Islami Bank Bangladesh

Mobile Banking Service of IBBL.
Page 11
1.1 Introduction:
With a view to acquiring theoretical knowledge about the practical orientation and
experiences of dynamic business world, it is obligatory to undertake an extensive study to
prepare a term paper by the students of BBA program, IUBAT, who are desirous to the
successful completion of their BBA degree. As part of the program, I am highly proud to join
with Islami Bank Bangladesh Limited as Intern and selecting topic Mobile banking Service
of Islami Bank Bangladesh Limited. I was placed in Islami Bank Bangladesh Limited
Head Office for a period of three months.
This internship is an orientation to the entire working activities of, Islami Bank Bangladesh
Limited and a study on an overall banking area. Though I worked there in several
departments, but I had to select an area of study in which I can make detailed research and
present my understanding in the report. This report is an attempt to map out a document,
which clearly explains the existing situation in a comprehensive way regarding the activities
at the IBBL. It is a nice opportunity for the graduates to have a taste of the real business
world before starting their career. Internship, in the modern business world, helps students
demonstrate skills and competence from their supervised experience and in addition, enables
them to demonstrate maturity and acceptable professional, personal, and interpersonal
behavior.
As the classroom discussion alone cannot make a student perfect in handling the real
business situation, therefore it is an opportunity for the students to get accustomed with the
real life situation through this program.
1.2 scope of study

This report will give a clear idea on overall mobile banking services available in our country.
It also helps to know about IBBLs attempt to enhance its banking service by developing
mcash.
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Idea about Mobile banking in Bangladesh.

IBBLs Mobile banking condition.
Available services under mobile/sms banking service from IBBL.
Analysis of the study on IBBL mcash.
1.3 Objective Of Study

Study or working on any subject must have an objective. It may be only one objective or a
combination of some objectives. My study also has some objectives. Before submitting the
report I will discuss briefly about my specific objectives.
Broad objective of the report is to examine mcash service of IBBL.
To get an overall idea about the management policy of IBBL as well as com
mercial Bank.
1.4 Specific Objectives
To get a view of Islami banks Mobile banking system.

To find out its Mobile banking services available.
To know the detailed information regarding IBBLs mobile services.
To know its mobile/sms banking services availability.
To know how mcash makes life easier for a customer.
To know why mcash is safe for financial transaction.
To compare IBBLs mCash with other mobile banking services such as DBBL and Bkash.
1.5 Limitations of the report

When I developed this report, I faced these problems which disrupted the fulfillment of this
report. There were several constrains while preparing this reports. Only four-five weeks were
not sufficient to obtain complete information. While preparing the report, I faced a number of
problems which may be termed as limitations. They are:
Lack of enough time due to university time restriction.

Difficulties of getting information due to the employees work pressure.
Lack of proper information due to organizational secrecy policy.
Up to date information is not available in many situation.
Last but not the least, I didnt get enough time to make this report more informative
and accurate.
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1.6 Methodology
1.6.1 Sources of data
Both primary data and secondary data are used in this report. There are many tables and
figures in this report which are based on both primary and secondary data.
1.6.2 Methods
The techniques of collecting primary data are not same as the techniques of collecting
secondary data. The different methods and tools of collecting primary data and secondary
data used in this report are mentioned below
1.6.2Collection of Primary Data:

It includes the fresh or completely new data sources collected for specified purpose. Such as
Practical work
Observation
Informal discussion
Focus group discussion
Asking questions to the respective officer and clients
1.6.3 Collection of Secondary Data:

It includes the sources of existing data. Such as
Articles
Brochures
Journals
Manuals of IBBL
Collection of data from web sites
Official papers of IBBL
Web site of IBBL and other banks web site.
Annual report IBBL and other banks.
Various journals of various Banks.
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Various Thesis reports of various Banks.

Various leaflet of IBBL.
The archive of the IBBL
Bangladesh Bank Report.
For preparing this report I have got information from web site of the IBBL. I have
presented my experience and finding by using different charts and tables.
1.6.4 Instruments used in analysis

There are some tools which are used in analysis. These are various figures, tables, charts.
These instruments are used in the analysis with the information I got.
Page 15
Page 16
2.1History of the Company:

Islami Bank Bangladesh Limited is one of the largest private banks in Bangladesh. It is the
pioneer of Islamic banking in Bangladesh. It became incorporated on March 13, 1983. It is a
Joint Venture Public Limited Company engaged in commercial banking business based on
Islamic Shari'ah with 58.03% foreign shareholding. It got 236 Branches & 30 SME/Krishi
Branches i.e. total 266 Branches, which makes this one of the largest private banks in
Bangladesh.
IBBL has taken the initiative to develop large scale software to support the Islamic Banking
solution in the year of 2001. A team of 20 fresh and experienced graduates from different
reputed universities was formed under the supervision of a talented project manager and
advisory and consultancy services of local and western reputed universities made the project
a success history in Bangladesh.
2.2IBBL at a glance
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Established on
Certificate
13th March 1983
for :
27th March 1983
Commencement of Business
Inauguration of 1st Branch
30th March 1983
Formal Inauguration
12th August 1983
Shariah
Supervisory :
1983
Committee
CSR/Foundation activities
1983
IPO
1985
Listing
in
Dhaka
Stock :
2nd July1985
Exchange Ltd.
Listing in Chittagong Stock :
7th March1996
Exchange Ltd.
Accommodation
of
IBBL :
10th March 2000
Head Office in its own Tower

1st Rights Share issue
1989
2nd Rights Share issue
1996
3rd Rights Share issue
2000
4th Rights Share issue
2003
Opening of 100th Branch
12th June 1997
200th :
21st June 2009
Opening
of
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2.3 Mission and Vision of IBBL

Mission of Islami Bank
To establish Islamic Banking through the introduction of a welfare oriented banking

system and also ensure equity and justice in the field of all economic activities,
achieve balanced growth and equitable development in through diversified
investment operations particularly in the priority sectors and less developed areas of
the country.
To encourage socio-economic upliftment and financial services to the less-income

community particularly in the rural areas.
Total Financial Inclusion for balanced growth of the economy.
Spread out the benefits of Islamic Banking in each and every point of the country
Vision of Islami Bank

IBBLs vision is to always strive to achieve superior financial performance, be considered a
leading Islamic Bank by reputation and performance.
Its goal is to establish and maintain the modern banking techniques, to ensure
soundness and development of the financial system based on Islamic principles and
to become the strong and efficient organization with highly motivated professional,
working for the benefit of people, based upon accountability, transparency and
integrity in order to ensure stability of financial systems.
We will try to encourage savings in the form of direct investment.
We will also try to encourage investment particularly in projects which are more
likely to lead to higher employment.
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To provide the better customer services with minimum charges
2.4 Strategic Objectives
To ensure customers' satisfaction.

To ensure welfare oriented banking.
To establish a set of managerial succession and adopting technological
changes to ensure successful development of an Islamic Bank as a stable
financial institution.
To prioritize the clients welfare.
To emerge as a healthier & stronger bank at the top of the banking sector
and continue stable positions in ratings, based on the volume of quality
assets.
To ensure diversification by Sector, Size, Economic purpose & geographical
location wise Investment and expansion need based Retail and SME/Women
entrepreneur financing.
To invest in the thrust and priority sectors of the economy.
To strive hard to become a employer of choice and nurturing & developing
talent in a performance-driven culture.

To pay more importance in human resources as well as financial capital.
To ensure lucrative career path, attractive facilities and excellent working
environment.
To ensure zero tolerance on negligence in compliance issues both shariah
and regulatory issues.

To train & develop human resources continuously & provide adequate
logistics to satisfy customers need.

