Mobile Banking Features Until now, you have had to depend upon banks to conduct your banking transactions

and to keep your account secure. Now, with your cell phone, you can instantly conduct banking transactions and secure your own accounts. You receive instant text messages on any transaction activity against your account, including your current account balance. Your available options on account notifications are:

You can be notified whenever a card not present purchase has been made (typically an Internet, or phone purchase) when account balance has dropped below a pre-determined level you have established when a deposit or transfer has been credited to your account or you can choose to receive a notification whenever any purchase is made on your card account in addition to purchases, you will receive notification of any ATM withdrawals and more

Account-to-Account transfers The account-to-account transfer feature enables you to use your cell phone to instantly transfer money to other account holders, and to make purchases or payments.

These transfers can be made by typing in either the recipients cell phone number or their card account number. You can receive an instant transfer of funds to your account by simply providing the sender your cell phone number.

INTRODUCTION:-

Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new

challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reason of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dials a pizza. Money has become the order of the day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: Early phase from 1786 to 1969 of Indian Banks Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.

RECENT DEVELOPMENT OF BANKING INDUSTRY

In these we see that the recent development of banking industry. That is:1) Universal Banking 2) E-Banking 3) Mobile banking

3) Mobile banking
Mobile banking is a system that allows customers of a financial institution to conduct a number of financial transactions through a mobile device such as a mobile phone orpersonal digital assistant. Mobile banking differs from mobile payments, which involve the use of a mobile device to pay for goods or services either at the point of sale or remotely, [1] analogously to the use of a debit or credit card to effect an EFTPOS payment.

The earliest mobile banking services were offered over SMS, a service known as SMS banking. With the introduction of smart phones with WAP support enabling the use of themobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers.[2] Mobile banking has until recently (2010) most often been performed via SMS or the mobile web. Apple's initial success with iPhone and the rapid growth of phones based on Google'sAndroid (operating system) have led to increasing use of special client programs, called apps, downloaded to the mobile device. With that said, advancements in web technologies such as HTML5, CSS3 and JavaScript have seen more banks launching mobile web based services to complement native applications. A recent study (May 2012) by Mapa Research suggests that over a third of banks[3] have mobile device detection upon visiting the banks' main website. A number of things can happen on mobile detection such as redirecting to an app store, redirection to a mobile banking specific website or providing a menu of mobile banking options for the user to choose from.

A mobile banking conceptual model[edit]

In one academic model,[4] 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 customised information." According to this model mobile banking can be said to consist of three inter-related concepts:

Mobile accounting Mobile brokerage Mobile financial information services

Most services in the categories designated accounting and brokerage are transaction-based. The non-transaction-based services of an informational nature are however essential for conducting transactions - for instance, balance inquiries 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. Mobile banking may also be used to help in business situations as well as financial

Mobile banking services[edit]

Typical mobile banking services may include:

Account information[edit]
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

Payments, deposits, withdrawals, and transfers[edit]

1. Cash-in, cash-out transactions on an ATM 2. Domestic and international fund transfers 3. Micro-payment handling

4. Mobile & Direct to Home package recharging 5. Purchasing tickets for travel and entertainment 6. Commercial payment processing 7. Bill payment processing
8. Peer to Peer payments (e.g., Popmoney, Isis) 9. Withdrawal at banking agent

10.Deposit at banking agent

11.

