova: their debt to GDP ratios have increased by over 40 percentage points. Such rate of growth is very high, much higher then the average growth rate of the total public liabilities in Western OECD countries and clearly unsustainable in the long run. The debt to GDP ratio increase was also quite large - above 10 percentage points - in Kazakhstan, Ukraine and Lithuania. Although it is comparable to the average growth of public liabilities of Western OECD countries, it seems to be excessive in case of countries, that have unsophisticated and much less developed financial markets as well as much lower international credibility. The main cause of the rapid increase in public borrowing of the selected countries have been large and persistent fiscal imbalances. A further prolonged rapid
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increase of government debt is unsustainable - even the present debt service requirements are putting a substantial pressure on the budget. Therefore it is crucial, that the authorities pursue in the effort to curb fiscal imbalances.

2.3 Research gaps


Above review of literature highlighted that earlier researchers had studied the various aspects of mobile banking, its introduction, development, adoption by the customers, its success and security related issues. But earlier researchers had not studied the customers perceptions towards Mobile Banking service. Therefore, the present study titled Customers Perceptions towards Mobile Banking: A Study of Sirsa city is undertaken to fill this gap.

2.4 REFERENCES:

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1. Rangarajan (1983), Technological Innovation in Banking and Payments: Industry Trends and Implications for Banks, Office of the Comptroller of the Currency, Quarterly Journal, Vol. 17, No. 3. 2. Saraf (1994), Who Offers Mobile Banking? Office of the Comptroller of the Currency, Quarterly Journal, Vol. 19, No. 2. 3. Shere (1995), Mobile Banking: Developments and Prospects, Working Paper, Center for Information Policy Research, Harvard University. 4. Narasimhan (1998), Mobile Banking: Where does India Stand? Journal of Contemporary Management, Volume 2, No. 1. 5. Jain, Hundal (2006), Mobile Banking in Northern Region of India: A Note on Evolution of Services and Consumer Reactions Journal of Internet Banking and Commerce, Volume 5, No. 1. 6. Waris, Shaista (2007), Do Mobile Banking Activities Add Value? The Italian Bank Experience, Netherlands. 7. Siwinska, Joanna (2009), Click and Mortar of Retail Banking: A Case Study in Hong Kong, Nanyang Business School, Nanyang Technological University. 8. Jakubiak, Malgorzata; Kaczorowski, Pawel,(2009), Saudi Arabian Banks on the Web, Journal of Mobile Banking and Commerce, Vol.6, No. 1. 9. Toarski, Tomasz (2009), A Prototype of a Retail Mobile Banking for Thai Customers,Vol.5. 10. Lustsik, O( 2003), E-Banking in Estonia: Reasons and Benefits of Rapid Growth, Kroon & Economy, No. 3. 11.Unnithan, C. R. and Swatman, P. (2001), Ebanking Adaptation and Dot.Com Viability of Management Information Systems, Deakin University, No. 14. A

Comparison of Australian and Indian Experiences in the Banking Sector, Working Paper, School

21

12.Janice, David and Dennis (2002), Click and Mortar of Retail Banking: A Case Study in Hong Kong, Nanyang Business School, Nanyang Technological University. 13. Awamleh R, Evans J and Mahate A. (2003), Internet Banking in Emergency Markets The Case of Jordon - A Note, Journal of Internet Banking and Commerce, Vol. 8, No. 1, June.

Chapter- 3: Research Design

22

This chapter includes the rationale, scope, objectives, data collection, data analysis, organization and limitations of the Study.

3.1 Rationale of the Study


The main reason of doing the study is that there is no survey has been done about the customers perceptions towards Mobile Banking in Sirsa City thats why this study has been conducted. The response is taken from the customers by questionnaire method of data collection.

Scope of the Study


It deals with only finding out customers perception and awareness towards service of mobile banking or phone banking in banking sector. The study is restricted to collecting the opinion of the respondents towards mobile banking. To obtain the specified objectives a research design was developed. The data were collected by administering the questionnaire to 100 sample respondents. The present study covers the various aspects of mobile banking in Sirsa City.

Objectives of the Study

To find out the customers perceptions and awareness towards mobile banking. To find out what type of e-banking services are used by majority of respondents. To find what are the problems are faced by the customers while using mobile banking. To find out the customers who will continue and recommend others for using mobile banking in future.

