Enhanced TelephoneFrom Wikipedia, the free encyclopediaJump to: navigation, searchThe Enhanced Telephone is a telephone de...
A transactional account (North America: checking account or chequing account,[1]United Kingdom and some other countries: c...
[edit] AccessAn NCR Automated Teller Machine (ATM)[edit] Branch networksMain article: Branch bankingThis refers to the pra...
Internet or Online banking describes the use of a banks secure website to view balancesand statements, perform transaction...
OverdraftsMain article: OverdraftAn overdraft occurs when withdrawals from a bank account exceed the available balance.Thi...
[edit] InterestMain article: InterestIn the United States, Regulation Q (12 CFR 217) and the Banking Acts of 1933 and 1935...
In the UK, virtually all current accounts offer a pre-agreed overdraft facility the size ofwhich is based upon affordabili...
Standard definitionsIn computer technology and telecommunication, online and offline are defined byFederal Standard 1037C....
A third example of a common use of these concepts is a web browser that can beinstructed to be in either online or offline...
telephone and Voice over Internet Protocol) has made it "impossible to use the term on-line meaningfully in the sense that...
include facilities to conduct bank and stock market transactions, to administer accountsand to access customised informati...
US will grow from 12 million in 2009 to 98 million in 2015. The same study also predictsthat the European market will grow...
implemented by either using correspondent arrangements or by creating a JV betweenBank and Telco/non-bank. In this model c...
A specific sequence of SMS messages will enable the system to verify if the client hassufficient funds in his or her walle...
Initial interoperability issues however have been localized, with countries like India usingportals like R-World to enable...
Another challenge for the CIOs and CTOs of the banks is to scale-up the mobile bankinginfrastructure to handle exponential...
In Iran banks like Parsian, Tejarat, Mellat, Saderat, Sepah, edbi and bankmelli offer thisservice. Guatemala have the supp...
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E banking

  1. 1. Enhanced TelephoneFrom Wikipedia, the free encyclopediaJump to: navigation, searchThe Enhanced Telephone is a telephone developed by Citibank in the late 1980s forcustomers to do banking and other financial transactions from their home. The officiallaunch date was February 26-27, 1990.The first version of the Enhanced Telephone, the 99A model, was beige and featured amonochrome CRT screen. Because of its chunky appearance, several developers dubbedit the "sawed-off ski boot."[1] The physical hardware was manufactured by TransactionTechnologies Incorporated (TTI).The second version of the Enhanced Telephone, the P100 model, was manufactured byPhilips Electronics and featured an LCD screen and more sleek styling. The font wasdeveloped by Bitstream Inc..Software for the Enhanced Telephone was written in a proprietary language called HAL(Home Application Language).The Enhanced Telephone ultimately failed to become a viable product because by thetime it was introduced, home banking via PCs was becoming more common. As theWorld Wide Web became popular in the early 1990s, the Enhanced Telephone wasrendered obsolete.The Philips P100 phone lived on and to this day variations of it are used for otherapplications.Transactional accountFrom Wikipedia, the free encyclopedia (Redirected from Current account (banking))Jump to: navigation, searchThe cheque is the traditional mode of payment for a transactional account.
  2. 2. A transactional account (North America: checking account or chequing account,[1]United Kingdom and some other countries: current account or cheque account) is adeposit account held at a bank or other financial institution, for the purpose of securelyand quickly providing frequent access to funds on demand, through a variety of differentchannels. Because money is available on demand these accounts are also referred to asdemand accounts or demand deposit accounts.Transactional accounts are meant neither for the purpose of earning interest nor for thepurpose of savings, but for convenience of the business or personal client; hence theytend not to bear interest. Instead, a customer can deposit or withdraw any amount ofmoney any number of times, subject to availability of funds.Features and accessAll transactional accounts offer itemized lists of all financial transactions, either througha bank statement or a passbook. A transactional account allows the account holder tomake or receive payments by: • cash money (coins and banknotes) • cheque and money order (paper instruction to pay) • giro (funds transfer, direct deposit) • direct debit (pre-authorized debit) • standing order (automatic funds transfer) • ATM card or debit card (cashless direct payment at a store or merchant) • SWIFT: International account to account transfer.[edit] Country specificCertain modes of payment are country-specific: • In the United Kingdom, BACS offers giros that clear in a matter of days while CHAPS is done on the same day. • Canada has an Email Money Transfer service • The United States offers e-checks. • In India, NEFT service is available to clear funds in a day.