A specific sequence of SMS messages will enable the system to verify if the client has sufficient funds in his or her wallet and authorize a deposit or withdrawal transaction at the agent. When depositing money, the merchant receives cash and the system credits the client's bank account or mobile wallet. In the same way the client can also withdraw money at the merchant: through exchanging sms to provide authorization, the merchant hands the client cash and debits the merchant's account. Kenya's M-PESA mobile banking service, for example, allows customers of the mobile phone operator Safaricom to hold cash balances which are recorded on their SIM cards. Cash may be deposited or withdrawn from M-PESA accounts at Safaricom retail outlets located throughout the country, and may be transferred electronically from person to person as well as used to pay bills to companies. One

of the most innovative applications of mobile banking technology is Zidisha, a USbased nonprofit microlending platform that allows residents of developing countries to raise small business loans from web users worldwide. Zidisha uses mobile banking for loan disbursements and repayments, transferring funds from lenders in the United States to the borrowers in rural Africa using nothing but the internet and mobile phones.[5] In Cte d'Ivoire (and 9 other countries in Africa and the Middle East), Orange has a commercial offer called Orange Money which includes:

money transfers (users can send money using their phone to any other customer in the country), deposit and withdrawal; financial services, including solutions facilitating savings and insurance (according to the country);

payments, giving users a way to pay their bills (and buy mobile phone credit) and to pay for goods at shops that accept Orange Money electronically without cash.

What is the role of mobile banking in small-scale agriculture?

Posted on 26/10/2011

Mobile banking, or m-banking, is the provision of banking or financial services with the help of mobile phones. These services can include: performing balance checks, account transactions, payments or credit applications. Anywhere banking is mostly accessed via SMS messages, although newer smartphones enable the usage of mobile broadband.

Although there are different types of mobile banking, the following diagram illustrates its core architecture:

Mobile banking architecture. Source: http://palisade.plynt.com

At least three different models of mobile banking can be identified: Models in which the network operator takes the lead: primarily for m-money, where the balances of the users mwallets are maintained by the network operator in a combined, trust account in a bank. The most successful example of this approach is Kenyas M-PESA, introduced by Safaricom. A report by GSMA looks closely into this success story. Bank-led models, where all m-banking clients must have bank accounts. Many banks throughout the world use mobile phones just as an additional channel for their services- An example is Hello Money, a mobile banking service offered by Barclays in Kenya and India. Third-party service providers, who usually work with one or more banks and one or more network operators to launch and operate their services. See, for example, WIZZIT in South Africa. What role can mobile-banking play in small-scale agriculture? A briefing paper by USAID identifies seven different services

which can become important tools for farmers in developing countries: Make it cheaper and easier for smallholder farmers to save, receive loans and make loan payments. Make it easier for input suppliers to collect and manage payments from smallholder farmers. Make it easier and safer for traders to manage transactions and make deposits into their bank accounts. Make it easier for large buyers to pay thousands of producers faster (and reduce side selling) and manage any credit they offer such producers. Make payments for micro-insurance and receive any pay outs from such insurance. Increase the efficiency and reliability of any voucher services for fertilizer or other inputs provided by a government, an NGO or a donor project. Enable producers and others in the value chain to more easily and cheaply receive remittances domestically and internationally critical assets to help with cash flow. There are more than twice as many people in the world with mobile phones than people with bank accounts. This means that mobile has the potential to play a major role in bringing financial services to the worlds unbanked population, constituted largely by people who work in the fields. However, the relation between mobile banking and small-scale agriculture is quite new, and there are still many lessons to be learnt. Mobile banking does not eliminate the need for cash, and although it allows subscribers to save and exchange virtual money, shortage of paper currency is not uncommon in many remote settings. The briefing by USAID offers some a set of questions that must be asked before deciding to use m-money or m-banking services as part of an agriculture development project:

Ask if m-money really has potential to solve a key constraint related to payments or access to financial services for a projects target beneficiaries, or if it offers a significant opportunity to increase success.

Find out whether the relevant financial services institutions (ones willing to offer products to meet the needs of farmers) can actually offer m-money services. It should not be assumed that the relevant m-money/mbanking service will be sustainable and capable of scaling. If m-money/m-banking does have great potential to help an agriculture project, how best might donors be involved? In conclusion, while mobile banking offers many potential benefits to farmers in developing countries, it must be integrated in development projects in a cautious and informed way.