Research Design
The research study carried out is descriptive and diagnostic in nature. Descriptive research includes surveys and fact findings and enquires of different kinds. The major purpose of these types of research is description of states of affairs as it exists at present. The main characteristics of this method are that the researcher has no control over the variables; he can only report what has been happened or what is happening.

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Data Collection
Primary Data Sample size Sampling method The data is collected through the structured questionnaire. A sample size of 100 was selected for collecting the required data for the study. The selection of sample was done by convenience sampling method.

3.2 Organization of the Study The present study is divided into following five chapters:

Chapter 1 is about the Introduction of Mobile Banking and includes historical background, trends of mobile banking, mobile banking business models, advantages of mobile banking, marketing for mobile banking, current mobile banking providers and case studies. Chapter 2 is about the Review of Literature relevant to present research work. The previous work about the object oriented methodologies with an abstract view of their aim and objectives has been presented. It lends support to draw some important conclusions that can serve as a guide mark for the study. Chapter 3 Research Design includes rationale of the study, scope of the study, objective of the study, research hypothesis, sample profile, data collection and tools used in analysis of the data. Chapter 4 is about the Analysis and Interpretation of the responses obtained from the respondents about the various aspects of mobile banking. Chapter 5 Summary of Findings and Suggestions systematically sums up the findings and conclusions of the study. It also offers creative suggestions.
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3.7 Limitations
Due to time constraint, a sample of 100 respondents was chosen to represent the whole population of customers based on the convenience sampling. In depth study was not possible because of limited time; however sufficient data was collected to do the justice to the report. The findings and the analysis is completely based on the opinion of the respondents. The study was limited to Sirsa City only. Lack of knowledge is a big problem in conducting the research.

25

Chapter-4: Analysis and Interpretation


This chapter is about data analysis and interpretation about the customer perception of towards Mobile banking. It consists of various tables on the basis of two demographic factors such as age group and income level of respondents in different parameters. 4.1 E-banking services used by people Table 4.1 shows that respondent gave highest rank to credit cards as total score of credit card is 246; the 2nd rank is given to ATM as its total score is 217. Respondents have given the 3rd rank to internet banking whose total score is 216. Mobile Banking got the last rank. It shows that using credit card is more popular among respondents and mobile banking is least popular. Table 4.1 E-banking services used by the Respondents RANKS (SCORE) 1 20 (80) 13 (52) 18 (72) 28(112) 2 25(75) 24(72) 26(78) 32(96) 3 22(44) 27(54) 25(50) 13(26) 4 18(18) 21(21) 16(16) 12(12)

E-banking services ATM MOBILE BANKING INTERNET BANKING CREDIT CARD


Source: Survey

TOTAL SCORE 217 199 216 246

RANK 2 4 3 1

4.2.1 Age and Gender-wise Profile of Respondents In the present study the respondents who are in the age group of 18-24 years have 18 males and 12 females .Majority of the males belongs to age group of 25-34 years and very few i.e. 50-64 years age group have only 13 respondents which can be seen from the table 4.2.1.

26

Table 4.2.1 Age and Gender -wise Profile of Respondents Gender Male Female Total

Age(yrs.)

18-24 25-34 35-49 50-64 Total


Source: Survey

18 25 22 10 75

12 9 3 3 25

30 34 24 12 100

4.2.2 Income and Gender-wise Profile of Respondents The respondents who belong to income less than Rs.200000 have 25 males and 10 females. Majority of the males belongs to income between Rs.200001-500000 and very few people i.e. above Rs.1000000. Table 4.2.2 Income and Gender-wise Profile of Respondents Gender Income(Rs.) Male Female Less than Rs. 200000 25 10 Rs.200001-500000 30 8 Rs.500001-1000000 12 6 Above Rs. 1000000 8 1 Total 75 25
Source: Survey

Total 35 38 18 9 100

4.3.1 Age and Qualification-wise Profile of Respondents Table 4.3.1 shows that respondent of age group between 18-24 years whose qualification is matric use very less mobile banking and people of age group between 25-34 years use mobile banking in large number.