To be excellent in serving the cause of least developed community and area.
To motivate team members to take the ownership of every job.
To ensure development of devoted and satisfied human resources.
To encourage sound and pro-active future generation.
2.4 Core Values
Trust in Almighty Allah

Strict observance of Islamic Shariah
Highest standard of Honesty, Integrity & Morale
Welfare Banking
Equity and Justice
Environmental Consciousness
Personalized Service
Adoption of Changed Technology
Proper Delegation, Transparency & Accountability
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2.4 Commitments
To
To
To
To
To
To
To
To
Shariah
the Regulators
the Shareholders
the Community
the Customers
the Employees
other stakeholders
Environment
2.5 Organization Structure:
Page 21
Organogram of IBBL
2.6Corporate Governance at IBBL

Governance in Financial Institutions is considered to be the agent of effective and profitable
business operation. The Corporate governance establishes trust among the interested parties,
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provides information for the stakeholders, establishes professionalism, builds capacity to

operate business efficiently and create a congenial working environment, which is inevitable
to face the challenges of the present competitive business environment. Corporate governance
in IBBL may be delineated as follows:
Corporate Information
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Financial Information: [ As on: 31 December 2013 ]

Authorized
BDT (Tk.)
20,000.00 Million
US Dollar ($)
257.23 Million
Capital
paid-up
14,636.28 Million
188.25 Million
Capital
Equity
Reserve Fund
Deposits
Investment
45,511.90 Million
29,149.01Million
473,140.96 Million
474,015.95 Million
385.36 Million
374.91 million
6,085.41 Million
6,096.67 Million
BDT (Tk.)
US Dollar ($)
285,890 Million
205,269 Million
286,956 Million
3,677.04 Million
2,640.12 Million
3,690.75 Million
(including
Investment in
Shares)
Foreign
Exchange
Business
Import
Export
Remittance
Organizational Information:
Chairman,
Board
Prof. Abu Nasser Muhammad Abduz

of Zaher
Director
Managing
Director
Mohammad Abdul Mannan

&
CEO
Company
Abu Reza Md. Yeahia
Secretary
CFO
Mohammad Nesar Uddin, FCA, ACMA
Number
of 15
Zones
Number
of 288
Branches
Number
of 48
AD Branches
Mobile
Banking
of IBBL.
Number
of Service
410
ATM Booth
Number
of 33,686
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2.7 Board of Director:

Prof. Abu Nasser Muhammad Abduz Zaher (CHAIRMAN)
Prof. Abu Nasser Muhammad Abduz Zaher, Chairman, Islami Bank
Bangladesh Ltd. the first and leading Islamic Bank (based on Islamic
Shariah) of South - East Asia was born in a respectable Muslim family
Yousif Abdullah Al-Rajhi (VICE CHAIRMAN)
Janab Yousif Abdullah Al-Rajhi is a Vice Chairman of the Board of
Directors and a foreign Director of the Bank. He served as a Branch
Manager of Al-Rajhi Banking & Investment Corporation from 1987 .
Engr. Mustafa Anwar (VICE CHAIRMAN)
Engr. Mustafa Anwar is Vice Chairman of the Board of Directors of the
Islami Bank Bangladesh Limited. He is the former Engineer of
Bangladesh Water Development Board (BWDB). Engr.
Abdullah Abdul Aziz Al-Rajhi (DIRECTOR)
Abdullah Abdul Aziz Al-Rajhi is a foreign director of the Islami Bank
Bangladesh Limited. He was elected as a director of the Bank on
15.05.2012.
Engr. Md. Eskander Ali Khan (DIRECTOR)
Engr. Md. Eskander Ali Khan is the Chairman of the Executive Committee of
Islami Bank Bangladesh Limited. He is a well known business man in
Developer and Poultry Hatchery in Bangladesh.
Dr. Abdul Hameed Fouad Al Khateeb (DIRECTOR)

Dr. Abdulhameed Fouad Al-Khateeb is a foreign director of the Islami
Bank Bangladesh Ltd. He was elected as a director of the Bank from 1st
September 2006 to till date.
Md. Abul Hossain (DIRECTOR)
Md. Abul Hossain is a representative of Investment Corporation of
Bangladesh (ICB) and was elected as a director of Islami Bank
Bangladesh Limited on 15.05.2012.
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Dr. Areef Suleman (DIRECTOR)

Janab Dr. Areef Suleman represents on behalf of Islamic Development
Bank, Jeddah, KSA as director of Islami Bank Bangladesh Limited. He is
appointed as director on March 28, 2013 .
Mohammad Abdullah Al Jalahma (DEPOSITOR DIRECTOR)
Mohammad Abdullah AlJalahma is a representative on behalf of Kuwait
Awqaf Public Foundation as director of Islami Bank Bangladesh Ltd. He
appointed as director on April 06, 2009 .
Md. Abdus Salam, (DEPOSITOR DIRECTOR)
Janab Md. Abdus Salam, FCA, FCS, obtained both Chartered
Accountancy and Chartered Secretary degrees. He was elected
Depositor Director of Islami Bank Bangladesh Limited on March 23,
2010.
Professor NRM Borhan Uddin( INDEPENDENT DIRECTOR)
Professor NRM Borhan Uddin obtained Ph.D. Degree in Management
from Stevens Institute of Technology, New Jersy, USA. At present he is
the Vice Chancellor of City University
Professor A.K.M Sadrul Islam (INDEPENDENT DIRECTOR)
Professor A.K.M Sadrul Islam
did his Ph.D in Mechanical Engineering from University of London, UK
in 1988. At present he is the Professor of Dept. of Mechanical and
Chemical Engineering
Barrister Mohammed Belayet Hossain (INDEPENDENT DIRECTOR)
Barrister Mohammed Belayet Hossainis an Advocate of Supreme Court
of Bangladesh. He is a Barrister-at-Law (Legal Professional Services)
and obtained PGDL degree from UK.
Mr. Mohammad Abdul (EX-OFFICIO DIRECTOR)
Mr. Mohammad Abdul Mannan is currently the Managing Director of
Islami Bank Bangladesh Limited- the largest Bank in the private sector
of Bangladesh. Before assuming the position in May 2010.
2.8 Corporate Social Responsibility of IBBL:
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Islami Bank believes that Corporate Social Responsibility (CSR) is integral and
inseparable part of the long term business and sustainable growth and success, which
plays an important role in promoting values both locally and internationally.
The bank integrates all social, environmental and socio-economical issues in the time of
its decision making. Contribution in CSR programs is always supported and encourage by
the Board of Directors of the Bank. The management reports to the Board on CSR
activities and is responsible to implement a specific line of approving authority, control
and monitoring for financial support to such activities.
In the table below, sector-wise spending of the Bank for CSR purpose in 2009 and 2010
has been furnished:
Sector
BDT(in million) 2009
BDT(in million) 2010
Education
2.70
7.19
Health
7.95
13.15
Sports
0.93
7.88
Disaster/ Relief
6.69
Nil
Art & Culture
5.61
14.42
Others
6.74
11.40
Total
30.62
65.91
2.9 Recognition of Performance

As recognition of good performance IBBL won the following awards:
IBBL has been selected as the only Bank from Bangladesh in top 1000 banks in the
world by a UK based century old financial magazine, 'The Banker' published the list
in its July 2012 issue.
The institute of Chartered Accountants of Bangladesh (ICAB) awarded IBBL the first
prize of SARRC Anniversary Award for Corporate Governance.
Page 27
South Asian Federation of Accountants (SAFA) awarded IBBL as joint Winner in the
Corporate Governance Disclosure Award-2010.
South Asian Federation of Accountants (SAFA) also awarded IBBL with Certificate of
Merit in Banking Sector in the Annual Report for the year 2010.
The Institute of Cost and Management Accountants of Bangladesh (ICMAB), awarded
IBBL as the ICMAB National Best Corporate Award-2007 (First Position, Local
Bank) and ICMAB Best Corporate Performance Award 2008 (Second Position,
Private Commercial Bank).
The Institute of Chartered Accountants of Bangladesh (ICAB) awarded IBBL with 3rd
position under the catergory-1, Banking in the best published accounts and reports for
the year 2010, the Certificate of Appreciation for the year 2001 & 2010 and Certificate
of Merit for the year 2008.
The Global Finance, a reputed U.S.A. based quarterly Financial Magazine, awarded
IBBL as the best Islamic Financial Institution of the country for the years 2008, 2009,
2010 & 2011. The Global Finance also awarded IBBL as the best bank of the country
for the year 1999, 2000, 2004 and 2005.
ICICI Bank, Hong Kong, awarded IBBL as The Quality Recognition Award-2009
for U.S. Dollar Clearing (2009).
Bankers Forum awarded IBBL as the Best Bank for Corporate Social Responsibility
for 2008 and 2009.
The Bank-Bima Patrika, a Fortnightly Magazine, awarded IBBL as the Best Islami
Banking Award 2007.
Exclusive economic weekly The Industry awarded IBBL as the Best Rated Bank
Award-2010.
The Citi Bank NA awarded IBBL as the Largest Contributor in Foreign Trade
Operations in Europe- Bangladesh corridor in 2009.
The UAE Exchange awarded IBBL for mobilizing around 30% of total foreign
Page 28
remittance of the country.
2.10 Deposit and investment Scheme of IBBL
Al-Wadeeah Current Account

