8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 1/56

  EXECUTIVE SUMMARY 

 The principal objective of this report is to provide the readers a thorough

understanding of the concept of Telebanking.

After going through many articles, websites, books and publications, I have

been able to

enhance knowledge and clear my doubts regarding the concept.

 This project is aimed at understanding the telebanking in India. The projectis an attempt to trace the development of e-banking services in India and

the response of producers and insurance companies “ .

 The project starts with a brief understanding of size and scale of the Indian

banking sector .

  This project gives an understanding about the evaluation of telebanking

services in India . the advantages and diaadvantages of telebanking services

.

1

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 2/56

Contents

Serialno.

Chapters. PageNos.

1)

2)

3)

4)

5)

6)

7)

8)

9)

10)

11)

Growth of Tele- Banking

 A Tele Banking Conceptual Model 

TELE Banking In India

  Advantages and Disadvantages of TeleBanking

Sms Banking

I.T in Banks

Case Study of tele banking of OBC

Mobile banking ICICI Bank 

Examples

Conclusion

Bibliography 

6 - 9

10 – 16

17 – 20

21 – 23

24 – 31

32 – 36

37 – 38

39– 59

60 – 64

65 – 73

74 – 75

75

2

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 3/56

Growth of TELE Banking in India

INTRODUCTION

Telephone banking is a service provided by a financial institution, which

allows its customers to perform transactions over the telephone.

Most telephone banking services use an automated phone answering system

with phone keypad response or voice recognition capability. To guaranteesecurity, the customer must first authenticate through a numeric or verbal

password or through security questions asked by a live representative With

the obvious exception of cash withdrawals and deposits, it offers virtually all

the features of an automated teller machine: account balance information

and list of latest transactions, electronic bill payments, funds transfers 

between a customer's accounts, etc.

Usually, customers can also speak to a live representative located in a call 

centre or a branch, although this feature is not always guaranteed to be

offered 24/7. In addition to the self-service transactions listed earlier,

telephone banking representatives are usually trained to do what was

traditionally available only at the branch: loan applications, investment 

purchases and redemptions, chequebook orders, debit card replacements,

change of address, etc.

Banks which operate mostly or exclusively by telephone are known as

phone banks. They also help modernize the user by using special

technology.

 Telephone banking is a service feature offered by many banking institutions.

 The process involves using the keypad on a touch-tone telephone to perform

3

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 4/56

a variety of banking functions. Along with traditional banks, phone banking is

also utilized extensively by online banking institutions, including banks that

conduct business primarily with the use of telephone technology.

 The concept of telephone banking has been around for several decades.

Initially, the process required manual intervention by a bank employee.

Customers would call into the bank, answer questions to verify their

identities, and submit queries to the service representative. While

somewhat labor intensive, this approach did make it possible to conduct a

number of banking transactions from the comfort of home.

With the advent of touch-tone services, the idea of telephone banking took

on a new direction. Instead of connected with a live bank representative,

customers could use the keypad on a touch-tone phone to enter an

automated system and obtain information on bank accounts as of the latest

posting day. One advantage of this newer approach is that bank customers

could call any time of the day or night and check the status of their accounts.

As technology continued to progress, the scope of functions that could be

performed with the automated system expanded, making the service even

more valuable to customers.

 There are several ways that a telephone banking service may be configured.

Some function off a validation process that includes voice recognition 

before access to the customer accounts is granted. Other systems make use

of login credentials such as user names and pass codes that must be entered

using the telephone keypad. Once the customers enters the correct data, the

automated system makes it possible to perform a wide range of functions in

relation to the accounts connected with the login credentials.

  The typical bank telephone customer can access his or her accounts to

perform a variety of functions. Balances can be checked and the latest

4

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 5/56

activity can be reviewed. The customer can also transfer funds between

accounts using telephone banking, as well as order more checks, make loan

payments, or request information on other services the bank offers.

In addition to use by traditional banks, telephone banking is also utilized by

virtual banks that rely heavily on telephone and Internet access to process

transactions and provide information to customers. Telephone banks

generally function primarily by establishing access credentials that can be

used on any telephone with touch-tone service. In addition, the transactions

or queries can be conducted around the clock, an advantage that allows the

telephone bank to seek clients in any area of the world where the bank is

authorized to conduct business.

MOBILE BANKING (also known as M- banking, SMS banking etc.) is a term

used for performing balance checks, account transactions, payments etc. via

a mobile device such as a mobile phone. Mobile banking today (2007) is

most often performed via SMS or the Mobile Internet but can also use

special programs called clients downloaded to the mobile device.

ORIGIN: Mobile banking probably had its origin in November 1946.In India,

the first bank on wheel was launched by the bank of Patiala in 1950

Internet banking helped give the customer's anytime access to their bank

s. 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

Mobile banking – The Future White Paper Overview Abstract This paper

describes the basic concepts, services offered, market survey and

5

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 6/56

technology which enables Mobile banking. 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. This opens up huge markets

for financial institutions interested in offering value added services. With

mobile technology, bank s can offer a wide range of services to their

customers such as doing funds transfer while traveling, receiving online

updates of stock price or even performing stock trading while being stuck in

traffic. Mobile devices, especially smart-phones, are the most promising way

to reach the masses and to create “stickiness” among current customers,

due to their ability to provide services anytime, anywhere, with high rate of 

penetration and potential to grow.

GROWTH OF MOBILE BANKING :-

Mobile commerce has also increased significantly Cell phone banking

is cheap, secure, efficient and, more than anything, convenient.

ATMS and internet banking have been around in India for a while.

While both modes have had some success, penetration and use levels have

been moderate.

While ATMs offer convenience, they pose a perceive security threat in

India given instances of mugging around them. Senior citizens and women

appear reluctant to use ATMs if they have a choice to go to a branch and

withdraw money in safety. The security situation in India shows little sign of 

improvement and therefore a large scale proliferation of ATMs will remain a

challenge. Internet banking, on the other hand, relies on PC and internet

penetration. Estimates suggest that there are approx 40 million internet

users which is expected to rise to 100 million soon – despite this growth,

penetration and use levels remain low, especially in non-metro areas.

6

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 7/56

Research also suggests that internet banking is picking up amongst the

target user group.

While internet penetration and use in India is relatively low, mobile

phone penetration is much higher and growing rapidly. There are over 200

million mobile phone subscribers in India and the number continues to

explode. Financial services companies are now working with mobile payment

players like mChek to offer innovative mobile phone solutions to urban and

rural Indian population. Reserve bank of India has restrictions on non- bank

involvement in money transfer. Therefore, development of mobile financial

services applications is being sponsored primarily by bank s in India.