To find out more, refer to the CGAP (Consultative Group to Assist the Poor) web page.

Investments[edit]
1. Portfolio management services 2. Real-time stock quotes 3. Personalized alerts and notifications on security prices

Support[edit]
1. Status of requests for credit, including mortgage approval, and insurance coverage 2. Check (cheque) book and card requests 3. Exchange of data messages and email, including complaint submission and tracking 4. ATM Location

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

A report by the US Federal Reserve (March 2012) found that 21 percent of mobile phone owners had used mobile banking in the past 12 months. [6] 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.

Future functionalities in mobile banking[edit]

Based on the 'International Review of Business Research Papers' from World business Institute, Australia, following are the key functional trends possible in world of Mobile Banking. With the advent of technology and increasing use of smartphone and tablet based devices, the use of Mobile Banking functionality would enable customer connect across entire customer life cycle much comprehensively than before. With this scenario, current mobile banking objectives of say building relationships, reducing cost, achieving new revenue stream will transform to enable new objectives targeting higher level goals such as building brand of the banking organization. Emerging technology and functionalities would enable to create new ways of lead generation, prospecting as well as developing deep customer relationship and mobile banking world would achieve superior customer experience with bi-

directional communications. Among digital channels, mobile banking is a clear IT investment priority in 2013 as retail banks attempt to capitalise on the features unique to mobile, such as location-based services [7]. Illustration of objective based functionality enrichment In Mobile Banking

Communication enrichment: - Video Interaction with agents, advisors. Pervasive Transactions capabilities: - Comprehensive Mobile wallet Customer Education: - Test drive for demos of banking services Connect with new customer segment: - Connect with Gen Y Gen Z using games and social network ambushed to surrogate banks offerings

Content monetization: - Micro level revenue themes such as music, e-book download

Vertical positioning: - Positioning offerings over mobile banking specific industries

Horizontal positioning: - Positioning offerings over mobile banking across all the industries

Personalization of corporate banking services: - Personalization experience for multiple roles and hierarchies in corporate banking as against the vanilla based segment based enhancements in the current context.

Build Brand: - Built the banks brand while enhancing the Mobile real estate.

Challenges for a mobile banking solution[edit]

Key challenges in developing a sophisticated mobile banking application are :

Handset operability[edit]
There are a large number of different mobile phone devices and it is a big challenge for banks to offer mobile banking solution on any type of device. Some of these devices support Java ME and others support SIM Application Toolkit, a WAP browser, or only SMS.

Initial 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 banks 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. There is a myth that there is a challenge of interoperability between mobile banking applications due to perceived lack of common technology standards for mobile banking. In practice it is too early in the service lifecycle for interoperability to be addressed within an individual country, as very few countries have more than one mobile banking service provider. In practice, banking interfaces are well defined and money movements between banks follow the IS0-8583 standard. As mobile banking matures, money movements between service providers will naturally adopt the same standards as in the banking world. On January 2009, Mobile Marketing Association (MMA) Banking Sub-Committee, chaired by CellTrust and VeriSign Inc., published the Mobile Banking Overview for financial institutions in which it discussed the advantages and disadvantages of Mobile Channel Platforms such as Short Message Services (SMS), Mobile Web, Mobile Client Applications, SMS with Mobile Web and Secure SMS. [8]

Security[edit]
See also: Mobile 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 application developers, wireless network service providers and the banks' 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 banks customer. 5. Encryption of the data being transmitted over the air. 6. Encryption of the data that will be stored in device for later / off-line analysis by the customer. One-time password (OTPs) are the latest tool used by financial and banking service providers in the fight against cyber fraud.[9] 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 consumers phone via SMS. The password is expired once it has been used or once its scheduled life-cycle has expired. Because of the concerns made explicit above, it is extremely important that SMS gateway providers can provide a decent quality of service for banks and financial institutions in regards to SMS services. Therefore, the provision of service level agreements (SLAs) is a requirement for this industry; it is necessary to give the bank customer delivery guarantees of all messages, as well as measurements on the speed of delivery, throughput, etc. SLAs give the service parameters in which a messaging solution is guaranteed to perform.