Mudaraba Savings Account
Mudaraba Term Deposit Receipt
Mudaraba Special Notice Account
Mudaraba Special Savings (Pension) Account
Mudaraba Hajj Savings Account
Mudaraba Savings Bond Scheme
Mudaraba Foreign Currency Deposit Scheme (Savings)
Mudarabawaqf cash deposit
Mudaraba Monthly Profit Deposit Scheme
MudarabaMuhor Savings Deposit Scheme
Modes of Investment
Bai-Murabaha
Bai-Muajjal
Hire Purchase Under ShirkatulMelk
Mudaraba
Page 29
Musharaka
Bai Salam
Investment Scheme
Household Durable Scheme
Housing Investment Scheme
Real Estate Investment Scheme
Transport Investment Scheme
Car Investment Scheme
Investment Scheme for Doctors
Small Business Investment Scheme
Agriculture Implements Investment Scheme
Rural Development Scheme
Woman Entrepreneurs Investment Scheme
Micro Industries Investment Scheme
Mirpur Silk Weavers Investment Scheme
2.11 Aims and Objectives Of IBBL
To conduct interest-free banking

To invest on profit and risk sharing basis.
To accept deposits on Mudaraba& Al-Wadeah basis.
To establish a welfare-oriented banking system.
Page 30
To extend co-operation to the poor, the helpless and the low-income group
for their economic upliftment.

To play a vital role in human development and employment generation
To contribute towards balanced growth and development of the country through
investment operations particularly in the less developed areas.

To contribute in achieving the ultimate goal of Islamic economic system.
TOPIC PART
2.12 Islami Bank mCash (Mobile Banking):
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Islami Bank Bangladesh Limited (IBBL) launched Mobile

Banking service Islami Bank mCash, under which any telecom
operator customers can get banking services anytime anywhere of
the country without going to any branches. IBBL is the third bank
that launched the mobile banking service in the country,
Islami Bank mCash offers different services that include free
opening of customer account quickly, deposition and withdrawal
of cash money, fund transfer from one account to another, sending
remittance from abroad, knowing account balance and ministatement, giving and receiving salary, mobile top-up (recharge),
payment of utility bill and fund transaction among IBBL accounts.
Despite making significant improvements in all the areas relating
to financial viability, profitability, innovation and competitiveness,
there are concerns that banks have not been able to include vast
segment of the population, especially the underprivileged sections
and rural people into the fold of basic banking services.
Countrys 24 per cent people have access to the banking service
while 60 per cent people use mobile phone. IBBL is working to
cover all the 160 million people of the country under banking
service; hence, the central bank took initiatives to spread
the Mobile Banking service. Islami Bank included to central
banks guidelines in the mobile banking business. IBBL wanted to
bring all the people under its banking services. Through mCash,
the bank can provide banking service easily to the people, who are
yet to receive the service.
On the other hand, rapid growth of mobile phone users and wider range of the coverage of
Mobile Network Operators (MNOs) has made their delivery channel an important tool of the
trade for extending banking services to the unbanked/banked population.
In order to ensure the access of unbanked people by taking advantage of countrywide mobile
Page 32
network coverage, Bangladesh Bank given the permission to start the mobile banking
operation for adoption of the unbanked people who have mobile connection.
Taking the growth of Mobile banking into consideration, it can be the perfect platform for
Bangladesh to take financial services to the country's largely unbanked population in an
efficient and low-cost manner.
2.13 IBBL mCash: Mission and Vision

Mission of Islami Bank mCash
To establish Islamic Banking through the introduction of a welfare oriented banking

system and also ensure equity and justice in the field of all economic activities,
achieve balanced growth and equitable development in through diversified
investment operations particularly in the priority sectors and less developed areas of
the country.
To encourage socio-economic upliftment and financial services to the less-income

community particularly in the rural areas.
Total Financial Inclusion for balanced growth of the economy.
Spread out the benefits of Islamic Banking in each and every point of the country
Vision of Islami Bank mCash

Its vision is to always strive to achieve superior financial performance, be considered a
leading Islamic Bank by reputation and performance.
Its goal is to establish and maintain the modern banking techniques, to ensure
soundness and development of the financial system based on Islamic principles and
to become the strong and efficient organization with highly motivated professional,
working for the benefit of people, based upon accountability, transparency and
Page 33
integrity in order to ensure stability of financial systems.
We will try to encourage savings in the form of direct investment.
We will also try to encourage investment particularly in projects which are more
likely to lead to higher employment.
To provide the better customer services with minimum charges
2.14 Mobile Banking Facilities of IBBL:

Mobile banking seems to be the "in" thing right now. With mobile banking you can access
your bank accounts, make payments and transfer funds via your cell phone. With vast
mobile connectivity, mobile banking has become extremely successful.
Let's take a look at the merits of mobile banking. The first advantage is mobile banking has
an upper hand over internet banking because for the latter you will need to have an internet
connection and getting the connection in remotest places might not be possible. Secondly, it
saves a lot of time as you can pay your bills and make payments whenever you want.
Mobile banking is extremely user friendly. The interface is really simple and if you follow a
few simple instructions you will be able to make the transaction easily. Mobile banking is
cost effective and most banks offer this facility at lower costs compared to banking by self.
Facilities:
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Unique system for all to take the Banking Services of Islami

Bank Bangladesh Limited based on Islamic Shari'ah.
Profit will be given to the customer's mobile account based on

the Mudaraba Principles of Islamic Shari'ah.
Available banking services in 24 hours in a day, 7 days in week

and 365 days in a year.
Banking services without any branch banking
Able to banking from anywhere of the country
Foreign Remittances will be deposited directly to the mobile

account in a short time.
A service for the unbanked people to take banking services.
Most modern, updated and more secure banking.
Creation of bank transactions almost for all types of financial

activities.
Except the cash transactions, all transactions can be performed

by the customer himself.
Mobile Banking Facility from Islami Bank
Page 35
2.15 Partner Mobile service operation of M-banking:

Name of Bank
Mobile Service Operations
Brac Bank
Grameenphon
,Robi,
Banglalink,
Airtel,
Citycell, Tele Talk

Dhaka Bank
Mercantile
Grameenphon , Banglalink
Bank Grameenphon , Robi, Banglalink, Citycell,
Limited
Dutch
Bangla
Bank Grameenphon
Limited
Islami
Banglalink,
Airtel,
Banglalink,
Airtel,
Citycell, Tele Talk

Bank Grameenphon
Bangladesh
Bangladesh
,Robi,
,Robi,
Citycell, Tele Talk

post Grameenphone
office
,Robi,
Banglalink,
Telecom,Citycell, Tele Talk
Page 36
Airtel
2.16 Opening of mCash Account

Where & how to register Islami Bank mCash account
Islami Bank mCash Account can be registered from any

branch of Islami Bank Bangladesh Limited, any agent
approved by Islami Bank Bangladesh Limited and mobile
network operators' approved agent where Islami Bank
mCash signboard will be appeared. Here account opening
form will be found. Anyone can open the Islami Bank
mCash account who has a mobile SIM of any mobile
company will fill up the form and submit to the agent. To
open an account, one needs the following:
1. 1 copy of passport size photograph.
2. Photocopy of National ID Card / Driving
License/Passport
Agent / Officer will open an account based upon the
information provided by the customer and the customer
will receive an SMS which will confirm the opening of
the account.
The mobile account number will be the combination of his mobile number with a check
digit which will be placed at the last of his mobile number. So the mobile account number
will be a combination of 12 digit number.
Then the customer call *259# and get the mCash Account Activation Confirmation menu
and submit a four digit PIN number which will be used for each transaction and will not be
disclose to anyone for security reason. At this stage, customer only can deposit money to
his account but not able to withdraw and other transactions.
After the activation of his mobile account by the branch employee of IBBL, he will get a
Page 37
confirmation SMS. Now, he can enjoy all the services of Islami Bank mCash. Generally it
is required 1-3 days to activate an account.
Applicant fills up
He/ she is required to
The
the
fill up the specimen
scrutinized
signature
introduction and examine
relevant
application from in
the presided manner
authorized
officer
the documents submit
Depositing the cash
Account is opened
Figure 9: Mobile Account opening procedures
Uses of mCash PIN Number

PIN will provide the first level of security to the customer and for each transaction his
mobile phone and PIN number will be required. So, this PIN number is not shareable to
anyone and must have to remember by the customer with higher preference.
2.17 How is IBBL Mobile Banking secured?