Economic Times reports that Citigroup has tested a proposition which

allows brokerage to respond to margin calls or enhance credit limits, by

authorizing transactions over the mobile phone. Once the customer and

broker sign up for the application, the process is carried out by PIN

validations. A one-time PIN is generated for each transaction, which is

verified by the customer, after which the bank validates the transaction and

sends it to the broker. Once the transaction is completed, the customer is

intimated on his mobile phone again. City and m-Chek are also exploring the

possibility of a similar offer for mutual funds. They have also launched a

mobile application which enables farmers to receive money for sale of 

produce through their mobile phones. These payments take the form of 

‘intent to pay’ information that can be cashed at partner bank s. The paper

also reports that Visa recently announced the launch of its Visa Money

 Transfer on Mobile service, which will enable money transfer via the mobile

phone. Initially, this service will be a pilot program available to Visa

cardholders of Corporation bank , HDFC bank and ICICI bank . The recipient

can be a Visa cardholder of any bank in India and the money can be

transferred to his/her mobile phone or Visa card.

Mobile banking has the potential to bring a whole host of people that

have no/little access to land lines/internet connections onto the electronic

platform – an innovative way to generate financial inclusion. To do so

7

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 8/56

successfully will require customer training, technology stabilization and

managing carefully the ‘know your customer’.

One newspaper extracts represents the banker’s sentiment on the

growth and concern towards mobile banking given below:

Mobile banking guidelines likely in a fortnight Mumbai :As Indian banks gear up to offer mobile banking as

the next step in payment systems, they also need to

address customer concerns with regard to security.

 The dependence of bank s on mobile payment service

providers would place the knowledge of customers in public domain.

  Therefore, banks would need to take adequate risk control measures to

manage such risks and protect sensitive customer data

Phones that match your personality this was the opinion shared by

speakers at a seminar mobile banking organized by bank net.

Mobile Banking ConceptualModel

1. A mobile banking conceptual model 

In one academic model,[1] mobile banking is defined as:

"Mobile banking refers to provision and availment of banking- and

financial services with the help of mobile telecommunication devices. The

scope of offered services may include facilities to conduct bank and stock

market transactions, to administer accounts and to access customized

information."

According to this model Mobile banking can be said to consist of three

inter-related concepts:

8

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 9/56

• Mobile Accounting 

• Mobile Brokerage 

• Mobile Financial Information Services 

Most services in the categories designated Accounting andBrokerage are transaction-based. The non-transaction-based services of an

informational nature are however essential for conducting transactions - for

instance, balance enquiries might be needed before committing a money

remittance. The accounting and brokerage services are therefore offered

invariably in combination with information services. Information services, on

the other hand, may be offered as an independent module.

2. Trends in mobile banking

 The advent of the Internet has revolutionized the way the financial

services industry conducts business, empowering organizations with new

business models and new ways to offer 24x7 accessibility to their customers.

 The ability to offer financial transactions online has also created new

players in the financial services industry, such as online bank s, online

brokers and wealth managers who offer personalized services, although suchplayers 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 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

9

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 10/56

make payments at the physical [[[point of sale]]. "Mobile contact less 

payments” will make up 10% of the contact less market by 2010.[2]

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 phone penetration is very high (at

least 80% of consumers use a mobile phone), mobile banking is likely to

appeal even more.

  This opens up huge markets for financial institutions interested in

offering value added services. With mobile technology, bank s can offer a

wide range of services to their customers such as doing funds transfer while

traveling, receiving online updates of stock price or even performing stock  

trading while being stuck in traffic. According to the German mobile

operator Mobil COM, mobile banking will be the "killer application" for the

next generation of mobile technology.

Mobile devices, especially smart phones, are the most promising way

to reach the masses and to create “stickiness” among current customers,

due to their ability to provide services anytime, anywhere, high rate of 

penetration and potential to grow. According to Gartner, shipment of 

Smartphone’s is growing fast, and should top 20 million units (of over 800

million sold) in 2006 alone.

In the last 4 years, bank s across the globe have invested billions of 

dollars to build sophisticated internet banking capabilities. As the trend is

shifting to mobile banking, there is a challenge for CIO’s and CTOs of these

bank s to decide on how to leverage their investment in internet banking

and offer mobile banking, in the shortest possible time.[citation needed]

10

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 11/56

  The proliferation of the 3G (third generation of wireless) and

widespread implementation expected for 2003–2007 will generate the

development of more sophisticated services such as multimedia and links to

m-commerce services.

3. Telebanking business models

A wide spectrum of Mobile/branchless banking models is evolving.

 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 Non- bank /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 Non bank -Led.

3.1 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 bank s’ customers. This model is

additive in nature and may be seen as a modest extension of conventional

branch-based banking.

3.2 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 /

11

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 12/56

chain store) having experience and target market distinct from traditional

bank s, and may be significantly cheaper than the bank -based alternatives.

 The bank -led model may be implemented by either using correspondent

arrangements or by creating a JV between bank and Telco/non- bank . In this

model customer account relationship rests with the bank

3.3 Non- bank -led model

 The non- bank -led model is where a bank does not come into the

picture (except possibly as a safe-keeper of surplus funds) and the non- bank

(e.g. Telco) performs all the functions

 4. Tele & Mobile Banking Services

Mobile banking can offer services such as the following:

 Your phone is now your bank!

Phone Banking services are a combination of IVR and Agent offering,

depending on the type of transaction. For all transactions that cannot be

completed on the IVR such as reporting loss of cards, logging complaints,

requests & queries, Phone Banker-assisted services are available.

Check your account balance - Get up-to-the-second details of your

Savings or Current Accounts and your Fixed Deposits. You can also get the

details of the last 5 transactions on your account, or have a mini statement

of last 15 transactions faxed across to you.

Enquire on the cheque status -  You can use Phone Banking to check onthe status of cheques issued or deposited from anywhere in India.

Order a Cheque Book / Account Statement - Just call Phone Banking and

get your Cheque Book or latest Account Statement delivered at your

doorstep.

12

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 13/56

Stop Payment - Stop payment of a single cheque or a series of cheques, 24

hours a day.

Loan Related queries - Get details of the outstanding loan amount,

enquire about your loan account, request for an interest certificate and

repayment schedule, etc. Just call Phone Banking in your city, select your

preferred language and dial 4 to speak to our Phone Banker.

Demat Related Queries - Get details of Account holding, Transaction

details, ISIN Number of a scrip, status of Depository Slips, Client Master list

details, Charges for the account and others. Call Phone Banking in your city,

select your preferred language & dial 5 to speak to our Phone Banker.

