Term Paper Mis 101 ( Mobile Banking)

8/2/2019 Term Paper Mis 101 ( Mobile Banking)

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MIS 101

Term PaperMobile Banking

Group: Annihilators


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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

2010-2-10-

Muhibullah Milon

2010-2-13-061

Zubair Hossain

2010-3-10


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Letter of Transmital:


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TABLE OF CONTENTS

Title Page

Number

Introduction 05

Mobile Banking Services 06

1. Account information2. Payments, Deposit, Withdraw & Transfer3. Investments4. Support

5. Content Services

Present Condition of Mobile Banking in BD 08

Mobile Banking Process 10

Problems of Mobile Banking 11

1. Security

2. Compatibility

3. Cost

Recommendations 12Conclusion 13

References 14


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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.


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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. Mini-statements and checking of account history

2. Alerts on account activity or passing of set thresholds

3. Monitoring of term deposits

4. Access to loan statements5. Access to card statements

6. Mutual funds / equity statements

7. Insurance policy management8. Pension plan management

9. Status on cheque, stop payment on cheque

10. Ordering cheque books11. Balance checking in the account
http://www.ask.com/wiki/Mutual_fund?qsrc=3044http://www.ask.com/wiki/Mutual_fund?qsrc=3044


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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 Internet15. Blocking of (lost, stolen) cards

Payments, Deposits, Withdrawals, and Transfers

1. Domestic and international fund transfers

2. Micro-payment handling

3. Mobile recharging

4. Commercial payment processing5. Bill payment processing

6. Peer to Peer payments7. Withdrawal atbanking agent8. Deposit atbanking agent

A specific sequence ofSMS messages will enable the system to verify if the client has sufficientfunds 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 ormobile 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. Status of requests for credit, including mortgage approval, and insurance coverage2. Check (cheque) book and card requests

3. Exchange of data messages and email, including complaint submission and tracking

4. ATM Location

Content Services

1. General information such as weather updates, news2. Loyalty-related offers3. Location-based services

Present Condition of Mobile Banking in BD
http://www.ask.com/wiki/Banking_agent?qsrc=3044http://www.ask.com/wiki/Banking_agent?qsrc=3044http://www.ask.com/wiki/Short_message_service?qsrc=3044http://www.ask.com/wiki/Location-based_service?qsrc=3044http://www.ask.com/wiki/Banking_agent?qsrc=3044http://www.ask.com/wiki/Banking_agent?qsrc=3044http://www.ask.com/wiki/Short_message_service?qsrc=3044http://www.ask.com/wiki/Location-based_service?qsrc=3044


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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 serviceexpanding 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 analternative 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 bankingservices 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 andpayment 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 moneymaintaining 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 holderto 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.
http://www.ask.com/wiki/Personal_identification_number?qsrc=3044http://www.ask.com/wiki/Personal_identification_number?qsrc=3044


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The

Inauguration of Islami Bank Mobile Banking

The Inauguration of Brac Bank Mobile Banking


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The Process


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Problems of Mobile Banking

There are many problems related to Mobile Banking. They areTABL

Security: Security experts generally agree that mobile banking is safer thancomputer banking because very few viruses and Trojans exist for phones. That doesnot mean mobile banking is immune to security threats, however.Mobile users are especially susceptible to a phishing-like scam called "smashing." Ithappens when a mobile banking user receives a fake text message asking for bankaccount details from a hacker posing as a financial institution. Many people havefallen for this trick and had money stolen through this scam.Online banking is usually done through an encrypted connection so that hackerscannot read transmitted data, but consider the consequences if your mobile device isstolen. While all banking applications require you to enter a password or PIN, manypeople 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 mobilebanking at all. Others require you to use a custom mobile banking application onlyavailable on the most popular smart phones, such as the Apple iPhone and RIMBlackberry. 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 usuallylimited. Checking bank account balances via text message is not a problem, but moreadvanced features such as account transfers are generally not available to users of"dumb phones."


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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 acompatible device, but you still need to pay data and text messaging fees. Somefinancial institutions charge an extra fee for mobile banking service, and you mayneed 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 througha mobile device such as a mobile phone or Personal Digital Assistant (PDA). The earliest mobile

banking services were offered overSMS. To improve it, following initiative may be taken.

1. Developing E-commerce and M-commerce in Bangladesh.2. Developing the Network and Internet.

3. Assuring security for mobile network and M-commerce

4. Cutting the cost of M-Banking and its related technology5. Develop mobile manufacturing and contemplating on making smart phones for future.
http://www.ask.com/wiki/Mobile_phone?qsrc=3044http://www.ask.com/wiki/SMS?qsrc=3044http://www.ask.com/wiki/Mobile_phone?qsrc=3044http://www.ask.com/wiki/SMS?qsrc=3044


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Conclusion


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References

1. "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 Blog3. DBBL Introduced Internet Payments in BangladeshThe HungryCoder's Blog

4. DBBL introduces Mobile Banking for the first time in Bangladesh BankInfoBD -

Banking Information Portal

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.

http://www.thedailystar.net/2004/04/04/d40404051058.htm.5. "Tk 31 lakh Dutch-Bangla aid for acid, dowry victims". The Daily Star.

http://www.thedailystar.net/2006/04/06/d60406061477.htm.