Table 4.3.2
27

Age and Qualification-wise Profile of Respondents Age (yrs.) 18-24 25-34 35-49 50-64 Total
SOURCE: SURVEY

Matric

+2

Qualification Graduation

Total Post Graduation and above 17 10 5 3 35

4 1 1 4 10

5 10 5 4 24

6 12 10 3 31

32 33 21 14 100

4.3.2 Income and Qualification-wise profile of Respondents Table 4.3.2 depicts the result of the respondents whose qualification is matric and whose income level is less than Rs. 200000 and above Rs. 1000000 use mobile banking but respondent of income level between Rs. 200001-1000000 does not use mobile banking. Table 4.3.2 Income and Qualification-wise Profile of Respondents Income (Rs.) Less than Rs.200000 Rs.200001-500000 Rs.500001-1000000 Above Rs.s1000000 Total
Source: Survey

Matric 2 0 0 2 4

+2 12 7 5 3 27

Qualification Graduation 9 15 3 4 31

Total Post graduation and Above 18 14 4 2 38

41 36 12 11 100

4.4.1 Age and Occupation-wise Profile of Respondents Table 4.4.1 implies that respondent of age group between 18-24 years using mobile banking was 24 and respondent of age group between 25-34 years mobile banking was used more whether it was any type of occupation.
28

Table 4.4.1 Age and Occupation-wise Profile of Respondents Age(yrs.) 18-24 25-34 35-49 50-64 Total
Source: Survey

Business 4 11 11 8 34

Occupation Service Professional 3 5 11 8 7 2 4 2 25 17

Total Other 12 7 2 3 22 24 37 22 17 100

4.4.2 Income and Occupation-wise Profile of Respondents Table 4.4.2 depicts the result of the respondent whose occupation is other such as student and whose income level is less than 200000 use mobile banking but respondent of income level between 200001-500000 and whose occupation is business use mobile banking in large number. Table 4.4.2 Income and Occupation-wise Profile of Respondents Occupation Business Service Professional Other 7 9 7 14 17 5 9 7 6 4 1 2 7 3 0 2 37 21 17 25

Income Less than Rs.200000 Rs.200001-500000 Rs.500001-1000000 Above Rs.1000000 Total


Source: Survey

Total 37 38 13 12 100

4.5.1 Age -wise Usage of Mobile Banking In the present study respondent who are using mobile banking services are 85 and 15 are not using it. Majority of the users belongs to age group of 25-34 years and very few respondent e.g. 50-64 years age group have only 10 respondent which can be seen from the table 4.5.1. Table 4.5.1 Age -wise Usage of Mobile Banking Age
29

Total

(yrs) 18-24 25-34 35-49 50-64 Total


Source: Survey

Yes 21 36 18 10 85

No 6 3 4 2 15

27 39 22 12 100

4.5.2 Income -wise Usage of Mobile Banking From table 4.5.2 as we can also see that 85% respondents use mobile banking and 15% does not use in which respondents whose income level is between Rs.200001-500000 used it maximum and respondents whose income level was above Rs.1000000 use it at less proportion. Table 4.5.2 Income -wise Usage of Mobile Banking Income(Rs.) Less than Rs. 200000 Rs.200001-500000 Rs.500001-1000000 Above Rs.1000000 Total
Source: Survey

Yes 30 35 12 8 85

No 9 2 2 2 15

Total 39 37 14 10 100

4.6.1 Age -wise Profile and Balance Details Table 4.6.1 shows that most of the respondent says that they receive always balance details in which respondent of age group between 25-34 years has more proportion while between 50-64 years it was very less. Table 4.6.1 Age -wise Profile and Balance Details Age(yrs.) 18-24 25-34 35-49 50-64 Total Always 13 25 11 4 53 Sometimes 8 6 3 3 20
30

Never 0 7 5 0 12

Total 21 38 19 7 85

Source: Survey

4.6.2 Income -Wise Profile and Balance Details Table 4.6.2 implies that respondent of age group between Rs.200001-500000 said that we always received balance while 20% respondent said that they sometimes received balance details. Table 4.6.2 Income- wise Profile and Balance Details Income (Rs.) Less than Rs.200000 Rs.200001-500000 Rs.500001-1000000 Above Rs. 1000000 Total
Source: Survey