Open a Fixed deposit - Talk to our Phone Banker to open a Fixed Deposit

over the phone, by simply authorizing a transfer of funds from your Savings

Account

Transfer Funds between accounts -  You can also transfer money from

one of your accounts to another. Both accounts must be linked to your

Customer ID. You can transfer amounts upto Rs 1 Lac in a single day.

Pay your bills - Pay your cellular, telephone, electricity bills through

PhoneBanking using Bill Pay, a comprehensive bill payments solution.

Re-generation requests for ATM / Debit card PIN / Net Banking

IPIN,etc - Call Phone Banking in order to regenerate your ATM / Debit card

PIN / Net Banking IPIN,etc.

Report loss of your ATM / Debit / Prepaid Card - If your ATM / Debit /

Prepaid Card is lost, call any Phone Banking number to hotlist / block your

card(s).

13

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 14/56

4.1 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 statements

5. Access to card statements

6. Mutual funds / equity statements

7. Insurance policy management

8. Pension plan management

9. Status on cheque, stop payment on cheque

4.2 Payments & Transfers

1. Domestic and international fund transfers

2. Micro-payment handling

3. Mobile recharging

4. Commercial payment processing

5. Bill payment processing

6. Peer to Peer payments

4.3 Investments

1. Portfolio management services

2. Real-time stock quotes

14

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 15/56

3. Personalized alerts and notifications on security prices

4.4 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 submissionand tracking

4. ATM Location

4.5 Content Services

1. General information such as weather updates, news

2. Loyalty-related offers

3. 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.

15

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 16/56

Issues and Challenges for Tele banking inIndia

For the last ten years, technology has been the driving force in the banking

industry. As foreign and private banks poured huge sums of money to

counter the branch advantage of public sector banks, they discovered that

technology gives them a large competitive advantage. Technology is helping

the banks to reduce transaction cost and improve efficiency. ITES becomes

Unique Selling Proposition (USP) of the many players in the industry as it

facilitates the innovations in all functional management activities – whether

accounting and finance, production and designing, marketing and customer

management, research and development activities, and so on. In the lastdecade banks have invested heavily in the technology such as e-commerce,

data warehousing and data mining, customer relationship management

solution software, knowledge management systems etc.

Some are investing in it to drive the business growth, while others are having

no option but to invest, to stay in business. The choice of right channel,

  justification of IT investment on ROI, e-governance, customer relationship

management, security concerns, technological obsolescence, mergers and

acquisitions, penetration of IT in rural areas, and outsourcing of IT operations

are the major challenges and issues in the use of IT in banking operations.

  The main challenge, however, remains to motivate the customers to

increasingly make use of IT while transacting with banks. For small banks,

16

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 17/56

heavy investment requirement is the compressing need in addition to their

capital requirements. The coming years will see even more investment in

banking technology, but reaping ROI will call for more strategic thinking.

Everyone today is convinced that the technology is going to hold the key to

future of banking. The achievements in the banking today would not have

make possible without IT revolution. Therefore, the key point is while

changing to the current environment the banks has to understand properly

the trigger for change and accordingly find out the suitable departure point

for the change.

Challenges for a Mobile banking Solution

Key challenges in developing a sophisticated mobile banking

application are :

Interoperability

 There is a lack of common technology standards for mobile banking.

Many protocols are being used for mobile banking – HTML, WAP, SOAP,

XML to name a few. It would be a wise idea for the vendor to develop a

mobile banking application that can connect multiple bank s. It would

require either the application to support multiple protocols or use of a

common and widely acceptable set of protocols for data exchange.

 There are a large number of different mobile phone devices and it is a

big challenge for bank s to offer mobile banking solution on any type of 

device. Some of these devices support J2ME and others support WAP browser

or only SMS.

17

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 18/56

Overcoming interoperability issues however have been localized, with

countries like India using portals like R-World to enable the limitations of low

end java based phones, while focus on areas such as South Africa have

defaulted to the USSD as a basis of communication achievable with any

phone.

  The desire for interoperability is largely dependent on the bank s

themselves, where installed applications (Java based or native) provide

better security, are easier to use and allow development of more complex

capabilities similar to those of internet banking while SMS can provide the

basics but becomes difficult to operate with more complex transactions.

Scalability & ReliabilityAnother challenge for the CIO’s and CTOs of the bank s is to scale-up

the mobile banking infrastructure to handle exponential growth of the

customer base. With mobile banking, the customer may be sitting in any

part of the world (true anytime, anywhere banking) and hence bank s need

to ensure that the systems are up and running in a true 24 x 7 fashion. As

customers will find mobile banking more and more useful, their

expectations from the solution will increase. bank s unable to meet the

performance and reliability expectations may lose customer confidence.

Application distribution

Due to the nature of the connectivity between bank and its customers,

it would be impractical to expect customers to regularly visit bank s or

connect to a web site for regular upgrade of their mobile banking

application. It will be expected that the mobile application itself check the

upgrades and updates and download necessary patches (so called Over The 

Air updates). However, there could be many issues to implement this

approach such as upgrade / synchronization of other dependent

components.

18

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 19/56

Personalization

It would be expected from the mobile application to support personalization

such as :

1. Preferred Language

2. Date / Time format

3. Amount format

4. Default transactions

5. Standard Beneficiary list.

Mobile banking in India

Mobile banking is gaining popularity in India, mainly because the cell

phone usage has grown tremendously. People are mobile-savvy and are

always ready to try out advanced handsets and services. Mobile banking

also saves the time and effort of going to the bank , standing in queues etc.

According to bank survey, one out of every three persons was ready to

change his/her bank s to avail free mobile banking services. Around 50

percent of the people who were surveyed used cell phones to check their

bank balance. Awareness of mobile banking is also high in India.

 

19

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 20/56

Concerns about mobile banking Security – People worry about frauds in

their accounts as they think it has a weaker security system than personal

banking. Even RBI is concerned about the security, especially when it comes

to verifying the bona fides of users accessing bank accounts from distant

locations.

Marketing – bank s haven’t marketed the service aggressively enough to

attract customers.

Awareness – Since it’s a relatively new concept, many people are still

unaware of its existence, benefits and use. In the interiors of India, where

banking is still a new concept, mobile banking is a distant dream.

 Future

Even bank s, cell phone companies and payment service providers are

working together to develop ways in which mobile banking services can

comply with India’s regulatory requirements. For example, Obopay Inc. of 

California and mCheck India Payment Systems Pvt. Ltd. of Bangalore, India

are working on a product that complies with the regulatory guidelines to

bring fast mobile payment services to customers in India. RBI is also

extending mobile banking services to make banking and financial services

20

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 21/56

available to lower income groups. The G2P project in Andhra Pradesh will use

cell phones to ensure payments of pension and unemployment benefits - cell

phones with special features will be given to local agents and the recipient

will be given a smart card.