Scalability and reliability[edit]

Another challenge for the CIOs and CTOs of the banks 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 banks 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. Banks unable to meet the performance and reliability expectations may lose customer confidence. There are systems such as Mobile Transaction Platform which allow quick and secure mobile enabling of various banking services. Recently in India there has been a phenomenal growth in the use of Mobile Banking applications, with leading banks adopting Mobile Transaction Platform and the Central Bank publishing guidelines for mobile banking operations.

Application distribution[edit]
Due to the nature of the connectivity between bank and its customers, it would be impractical to expect customers to regularly visit banks 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.

Personalization[edit]
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 6. Alerts

Mobile banking in the world[edit]

Mobile banking is used in many parts of the world with little or no infrastructure, especially remote and rural areas. This aspect ofmobile commerce is also popular in countries where most of their population is unbanked. In most of these places,

banks can only be found in big cities, and customers have to travel hundreds of miles to the nearest bank. In Iran, banks such as Parsian, Tejarat, Mellat, Saderat, Sepah, Edbi, and Bankmelli offer the service. Banco Industrial provides the service in Guatemala. Citizens of Mexico can access mobile banking with Omnilife, Bancomer and MPower Venture. Kenya'sSafaricom (part of the Vodafone Group) has the M-Pesa Service, which is mainly used to transfer limited amounts of money, but increasingly used to pay utility bills as well. In 2009, Zain launched their own mobile money transfer business, known as ZAP, in Kenya and other African countries. In Somalia, the many telecom companies provide mobile banking, the most prominent being Hormuud Telecom and its ZAAD service. Telenor Pakistan has also launched a mobile banking solution, in coordination with Taameer Bank, under the label Easy Paisa, which was begun in Q4 2009. Eko India Financial Services, the business correspondent of State Bank of India (SBI) and ICICI Bank, provides bank accounts, deposit, withdrawal and remittance services, micro-insurance, and micro-finance facilities to its customers (nearly 80% of whom are migrants or the unbanked section of the population) through mobile banking.[10] In a year of 2010, mobile banking users soared over 100 percent in Kenya, China, Brazil and USA with 200 percent, 150 percent, 110 percent and 100 percent respectively.[11] Dutch Bangla Bank launched the very first mobile banking service in Bangladesh on 31 March 2011. This service is launched with Agent and Network support from mobile operators, Banglalink and Citycell. Sybase 365, a subsidiary of Sybase, Inc. has provided software solution with their local partner Neurosoft Technologies Ltd. There are around 160 million people in Bangladesh, of which, only 13 per cent have bank accounts. With this solution, Dutch-Bangla Bank can now reach out to the rural and unbanked population, of which, 45 per cent are mobile phone users. Under the service, any mobile handset with subscription to any of the six existing mobile operators of Bangladesh would be able to utilize the service. Under the mobile banking services, bank-nominated Agents perform banking activities on behalf of the banks, like opening mobile banking account, providing cash services (receipts and payments) and dealing with small credits. Cash withdrawal from a mobile