  3. 3. [edit] AccessAn NCR Automated Teller Machine (ATM)[edit] Branch networksMain article: Branch bankingThis refers to the practice of maintaining physical locations where customers can receivea wide array of banking and financial services, such locations are described as branches.They may provide access to a combination of cash machines, telephone banking, counterservices and financial advice.[edit] Cash machinesMain article: Automated teller machineCash machines are electronic devices that allow bank customers to make cashwithdrawals and check their account balances without the need for a human teller. Manyalso allow people to deposit cash or cheques, transfer money between their bankaccounts, top up their mobile phones pre-paid accounts or even buy postage stamps.[edit] Internet bankingMain article: Online banking
  4. 4. Internet or Online banking describes the use of a banks secure website to view balancesand statements, perform transactions and payments, and various other facilities. This canbe very useful, especially for banking outside bank hours and banking from anywherewhere internet access is available. Since the internet revolution most retail bankinginstitutions offer access to current accounts via online banking.[edit] Telephone bankingMain article: Telephone bankingTelephone banking is the term applied to specific provision of banking services over thetelephone. In many cases such calls are to a call centre or automated service, althoughsome institutions continue to answer such calls in their branches. Often call centreopening times are considerably longer than branches, and some firms provide theseservices on a 24 hour basis.[edit] Mail bankingMail banking is a service provided by a financial institution which allows its customersto deposit cheques into their account by mail. It is primarily used by virtual banks (asthey may not offer branches or ATMs that accept deposits) and by customers who livetoo far from a branch. Typically, the institution that advertises such a service will provideits own self-addressed stamped envelopes as a courtesy.Debit cardA debit card (also known as a bank card or check card) is a plastic card that providesan alternative payment method to cash when making purchases. Functionally, it can becalled an electronic cheque, as the funds are withdrawn directly from either the bankaccount, or from the remaining balance on the card. In some cases, the cards are designedexclusively for use on the Internet, and so there is no physical card.[1][2]The use of debit cards has become widespread in many countries and has overtaken thecheque, and in some instances cash transactions by volume. Like credit cards, debit cardsare used widely for telephone and Internet purchases, and unlike credit cards the fundsare transferred from the bearers bank account instead of having the bearer to pay back ona later date.Debit cards may also allow for instant withdrawal of cash, acting as the ATM card forwithdrawing cash and as a cheque guarantee card. Merchants may also offer"cashback"/"cashout" facilities to customers, where a customer can withdraw cash alongwith their purchase.