 NXP Semiconductors and A Little World have launched RFID-based

mobile payment solutions with seven bank s in India; this facility is available

in Mizoram, Uttarakhand, Andhra Pradesh and Meghalaya (Source:

contentsutra.com). Barclay recently launched its ‘Hello Money’ scheme in

India, for customers with GSM handsets using Airtel, Idea or Vodafone

connections in 40 cities. (Source: Business Standard).

 Mobile banking is expected to become common and popular the

world over and replace traditional banking activities and facilities. In fact,

people have begun to prefer mobile banking to debit/credit cards, also

because the numbers of cell phone users are more than debit/credit

cardholders.

Security 

Security of financial transactions, being executed from some remote

location and transmission of financial information over the air, are the most

complicated challenges that need to be addressed jointly by mobile

21

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 22/56

application developers, wireless network service providers and the bank s' IT

departments.

  The following aspects need to be addressed to offer a secure

infrastructure for financial transaction over wireless network:

1. Physical part of the hand-held device. If the bank is offering smart-card

based security, the physical security of the device is more important.

2. Security of any thick-client application running on the device. In case

the device is stolen, the hacker should require at least an ID/Password

to access the application.

3. Authentication of the device with service provider before initiating a

transaction. This would ensure that unauthorized devices are not

connected to perform financial transactions.

4. User ID / Password authentication of bank ’s customer.

5. Encryption of the data being transmitted over the air.

Encryption of the data that will be stored in device for later / off-line

analysis by the customer.

- Advantages & Disadvantages of TeleBanking

22

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 23/56

 Advantages: -

 The biggest advantage that mobile banking offers to bank s is that it

drastically cuts down the costs of providing service to the customers. Forexample 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 subscribers use. Service providers are increasingly using

the complexity of their supported mobile banking services to attract new

customers and retain old ones. A very effective way of improving customer

service could be to inform customers better. Credit card fraud is one such

area. A bank could, through the use of mobile technology, inform owners

each time purchases above a certain value have been made on their card.

 This way the owner is always informed when their card is used, and how

much money was taken for each transaction. Similarly, the bank could

remind customers of outstanding loan repayment dates for the payment of 

monthly installments or simply tell them that a bill has been presented and is

up for payment. The customers can then check their balance on the phone

and authorize the required amounts for payment.

 The customers can also request for additional information. They can

automatically view deposits and withdrawals as they occur and also pre-

schedule payments to be made or cheques to be issued. Similarly, one could

also request for services like stop cheque or issue of a cheque book over

one’s mobile phone. There are number of reasons that should persuade

bank s in favor of mobile phones. They are set to become a crucial part of 

the total banking services experience for the customers. Also, they have the

23

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 24/56

potential to bring down costs for the bank itself. Through mobile messaging

and other such interfaces, bank s provide value added services to the

customer at marginal costs. Such messages also bear the virtue of being

targeted and personal making the services offered more effective. They will

also carry better results on account of better customer profiling. Yet another

benefit is the anywhere/anytime characteristics of mobile services. A mobile

is almost always with the customer. As such it can be used over a vast

geographical area. The customer does not have to visit the bank ATM or a

branch to avail of the bank ’s services. Research indicates that the number

of footfalls at a bank ’s branch has fallen down drastically after the

installation of ATMs. As such with mobile services, a bank will need to hire

even less employees as people will no longer need to visit bank branches

apart from certain occasions.

With Indian telecom operators working on offering services like money

transaction. Over a mobile, it may soon be possible for a bank to offer

phone-based credit systems. This will make credit cards redundant and also

aid in checking credit card. Fraud apart from offering enhanced customer

convenience. The use of mobile Technologies is thus a win-win proposition

for both the bank s and the bank’s Customers. The bank s add to this

personalized communication through the process of Automation. For

instance, if the customer asks for his account or card balance after

conducting a transaction, the installed software can send him an automated

reply Informing of the same. These automated replies thus save the bank the

need to hire Additional employees for servicing customer needs. Use

banking facilities anywhere, even far away from a bank .Easy operation –

access accounts from a cell phone. Lower operational costs (for bank s) thansetting up ATM machines

24

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 25/56

 Disadvantage:

Back in days when Internet was introduced, it was a boon to the

financial industry as it reduced all volumes by opening another self-service

channel for servicing customers. With mobile that advantage is not there as

already investments are made to reduce call volumes using Internet and

Internet is one of the technologies that is ever spreading in customer

community. Almost 80% of the people in US already have internet

connection. Mobile banking would be another value added service that can

be provided by financial institutions, it may only bring good will. Depending

on the technological direction for enabling Mobile companies either have to

spend enormous amount of money in matching customers expectation or

maintaining another stream of technology applications.

 Technology still has security issues and software distribution issues.

Uses

1) Pay bills

2) Transfer funds

3) Take mini-statements, conduct balance enquiries

4) Set alerts for movement in accounts – change in balance, payments of bills set on auto payment mode etc.

5)Purchase items – e.g. ABNAmro’s Mpower enables you to shop

25

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 26/56

Although advanced/high-end transactions can be conducted using cell

phones, most mobile banking customers use it for basic activities like

balance enquiry, making payments of regular bills etc.

- SMS Banking

When people are hard pressed for time, the need for "anytime anywhere”

is banking gains utmost importance. Bearing this in mind, bank s provide a

novel service which gives retail customers account information and real-time

transaction capabilities from their cell phones. With SMS banking the

following services can be obtained:

 

•

Get account balance details• Request a cheque book

• Request last three transaction details

• Pay bills for electricity, mobile, insurance etc.

SMS banking Overview

In order to avail the services mentioned above, a user subscribing to a

wireless carrier sends an SMS with a predefined code to the bulk service

provider’s number.

  The service provider forwards this message to the bank ’s mobile

banking applications. The mobile banking applications interface with the

core banking servers (that contain the user account information) that

service the request made by the user. The response is then sent by the

26

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 27/56

mobile banking applications to the bulk service provider who in turn

forward it to the valid user via SMS. Which is very well explain in the

following diagram.

 There are two ways in which a bank can communicate with a customer using

SMS:

1. In the first method the bank proactively sends data to customers in

response to certain transactions. For e.g. account to account transfer,salary credit and some promotional messages. This data can be sent to

the customer in two ways

o E-mail to mobile (E2M) : In this method, the bank sends an

email to the mobile banking application through a specific email

27

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 28/56

address. This email may consist of the message content together

with the mobile numbers of the customer. The mobile banking

application in turn sends this message in a specific format (for

e.g. XML tags are part of a HTTP GET message query string) to

the service provider’s application server. From hereon the

information from the XML tags is extracted and sent as a SMS to

the wireless carrier which in turn forwards this message to the

customer.

o Database to mobile (D2M) : Here a mobile banking

application continuously polls the bank s database server and

whenever a relevant event happens, for e.g. an account to

account transfer, it forwards the specific message to the service

provider’s application server. The message format may be the

same as the one used in the E2M case. This message is then

forwarded to the wireless carrier which in turn forwards this

message to the customer.