account can also be done from an ATM validating each transaction by mobile phone & PIN instead of card & PIN. Other services that are being delivered through mobile banking system are person-to-person (e.g. fund transfer), person-to-business (e.g. merchant payment, utility bill payment), business-to-person (e.g. salary/commission disbursement), government-to-person (disbursement of government allowance) transactions. In May 2012, Laxmi Bank Limited launched the very first mobile banking in Nepal with its product Mobile Khata. Mobile Khata runs on a third-party platform called Hello Paisa that is interoperable with all the telecoms in Nepal viz. Nepal Telecom, NCell, Smart Tel and UTL, and is also interoperable with various banks in the country. The initial joining members to the platform after Laxmi Bank Limited were Siddartha Bank, Bank of Kathmandu, Commerz and Trust Bank Nepal and International Leasing and Finance Company. Currently, the users of Hello Paisa can Buy movie tickets, shop online, buy mobile recharge, pay bills (for services such as ADSL, DTH service, landline phone, postpaid mobile), make merchant payments, transfer money etc. On June 2013, one of the leading money transfer service provider in Nepal, "Prabhu Money Transfer", joined Hello Paisa to offer its Financial Services through Hello Paisa network. Prabhu Money Transfer will add 3500 agents across the nation to the Hello Paisa network. Hello Paisa platform is interoperable between multiple banks and multiple telecoms, and is the first of its kind in the world of Mobile Banking so far. The platform was nominated as one of the top three innovators of the year 2012 by SIDA in IAP program. Barclays offers a service called Barclays Pingit, which allows transfer of money from the United Kingdom to many parts of the world with a mobile phone.

Mobile banking 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.

MobileBanking is a service that allows you to do banking transactions on your mobile phone without making a call , using the SMS facility.

 HOW ITS WORKS

Mobile Banking works on the 'Text Messaging Facility' also called the SMS that is available on mobile phones. This facility allows you to send a short text message from your mobile phone instead of making a phone call. All you need to do is type out a short text message on your mobile phone and send it out to 5676712 .The response is sent to you as an SMS message, all in the matter of a few seconds. This message travels from your mobile phone to the SMS Centre of the Cellular Service Provider, and from there it travels to the Bank's systems.

SERVICES AVAILABLE THROUGH MOBILE BANKING

You can get your Balance details Get last 3 Transaction details Request for a Cheque Book Stop a Cheque payment Inquire about a cheque status Request an account statement Get Fixed Deposit details Get Bill payment details for Electricity, Mobile phone and Telephone services Pay your bills

 MOBILE BANKING THROUGH SMS

Mobile Banking with SMS is conducted through SMS codes sent to a particular number as directed by your bank. You will receive the response in the form of a text message on your mobile phone screen within a few seconds. For example to get details of your HDFC bank account you will use codes like HDFCBAL, HDFCTXN, HDFCSTM, HDFCSTP<6 digit cheque no.>, etc. for balance enquiry, last transaction details, account statement, stop cheque payment etc. respectively.

MOBILE BANKING THROUGH WAP

Once you log onto your Bank's WAP site through your WAP/GPRS enabled mobile phone, all you need to do is enter your Cust ID and Net Banking IPIN. Then go to the Transactions Menu after selecting your account. Select any one of the Transactions like Balance Inquiry, Mini Statement, Statement Request Stop Payment, Cheque Status Inquiry Fixed Deposit Inquiry( can get information on account number, principal amount, rate of interest, maturity date and maturity amount) etc.

1) Universal Banking

As per the World Bank, "In Universal Banking, large banks operate extensive network of branches, provide many different services, hold several claims on firms(including equity and debt) and participate directly in the Corporate Governance of firms that rely on the banks for funding or as insurance underwriters".

Universal Banking includes not only services related to savings and loans but also investments. However in practice the term 'universal banks' refers to those banks that offer a wide range of financial services, beyond commercial banking and investment banking, insurance etc.

Universal banking is a combination of commercial banking, investment banking and various other activities including insurance.

UNIVERSAL BANKING PROS AND CONS

The solution of Universal Banking was having many factors to deal with, which can be further analyzed by the pros and cons.

Advantages of Universal Banking

Economies of Scale. The main advantage of Universal Banking is that it results in

greater economic efficiency in the form of lower cost, higher output and better products. Many Committees and reports by Reserve Bank of India are in favour of Universal banking as it enables banks to explit economies of scale and scope.

Profitable Diversions. By diversifying the activities, the bank can use its existing
expertise in one type of financial service in providing other types. So, it entails less cost in performing all the functions by one entity instead of separate bodies.