  5. 5. OverdraftsMain article: OverdraftAn overdraft occurs when withdrawals from a bank account exceed the available balance.This gives the account a negative balance and in effect means the account provider isproviding credit. If there is a prior agreement with the account provider for an overdraftfacility, and the amount overdrawn is within this authorised overdraft, then interest isnormally charged at the agreed rate. If the balance exceeds the agreed facility then feesmay be charged and a higher interest rate might apply.[edit] CostThe policy of charging a fee for doing financial transactions depends on a variety offactors, including the country and its overall interest rates for lending and for saving, aswell as the size of the financial institution and the number of channels of access it offers.This is why operating few or no branches can afford to offer low-cost or free banking,and why, in some countries, transaction fees do not exist, but extremely high lendingrates are the normal.Financial transaction fees may be charged either per item or for a flat rate covering acertain number of transactions. Often, youths, students, senior citizens or high-valuedcustomers do not pay fees for basic financial transactions. Some will offer freetransactions for maintaining a very high average balance in their account. Other servicecharges are applicable for overdraft, non-sufficient funds, the use of an external interbanknetwork, etc. In countries where there are no service charges for transaction fees, thereare, on the other hand, other recurring service charges such as a debit card annual fee.[edit] InterestMain article: InterestUnlike savings accounts, for which the primary reason for depositing money is togenerate interest, the main function of a transactional account is transactional. Therefore,most providers either pay no interest or pay a low level of interest on credit balances.[edit] Chequing accountsChequing account is the name given in North America to a transactional account.[edit] OverdraftsMain article: OverdraftIn North America, overdraft protection is an optional feature of a savings account. Anaccount holder may either apply for a permanent one, or the financial institution may, atits sole discretion, provide a temporary overdraft on an ad-hoc basis.
  6. 6. [edit] InterestMain article: InterestIn the United States, Regulation Q (12 CFR 217) and the Banking Acts of 1933 and 1935(12 USC 371a) prohibit a member of the Federal Reserve system from paying interest onchequing accounts. This restriction can be circumvented by either creating an accounttype such as a Negotiable Order of Withdrawal account (NOW account) which is legallynot a chequing account or by offering interest paying chequing through a bank which isnot a member of the Federal Reserve system.[edit] High-yield chequing accountsHigh-interest NOW accounts have become prevalent throughout the industry. They pay ahigher interest rate than typical NOW accounts and frequently function as loss-leaders todrive relationship banking.In 2003, banks and credit unions began to establish maximum balance accounts, whichpay a premium rate up to a specified cap and a lower rate on balances above the cap. Thiscounter-traditional trend (banks had typically established minimum account balancesrather than maximum account balances) developed as a way to allow financial institutionsto attract multiple customer relationships while limiting the interest expense associatedwith each account.The first maximum balance, high-interest chequing account was offered in 2003 by asmall community bank in New Mexico, Pioneer Bank. In 2004 and 2005, severalcommunity banks in West Texas expanded the idea, and a 3rd party vendor, BancVue,combined the maximum-balance concept with the idea of a higher yield for specific b[edit] Current accountsCurrent account is the name given to a transactional account in the United Kingdom andcountries with a UK banking heritage, offering various flexible payment methods toallow customers to distribute money directly to others. Most current accounts come witha cheque book and offer the facility to arrange standing orders, direct debits and paymentvia a debit card. Current accounts may also allow borrowing via an overdraft facility.[edit] LendingCurrent accounts have two different ways in which money can be lent: overdraft andoffset mortgage.[edit] OverdraftMain article: Overdraft
  7. 7. In the UK, virtually all current accounts offer a pre-agreed overdraft facility the size ofwhich is based upon affordability and credit history. This overdraft facility can be used atany time without consulting the bank and can be maintained indefinitely (subject to ad-hoc reviews). Although an overdraft facility may be authorised, technically the money isrepayable on demand by the bank. In reality this is a rare occurrence as the overdrafts areprofitable for the bank and expensive for the customer.[edit] Offset mortgageMain article: Offset mortgageAn offset mortgage is a type of mortgage common in the United Kingdom used for thepurchase of domestic property, the key principle is the reduction of interest charged by"offsetting" a credit balance against the mortgage debt. This can be achieved via one oftwo methods either lenders provide a single account for all transactions (often referred toas a current account mortgage) or they make multiple accounts available which allow theborrowers to notionally split their money according to purpose whilst all accounts areoffset each day against the mortgage debt.[edit] InterestMain article: InterestIn the UK some online banks offer rates as high as many savings accounts along with freebanking (no charges for transactions) as institutions which offer centralised services(telephone, internet or postal based) tend to pay higher levels of interest. The same holdstrue for banks within the EURO currency zone.Online and offlineFrom Wikipedia, the free encyclopedia (Redirected from On-line and off-line)Jump to: navigation, search"Online" redirects here. For the Brad Paisley song of the same name, see Online (song).For the magazine, see ONLINE. For the feature film, see On line.The terms "online" and "offline" (also stylized as "on-line" and "off-line") have specificmeanings in regards to computer technology and telecommunications. In general,"online" indicates a state of connectivity, while "offline" indicates a disconnected state.In common usage, "online" often refers to the Internet or the World Wide Web.The concepts have however been extended from their computing and telecommunicationmeanings into the area of human interaction and conversation, such that even offline canbe used in contrast to the common usage of online (e.g., "I bought those Marcus Fenixfigurines offline").