In the second method the bank sends data in response to specific

customer query such as account balance details. The customer first sends a

pre-defined request code via SMS to the Bulk SMS service provider’s

registered mobile number. Depending on the message code, the bulk SMS

provider forwards the SMS to a PULL application in the mobile banking

server. The PULL application receives the request and forwards it to the core

banking application for further processing. The core banking server then

processes this message and sends the reply to the PULL application which in

turn forwards in to the customer via the service provider. As in the above

cases the request and the response for the PULL application may be a HTTP

GET message with tags in the query string.

28

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 29/56

Push and Pull Messages

SMS banking services are operated using both Push and Pull 

messages. Push messages are those that the bank chooses to send out to a

customer's mobile phone, without the customer initiating a request for theinformation. Typically push messages could be either Mobile Marketing 

messages or messages alerting an event which happens in the customer's

bank account, such as a large withdrawal of funds from the ATM or a large

payment using the customer's credit card, etc.

Another type of push message is One-time password (OTPs). OTPs

are the latest tool used by financial and banking service providers in the

fight against cyber fraud. Instead of relying on traditional memorized

passwords, OTPs are requested by consumers each time they want to

perform transactions using the online or mobile banking interface. When

the request is received the password is sent to the consumer’s phone via

SMS. The password is expired once it has been used or once its scheduled

life-cycle has expired.

Pull messages are those that are initiated by the customer, using a

mobile phone, for obtaining information or performing a transaction in the

bank account. Examples of pull messages for information include an account

balance inquiry, or requests for current information like currency exchange 

rates and deposit interest rates, as published and updated by the bank .

 The bank ’s customer is empowered with the capability to select the

list of activities (or alerts) that he/she needs to be informed. This

functionality to choose activities can be done either by integrating to the

Internet banking channel or through the bank ’s customer service call 

centre.

29

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 30/56

Typical Push & Pull Services offered under SMS banking:

Depending on the selected extent of SMS banking transactions

offered by the bank, a customer can be authorized to carry out either non-

financial transactions, or both and financial and non-financial transactions.

SMS banking solutions offer customers a range of functionality, classified by

Push and Pull services as outlined below.

Typical Push Services would include:

• Periodic account balance reporting (say at the end of month);

• Reporting of salary and other credits to the bank account;

• Successful or unsuccessful execution of a standing order;

• Successful payment of a cheque issued on the account;

• Insufficient funds;

• Large value withdrawals on an account;

• Large value withdrawals on the ATM or on a debit card;

•

Large value payment on a credit card or out of country activity on acredit card.

• One-time password and authentication

Typical Pull Services would include:

• Account balance inquiry ;

• Mini statement request ;

•

Electronic bill payment;•  Transfers between customer's own accounts , like moving money from

a savings account to a current account to fund a cheque;

• Stop payment instruction on a cheque;

• Requesting for an ATM card or credit card to be suspended;

30

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 31/56

• De-activating a credit or debit card when it is lost or the PIN is known

to be compromised;

• Foreign currency exchange rates inquiry ;

•

Fixed deposit interest rate inquiry .

Concerns & Skepticism about SMS Banking

Many bank s would have some concerns when the prospects of 

introducing SMS banking are discussed. Most of these concerns could

revolve around security and operational controls around SMS banking.

However supporters of SMS claim that while SMS banking is not as secure

as other conventional banking channels, like the ATM and Internet

banking, the SMS banking channel is not intended to be used for very high-

risk transactions.

The Convenience Factor 

 The convenience of executing simple transactions and sending out

information or alerting a customer on the mobile phone is often the

overriding factor that dominates over the skeptics who tend to be overly

bitten by security concerns.

As a personalized end-user communication instrument, today mobile

phones are perhaps the easiest channel on which customers can be reached

on the spot, as they carry the mobile phone all the time no matter where

31

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 32/56

they are. Besides, the operation of SMS banking functionality over phone

key instructions makes its use very simple. This is quite different to Internet 

banking which can offer broader functionality, but has the limitation of use

only when the customer has access to a computer and the Internet. Also,

urgent warning messages, such as SMS alerts, are received by the customer

instantaneously; unlike other channels such as the post, email, Internet,

telephone banking, etc. on which a bank 's notifications to the customer

involves the risk of delayed delivery and response.

 The SMS banking channel also acts as the bank ’s means of alerting

its customers, especially in an emergency situation; e.g. when there is an

ATM fraud happening in the region, the bank can push a mass alert (although

not subscribed by all customers) or automatically alert on an individual basis

when a predefined ‘abnormal’ transaction happens on a customer’s account

using the ATM or credit card. This capability mitigates the risk of fraud going

unnoticed for a long time and increases customer confidence in the bank ’s

information systems.

Compensating controls for lack of Encryption

 The lack of encryption on SMS messages is an area of concern that is

often discussed. This concern sometimes arises within the group of the bank

’s technology personnel, due their familiarity and past experience with

encryption on the ATM and other payment channels. The lack of encryption

is inherent to the SMS banking channel and several bank s that use it have

overcome their fears by introducing compensating controls and limiting the

32

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 33/56

scope of the SMS banking application to where it offers an advantage over

other channels. Suppliers of SMS banking software solutions have found

reliable means by which the security concerns can be addressed. Typically

the methods employed are by pre-registration and using security tokens

where the transaction risk is perceived to be high. Sometimes ATM type PINs 

are also employed but the usage of PINs in SMS banking makes the

customer's task more cumbersome.

Technologies Employed for SMS Banking

Most SMS banking solutions are add-on products and work with the

bank ’s existing host systems deployed in its computer and communicationsenvironment. As most bank s have multiple backend hosts, the more

advanced SMS banking systems are built to be able to work in a multi-host

banking environment; and to have open interfaces which allow for

messaging between existing banking host systems using industry or de-

facto standards.