Always 21 30 9 4 64

Sometimes 9 6 3 2 20

Never 0 1 0 0 1

Total 30 37 12 6 85

4.7.1 Age- Wise Profile and Stop a Cheque Payment Table 4.7.1 shows that 48% respondent said that we always stop a cheque payment in which respondent between 25-34 years has large proportion while between 50-64 years has less. Only 2% respondent said that they never stop a cheque payment. Table 4.7.1 Age-Wise Profile and Stop a Cheque Payment Age (yrs.) 18-24 25-34 35-49 50-64 Total
Source: Survey

Always 10 22 12 4 48

Sometimes 10 16 7 2 35

Never 1 1 0 0 2

Total 21 39 19 6 85

4.7.2 Income -Wise Profile and Stop a Cheque Payment


31

Table 4.7.2 implies that respondent whose income level is between Rs. 200001-500000 always stop a cheque payment. Respondent of all type of income level said that they sometime stop a cheque payment. Table 4.7.2 Income -Wise Profile and Stop a Cheque Payment Income (Rs.) Less than Rs.2,00,000 Rs.2,00,001-5,00,000 Rs.5,00,001-10,00,000 Above Rs.10,00,000 Total
Source: Survey

Always 17 24 5 2 48

Sometimes 12 12 7 4 35

Never 1 1 0 0 2

Total 30 37 12 6 85

4.8.1 Age -Wise Profile of familiarity of Mobile Banking From table 4.8.1 we can see that 38% respondent agree that mobile banking is a familiar device while 23% respondent are strongly agree with its familiarity in which respondent of age group between 25-34 years has more proportion while 50-64 years has less. Table 4.8.1 Age -Wise Profile of Familiarity of Mobile Banking Strongly Age(yrs.) 18-24 25-34 35-49 50-64 Total
SOURCE: SURVEY

Agree 10 17 9 2 38

Undecided 1 0 1 1 3

Disagree 4 8 3 0 15

Strongly Disagree 1 3 1 1 6 Total 21 39 19 6 85

Agree 5 11 5 2 23

4.8.2 Income -Wise Profile of Familiarity of Mobile Banking From table 4.8.2 shows that respondent of income level between Rs.200001-500000 has large proportion but in the category of strongly agree respondent of income level above 1000000 has
32

very less proportion. Respondent of income level between Rs.500001-1000000 has large proportion in the category of strongly agree but in the category of undecided and disagree it has less proportion.

Table 4.8.2 Income -Wise Profile of Familiarity of Mobile Banking Strongly Income (Rs.) Less than Rs.200000 Rs.200001-500000 Rs.500001-1000000 Above Rs.1000000 Total
SOURCE: SURVEY

Agree

Undecided

Disagree

Strongly Disagree Total 30 37 12 6 85

Agree 7 6 7 3 23 14 18 3 3 38 1 1 1 0 3 5 9 1 0 15

3 3 0 0 6

4.9.1 Age -Wise Profile and Mobile Banking as a Fast and Effortless Service Table: 4.9.1 shows that 32% respondent agree that mobile banking was fast and effortless where the respondents of age group between 25-34 years has large proportion and 31% were strongly agree and only 1% people were strongly disagree. Table 4.9.1 Age Wise Profile and Mobile Banking as a Fast and Effortless Service Age(yrs.) 18-24 Strongly Agree 5 Agree 8 Undecided 6
33

Disagree 2

Strongly Disagree 0 Total 21

25-34 35-49 50-64 Total


Source: Survey

14 11 1 31

13 8 3 32

3 0 1 10

8 0 1 11

1 0 0 1

39 19 6 85

4.9.2 Income -Wise Profile and Mobile Banking as Fast and Effortless Service Table 4.9.2 implies that the category of strongly agree, respondent of income level between Rs. 200001-500000 has highest proportion while above Rs.1000000 has less proportion. Respondents of income level between Rs.500001-100000 were strongly disagree with mobile banking as fast and effortless service. Table 4.9.2 Income -Wise Profile and Mobile Banking as Fast and Effortless Service Income(Rs.) Less than Rs.200000 Rs.200001-500000 Rs.500001-1000000 Above Rs. 1000000 Total
Source: Survey