  8. 8. Standard definitionsIn computer technology and telecommunication, online and offline are defined byFederal Standard 1037C. They are states or conditions of a "device or equipment" or of a"functional unit". To be considered online, one of the following must apply to a device: • Under the direct control of another device • Under the direct control of the system with which it is associated • Available for immediate use on demand by the system without human intervention • Connected to a system, and is in operation • Functional and ready for serviceIn contrast, a device that is offline meets none of these criteria (e.g., its main powersource is disconnected or turned off, or it is off-power).[edit] Offline mailOne example of a common use of these concepts is a Mail User Agent that can beinstructed to be in either online or offline states. One such MUA is Microsoft Outlook.When online it will attempt to connect to mail servers (to check for new mail at regularintervals, for example), and when off-line it will not attempt to make any suchconnection. The online or offline state of the MUA does not necessarily reflect theconnection status between the computer on which it is running and the Internet. That is,the computer itself may be online—connected to Internet via a cable modem or othermeans—while Outlook is kept offline by the user, so that it makes no attempt to send orto receive messages. Similarly, a computer may be configured to employ a dial-upconnection on demand (as when an application such as Outlook attempts to makeconnection to a server), but the user may not wish for Outlook to trigger that callwhenever it is configured to check for mail.[1][edit] Offline media playingAnother example of the use of these concepts is in the world of digital audio technology.A tape recorder, digital editor, or other device that is online is one whose clock is underthe control of the clock of a synchronization master device. When the sync mastercommences playback, the online device automatically synchronizes itself to the masterand commences playing from the same point in the recording. A device that is offlineuses no external clock reference and relies upon its own internal clock. When a largenumber of devices are connected to a sync master it is often convenient, if one wants tohear just the output of one single device, to take it offline because, if the device is playedback online, all synchronized devices have to locate the playback point and wait for eachother device to be in synchronization.[2] (For related discussion, see MIDI timecode, wordsync, and recording system synchronization.)[edit] Offline browsing
  9. 9. A third example of a common use of these concepts is a web browser that can beinstructed to be in either online or offline states. The browser only attempts to fetch pagesfrom servers whilst in the online state. In the off-line state, users can perform offlinebrowsing, where pages can be browsed using local copies of those pages that havepreviously been downloaded whilst in the on-line state. This can be useful when thecomputer is offline and connection to the Internet is impossible or undesirable. The pagesare either downloaded implicitly into the web browsers own cache as a result of prioronline browsing by the user, or explicitly by a browser configured to keep local copies ofcertain web pages, which are updated when the browser is in the online state, either bychecking that the local copies are up-to-date at regular intervals or by checking that thelocal copies are up-to-date whenever the browser is switched to the on-line state. Onesuch web browser capable of being explicitly configured to download pages for offlinebrowsing is Internet Explorer. When pages are added to the Favourites list, they can bemarked to be "available for offline browsing". Internet Explorer will download to localcopies both the marked page and, optionally, all of the pages that it links to. In InternetExplorer version 6, the level of direct and indirect links, the maximum amount of localdisc space allowed to be consumed, and the schedule on which local copies are checkedto see whether they are up-to-date, are configurable for each individual Favourites entry.[3][4][5][6]Offline browsing known as "Offline favourites" was removed as a feature in InternetExplorer 7, which now only supports saving single web pages, but not an entire site.[citationneeded][edit] OthersSimilarly, offline storage is computer data storage that is not "available for immediate useon demand by the system without human intervention."