Well developed and mature SMS banking software solutions normally

provide a robust control environment and a flexible and scalable operating

environment. These solutions are able to connect seamlessly to multiple

operators in the country of operation. Depending on the volume of messages

that are require to be pushed, means to connect to the SMS could be

different, such as using simple modems or connecting over leased line using

low level communication protocols. Advanced SMS banking solutions also

cater to providing failover mechanisms and least-cost routing op

- I.T IN BANKS

 The reforms in the 1990s, which led to expansion, consolidation and

liberalization of the banking and financial sector in India, brought in many

changes and challenges. A number of private and foreign players entered

the Indian market with superior technologies that helped them service their

customers efficiently through multiple channels such as Atms and Online

33

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 34/56

banking. Indian bank s on the other hand have been using IT more out of 

compulsion and primarily for transaction processing. They now need to adopt

IT to reposition bank s into the integrated financial services market.

  The need for providing improved customer service, reducing

transaction costs and increasing productivity, shall be the main drivers for

banking sector to adopt IT. These considerations are particularly important

for public sector bank s in India, who are facing immense competition from

private and foreign bank s. IT can help them move from the present

scenario where they are working as isolated islands to providing a

centralized banking experience. There is a need today for IT and the

financial community to come together and develop customized IT solution to

make the Indian banking sector globally competitive.

IT adoption in the banking sector will provide real time availability of 

transaction processing through multiple channels. It would enhance a bank

’s ability to cross sell products, ensure better management and security and

safety of funds and increase efficiently through integration of systems across

various locations. It would also ensure efficient management of Non

Performing Assets (NPAs), minimize transactions costs, enhance ability to

conduct in-depth financial analysis and gather business intelligence.

Enhanced use of IT would also encourage the use of Internet to provide

access for online bill payments, fund transfers and e-statements in addition

to encouraging wireless mobile banking and e-commerce.

With growing competition faced by foreign bank s and financial

institutions, the public sectors bank s in co-operation with the Indian IT

industry would need to equip themselves for the next phase of introducing

the benefits of IT to their customers by providing a centralized banking

solution.

34

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 35/56

Opportunity for Indian banking sector in branch computerization

1. IT Networking

2. System Relationship Management

3. Customer Relationship Management (CRM) Applications

4. Back Office processing and Call Centers

5. Data warehousing/Data mining

6. Mobile banking and e- banking.

Different uses of Information Technology: -

a) Tele Banking

b) Any Time Banking

c) Automated Teller machine

d) Shared Payment Network System

e) Customer Service

f) Mobile banking

g) Home Banking

h) Electronic Fund Transfer

i) Plastic Cards as Media for Payment

1. Credit Card

2. Debit Card

3. Smart Card

4. ATM Card

CASE STUDY 

35

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 36/56

Tele Banking Services OF Oriental Bank OF Commerce The Bank has launched the Centralized Tele-banking services in 20

major cities. By using this wonderful & convenient technology, thecustomer can have Anytime, Anywhere (24 * 7) access to their respective accounts. The Centralised Tele-banking facility can beavailed from any our Branches. The Bank has planned to extend this facility to other major citiesas soon as the branches under these Cities are covered under thebank’s Centralised Banking Solution (CBS) plan. 

Services offered through Telebanking.

Account Related Inquiry

 

Ø Online Balance Inquiry :o Current balance in your selected Accounto Balance on a particular date

Ø Last five transactions.Ø Statement of Account by Fax (On same fax machine or other

Fax Machines as directed by the Customer).Ø Statement of Account by E-Mail.

Cheque Status Inquiry

General Inquiry :-

Ø Bank’s working hours & holidays Inquiry.Ø Retail Product information.Ø The information on deposit rates is also available as under.

One can request for sending the Deposit rates information byFax also.

o Domestic Term Deposit Rateso Domestic Term Deposit –Rates for Senior Citizens

NRE & FCNR Rates 

How to use Telebanking ?• Language Selection:- The Customer can interact with the Telebanking system by selecting one of the four languages viz.1. Hindi 2. English 3. Tamil 4. Bengali.

• When you dial the nearest City’s Telebanking Phonenumber, after the recorded welcome message, you need toselect the language to interact with Telebanking system. Next

36

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 37/56

you need to select either the option of 'Account RelatedInformation' to access your accounts Or you can choose theGeneral Information option. To Access the “Account RelatedInformation”, you must enter your Customer ID and the secretPIN (which is being issued to you by the bank). Key-in the

various numbers on your keypad, for the services of yourchoice as directed by the IVR System. During the Interactionsession, you can Press/ dial 9 to repeat the previous menu, 0for main menu and # to quit the Telebanking system.

The Customer-ID Number and Personal IdentificationNumber (PIN ) :-

• Customer-id is a unique Numeric Code allotted by theComputerised System to identify the Customer and its detailssuch as Customer name, addresses and various types of 

Accounts the Customer is operating with the Bank viz. SB A/c.,Overdraft A/c., Current Account etc. All the personal details of the Customers are accessed using this Customer-ID.

•  The Personal Identification Number (called PIN), is a fourdigit number generated by the Telebanking system, which acustomer needs along with the Customer-ID number in orderto access Telebanking system. The PIN is issued by the Bankand sent to a customer through sealed PIN mailers.

Interactive Voice Response System (IVR) :-

IVR is the abbreviation for Interactive Voice Response System. Thistechnology helps the Customer to understand and execute thevarious options available in the Telebanking system. Security :- The Customers who have opted for Telebanking system are issuedsecret PINs by the Bank, which are sent through sealed PIN Mailers.When Customer uses the Telebanking system first time, he isforced to change the PIN number to keep its secrecy. He furtherhas the option of changing the PIN number as and when requiredby him. This enhances the security feature of this facility.

 Locking of Telebanking Services :- TeleBanking Services gets Locked automatically for the Customersin case they enter the wrong PIN continuously 3 times. In suchcases, Customer needs to give written request to the concernedbranch which will further request to Telebanking Cell for Unlockingof his/ her Account. 

37

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 38/56

Re-Issuance of Personal Identification PIN :-

• In case Customer forget his/ her secret PIN, he/ she has togive written request to the concerned branch for re-issuance of PIN. The branch thereafter forwards the request to TelebankingCell at Head Office for re-issuance of PIN for the Customer.

•  The Telebanking Services is growing fast in popularity andthe Bank is providing this facility to customers of all thebranches under the Core Banking Solution (CBS).

Tele & Mobile Banking by ICICI Bank 

Bank on the move with ICICI bank Mobile banking. With ICICI bank ,banking is no longer what it used to be. ICICI bank offers the Mobile banking

facility to all its bank , Credit Card, Demat and Loan customers.

ICICI bank Mobile banking can be divided into two categories of facilities:

Alert facility: The ICICI bank Mobile banking Alert facility informs you

promptly of the significant transactions in your accounts. It keeps you

updated wherever you go.

Request facility : ICICI bank Mobile banking Request facility enables

you to ask for your account information.

It’s simple! It’s easy!!

Use any of the following modes to access Mobile banking:

For all GSM mobile operators and Tata Indicom users.