6. "Dutch-Bangla Bank distributes blankets". The Daily Star.http://www.thedailystar.net/2003/12/23/d31223100473.htm.

7. "Tk 4 crore Dutch-Bangla donation for Cancer Hospital". The Daily Star.

http://www.thedailystar.net/2004/07/13/d40713100689.htm.8. "Dutch-Bangla Bank stands by acid victims, divorcees". The Daily Star.

http://www.thedailystar.net/2005/04/03/d50403061280.htm.

9. "Dutch-Bangla Bank distributes blankets". The Daily Star.http://www.thedailystar.net/2003/12/23/d31223100473.htm.
http://www.ask.com/wiki/Dutch_Bangla_Bank#cite_ref-fe_0-0http://www.thefinancialexpress-bd.com/2009/09/29/80133.htmlhttp://www.thefinancialexpress-bd.com/2009/09/29/80133.htmlhttp://www.ask.com/wiki/Dutch_Bangla_Bank#cite_ref-ft_1-0http://hungrycoder.xenexbd.com/general/dutch-bangla-bank-dbbl-introduced-fast-track-amazing.htmlhttp://www.ask.com/wiki/Dutch_Bangla_Bank#cite_ref-ip_2-0http://hungrycoder.xenexbd.com/general/dbbl-introduced-internet-payments-in-bangladesh.htmlhttp://hungrycoder.xenexbd.com/general/dbbl-introduced-internet-payments-in-bangladesh.htmlhttp://www.ask.com/wiki/Dutch_Bangla_Bank#cite_ref-bankinfobd_3-0http://www.bankinfobd.com/blog/dbbl-kick-starts-mobile-bankinghttp://www.dutchbanglabank.com/http://www.dutchbanglabank.com/http://www.dutchbanglabank.com/http://www.thedailystar.net/2005/03/23/d50323100191.htmhttp://www.thedailystar.net/2005/03/23/d50323100191.htmhttp://www.thedailystar.net/2006/06/23/d606230607103.htmhttp://www.thedailystar.net/2006/06/23/d606230607103.htmhttp://www.thedailystar.net/2006/06/23/d606230607103.htmhttp://www.thedailystar.net/2004/04/04/d40404051058.htmhttp://www.thedailystar.net/2004/04/04/d40404051058.htmhttp://www.thedailystar.net/2006/04/06/d60406061477.htmhttp://www.thedailystar.net/2006/04/06/d60406061477.htmhttp://www.thedailystar.net/2003/12/23/d31223100473.htmhttp://www.thedailystar.net/2003/12/23/d31223100473.htmhttp://www.thedailystar.net/2004/07/13/d40713100689.htmhttp://www.thedailystar.net/2004/07/13/d40713100689.htmhttp://www.thedailystar.net/2004/07/13/d40713100689.htmhttp://www.thedailystar.net/2005/04/03/d50403061280.htmhttp://www.thedailystar.net/2005/04/03/d50403061280.htmhttp://www.thedailystar.net/2003/12/23/d31223100473.htmhttp://www.thedailystar.net/2003/12/23/d31223100473.htmhttp://www.ask.com/wiki/Dutch_Bangla_Bank#cite_ref-fe_0-0http://www.thefinancialexpress-bd.com/2009/09/29/80133.htmlhttp://www.thefinancialexpress-bd.com/2009/09/29/80133.htmlhttp://www.ask.com/wiki/Dutch_Bangla_Bank#cite_ref-ft_1-0http://hungrycoder.xenexbd.com/general/dutch-bangla-bank-dbbl-introduced-fast-track-amazing.htmlhttp://www.ask.com/wiki/Dutch_Bangla_Bank#cite_ref-ip_2-0http://hungrycoder.xenexbd.com/general/dbbl-introduced-internet-payments-in-bangladesh.htmlhttp://www.ask.com/wiki/Dutch_Bangla_Bank#cite_ref-bankinfobd_3-0http://www.bankinfobd.com/blog/dbbl-kick-starts-mobile-bankinghttp://www.dutchbanglabank.com/http://www.dutchbanglabank.com/http://www.thedailystar.net/2005/03/23/d50323100191.htmhttp://www.thedailystar.net/2005/03/23/d50323100191.htmhttp://www.thedailystar.net/2006/06/23/d606230607103.htmhttp://www.thedailystar.net/2006/06/23/d606230607103.htmhttp://www.thedailystar.net/2004/04/04/d40404051058.htmhttp://www.thedailystar.net/2004/04/04/d40404051058.htmhttp://www.thedailystar.net/2006/04/06/d60406061477.htmhttp://www.thedailystar.net/2006/04/06/d60406061477.htmhttp://www.thedailystar.net/2003/12/23/d31223100473.htmhttp://www.thedailystar.net/2003/12/23/d31223100473.htmhttp://www.thedailystar.net/2004/07/13/d40713100689.htmhttp://www.thedailystar.net/2004/07/13/d40713100689.htmhttp://www.thedailystar.net/2005/04/03/d50403061280.htmhttp://www.thedailystar.net/2005/04/03/d50403061280.htmhttp://www.thedailystar.net/2003/12/23/d31223100473.htmhttp://www.thedailystar.net/2003/12/23/d31223100473.htm

Term Paper Mis 101 ( Mobile Banking)

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