Strongly Agree 10 14 5 2 31

Agree 10 15 5 2 32

Undecided 6 3 0 1 10

Disagree 4 4 2 1 11

Strongly Disagree 0 1 0 0 1 Total 30 37 12 6 85

4.10.1 Age -Wise Profile and Usefulness of Alert for Transactions Table 4.10.1 shows that 31% respondents are strongly agree and agree that they always received alert for transactions. Only 3% are strongly disagree that they did not receive alert for transactions. Table 4.10.1 Age -Wise Profile and Usefulness of Alert for Transactions Age(yrs.) 18-24 25-34 35-49 50-64 Total
Source: Survey

Strongly Agree 6 13 10 2 31

Agree 6 16 6 3 31

Undecided 6 5 2 1 14

Disagree 3 2 1 0 6

Strongly Disagree 0 3 0 0 3 Total 21 39 19 6 85

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4.10.2 Income- Wise Profile and Usefulness of Alert for Transactions Table 4.10.2 implies that respondents whose income between 200001-500000 has highest proportion and respondents whose income less than 200000 have second highest proportion. respondents whose income is above 1000000 are disagree and strongly disagree that they did not always received alert for transactions Table 4.10.2 Income -Wise Profile and Usefulness of Alert for Transactions Income (Rs.) Less than Rs. 200000 Rs.200001-500000 Rs.500001-1000000 Above Rs. 1000000 Total
Source: Survey

Strongly Agree 10 16 4 1 31

Agree 11 15 2 3 31

Undecided 5 4 3 2 14

Disagree 4 0 2 0 6

Strongly Disagree 0 2 1 0 3 Total 30 37 12 6 85

4.11.1 Age -Wise Profile and Possibilities of Errors From Table 4.11.1 we can see, 32% respondents agree that using the mobile banking they face the possibilities of errors while respondent of age group between 25-34 years has large proportion and 14% respondent said that they did not face the problem of errors. Respondents of age group between 35-49 years only 1% respondents are strongly agree.

Table 4.11.1
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Age -Wise Profile and Possibilities of Error Age (yrs) 18-24 25-34 35-49 50-64 Total
Source: Survey

Strongly Agree 5 6 1 1 13

Agree 7 17 6 2 32

Undecided 5 8 7 2 22

Disagree 3 7 3 1 14

Strongly Disagree 1 1 2 0 4 Total 21 39 19 6 85

4.11.2 Income- Wise Profile and Possibilities of Errors Table 4.11.2 shows that 13% respondents are strongly agree that they received an errors while respondent whose income level was less than 200000 have highest proportion while proportion of strongly disagree respondents have very less proportion. Table 4.11.2 Income -Wise Profile and Possibilities of Errors Income (Rs.) Less than Rs. 200000 Rs.200001-500000 Rs.500001-1000000 Above Rs. 1000000 Total
Source: Survey

Strongly Agree 6 5 0 2 13

Agree 9 13 8 2 32

Undecided 7 12 2 1 22

Disagree 7 6 1 0 14

Strongly Disagree 1 1 1 1 4 Total 30 37 12 6 85

4.12.1 Age -Wise Profile and Low Data Transmission From table 4.12.1 we can see that; very less respondents are agree that data transmission in mobile banking is low, only 21 respondents out of 85 are agree or strongly agree that data transmission is low. Table 4.12.1 Age -Wise Profile and Low Data Transmission Age(yrs)
36

Total

Strongly 18-24 25-34 35-49 50-64 Total


Source: Survey

Agree 5 6 2 1 14

Undecided 7 6 10 2 25

Disagree 4 21 5 1 31

Strongly Disagree 2 4 2 0 8 21 39 19 6 85

Agree 3 2 0 2 7

4.12.2 Income -Wise Profile and Low Data Transmission Table 4.12.2 shows that, no one respondent strongly agree from income between Rs. 5000011000000 and only one respondent agree from that statement from income group of above 1000000. Table 4.12.2 Income- Wise Profile and Low Data Transmission Income (Rs.) Less than Rs.200000 Rs.200001-500000 Rs.500001-1000000 Above Rs. 1000000 Total
Source: Survey