Use ICICI bank ’s downloadable menu.

If you are an Airtel, Vodafone or Idea customer.

38

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 39/56

Reliance Mobile User? Use R-world.

Bank Account 

With Mobile banking, you can remain updated while you are on the

move,

without even making a phone call or a visit to the Branch. The ICICI bank

Mobile banking service for bank accounts can be divided into two

categories:

• Request Facility

• Alert Facility

Request Facility The ICICI bank Mobile banking Request facility enables you to enquire

information about your ICICI bank account or to perform banking

transactions. You can ask for:

• IBAL - Your account balance

• ITRAN - The last three transactions in your account

• ICSI - Cheque status

• ISCR - Stop cheque instruction

• ICBR - Cheque book

• ICPA - Change your primary account

• IPAY - Making payment for your bills.

39

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 40/56

• IVIEW - View your presented bills.

For specific information on the formats to be used, please select as

applicable from the following:

• Via sms - all GSM users 

• Menu-based

• ICICI bank 's Mobile banking Menu

• Airtel GPRS

• Vodafone GPRS 

• Idea GPRS 

•

Reliance R-world

Alert FacilityUnder ICICI bank Mobile banking Alert, you get alerted when the

events you have subscribed for get triggered. You can subscribe for receiving

SMS alerts on the following events:

• Salary credit

• Account getting debited* - When your bank account is debited Rs.5,000 or more, as specified by you.

•

Account getting credited* - When your bank account is credited Rs.5,000 or more, as specified by you.

• Cheque return

• When your balance rises above a limit

• When your balance falls below a limit.

40

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 41/56

Credit Card 

With Mobile banking, you can remain updated while you are on the

move, without even making a phone call or a visit or logging on the Internet.ICICI bank Mobile banking for Credit Cards can be divided into two

categories:

• Request Facility

• Alert Facility

Request Facility The ICICI bank Mobile banking Request facility enables you to check

the following information for your Credit Card:

• IBALCC - Details of your balance

• IRPCC - Reward points available for redemption

• ILPCC - Details of the last payment

• IPDDCC - Payment due date

For specific information on the formats to be used, please select as

applicable from the following:

• Via sms - all GSM users

• Menu-Based

• Airtel GPRS

• Vodafone GPRS 

• Idea GPRS 

• Reliance R-world

 

Alert Facility

41

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 42/56

On subscription to Credit Card Alerts, you get alerted when the events

you have subscribed for get triggered. You can subscribe for receiving sms

alerts for the following events:

• Due Date Reminder - You receive an alert five days prior to the due

date. This would inform you the total and minimum amounts due and

the the payment due date.

Demat 

With Mobile banking you can remain updated while you are on the

move, without even making a phone call or a visit or logging on the Internet.

ICICI bank Mobile banking for Demat Accounts can be divided into two

categories:

• Request Facility

• Alert Facility

Request Facility

  Through the ICICI bank Mobile banking Request facility, you can

request information pertaining to your demat account anytime at your

convenience. You can ask for:

• IBALD – Balance enquiry

• ITRAND - The status of a transaction

• IBILLD – Bill enquiry

• ISIND - ISIN enquiry

42

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 43/56

In the Request facility, to check your holdings you can use any scrip

descriptor like Company name, Web trade scrip code, NSE symbol, BSE code

in the message.

For specific information on the formats to be used, please select as

applicable from the following:

• Via sms - all GSM users

• Menu-based

• Airtel GPRS

• Vodafone GPRS 

• Idea GPRS 

Alert Facility

 Through this facility, you will receive sms alerts from ICICI Demat on the

following events:

Demat account getting credited / debited

Pledge Creation / Closure

Rejection of Submitted Instruction

Loans

ICICI bank Mobile banking for Loans enables you to ask for your loan

documents via your mobile phone. You can ask for:

• IAMT - Amortization schedule

• IITP - Income Tax Certificate - Provisional

• IITF - Income Tax Certificate - Final

• IRSL - Reschedulement letter

43

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 44/56

• IRTL - Reset letter

• ILAC - Copy of Loan Agreement

E.g. for the Amortization Schedule of your Loan AccountLBMUM00000123456, please send IAMT LBMUM00000123456 as an sms to

5676766, where IAMT is the keyword for amortization schedule.

For specific information on the formats to be used, please select asapplicable from the following:

• Via sms - all GSM users

• Menu-based

• Airtel GPRS

• Vodafone GPRS 

• Idea GPRS 

• Reliance R-world

STEP FOR MOBILE BANKING OF ICICI BANK 

1) ICICI Mobile banking

ICICI bank Mobile banking informs you promptly of significant

transactions in your bank account, credit card account and demat account,

such as:

Bank Alerts - Cheque return, salary credit and debit/credit of large

amounts as specified by you

Credit Card Alerts - Approaching credit limit and due date of payment of 

your credit card bill.

Demat Alerts - Shares debited and credited to your account, etc. The ICICI bank Mobile banking facility keeps you updated while you are on

the move.

2) ICICI bank Mobile banking Alerts

44

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 45/56

ICICI bank Mobile banking Alerts is a facility through which you

receive the latest information about your bank account, credit card account

and demat account. Alerts are sent to your mobile phone number as

registered by you with the bank .

3) ICICI bank Mobile banking facility

All ICICI bank customers having a Savings bank Account, Credit Card

(not being an Add on Card) and Demat Account can avail of this facility. As

and when alerts are introduced for other ICICI bank products, inform can be

given by website, www.icicibank.com/pfsuser/channels/mobile/mobile.htm

4) Alerts to subscribe

Currently, we provide the following alerts depending on your

account(s) with us:

A. Banking Alerts

1. Credit to your bank Account of any amount of Rs.5, 000 or more as

specified by you

2. Debit to your bank Account of any amount of Rs.5, 000 or more as

specified by you

3. Salary Credit to the bank Account*

4. Cheque deposited in your bank Account but returned

5. Account balance above a specified amount

6. Account balance below a specified amount.

* Subject to the appearance of the word 'salary' in the narration of salary

credit.

B. Credit Card Alerts

1. Payment Due Date reminder on your next credit card bill

2. Your credit card spending reaches the limit set for your card (Approaching

credit limit).

C. Demat Alerts

1. Demat account getting credited

2. Demat account getting debited

45

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 46/56

3. Pledge creation and closure

4. Rejection of submitted instructions.

We will be introducing more alerts, of which we will inform you through our

website, www.icici bank .com/pfsuser/channels/mobile/mobile.htm.

5) Receiving the alerts.

Depending on the type of alerts you select, you will receive the alert(s) as

and when the particular event happens. However, in the case of Approaching

Credit Limit, the alert is sent at the end of the day.