IBBL Mobile Banking is highly secured as it uses either USSD or SMS+IVR as its
communication channel. In case of USSD, both the instructions and PIN are communicated
Page 38
the
using USSD while in case of SMS+IVR, instructions are sent via SMS and PIN via IVR
(voice channel) both the USSD and IVR are secured for transmission of PIN Customers
money is safe, none can withdraw his/her money without taking possession of the Mobile set,
PIN and Check digit together. None will be able to deposit unwanted money into a Mobile
Banking Account without knowing the check digit (although the mobile number is publicly
known).
Figure 10: Mobile Banking secured
2.18 mCash: Service Details
Page 39
Where and how the transactions will perform

Islami Bank mCash Account transactions can be performed at any branch of Islami Bank
Bangladesh Limited, any agent approved by Islami Bank Bangladesh Limited and mobile
network operators' approved agent where Islami Bank mCash signboard will be appeared.
Transaction Procedures
Cash in (deposit)
Customer can cash-in (deposit) at any IBBL branches. Service Center, IBBL nominated
Agent and from Grameenphone, Robi, Banglalink, Warid Telecom, City cell, Tele Talk
retail points.
Customer will give the deposited amount and mobile account number to the agent
Agent will start the cash in process from his mobile phone
Agent will give the deposit slip to the customer
Then both the customer and agent will receive a SMS as the confirmation of the
cash in (deposit)
After receiving the SMS, customer will confirm about his cash in. So, he/she must
not leave the agent counter before getting the SMS
Cash Out (Withdraw)

Cash Out (Withdraw) at any IBBL branches. Service Center, IBBL nominated Agent and
Page 40
from Grameenphon, Aktel, Banglalink, Warid Telecom, City cell, Tele Talk retail points.
Customer will give mobile account number and tell the amount of cash out
(withdraw) to the agent
Customer will call *259# from his mobile and get the Cash Out (withdraw) menu
Then he will submit the agent's mobile account number, amount of money and PIN
number
Then transaction will complete and both the customer and the agent will receive the
confirmation SMS from the System
Agent will take the customer's signature/finger print and give the cash out
(withdraw) receipt and money to the customer
Send Money (from one account to another)

The money transfer from one mobile account to another mobile account is called P2P
transfer. At present, Grameenphone, Robi, Banglalink, Airtel, City cell, Tele Talk mobile
account user can transfer maximum Tk.10,000/- (Ten thousand) per day and Tk.25,000/(Twenty five thousand) per month from own account to any mobile account any time.
Customer will call *259# from his mobile and get the Fund Transfer menu
Then, the customer will submit the mobile account number, amount of money and
PIN number
Then, both the account holder and the customer will receive a confirmation SMS
and transaction will be completed
Merchant Payment
To purchase products from any merchant, the merchant should be a registered IBBL
merchant
Page 41
Customer will call *259# from his mobile and get the Merchant Payment
Then, the customer will submit the mobile account number of the merchant, amount
of money and PIN number
Then, both the customer and the merchant will receive a confirmation SMS and
transaction will be completed
Mobile Recharge (Top-Up)

IBBL mobile account holder can Top-up own or others Grameenphon, Aktel, Banglalink,
Warid Telecom, City cell, Tele Talk mobile balance through his/her IBBL Mobile Account.
Customer will call *259# from his mobile and get the Mobile Recharge menu
Customer will select this menu and then will select the mobile number of his own
phone or give the other mobile number
Then customer will submit the recharge amount and PIN number
Then, the customer will receive a confirmation SMS and transaction will be
completed
Balance Check
Customer will call *259# from his mobile and get the My Wallet menu
Then customer will select the Balance Check menu from the My Wallet menu and
submit the PIN number
In the reply SMS, he will get the current balance of his mobile account
Mini Statement Check
Then customer will select the Mini Statement menu and submit the PIN number
Page 42
In the reply SMS, he will get the Mini Statement (last 5 transactions) of his mobile
account.
PIN Number Change
Then customer will select the Change PIN menu and submit the current PIN number
and twice the new PIN number
In the reply SMS, he will get the confirmation about the change of his PIN number
Salary/Allowance Disbursement
It is a process by which Corporate Office can disburse the salary of their employees and
Government can disburse different allowances like elderly allowance, freedom fighter
allowanceto the people within a few moment in a hassle free way.
Figure 11: Allowance Disbursement
2.19 Receive Foreign Remittance
Page 43
Now, it is not required to come at the branch premises to

receive the foreign remittance. Now, anyone can send the
foreign remittance directly to the mCash mobile account
from the IBBL foreign liaison offices, approved agents and
exchange houses. Within 24-72hours the fund will be
credited directly to the mobile account and also get the
confirmation SMS both the remitter and the beneficiary.
This money can be able to withdraw from any branch of
Islami Bank Bangladesh Limited, any agent approved by
Islami Bank Bangladesh Limited and mobile network
operators' approved agent where Islami Bank mCash
signboard will be appeared. Please provide your remitter
the following information to remit the foreign remittance:
Amount of Money
Name of the beneficiary
Account Number (mCash Mobile Account)
Bank Name: Islami Bank Bangladesh Limited
2.20 mCash: Amount of Charges

Account Opening
Foreign Remittance Deposit
Receive Salary & Allowance
Merchant Payment
Cash In (Deposit)
Cash
Regular Cash Out At Agent / IBBL
: Free
: Free
: Free
: Free
: Free
: Free
: Tk. 5
Out
transaction amount whichever is
Branch
higher
Page 44
or
1.80%
Tk.
of
At IBBL ATM / :
POS
Tk.
or
1.30%
Tk.
of

higher
Salary / Foreign At Agent
Tk.
Remittance

higher
At IBBL Branch / : Tk.
ATM / POS
Send
or
or
1.00%
0.30%
Tk.
Tk.
of
of
mCash to mCash
higher
: Tk. 4 per transaction (for Tk. 10-
IBBL A/C to mCash
Tk. 5,000)
: Tk. 5 or
Mone
y
0.50%
Tk.
of

higher
: Tk.
mCash to IBBL A/C
or
1.30%
Tk.
of

higher
: Tk.
Fees Payment
or
1.50% Tk.
of

higher
2.21 mCash: Transaction Limit

As per Mobile Financial Services Guideline
of
Bangladesh
Bank,
the
following
transaction limits are allowed for each

customer of mobile banking:
Daily Deposit
: 5 times (maximum)
Daily Withdraw
: 3 times (maximum)
Daily
Deposit : 50 - 25,000 Tk.
Amount
Daily
Withdraw : 50 - 25,000 Tk.
Amount
Page 45
Daily
Transfer : 10 - 10,000 Tk.
Amount
Monthly Deposit
: 20 times (maximum)
Monthly Withdraw : 10 times (maximum)
Monthly
Deposit : 1,50,000 Tk.
Amount
Monthly Withdraw : 1,50,000 Tk.
Amount
Monthly
Transfer : 25,000 Tk.
Amount
Daily Agent Cash : 5 times
In/B2B Credit
2.22 SMS Banking Service

IBBL has introduced its SMS banking service since 2008. Registration is required. For
registration you have contact to your branch. SMS Facilities are applicable only for their
Online Branches.
2.22.1 Services
Multiple Account Registration
International Push- Pull Facility
Account Balance (BAL )
Mini Account Statement (STM)
Account Information (ACI)
2.22.2 SMS Format
IBB <space>SERVICE <space>PIN<space> A/C Serial

Send to : 6969 (for local clients) +8801714006969 (for international clients)
2.22.3 Charges
Till now, no charges required except the normal SMS service charge.For more information
please contact to your nearest branch or see the Rules and regulation given overleaf of the
SMS Banking Registration Form.
Page 46
2.23 Comparison among Islamic banks

2.23.1 daily traffic rank trend
Traffic rank for islamibankbd.com:
Traffic Rank
Change
7 day
60,743
-10,264
1 month
63,653
+10,261
3 month
66,367
-28,124
Among the Islamic banks in Bangladesh Islami Bank has the traffic record,
whereas other didnt come to the list yet.
2.23.2 daily reach(percent)