Strongly Agree 4 1 0 2 7

Agree 5 4 4 1 14

Undecided 11 11 2 1 25

Disagree 8 17 4 2 31

Strongly Disagree 2 4 2 0 8 Total 30 37 12 6 85

4.13.1 Age-Wise Profile and use of Mobile Banking Table 4.13.1 shows that 34% respondent said that mobile banking is very complicated while respondents who are strongly agree are apposite of it because they have very less proportion.30% respondent said that it was not very complicated. Table 4.13.1 Age -Wise Profile and use of Mobile Banking Complicated Strongly Agree Undecided Disagree Strongly Agree 1 2 1 2 6 9 15 8 2 34 4 7 0 0 11
37

Age(yrs.) 18-24 25-34 35-49 50-64 Total


Source: Survey

5 14 9 2 30

Disagree 2 1 1 0 4

Total 21 39 19 6 85

4.13.2 Income-Wise Profile and use of Mobile Banking Table 4.13.2 implies that respondents of income level between 200001-500000 are disagree with the complicated procedure of mobile banking, in other words they said that it was not complicated. Strongly disagree respondents have very small proportion. Table 4.13.2 Income-Wise Profile and use of Mobile Banking Income (Rs.) less than Rs.200000 Rs.200001-500000 Rs. 500001-1000000 above Rs.1000000 Total
Source: Survey

Strongly Agree 1 2 2 1 6

Agree 15 14 4 1 34

Undecided 5 5 1 0 11

Disagree 8 15 4 3 30

Strongly Disagree 1 1 1 1 4 Total 30 37 12 6 85

4.14.1 Age -Wise Profile and Use Mobile Banking in Future Table 4.14.1 shows that, near about 35% respondent are in undecided situation, they cannot decide. 26 respondents are agreed to use mobile banking in future and 10 respondents are disagree. Table 4.14.1 Age- Wise Profile and Use Mobile Banking in Future Age (yrs.) 18-24 25-34 35-49 50-64 Total
Source: Survey

Strongly Agree 1 2 4 4 11

Agree 6 15 4 1 26

Undecided 9 15 10 1 35

Disagree 3 6 1 0 10 3

Strongly Disagree 2 1 0 0 85 Total 21 39 19 6

4.14.2 Income -Wise Profile and Use Mobile Banking in Future From table 4.14.2 we can see that, respondent income group of between 200001-500000 are in maximum number those are continue to use mobile banking in future and income group of above 1000000 no one is ready to continue to use mobile banking in future. Table 4.14.2
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Income-Wise Profile and Use Mobile Banking in Future Income (Rs.) less than Rs.200000 Rs.200001-500000 Rs.500001-1000000 above Rs. 1000000 Total
Source: Survey

Strongly Agree 2 3 2 4 11

Agree 11 9 4 2 26

Undecided 12 18 5 0 35

Disagree 5 4 1 0 10

Strongly Disagree 0 3 0 0 3 Total 30 37 12 6 85

Chapter-5: Summary of Findings and Suggestions


5.1 Findings
Females in the age group of 18-24 years are less than males. However in income group of

Rs.200001-500000, the proportion of males is 6 times more than the females. Customers from below matric standard and belongs to age group between 25-34 years use

less mobile banking facilities. However, the proportion of customers in the age group between 18-24 years and having post graduation using mobile banking is high. Customers with matric as qualification and having income level less than Rs.2,00,000 are

very less in number, whereas the customers whose qualification is matric and having income level between Rs.2,00,001-10,00,000 do not use mobile banking. Customers of age group between 25-34 years use more mobile banking whether it was any

type of occupation, while customers of age group between 35-49 years and 50-64 years use more mobile banking who are in business and after that it was more used by those who are in service. Customers with income level of less than Rs.2,00,000 and those who are in service use

more mobile banking. Then customers whose income is between Rs.2,00,001-5,00,000 use more and who are in business use less mobile banking services, moreover this number has been decreased with the increase in income.
39

Most of the customers between age group of 25-34 years said that they receive always

balance details through mobile banking, while between age group of 50-64 years, this number is was very less. Customer of income level between Rs.200001-500000 said that they always received balance, Inquiry with the help of mobile banking, whereas 20 percent customer said that they sometime received balance detail. 38 percent customer agree that mobile banking is a familiar device while 23 percent

customer are strongly agree with its familiarity of which customer of age group between 25-34 years has more proportion than others. Customer of income level between Rs.2,00,001-5,00,000 has large numbers but in the

category of strongly agree people of income level above Rs.10,00,000 has very less number of users of this services. 32 percent customers agree that mobile banking is fast and effortless where customer of

age group between 25-34 years has large number of users. 31 percent customers are strongly agreed that they always received alert for transactions.