Resource Utilization. A bank possesses the information on the risk characteristics of

the clients, which can be used to pursue other activities with the same clients. A data collection about the market trends, risk and returns associated with portfolios of Mutual Funds, diversifiable and non diversifiable risk analysis, etc, is useful for other clients and information seekers. Automatically, a bank will get the benefit of being involved in the researching

Easy Marketing on the Foundation of a Brand Name . A bank's existing

branches can act as shops of selling for selling financial products like Insurance, Mutual Funds without spending much efforts on marketing, as the branch will act here as a parent company or source. In this way, a bank can reach the client even in the remotest area without having to take resource to an agent.

One-stop shopping. The idea of 'one-stop shopping' saves a lot of transaction costs
and increases the speed of economic activities. It is beneficial for the bank as well as its customers.

Investor Friendly Activities. Another manifestation of Universal Banking is bank

holding stakes in a form : a bank's equity holding in a borrower firm, acts as a signal for other investor on to the health of the firm since the lending bank is in a better position to monitor the firm's activities.

Disadvantages of Universal Banking

Grey Area of Universal Bank. The path of universal banking for DFIs is strewn
with obstacles. The biggest one is overcoming the differences in regulatory requirement for a bank and DFI. Unlike banks, DFIs are not required to keep a portion of their deposits as cash reserves.

No Expertise in Long term lending. In the case of traditional project finance, an

area where DFIs tread carefully, becoming a bank may not make a big difference to a DFI. Project finance and Infrastructure finance are generally long- gestation projects and would require DFIs to borrow long- term. Therefore, the transformation into a bank may not be of great assistance in lending long-term.

NPA Problem Remained Intact. The most serious problem that the DFIs have had
to encounter is bad loans or Non-Performing Assets (NPAs). For the DFIs and Universal Banking or installation of cutting-edge-technology in operations are unlikely to improve the situation concerning NPAs.

2) E-Banking
Internet banking (or E-banking) means any user with a personal computer and a browser can get connected to his bank -s website to perform any of the virtual banking functions. In internet banking system the bank has a centralized database that is web-enabled. All the services that the bank has permitted on the internet are displayed in menu. The traditional branch model of bank is now giving place to an alternative delivery channels with ATM network. It would a borderless entity permitting anytime, anywhere and anyhow banking.

SERVICES THROUGH E BANKING

Bill payment service, Fund transfer, Credit card customers, Railway pass, Investing through Internet banking , Recharging your prepaid phone, Shopping

ADVANTAGES OF E BANKING

It is convenient, it isn't bound by operational timings, there are no geographical barriers and the services can be offered at a miniscale cost.

Through Internet banking, you can check your transactions at any time of the day, and as many times as you want to. If the fund transfer has to be made outstation, where the bank does not have a branch, the bank would demand outstation charges. Whereas with the help of online banking, it will be absolutely free for you.

CONCLUSION
Universal banks are financial institutions that may offer the entire range of financial services. They may sell insurance, underwrite securities, and carry out securities transactions on behalf of others. They may own equity interests in firms, including nonfinancial firms. And so in conclusion e-banking creates issues for banks and regulators alike. For our part we will continue our work, both national and international, to identify and remove any unnecessary barriers to e-banking Mobile Banking came on to mobile phones with a promise of convenience and comfort for banking transactions and it did serve the purpose. A study by IBM finds that the mobile banking is widely being used by youth these days.