Estimated percentage of global internet users who visit islamibankbd.com:
Reach
7 day
1 month
3 month
0.0025
0.0023
0.00225
Change
+20%
-18%
+46%
This represents the ability to reach people around the world. Islami
Bank(IBBL) has the highest reach among the Islamic banks in Bangladesh.
Page 47
2.24 Comparison among commercial banks

2.24.1 daily traffic rank trend
Traffic rank for islamibankbd.com:
Traffic Rank
7 day
1 month
3 month
60,743
63,653
66,367
Change
-10,264
+10,261
-28,124
Here Brac Bank(BBL), and Duch-Bangla Bank(DBBL) got lot more traffic
than IBBL, which is not great for IBBL.
2.24.2 daily reach

Estimated percentage of global internet users who visit islamibankbd.com:
Reach
7 day
1 month
3 month
0.0025
0.0023
0.00225
Change
+20%
-18%
+46%
Page 48
Here also BBL and DBBL got greater reach than IBBL, which is not good for
IBBL.
2.25 COMPARISON WITH bKash, DBBL ,Bank Asia Mcash

Before comparing with bKash and DBBL, it is better to read some details of these two.
2.25.1 BRAC Bank/ bKash: In 2011 BRAC Bank launched a 51% owned subsidiary called
bKash combined with an investment from the USA based Money in Motion. Bangladesh
Bank granted permission to BRAC Bank and bKash jointly to operate the MFS business. The
MFS guidelines specifically allow banks and their subsidiaries to carry out the MFS business.
BRAC Bank/bKash launched its operations in July 2011 and its initial MNO partner was
Robi. In January GrameenPhone (GP) opened a USSD channel to bKash opening the service
to GP subscribers. BRAC Bank/bKashs service is delivered over the Fundamo platform
initially developed in South Africa which has since been acquired by Visa. BRAC
Bank/bKash has agents in all districts of Bangladesh and its aspiration is to be a large scale
provider of MFS reaching tens of millions of Bangladeshis in a few years time. BRAC
Bank/bKash were cautious that the service would not be profitable for another45 years.
BRAC Bank/bKash has also received a $10 million grant from the Bill and Melinda Gates
Foundation and technical assistance from Shore Bank International to support the launch of
its MFS services.
Features/Services of bKash Mobile Banking are:

Cash in & Cash Out
Page 49
Send Money
Change pin
Payment
My wallet
check balance
request statement
Token
Create Token
encash token
redeem token
2.25.2 Dutch Bangla Bank: DBBL launched its MFS service branded DBBL Mobile in
March 2011 using a technology platform from an international vendor called Sybase
365.Presently DBBL operates this as a separate platform from its core banking system, but
the two systems can be linked in the future. This platform uses various technologies
(SMS,IVR, USSD) to open accounts and process payments. The main service is a menu
driven service accessed through USSD channels provided under agreements with Airtel,
Banglalink and GP. DBBL also offers an SMS/IVR based service for Citycell subscribers.
DBBL makes its services available through a network of 3,181 agents provided by a
combination of Banglalink, Citycell, Airtel, and UISC8. But the largest number of agents
DBBL acquires itself through third party distributors. In total DBBL reports agents in 61
districts serve a total of 172 thousand accounts. DBBL aspires to acquire 1 million customers
during 2012 and 10 million during 2013. DutchBangla Bank sees the main challenges in
establishing stable commercial relationships to use the wireless networks of MNOs. It also
sees profitability and revenue in the early stages as a major challenge because the revenues
are not sufficient to provide the income necessary to agents to build the business. An
additional challenge is maintaining quality and covering the high cost of KYC with large
numbers of new accounts being opened.
Features/are:
Customer Registration
Salary Disbursement
Cash in (Cash Deposit)
Foreign Remittance
Cash out (CashWithdrawal)
Air-time Top-up
Merchant Payment
Page 50
Fund Transfer
Utility Payment
Above two banks are the main competitor that IBBL mcash has to face in the market. So,to
get success IBBL has to beat these two big competitor. IBBL has to convince the customer to
use mcash rather than bKash and DBBL.
2.26 Comparison with DBBL & bkash:

Subject
1.
Launched
2.
Mobile bank Agents
3.
Mobile bank Customers
4.
Transactions Limits
5.
Charge
6.
Convenient
7.
Agent Ship
8.
Security
9.
Marketing
10.
Merchant/trade Payment
11.
Acceptance
12.
Contracted Operator
13.
General banking
14.
Limitation
IBBL
December 27,2012
26 thousand
18 million
Good
Lower
Yes
Complex
No fraud found
Medium
Good
Medium
6
Best
Exists
DBBL
March 2011
34 thousand
15 million
Good
High
Yes
Easy
Fraud found
Strong
Good
Medium
6
Good
Low
bKash
2011
58 thousand
20 million
Good
High
Yes
Easy
Fraud found
Strong
Wide
Higher
6
good
Low
DECISION:
From the above table it is easy to take decision on the superiority of mobile banking services
among three (3) banks. But any bank has not superiority in all subjects. Therefore IBBL
mcash is in strong position in general banking customer base, capital base, security which are
positive sides of IBBL to become successful in the market. Also the cost of mobile banking
service is lower than bKash. But it has slow growth rate of customer and agents due to lack of
promotional activities, lack of contract with main mobile operator.
Page 51
2.27 Comparison of mobile banking services with other banks.

Bank
Services
Place of service
Phones
Name
Grameenpho
Customer
Registration
Cash-in (cash
deposit)
Cash-out (cash
withdrawal)
Mobile Top-up
Person to Person
IBBL
Any branch,
any agent
approved agent where
Islami Bank mCash
signboard will be
appeared
ne
,Aktel,
Banglalink,
Warid
Telecom,
Citycell,
Tele Talk
Transfer (P2P)
Foreign
Remittance
Salary
Disbursement
Balance Inquiry
Bill Payment
Merchant Payment
All in above
Linkage with core
banking account.
Grameenpho
Any branch,
any agent
DBBL mCash
signboard will be
DBBL
appeared
ne
Aktel,
Banglalink,
Citycell
Robi
Teletalk
ATM
All in Above of
BRAC
IBBL
BKash
any agent
Bkash signboard will
be appeared.
Page 52
For Bkash all phone is

approve.
UCB
Ucash
MBL
My cash
Jamun
Sure cash
approved agent
All Phones
approved agent
All Phones
a
Bank
Bank
Asia
Remittance
Ektee Bari
Ektee Khamar
Mobile
Banking based
on Smart
Phones
Mobile
Banking based
on Smart
POS(point of
sale)
2.28 Comparison of mCash: Amount of Charges with others bank
Account Opening
Foreign Remittance Deposit
Receive Salary & Allowance
Merchant Payment
Cash In (Deposit),Fast Track
IBBL
: Free
: Free
: Free
: Free
: Free
: Free
DBBL
: Free
: Free
: Free
: Free
free
DBBL,
BKB,
RAKUB
P2P Fund Transfer
Balance Enquiry
Statement Enquiry
free
free
free
Page 53
Branches 10tk
5tk
free
free
Cash-in Charges
free
2%
of
the
transaction
amount
or
Tk.
10/-, whichever is
Regular
higher
At Agent / IBBL : Tk. 5 or 1.80% Tk.of 2%
of
Cash Out
Branch
transaction
the
amount transaction
whichever is higher
amount or Tk.
At IBBL ATM / : Tk. 5 or 1.30% Tk. of 10/-, whichever is
POS
transaction
amount higher
Cashout
Salary
/ At Agent
Foreign
Remittance
whichever is higher
: Tk. 5 or 1.00% Tk. of
transaction
whichever is higher
At IBBL Branch / : Tk. 5 or 0.30% Tk. of
ATM / POS
transaction
Money
amount
mCash to mCash
whichever is higher
: Tk. 4 per transaction
IBBL A/C to mCash
(for Tk. 10-Tk. 5,000)

: Tk. 5 or 0.50% Tk. of
transaction
Send
amount
mCash to IBBL A/C
Fees Payment
amount
whichever is higher
: Tk. 5 or 1.30% Tk. of
transaction
amount
whichever is higher
: Tk. 2 or 1.50% Tk. of
transaction
amount
whichever is higher
2.29 Comparison of mCash: Transaction Limit with others bank