Customers who are agree also on have same proportion. Only 3 percent strongly disagreed that they did not receive alert for transactions. 34 percent customer said that mobile banking is very complicated to use while customers

who are strongly agree are opposite to it because they have very less proportion. 30 percent customer said that it is not very complicated of which customers of age group between 25-34 years have maximum number of users. Customers of income level between Rs.2,00,001-5,00,000 are disagree with the

complicated procedure of mobile banking, However, strongly disagree customers have very small number of users.

40

32 percent customers agree that while using the mobile banking they face the possibilities

of errors where customers of age group between 25-34 years has large proportion and 14 percent customer said that they did not face the possibilities of errors. 13 percent customers strongly agree that they received an error of which customer whose

income level was less than Rs.2,00,000 have highest proportion while proportion of strongly disagree customers is very less. 35 percent customers are in undecided situation, whereas 26 customers agree to use mobile

banking in future and 10 customers disagree with the statement. Customer in the income group of between Rs.2,00,001-5,00,000 are in maximum numbers

those are continue to use mobile banking in future. However, in the income group of above Rs.10,00,000, no one is ready to continue to use mobile banking in future.

5.2 Suggestions
Text messages are not encrypted (a method of securing data in transit), which means using a text message to receive updates or communicate with your bank is more susceptible to interception. Experts say that in the event a phone is stolen, sophisticated hackers could even retrieve deleted text messages. A good way around this threat is to refrain from corresponding via text when the information being transmitted could be potentially detrimental to your financial security if it falls into the wrong hands. Because mobile platforms aren't equipped with the same security layers as banks' websites or ATMs, they are more vulnerable to fraudsters, who repeatedly change their identities and gain access through a series of quick attempts. Fortunately, users can take extra steps to increase their protection, such as adding additional passwords and encryption barriers that aren't provided by banks. For example, you should set up the password-protect option on your phone and lock it when it's not in use. Where available, another idea is to install security software on your mobile phone. Once someone has discovered your banking password and hacked into your account, there isn't much you can do. But you can protect yourself from this debacle by installing remote-wipe options in advance, a way to erase the information on your phone without physically having it in your possession.
41

You can activate this if your phone goes missing. Select banks offer remote-wiping as a free, downloadable application. Similarly, the Mobile Me service allows Blackberry and i-Phones users to buy this feature. While applications are what allow you to check your account balance or move money to another account from your mobile, they also are an added risk for your security. Some have called fraudulent apps the next generation of phishing scams; if you download a fake application, it could be used to lift account and other sensitive information from your mobile device. For example, last January Google removed 50 applications available for the Android phone due to concerns they may be dangerous. To protect your mobile security from an application scheme, don't click on pop-ups that advertise apps. You can check with your bank about the validity of any financial app you are considering or if possible, download the application directly from your financial institution's website. Mobile phones are small, compact and therefore portable; the downside is that this makes them easily lost or stolen. A criminal who hacks into your phone can retrieve personal information, account passwords and proprietary texts. In the event that your phone is stolen, you should also call your bank this way, the bank can closely monitor your account.

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BIBILIOGRAPHY
BOOKS: Kothari C.R. (2007) Research Methodology methods and techniques New Delhi. New age international publishers. Gupta S.P. Statistical Methods, Sultan Chand & Sons Educational Publishers, New Delhi, 2009.

ARTICLES:1. Rangarajan (1983), Technological Innovation in Banking and Payments: Industry Trends and Implications for Banks, Office of the Comptroller of the Currency, Quarterly Journal, Vol. 17, No. 3. 2. Saraf (1994), Who Offers Mobile Banking? Office of the Comptroller of the Currency, Quarterly Journal, Vol. 19, No. 2. 3. Shere (1995), Mobile Banking: Developments and Prospects, Working Paper, Center for Information Policy Research, Harvard University. 4. Narasimhan (1998), Mobile Banking: Where does India Stand? Journal of Contemporary Management, Volume 2, No. 1.