BIBLIOGRAPHY

WWW.MODERN BANKING.COM WWW.UNIVERSAL BANKING.COM WWW.E-BANKING.COM WWW.MOBILE BANKING.COM Advantages

According to recently concluded research reports, mobile banking software or apps used for conducting banking operations through a mobile device promotes faster completion of financial work. This and the fact that banking can now be conducted anytime anywhere by using this software, makes banking mobile apps the preferred option among today's bank customers. Let us take a look at few advantages that banking mobile applications provide: 1. Time effective - Even when you are working or commuting, checking the balance in your account, managing and scheduling payments, adding a top up in your credit card, opening new accounts, and transferring money from one account to another is now possible at the click of just a few buttons. Since paying visits to banks is no longer essential, it saves up on time for a customer. 2. Easy to use - The banking mobile apps are designed in such a way as will enable even a non technical customer to conduct financial operations anytime and from anywhere. Thus, one does

3.

4.

5.

6.

not have to pay extra for conducting banking transactions while shopping, traveling, or even while out on a holiday. It is a secure option - Most financial institutions now offer security codes to their mobile customers in order to ensure added security while using apps for making transactions. Contrary to the popular belief that mobile banking apps are not secure, these types of software are now offering enhanced security features to their customers. The possibility of fraud is also reduced since the customers using mobile banking apps are alerted via SMS every time an activity is conducted in their accounts. As soon as money is deposited or withdrawn from bank accounts through activities such as fund transfer, check deposit, or cash withdrawal, the customer will receive an SMS alert on his/her mobile device irrespective of whether the smartphone is connected to the internet or not. Two way benefits - Banking through the use of mobile apps benefits not only the customers but also the financial firms. It is a cost effective solution for banks, since they no longer have to spend on tele-banking. Moreover, it helps the banks understand the way their customers make monetary transactions, and hence they can improvise on means to better their customer care services. They can also identify their target customers better and promote services and products such as different types of loans and credit cards to this section of audience. Reduces total cost incurred by customer - The financial firms offer mobile banking services at prices lower than what the customer would have to incur if he/she had to be involved in normal banking transactions where visiting the financial firm would be necessary. Mobile banking is better than internet banking - The advent of banking mobile apps has transformed the face of banking like even internet facilities could not. This is because of the fact that in the case of the latter, having a computer with an internet connection is mandatory. But in the former, just having a smartphone is enough. Connectivity is no longer a problem in an age where Wi-Fi surroundings are available in most areas, even remote localities.

The cost is lower in the case of banking with the help of mobile apps; moreover, the system is also portable. The above are few of the multiple benefits that mobile banking applications provide.
Mobile banking offers many advantages, such as good security, easy access and plentiful applications for smart phones. "The biggest benefit is that you have more control of your money," says James Van Dyke, president of Javelin Strategy & Research in Pleasanton, Calif. "You don't have Internet connections everywhere you go. But you do have a mobile connection." Mobile banking takes us back to the days when we used passwords, he says. "You knew where you stood at any moment." For example, you can be sitting on an airport tarmac checking your account balance or looking at recent transactions. The downside is that mobile banking isn't as good as it could be, says Van Dyke. The reason: Many services are pretty basic. People use it to check balances and monitor finances. "Largely, it's an augment to the Internet," he adds. Van Dyke gives the highest marks to Wells Fargo's and Bank of America's mobile banking services, though. "There are lots of great features," he says. "They're strong in security and they offer multiple downloadable applications." He adds that there are far fewer banking options for mobile banking than Internet banking. "On that front, mobile banking has a long way to go," he says. But the best services offer bank transaction data and use personal finance software. "Mobile banking isn't as fully functional as online banking," says Thomas Trebilcock, vice president of e-business and payments at PNC Bank. "We offer things you can do every day, such as looking at account activity and paying bills." Yet, many experts say that mobile banking offers many benefits worth using, and some are getting increasingly better. Here's a rundown.

obile banking is the performing of finance related functions on a mobile device like a

Smartphone or tablet. With the use of a mobile device, the user can perform mobile banking via call, text, website, or app. There are both advantages and disadvantages of mobile banking some of which have been highlighted below.