IBBL
5 times
Daily Deposit
(maximum)
Page 54
DBBL
Same
Daily Withdraw
3 times
Same
Daily Deposit Amount

Daily Withdraw Amount
Daily Transfer Amount
Monthly Deposit
(maximum)
50 - 25,000 Tk.
50 - 25,000 Tk.
10 - 10,000 Tk.
30 times
Same
Same
Same
20 times
Monthly Withdraw
(maximum)
15 times
(maximum)
10 times
Monthly Deposit Amount

Monthly Withdraw Amount
Monthly Transfer Amount
Daily Agent Cash In/B2B Credit
(maximum)
1,50,000 Tk.
1,50,000 Tk.
25,000 Tk.
5 times
(maximum)
Same
Same
Same
Same
Page 55
3.1 INTERNSHIP EXPERIENCE

I did my three months internship program in Islami Bank Bangladesh Limited, Head Office.
During my internship program, I gained some experience about the corporate environment.
My internship experience is given below-
3.2 Internship Position, Duties & Responsibilities

The duties and responsibilities I had to perform in the bank are given below:
Page 56
Before joining in the branch:

Before joining in the branch, had an eight days training in the Islami Bank Training and
Research Academy. There I have learned different terms and introduced with different
products of IBBL.
After joining in the branch:
After joining in the branch, had to perform any kind of duties assigned by the manager and
the senior principal officer.
Account Opening- Here I had taken part in the completion of some account opening forms.
After finishing the procedure of the forms I had to process and store client information into
the banks software named Electra debt which IBBL use to do their online banking. Also
done the transaction profile of the client and risk rating.
Investment & Foreign Exchange department-Had to study different clients files and discuss
different investment related issues with the supervisor.
Had to explain different issues to the supervisor.
Help the clients to open locker account in investment department.
Putting seals in different papers.
ATM Desk-Taking requisition for ATM card from the clients, sending request to the head
office and hand it over to the client after receiving it.
Giving account statement to the clients, issuing cheque and helping people to do i-banking.
3.3 Different aspects of the job :

I had to take an eight days training and give examination before joining in the branch. After
joining in the branch I had to perform different works according to the orders of the manager
and the senior principal officer. I had to study different clients files and discuss different
investment related issues like the process of taking and giving investments, choosing the
targeted customers, calculating the portion of profit and installment amount, documents
needed to execute the investment etc. with the supervisor. I had to help the clients to open
Page 57
account in account opening desk. I had to work with Electra debt and IBBLs software for
data entry and other computer related works. I had to take requisition for ATM card from the
clients, sending request to the head office and hand it over to the client after receiving it. I
also had to give account statement to the clients and issue cheque books.
3.4 Critical observations and recommendations:

From my observations in the bank while working there, I noticed that most of the customers
are satisfied with the bank. They are also getting new products and services like student
account, Internet-banking. But I have some recommendations for the bank according to my
observations. Those are given below:
The bank needs to open more ATM booths in different places as it has a huge number of
customers.
The bank can be more flexible to grant investments to the customers.
It can provide training on the internet to its employees.
It needs to build up a stronger backup system. As it is a financial institution, missing of data
caused by backup failure may turn into a huge loss.
It can employ more female employees in the branch.
The bank can make a clear picture on the difference between interest and profit.
They can use an understandable Islamic terms.
They can upgrade their services more.
Page 58
Survey Research on Mobile Banking of IBBL (Dilkusa,Motijill,Heasd Office ).
4.1 Problem Statement (Background of the study):

This report is based on the Mobile Banking Service of Islamic Bank Bangladesh Limited. The
main purpose of the report becomes very clear from the topic of the report. Islami Bank
Bangladesh Limited (IBBL) launched Mobile Banking service Islami Bank mCash, under
which any telecom operator customers can get banking services anytime anywhere in
Bangladesh. The report discusses about the different Mobile banking services & facilities and
compares them with mCashs competitors. The most important part of any of this is that if the
Page 59
customers are satisfied. What do the customers think about the mobile banking and mCash.
Mobile banking has revolutionized banking in Bangladesh. It is faster than before, it is more
flexible and less costly, but again it is very important to find out what the customers think
about that because, at the end of the day, everything is for the customers. Success always
comes from a banks happy customers. So what I have tried to find out is clearly what do the
customers think or feel about the service of mobile banking and Mcash on the next research
part.
4.2 Project Timeline:

To prepare this project report we had to spend total one month. The project activities have
shown in the following:
Week 01
Week 02
Week 03
Week 04
:
:
:
:
Methodology developed & Questionnaire finalization.

Data Collection
Conduct survey research
Data analysis and Interpretation
Description of Activities
Week 1 Week 2 Week 3 Week 4
Developed the research plan

Developed the hypothesis
Conduct survey research
Data analysis and Interpretation
4.4 Budget Information:

The total individual expenditure to prepare this project as followed:
Particulars
Amount (BDT)
Transportation
Printing, Photocopy & Binding
Cell phone & Internet Bill
1,000
1,500
1,500
Lunch bills
1,000
Others Expenses
500
Total
5,500
Page 60
Table 1: Internship Budget Information
4.5 Data Source:
Primary Data:
The primary data has been collected from field survey through the questionnaire
structure. The questionnaire structure has been solved face to face conversation with
the selected sample.
Secondary Data:
Website of Islami Bank Bangladesh Limited.

Banks Annual report 2013.
Hand note provided by the bank.
Internet
4.6 Research Design:

Sampling Plan
Population
The population for the survey was the approximately 1200 Mobile banking customers in
Islami Bank Bangladesh Limited head office over three period of months.
Sample Unit:
Customers of Islami Bank Bangladesh Limited Head Office.
Sample Frame:
The sample frame of this study consists of approximately 1200 Mobile
banking customer in Islami Bank Bangladesh Limited Head Office.
Sampling Size:
A total of 40 customers have been selected randomly. The Customer has
been
defined both male and female
Sampling System:
For conducting this study simple random sampling method has been followed.
Instrument of Research
Page 61
Questionnaires with Structure question

Personal Question with MCQ
Likert Scale Question
4.5.2 Research Approach

Survey
4.5.3 Research Instrument

Questionnaires with Structure question
personal Question with MCQ
4.5.4 Contract Method

Questionnaire Survey
4.7 Data Analysis:

For analysis of data Microsoft Word, Microsoft Excel, different tables and graphs were used
to make the data meaningful. Hypotheses were testing to derive a meaningful conclusion
from the empirical data. In addition, basic statistical techniques of different measures of
central tendency have been used for analyzing the data. As the sample size is more than 30, I
have used Z test for the study.
The following formula has been followed:
Z test = ( X - )/ (/n)
= mean value
n = sample size
= Standard deviation
= Average
Page 62
Based on our analysis, I made findings, recommendations, and conclusion.
4.8 Hypothesis Scale:

In order to analysis the data a 5 point Likert scale has been used. 1 stands for highly
disagreed customers, 2 stands for only disagreed customers, 3 stands for the neutral
customers, 4 stands for agreed customers, and 5stands for highly agreed customers.
The scale has been shown below:
Table: Hypothesis scale
Customer Opinion
Weighted
STRONGLY DISAGREE
DISAGREE
1
2
NEITHER AGREE NOR DISAGREE

AGREE
STRONGLY AGREE
3
4
5
4.9 HYPOTHESIS DEVELOPMENT

1.
2.
3.
4.
5.
6.
7.
HA: Mobile Banking of IBBL has made banking exercise easier than before.
HA: Mobile Banking of IBBL takes less time than traditional Banking.
HA: Mobile Banking of IBBL is more efficient and secure than internet banking.
HA: Mobile Banking of IBBL is more effective in developing saving habits.
HA: Mobile Banking of IBBL is a very effective way to improve customer service.
HA: Mobile Banking of IBBL is safe for financial transactions.
HA: By using Mobile Banking of IBBL we can save our time by paying utility bills
anywhere.
4.10 HYPOTHESIS TESTING:

Likert Scale
H1
H2
H3
H4
H5
H6
H7
1= Strongly disagree
2=Disagree
nor 8
10
3=
Neither
agree
Page 63
disagree
4= Agree
16
15
16
17
15
10
11
5= Strongly agree
15
12
16
12
13
14
Total
135
158
152
169
152
145
153
Average
3.375
3.95
3.8
4.225
3.8
3.625
3.825
Standard Deviation
1.1698
1.1311
1.1367
0.7333
1.1140
1.274
1.106
Z-test value
4.730
8.107
7.233
14.877
7.380
5.584
7.576
Table 02: Hypothesis Testing
Page 64
4.11 Graphical Representation:

HYPOTHESIS 1
HO: Mobile Banking of IBBL has not made banking exercise easier than before.
HA: Mobile Banking of IBBL has made banking exercise easier than before.
Ho: = 2.5
Ha: 2.5
Total = 135
Here, Average
= 3.375
Standard deviation = 1.1698

Since, n > 30, so I conduct Z test.
Z cal = (
)/ (/n) = 4.730
At 5% level of significance, follows Z distribution Z0.05 = 1.645

Since, Z cal> Z tab, the null hypothesis is rejected. So at 5% level of significance, it may be
said that Mobile Banking of IBBL has made banking exercise easier than before.
*------In 5 point scale the mean value is 2.5
Respondent
Strongly Disagree
15%
40%
8%
Disagree
18%
Neither Disagree nor Agree

Agree
20%
Strongly Agree
Figure 11: Respondents view regarding Mobile Banking of IBBL has made banking
exercise easier than before.
Page 65
HYPOTHESIS 2
HO: Mobile Banking of IBBL does not take less time than traditional Banking.
HA: Mobile Banking of IBBL takes less time than traditional Banking.
Ho: = 2.5
Ha: 2.5
Total = 158
Here, Average
= 3.95

Z cal = ( )/ (/n) = 8.107
1. Since, Z
cal>
tab
, the null hypothesis is rejected. So at 5% level of significance, it
can be said that Mobile Banking of IBBL takes less time than traditional Banking.
Respondent
5%
Strongly Disagree
Disagree
8%
13%
50%
Agree
Strongly Agree
25%
Figure 10: Respondents view regarding Mobile Banking of IBBL takes less time
than traditional Banking.
Page 66
HYPOTHESIS 3
HO: Mobile Banking of IBBL is not more efficient and secure than internet banking.
HA: Mobile Banking of IBBL is more efficient and secure than internet banking.
Ho: = 2.5
Ha: 2.5
Total = 152
Here, Average
= 3.8

Z cal = ( )/ (/n) = 7.233
Since, Z cal> Z tab, the null hypothesis is rejected. So at 5% level of significance, it can be
said that Mobile Banking of IBBL is more efficient and secured than internet banking.
Respondent
Strongly Disagree
5%
30%
Disagree
10%
15%
Agree
Strongly Agree
40%
Page 67
Figure 13: Respondents view regarding Mobile Banking of IBBL is more efficient and
secure than internet banking.
Page 68
HYPOTHESIS 4
HO: Mobile Banking of IBBL is not effective in developing saving habits.
HA: Mobile Banking of IBBL is more effective in developing saving habits.
Ho: = 2.5
Ha: 2.5
Total = 169
Here, Average
= 4.225

Z cal = ( )/ (/n) = 14.877
Since Z
cal>
tab
, the null hypothesis is rejected. So at 5% level of significance, it can be
said that Mobile Banking of IBBL is more effective in developing saving habits.
Respondent
Strongly Disagree
Disagree
18%
40%
Agree
Strongly Agree
43%
1. Figure 17: Respondents view regarding Mobile Banking of IBBL is more effective
in developing saving habits.
Page 69
HYPOTHESIS 5
HO: Mobile Banking of IBBL is not a very effective way to improve customer service.
HA: Mobile Banking of IBBL is a very effective way to improve customer service.
Ho: = 2.5
Ha: 2.5
Total = 152
Here, Average
= 3.8

Z cal = ( )/ (/n) = 7.47
said that Mobile Banking of IBBL is a very effective way to improving customer service.
Respondent
30%
5% 7%
20%
Strongly Disagree
Disagree
Neither Disagree nor

Agree
Agree
Strongly Agree
38%
1. Figure 16: Respondents view regarding Mobile Banking of IBBL is a very effective
way to improve customer service.
Page 70
HYPOTHESIS 6
HO: Mobile banking is not safe for financial Transactions
HA: Mobile banking is safe for financial Transactions
Ho: = 2.5
Ha: 2.5
Total = 145
Here, Average
= 3.625

Z cal = ( )/ (/n) = 7.47
said that Mobile banking is safe for financial Transition.
Respondent
8%
13%
33%
Strongly Disagree
Disagree
Neither Agree Nor

Disagree
Agree
Strongly Agree
23%
25%
Page 71
Figure 17: Respondents view regarding Mobile banking is safe for financial
Transactions.
HYPOTHESIS 7
HO: By using Mobile banking of IBBL we can not save our time by paying utility bill
anywhere.
HA: By using Mobile banking of IBBL we can save our time by paying utility bills anywhere.
Ho: = 2.5
Ha: 2.5
Total = 153
Here, Average
= 3.825

Z cal = ( )/ (/n) =7.576
said that By using Mobile banking we can save our time to pay utility bill.
Respondent
Page 72
35%
30%
25%
20%
15%
10%
5%
0%
Figure 17: Respondents view regarding By using Mobile banking we can save our time to
pay utility bill.
Page 73
5.1 Findings:
These are some findings given below on the basis of seven hypothesis testing.
1. Mobile Banking of IBBL has made banking exercise easier than before. In this
Hypothesis, 40% respondent Agreed and 15% strongly agreed, 20% Neither
Disagreed nor Agreed, 17.5% Disagreed and 7.50% Strongly Disagreed. So it can be
said that Mobile banking is making banking easier than before.
Page 74
2. Mobile Banking of IBBL takes less time than traditional Banking. In this
hypothesis,25% respondent Agreed and 50% Strongly agreed,12,5% neither disagreed
nor agreed,7.5% disagreed and 5% strongly disagreed. After taking a look at this
result it can be said that the most of the people believe mobile banking saves them
more time.
3. Mobile Banking of IBBL is more efficient and secured than internet banking. In this
Hypothesis,40% agreed and 30% strongly agreed. On the other hand 10% disagreed.
So by taking a look at the percentage it can be said that, mobile banking is more
efficient and secured system than what internet banking has to offer.
4. Mobile Banking of IBBL is more effective in developing savings habits. In this
hypothesis, 43% respondent agreed and 0% of respondent disagreed. It is strongly
proved that mobile banking has increased the saving habits of people.
5. Mobile Banking of IBBL is a very effective way of improving customer service. In this
hypothesis, 37.5% respondent agreed and 7.5 respondents disagreed. So it is quite safe to say
that Mobile Banking has improved customer service through direct communication with
customers via cell phones.
6. Mobile banking is safe for financial transactions. In this hypothesis, 25% agrees, 33%
strongly agreed,23% neither agreed nor disagreed,12% disagreed and 7% strongly disagreed.
So looking at this result it can be said that financial transactions are much safer, speedy
and safeguard against fraudulent transactions.