43

5. Jain, Hundal (2006), Mobile Banking in Northern Region of India: A Note on Evolution of Services and Consumer Reactions Journal of Internet Banking and Commerce, Volume 5, No. 1. 6. Waris, Shaista (2007), Do Mobile Banking Activities Add Value? The Italian Bank Experience, Netherlands. 7. Siwinska, Joanna (2009), Click and Mortar of Retail Banking: A Case Study in Hong Kong, Nanyang Business School, Nanyang Technological University. 8. Jakubiak, Malgorzata; Kaczorowski, Pawel,(2009), Saudi Arabian Banks on the Web, Journal of Mobile Banking and Commerce, Vol.6, No. 1. 9. Toarski, Tomasz (2009), A Prototype of a Retail Mobile Banking for Thai Customers,Vol.5. 10. Lustsik, O( 2003), E-Banking in Estonia: Reasons and Benefits of Rapid Growth, Kroon & Economy, No. 3. 11. Unnithan, C. R. and Swatman, P. (2001), Ebanking Adaptation and Dot.Com Viability A Comparison of Australian and Indian Experiences in the Banking Sector, Working Paper, School of Management Information Systems, Deakin University, No. 14. 12. Janice, David and Dennis (2002), Click and Mortar of Retail Banking: A Case Study in Hong Kong, Nanyang Business School, Nanyang Technological University. 13. Awamleh R, Evans J and Mahate A. (2003), Internet Banking in Emergency Markets The Case of Jordon - A Note, Journal of Internet Banking and Commerce, Vol. 8, No. 1, June.

NEWSPAPERS: Economic Times Business Standard

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Times of India

WEBSITES:-

www.google.com
www.ssrn.com
www.emreld.com

www.indianmba.com
www.wikipedia.com http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1087863 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=898921 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1445389 http://shobhganga.inflibnet.ac.in/bitstream/10603/2031/12/12_chapter2.pdf

http://openaccesslibrary.org/images/kevin/_philpott.pd

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APPENDICES

QUESTIONNAIRE:
PERSONAL PROFILE OF THE RESPONDENTS: A. NAME (OPTIONAL):

B. ADDRESS (OPTIONAL): C. GENDER: MALE ( ) D. MARTIAL STATUS: MARRIED ( ) E. AGE GROUP (years): 18-24 25-34 FEMALE ( ) UNMARRIED( ) 35-49 50-64 65 and above

F. EDUCATIONAL QUALIFICATIONS: Matric +2 Graduation Post Graduation And Above

G. OCCUPATION: Business

Service
46

Professional

Others

H. INCOME GROUP (annual): Less than Rs.2,00,001Rs.2,00,000 5,00,000

Rs. 5,00,00110,00,000

Above Rs. 10,00,000

Q1.Which of the following e-banking services do you use? (please rank 1,2,3. In order of frequency of use) E-BANKING SERVICES a.ATM b. Mobile banking c. Internet banking d. Credit card 2. Do you use Mobile Banking? (Please tick) Yes No RANK

3. How frequently do you use mobile banking for the following services? (Please tick) Services a) Get your balance details b) Stop a cheque payment Always Sometimes Never

4. How far do you agree with the following statements related to mobile banking (Please tick)

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Post purchase behavior a) Mobile phone banking is a familiar device b) Conducting mobile banking is fast and effortless c) Alert for transactions is highly useful

Strongly agree

Agree

Undecided

Disagree

Strongly disagree

5. How far do you agree with the following mobile banking problems? (Please tick) Problems a) Possibility of errors is higher than Internet banking b) Data transmission is very slow c) Its use is complicated Strongly agree Agree Undecided Disagree Strongly disagree

6. How far do you agree with the following statements regarding your post purchase behavior as a mobile banking holder? (Please tick) Post purchase behavior a) Continue to use mobile banking in future Strongly agree Agree Undecided Disagree Strongly disagree

7. What specific suggestions do you have that will help bank to improve mobile banking? Please rank the following in terms of their importance: (1,2,3,..) a) Advertisement regarding mobile banking .

b) Bank employees should tell their customer about mobile banking benefits . c) Service messages should be sent on customers mobile number d) Possibilities of error should be lower ..
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