6) Subscribe to ICICI bank Mobile banking by anyone of the

following means

 You can subscribe to ICICI bank Mobile banking by any one of the following

means:

1) Logging into www.icici bank .com with your user ID and log-in password

and going to the Mobile banking section.

2) Calling up our 24-hour Customer Care and requesting subscription for

bank alerts and credit-card alerts. Our Customer Care representatives will

take you through the identification process and subscribe you to ICICI bank

Mobile banking.

3) For demat alerts, please fill and submit the Mobile Alerts Registration

Form to any ICICI bank branch offering demat services.

7) Any other prerequisites for availing of the ICICI bank Mobile

banking facility

For Mobile Alerts, you also need to have a mobile phone with a connection on

which these SMS alerts can be sent to you.

If your mobile phone service does not support the SMS facility, please

contact your mobile phone service provider to enable it.

8) Need to be registered with any particular service provider to

receive Mobile Alerts

46

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 47/56

  You need not be registered with any particular service provider. All

customers with mobile phones where the service provider supports the SMS

facility will be able to avail of this facility.

9) Need a special phone for Mobile Alerts

No, all you require is a normal GSM/CDMA mobile phone to receive Mobile

Alerts. The CDMA mobile phone service provider should have activated the

SMS facility for you to avail of our Mobile Alerts.

10) Receiving an ICICI bank Mobile Alert

Mobile alerts will be received on your mobile phone. The message alert tone

set by you will indicate that a new message has arrived.

11) Access the alerts when customer is abroad

  You need to ensure that you have subscribed for international roaming

facility for your mobile phone connection and you have switched your mobile

phone on.

12) Change mobile phone number

For banking alerts and Credit Card alerts, you may simply log into

www.icicibank.com or contact our 24-hour Customer Care and update our

records.

For Demat alerts, please fill and submit the Mobile Alerts Registration Form

to any ICICI bank branch offering Demat services.

13) Charges for the facility

All ICICI bank Mobile banking request services are currently FREE.

When you receive information from ICICI bank Mobile banking in response

to your request, the service is FREE of charge.

However, mobile alerts initiated by the bank and reporting transactions in

your account are chargeable according to the tariff displayed in the section

"Service Charges & Fees" of our website.

All updates of the fees would be put up on our website www.icicibank.com 

/pfsuser/channels/mobile/mobile.htm for your reference. ICICI bank reserves

the right to change the charges for this facility.

47

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 48/56

14) More queries regarding this facility

Any queries on the ICICI bank Mobile Alert facility, you may write to the

Account Manager for clarification. To write to the Account Manager, log into

www.icicibank.com with your user ID and log-in password and select bank

--> Requests --> Write to ICICI bank .com.

Examples of ICICI bank ImobileMobile banking payments and mcommerce might finally get some

users in India. ICICI bank  has launched its Mobile banking Application

called Imobile to all its users. The application can let you do most of the

actions you can perform over internet banking. Below is the main screen of 

the application. As a security feature the application asks you to enter a PIN

48

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 49/56

before entering this screen. The PIN is set during the first use and when the

application is activated.

In order to tryout the application, I installed it over GPRS on my N82

and then tried doing a prepaid mobile recharge. The experience was great.

Check below for the screenshots and more info.

Prepaid Mobile Recharge

49

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 50/56

 The application picked up my account no based on my phone number afteractivation.

I entered the mobile number i want to recharge here.

  Then it asked me enter the recharge amount, after which it showed aconfirmation screen.

50

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 51/56

It showed a couple of progress screens

51

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 52/56

Security Check 

 There’s surely a huge amount of risk connected to mobile banking forsure. That the main reason m commerce has always found very lessadoption. This app asks for some digits on your debit /credit card tocomplete the transaction, this is to a feature to prevent misuse and also tomake sure the transaction is being carried out by the account owner.

52

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 53/56

Success Screen

I was impressed when i saw this screen. The greatest part is that when

I was seeing this screen on my mobile the other phone in the room was

beeping as the recharge had just happened. Amazing!! Isn’t. It’s another

example to demonstrate how mobile technology is making an impact on our

lives. It’s such a cool thing to recharge another mobile from a mobile phone

application using GPRS!

ICICI bank allows all Internet banking transactions over cell phones.

Customers can now transfer funds to ICICI bank from other bank accounts.

Savings, dematerialized, credit card and loan accounts have been brought

under this facility. Customers can also pay their utility bills and insurance

premium through this facility."

Customer can also pay their ICICI Prudential policy premium through it.

53

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 54/56

Conclusion

The banking today is re-defined and re-engineered with the use of 

Information Technology and it is sure that the future of banking will offer

more sophisticated services to the customers with the continuous product

and process innovations. Thus, there is a paradigm shift form the seller’s

market to buyer’s market in the industry and finally it effected at the

bankers level to change their approach from “conventional banking to

convenience banking” and “mass banking to class banking”. The shift has

also increased the degree of accessibility of a common man to bank for his

variety of needs and requirements

With the rapid development of transport and communication, people

and services are coming together as if they were just around the corner. If 

this is the case for many services, then why should the banking industry lag

behind?

Internet banking, phone banking, e- banking and now mobilebanking all enable the bank to be better connected with the customer and

vice versa. A customer who is provided with a variety of additional services

feels appreciated and is more likely to be loyal to that bank , which is always

a good sign for a bank .

In the end mobile banking not only helps a bank to reduce costs but

also helps it to retain its valuable customers. And as far as customers are

concerned, this facility enables the customer to bank anywhere, at anytimeand in any condition, definitely a boon if a customer is stuck in the middle of 

nowhere and requires banking services as soon as possible.

 Thus mobile banking helps both, the customer as well as the bank ,

to lighten the burden of today’s world and to save time, money and energy

54

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 55/56

which is greatly required and appreciated. In a competitive world where

everyone is waiting to out do the other, a helping hand, in whatever forms

and from whatever source, is definitely god sent and should not go

unrecognized.

Bibliography 

Websites:

1.www.wikipedia.com

1. www.googleimages.com

2. www.google.com

3. www.icici bank.com

4. www.hsbcbank.co.in

6.www.bankofbaroda.com

Books:

1. Indian banking, Parmeswaran.

2. Financial markets and services, Gordon and Natrajan.

3. Financial institutions and markets, L.M.Bhole.

4. Environment of financial services, O.P.Agarwal.

Survey sources:

1.ICICI Bank of Andheri2.Bank of Baroda Andheri

3.HSBC Bank of Andheri

 

55

8/8/2019 Mobile Banking1

http://slidepdf.com/reader/full/mobile-banking1 56/56