7. By using Mobile Banking we can save our time by paying utility bills anywhere . In
this hypothesis, 25% agrees, 33% strongly agreed, 23% neither agreed nor disagreed, 12%
disagreed and 7 % strongly disagreed. So mobile banking is ultimately saving more time and
has made our lives easier than before.
5.2 Recommendation:
Islami Bank Bangladesh Limited is on third position on Mobile Banking Services in our
country. First position is Dutch Bangla bank and second position is Brac Bank Limited. All
the services are almost same but the customers are different from one another but now a days,
Mobile banking service of IBBL is performing well compared to its competitors and
increasing the customers of mcash. Although the IBBL mcash is providing many facilities,
they need to increase some extra facilities for more popularity.
Page 75
On the basis of the field observations and analysis of the gathering information from the
relevant studies the flowing recommendations may be proposed for the further improvement
of Mobile Banking of IBBL.
1. From the findings, maximum people have agreed with this hypothesis. It is found out
that, there is no major problem with the mcash services. So it can be said that, mobile
banking has made banking easier than before though I believe it hasnt been much
popular because of the lack of good advertising or rather I would say serious
advertising.
2. From the findings, maximum people have agreed with this hypothesis. From the
survey it is clear that maximum people are happy with mobile banking more than
traditional banking because of the flexibility mobile banking has to offer. So it is
pretty clear that not only IBBL but all the banks have reached their goals which is
they achieved the trust of their customers on mobile banking system and now I think
it is time for the next step or goal to look forward to.
3. From the findings on this hypothesis, it is clear that mobile banking is strongly
accepted by the people. Because now people can make transactions and get all
information about their accounts within a second by using mcash. There is no chance
of getting hacked in Mcash services which may occur in the internet banking. Though,
the IBBL authority should always keep their eyes and ears open to protect their clients
from any potential threat.
4. From the findings on this hypothesis, it is also clear that now people are saving more
than before. It is simply because of the fact that mobile banking has reached to more
and more new people. Though it has not reached in some of the remote areas of our
country. So I think authority should give proper publicity and advertisement to reach
to those remote areas.
5. Mobile banking is a perfect way to improve customer service. Most of the middle
class & lower class people use mobile at the present time. They need appropriate
service by the mobile operators. Authority can create more customer care and also
create more customer care employees by training system.
Page 76
6. From the findings, clients are comfortable doing the financial transactions because it
is safe and secured So the authority should keep an eye out on it so that it stays that
way.
7. From the findings, maximum respondent have agreed more than disagreed that they
are using mobile banking to pay the utility bills. People now do not need to go to the
banks and wait on the long serials to pay their bills, they can do it anywhere by using
phones. The authority should encourage their clients on using mcash and advertise
more on it.
The bank also needs to provide more facilities to the customer to increase its popularity.
They can use the popularity to use on their customers to use mcash services. Islami bank
ATM booths should be increased more on the other hand.
5.3 Conclusion:
For service providers, Mobile banking offers the next surest way to achieve growth.
Countries like Bangladesh where mobile penetration is nearing saturation; mobile banking is
helping service increase revenue from the now static subscriber base. For the fact is that one
day, in most of our country emerging markets, more people will use mobile Banking service
than use traditional banking service. Businesses that are based on mobile financial serviced
will thus be a natural fit for these economies. What is more, there is no need to wait for the
next generation mobile networks; these businesses can be built by using today's technology.
But to capture this significant opportunity, financial firms and telecommunications companies
will have to partnership with one another and, possibly, with merchants and retail chains
as well. Mobile banking is suspended to become the big killer mobile application arena.
However, banks are going with mobile the first time needs to step 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
Page 77
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. According to the Gartner Group, mobile
banking services will have to support a minimum of 50 different device profiles in the near
future.
Islami Bank Bangladesh limited is pioneer of Mobile Banking in Bangladesh and it has a lot
of possibility to reach customers door as well as banking in the handoff customers.
Page 78
6.1 Bibliography:
Annual report 2013 of IBBL.

Other Internship Reports of IUBAT,
Discuss with the senior officers of IBBL
General Banking portfolio of IBBL
Books, Journal related to IBBL
Relevant Statistics and Business Research Books,
Mobile Banking PDF
Website:
Page 79
http://www.islamibankbd.com
http://en.wikipedia.org/wiki/Mobile_banking
https://ibblportal.islamibankbd.com/indexLogin.do
http://mcash.islamibankbd.com/
http://bdloan.net/how-to-get-mobile-banking-facility-from-islami-bank-mcash.html
6.2 Calculation of Average & Standard deviation :
1.HO: Mobile Banking of IBBL has not made banking exercise easier than befo
providing online service
HA: Mobile Banking of IBBL has made banking exercise easier
than before providing online service
Strongly
Disagre Neither agree/Nor Disagree
Disagree
1
1
1
e
2
2
2
2
2
2
2
3
3
3
3
3
3
Page 80
Agre Strongly
e
Agree
4
4
4
4
4
5
5
5
5
3
3
4
4
4
4
4
4
5
5
4
4
4
4
4
Avera
3
3.375
ge
SD
1.169867404
14
24
64
6.3Questionnaire (Customers)
Subject: Practicum (BUS-490)
Study on Mobile Banking Service of Islami Bank Bangladesh Limited...
(The information collected from this questionnaire will be used for research/academic
purpose and will be kept secret)
Page 81
30
Name of respondent: .
Location: ..
Age:
Marital Status:
Married
Unmarried
Divorced
Separated
Other ___________________
Educational Qualification:
01. To what degree do you agree that Mobile Banking of IBBL has made banking easier than
before?
1.Strongly
2.Disagree
3.Neither Agree
Disagree
4.Agree
nor disagree
5.Strongly
Agree
02. To what degree do you agree that Mobile Banking of IBBL takes less time than traditional
Banking?
1.Strongly
2.Disagree
3.Neither Agree
Disagree
4.Agree
nor disagree
5.Strongly
Agree
03. Do u agree that Mobile Banking of IBBL is more efficient and secured than internet
banking?
1.Strongly
2.Disagree
3.Neither Agree
Disagree
4.Agree
nor disagree
5.Strongly
Agree
04. Do you agree that Mobile Banking of IBBL is more effective in developing saving habits?
1.Strongly
2.Disagree
3.Neither Agree
Disagree
nor disagree
4.Agree
5.Strongly
Agree
05. To what degree do you agree that Mobile Banking of IBBL is a very effective way to
improve customer service?
Page 82
1.Strongly
2.Disagree
3.Neither Agree
Disagree
4.Agree
nor disagree
5.Strongly
Agree
06. Do you agree that Mobile banking is safe for financial Transactions?
1.Strongly
2.Disagree
3.Neither Agree
Disagree
4.Agree
nor disagree
5.Strongly
Agree
07. Do you agree that By using Mobile banking we can save our time by paying utility bills
anwhere.
1. Strongly
2.Disagree
Disagree
3.Neither Agree
4.Agree
nor disagree
5.Strongly
Agree
Remarks:
Thank you for your valuable time
Sharia Banking or Islamic Finance overarching principle is that all forms of interest are
forbidden. The Islamic financial model works on the basis of risk sharing. The customer and
the bank share the risk of any investment on agreed terms, and divide any profits between
them. The main categories within Islamic finance are: Ijara, Ijara-wa-iqtina, Mudaraba,
Murabaha and Musharaka.
Page 83

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Mobile Banking Service of IBBL.

1.2 scope of study

Idea about Mobile banking in Bangladesh.

1.3 Objective Of Study

1.4 Specific Objectives

To get a view of Islami banks Mobile banking system.

1.5 Limitations of the report

Lack of enough time due to university time restriction.

Mobile Banking Service of IBBL.

1.6.2Collection of Primary Data:

1.6.3 Collection of Secondary Data:

Various Thesis reports of various Banks.

1.6.4 Instruments used in analysis

Mobile Banking Service of IBBL.

Mobile Banking Service of IBBL.

2.1History of the Company:

Mobile Banking Service of IBBL.

13th March 1983

27th March 1983

30th March 1983

12th August 1983

10th March 2000

Head Office in its own Tower

2nd Rights Share issue

3rd Rights Share issue

4th Rights Share issue

Opening of 100th Branch

12th June 1997

21st June 2009

Mobile Banking Service of IBBL.

2.3 Mission and Vision of IBBL

To establish Islamic Banking through the introduction of a welfare oriented banking

To encourage socio-economic upliftment and financial services to the less-income

Total Financial Inclusion for balanced growth of the economy.

Vision of Islami Bank

We will try to encourage savings in the form of direct investment.

Mobile Banking Service of IBBL.

To provide the better customer services with minimum charges

2.4 Strategic Objectives

To ensure customers' satisfaction.

talent in a performance-driven culture.

and regulatory issues.

logistics to satisfy customers need.

2.4 Core Values

Trust in Almighty Allah

Mobile Banking Service of IBBL.

2.5 Organization Structure:

Mobile Banking Service of IBBL.

2.6Corporate Governance at IBBL

provides information for the stakeholders, establishes professionalism, builds capacity to

Mobile Banking Service of IBBL.

Financial Information: [ As on: 31 December 2013 ]

Prof. Abu Nasser Muhammad Abduz

Mohammad Abdul Mannan

Abu Reza Md. Yeahia

Mohammad Nesar Uddin, FCA, ACMA

2.7 Board of Director:

Dr. Abdul Hameed Fouad Al Khateeb (DIRECTOR)

Mobile Banking Service of IBBL.

Dr. Areef Suleman (DIRECTOR)

2.8 Corporate Social Responsibility of IBBL:

Mobile Banking Service of IBBL.

BDT(in million) 2009