Advantages

It utilizes the mobile connectivity of telecom operators and therefore does not require an internet connection. With mobile banking, users of mobile phones can perform several financial functions conveniently and securely from their mobile. You can check your account balance, review recent transaction, transfer funds, pay bills, locate ATMs, deposit cheques, manage investments, etc. Mobile banking is available round the clock 24/7/365, it is easy and convenient and an ideal choice for accessing financial services for most mobile phone owners in the rural areas. Mobile banking is said to be even more secure than online/internet banking.

Disadvantages

Mobile banking users are at risk of receiving fake SMSmessagesand scams. The loss of a persons mobile device often means that criminals can gain access to your mobile banking PIN and other sensitive information. Modern mobile devices like Smartphone and tablets are better suited for mobile banking than old models of mobile phones and devices.

Regular users of mobile banking over time can accumulate significant charges from their banks. In recent years mobile banking has become quite popular and convenient for many people. Have you tried mobile banking? Share your experience in the comments below. Dont forget to share this post with your friends and colleagues. Till next time. - See more at: http://mauconline.net/2013/03/07/advantages-and-disadvantages-ofmobile-banking/#sthash.gbsBrE7l.dpuf

Advantages of Mobile Banking

Submitted by gc on Mon, 02/18/2013 - 20:57 The biggest advantage that mobile banking offers to banks is that it drastically cuts down the costs of providing service to the customers. For example an average teller or phone transaction costs about $2.36 each, whereas an electronic transaction costs only about $0.10 each. Additionally, this new channel gives the bank ability to cross-sell up-sell their other complex banking products and services such as vehicle loans, credit cards etc. For service providers, Mobile banking offers the next surest way to achieve growth. Countries like Korea where mobile penetration is nearing saturation, mobile banking is helping service providers increase revenues from the now static subscriber base. Also service providers are increasingly using the complexity of their supported mobile banking services to attract new customers and retain old ones.

arketing for Mobile Banking

Submitted by gc on Mon, 02/18/2013 - 20:56 Mobile banking is poised to become the big killer mobile application arena. However, Banks going mobile the first time need to tread the path cautiously. The biggest decision that Banks need to make is the channel that they will support their services on. Mobile banking through an SMS based service would require the lowest amount of effort, in terms of cost and time, but will not be able to support the full breath of transaction-based services. However, in markets like India where a bulk of the mobile population users' phones can only support SMS based services, this might be the only option left.

On the other hand a market heavily segmented by the type and complexity of mobile phone usage might be good place to roll of WAP based mobile applications. A WAP based service can let go of the need to customize usability to the profile of each mobile phone, the trade-off being that it cannot take advantage of the full breadth of features that a mobile phone might offer. Mobile application standalone clients bring along the burden of supporting multiple mobile device profiles. According to the Gartner Group, a leading wireless computing consulting organization, mobile banking services will have to support a minimum of 50 different device profiles in the near future. However, currently the best user experience, depending on the capabilities of a mobile phone, is possible only by using a Standalone client. Mobile banking has the potential to do to the mobile phone what E-mail did to the Internet. Mobile Application based banking is poised to be a big mcommerce feature, and if South Korea's foray into mass mobile banking is any indication, mobile banking could well be the driving factor to increase sales of high-end mobile phones. Nevertheless, Bank's need to take a hard and deep look into the mobile usage patterns among their target customers and enable their mobile services on a technology with reaches out to the majority of their customers. Advantages of Mobile Bankingup

Technologies enabling Mobile Banking

Submitted by gc on Mon, 02/18/2013 - 20:52 Technically speaking most of these services can be deployed using more than one channel. Presently, Mobile Banking is being deployed using mobile applications developed on one of the following four channels.

1. 2. 3. 4.

IVR (Interactive Voice Response) SMS (Short Messaging Service) WAP (Wireless Access Protocol) Standalone Mobile Application Clients IVR Interactive Voice Response SMS Short Messaging Service WAP Wireless Access Protocol Standalone Mobile Application Clients