[citation needed][edit] GeneralizationsOnline and offline distinctions have been generalized from computing andtelecommunication into the field of human interpersonal relationships. The distinctionbetween what is considered online and what is considered offline has become a subject ofstudy in the field of sociology.[7]The distinction between online and offline is conventionally seen as the distinctionbetween computer-mediated communication and face-to-face communication (e.g. facetime), respectively. Online is virtuality or cyberspace, and offline is reality (i.e., Real lifeor meatspace). Slater states that this distinction is "obviously far too simple".[7] Tosupport his argument that the distinctions in relationships are more complex than a simpleonline/offline dichotomy, he observes that some people draw no distinction between anon-line relationship, such as indulging in cybersex, and an offline relationship, such asbeing pen pals. He also argues that even the telephone can be regarded as an onlineexperience in some circumstances, and that the blurring of the distinctions between theuses of various technologies (such as PDA and mobile phone, television and Internet, and
  10. 10. telephone and Voice over Internet Protocol) has made it "impossible to use the term on-line meaningfully in the sense that was employed by the first generation of Internetresearch".[7]Slater asserts that there are legal and regulatory pressures to reduce the distinctionbetween online and offline, with a "general tendency to assimilate online to offline anderase the distinction," stressing, however, that this does not mean that online relationshipsare being reduced to pre-existing offline relationships. He conjectures that greater legalstatus may be assigned to online relationships (pointing out that contractual relationships,such as business transactions, online are already seen as just as "real" as their offlinecounterparts), although he states it to be hard to imagine courts awarding palimony topeople who have had a purely online sexual relationship. He also conjectures that anonline/offline distinction may be seen by people as "rather quaint and not quitecomprehensible" within 10 years.[7]This distinction between online and offline is sometimes inverted, with online conceptsbeing used to define and to explain offline activities, rather than (as per the conventionsof the desktop metaphor with its desktops, trash cans, folders, and so forth) the other wayaround. Several cartoons appearing in The New Yorker have satirized this. One includesSaint Peter asking for a username and a password before admitting a man into Heaven.Another illustrates "the off-line store" where "All items are actual size!", shoppers may"Take it home as soon as you pay for it!", and "Merchandise may be handled prior topurchase!".[8] [9]Mobile bankingFrom Wikipedia, the free encyclopediaJump to: navigation, search It has been suggested that SMS banking be merged into this article or section. (Discuss)Mobile banking (also known as M-Banking, mbanking, SMS Banking etc.) is a termused for performing balance checks, account transactions, payments etc. via a mobiledevice such as a mobile phone. Mobile banking today (2007) is most often performed viaSMS or the Mobile Internet but can also use special programs called clients downloadedto the mobile devicA mobile banking conceptual modelIn one academic model,[1] mobile banking is defined as:"Mobile Banking refers to provision and availment of banking- and financial serviceswith the help of mobile telecommunication devices.The scope of offered services may
  11. 11. include facilities to conduct bank and stock market transactions, to administer accountsand to access customised information."According to this model Mobile Banking can be said to consist of three inter-relatedconcepts: • Mobile Accounting • Mobile Brokerage • Mobile Financial Information ServicesMost services in the categories designated Accounting and Brokerage are transaction-based. The non-transaction-based services of an informational nature are howeveressential for conducting transactions - for instance, balance inquiries might be neededbefore committing a money remittance. The accounting and brokerage services aretherefore offered invariably in combination with information services. Informationservices, on the other hand, may be offered as an independent module.Mobile phone banking may also be used to help in business situations[edit] Trends in mobile bankingThe advent of the Internet has enabled new ways to conduct banking business, resultingin the creation of new institutions, such as online banks, online brokers and wealthmanagers. Such institutions still account for a tiny percentage of the industry.