A STUDY ON AWARENESS ABOUT MOBILE BANKING SERVICES PROVIDED BY BANKS

Made by:Khyati agrawal BBA4583/08

Introduction : Banking
A bank is a financial institution licensed by a government. Its primary activities include borrowing and lending money. Banks are important players in financial markets and offer financial services such as investment funds.

Mobile Banking
Mobile Banking (also known as M-Banking, m-banking, SMS Banking, etc.) is a term used for performing balance checks, account transactions, payments, etc. via mobile phone Mobile marketing services can be pull-based or push-based. Mobile Banking is expected to replace the credit/debit card system to a great extent in future.

Cont..
This report provides an analysis on the Mobile Banking Services provided by a few premier banks, namely Axis Bank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Oriental Bank of Commerce (OBC), Punjab National Bank (PNB), State Bank of India (SBI) and Standard Chartered Bank.

The Mobile Banking Services provided by banks are :

Services Offered Bill Payments. Fund Transfers. Check Balances. Cheque Book/Demand Draft Request. Bank Statement Request. Check Demat Stock Holding. Stop Payment. Open a Fixed Deposit. Locate an ATM/Branch.

Objectives
To study comparative analysis of mobile banking services by banks. To find out the level of satisfaction of people subscribing the mobile banking services. It also attempts to gain an insight upon the future potential of mobile banking services.

RESEARCH METHODOLOGY
Sample Size The sample size was 50. Type of sampling Stratified Sampling method was used for the purpose of data collection as people were divided into 8 heterogeneous groups on the basis of their banks. Analysis Method The method of analysis was Descriptive.

1. The break up of customers of every bank is shown in the following graph.

Chart showing distribution of respondents as per banks

6%

4%

10% 8%

HDFC

8%

AXIS
ICICI PNB SBI 18% Standard Chartered Kotak Mahindra

30% 16%

OBC

30% of respondents are from Axis bank, while only 4%are from Oriental bank of commerce.

2. Are you aware about the mobile banking services provided by your bank?
Awareness about M Banking
12%

Yes No

88%

All the respondents of HDFC Bank, State Bank of India and Kotak Mahindra Bank are aware about the Mobile Banking services provided by their banks

3. What are the advantages of mobile banking?

8% 40%

32%

Convenient Easy Access Time Saving Reliable

20%

Among the respondents who use the service of M-Banking, mostly (40%) do it because it is convenient for them. 32% of the users do it because it saves them a lot of time.

4. What difficulties do you face while availing the services?

Problems faced

8% 20%

22%

10% 40%

Unavailability of services Lack of proper information Network problem Lack of understanding Others

40% face the problem of Lack of proper information about the services. The next biggest problem (22%) is quite similar that of Unavailability if services.

5. Why dont you use/have stopped using mobile banking services?

Why people do not use/have stopped using M-Banking services :

14%

Security Issues
14% Complicated Technology Lack of knowledge 50% 4% 8% 10% Never Required Prefer Personal contact Too New

Security issues form the major reason why people do not use/have stopped using the M-Banking services. Many preferred to have personal contact rather than using the M-Banking service.

6. Under what conditions would you consider using the mobile banking services?
Conditions for future subscription to Mobile Banking 2% 42%
Better understanding Of technology

16% 8% 4% 28%

Faster services More information More knowledge More Security Others

42% people prefer to use the Mobile Banking Services if they are provided with adequate security measures. Faster services secured 8% of the responses, More information got 4% of the votes.

7. What are the facilities utilized under Mobile Banking?

Facilities utilized under Mobile Banking

32%

Account Balance/Mini Statement Loan related queries Order of cheque book/Request for Draft Transfer of funds

54% 10% 4%

54% utilize the service of Account Balance/Mini Statement. The next most utilized service (32%) is that of Transfer of funds. Only 10% of the respondents utilize the facility of Order of cheque books and 4% of the respondents utilize the facility of Loan related queries.

8. Analysis of Modes of Awareness about Mobile Banking

Chart showing mode of awareness about M Banking

18% Bank Friends/Relatives 46% 20% 4% Magazine/Newspapers TV

The major mode of awareness is the Bank itself. The 2nd major mode of awareness is through the magazines/newspapers.

FINDINGS
Findings from the study are as follows: Maximum number no. of users were from State Bank of India (SBI), followed by ICICI Bank and least from Oriental Bank of commerce. Around 88% of the customers are aware about the m-banking services provided by there bank. The respondents who use the service of MBanking, mostly do it because it is convenient for them and saves them a lot of time.

Cont..
Most people who have not subscribed to the services or have discontinued it face the problem of Lack of proper information about the services. People still feel that security issues are involved in it and the technology is too new and complicated. Most people preferring to use the Mobile Banking Services would do so only if they are provided with adequate security measures. Most people (54%) utilize the service of Account Balance/Mini Statement. The next most utilized service (32%) is that of Transfer of funds.

CONCLUSIONS
Mobile banking in India is in a budding stage, with the high penetration of mobile phones acting as a growth driver. Mobile banking is currently free of cost to encourage customers to adopt this new channel. One major reason for the current low adoption is the availability of alternative modes of banking

Cont..
There is a huge gap between the number of people who are aware about the service and the number of people who use it. The banks need to ensure higher security to its customers . a reason for non usage of the mobile banking services is that they Prefer Personal Contact.

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