[citation needed]Over the last few years, the mobile and wireless market has been one of the fastestgrowing markets in the world and it is still growing at a rapid pace. According to theGSM Association and Ovum, the number of mobile subscribers exceeded 2 billion inSeptember 2005, and now[when?] exceeds 2.5 billion (of which more than 2 billion areGSM).[citation needed]With mobile technology, banks can offer services to their customers such as doing fundstransfer while travelling, receiving online updates of stock price or even performing stocktrading while being stuck in traffic. Smartphones and 3G connectivity provide somecapabilities that older text message-only phones do not. This article appears to contain speculation and unjustified claims. Information must be verifiable and based on reliable published sources. Please remove speculation from the article.According to a study by financial consultancy Celent, 35% of online banking householdswill be using mobile banking by 2010, up from less than 1% today. Upwards of 70% ofbank center call volume is projected to come from mobile phones. Mobile banking willeventually allow users to make payments at the physical point of sale. "Mobilecontactless payments” will make up 10% of the contactless market by 2010.[2] Anotherstudy from 2010 by Berg Insight forecasts that the number of mobile banking users in the
  12. 12. US will grow from 12 million in 2009 to 98 million in 2015. The same study also predictsthat the European market will grow from 7 million mobile banking users in 2009 to 131million users in 2015.[3]Many believe that mobile users have just started to fully utilize the data capabilities intheir mobile phones. In Asian countries like India, China, Bangladesh, Indonesia andPhilippines, where mobile infrastructure is comparatively better than the fixed-lineinfrastructure, and in European countries, where mobile phone penetration is very high(at least 80% of consumers use a mobile phone), mobile banking is likely to appeal evenmore.[edit] Mobile banking business modelsA wide spectrum of Mobile/branchless banking models is evolving. However, no matterwhat business model, if mobile banking is being used to attract low-income populationsin often rural locations, the business model will depend on banking agents, i.e., retail orpostal outlets that process financial transactions on behalf telcos or banks. The bankingagent is an important part of the mobile banking business model since customer care,service quality, and cash management will depend on them. Many telcos will workthrough their local airtime resellers. However, banks in Colombia, Brazil, Peru, and othermarkets use pharmacies, bakeries, etc.These models differ primarily on the question that who will establish the relationship(account opening, deposit taking, lending etc.) to the end customer, the Bank or the Non-Bank/Telecommunication Company (Telco). Another difference lies in the nature ofagency agreement between bank and the Non-Bank. Models of branchless banking can beclassified into three broad categories - Bank Focused, Bank-Led and Nonbank-Led.[edit] Bank-focused modelThe bank-focused model emerges when a traditional bank uses non-traditional low-costdelivery channels to provide banking services to its existing customers. Examples rangefrom use of automatic teller machines (ATMs) to internet banking or mobile phonebanking to provide certain limited banking services to banks’ customers. This model isadditive in nature and may be seen as a modest extension of conventional branch-basedbanking.[edit] Bank-led modelThe bank-led model offers a distinct alternative to conventional branch-based banking inthat customer conducts financial transactions at a whole range of retail agents (or throughmobile phone) instead of at bank branches or through bank employees. This modelpromises the potential to substantially increase the financial services outreach by using adifferent delivery channel (retailers/ mobile phones), a different trade partner (telco /chain store) having experience and target market distinct from traditional banks, and maybe significantly cheaper than the bank-based alternatives. The bank-led model may be
  13. 13. implemented by either using correspondent arrangements or by creating a JV betweenBank and Telco/non-bank. In this model customer account relationship rests with thebank[edit] Non-bank-led modelThe non-bank-led model is where a bank does not come into the picture (except possiblyas a safe-keeper of surplus funds) and the non-bank (e.g. telco) performs all the functions.[edit] Mobile Banking ServicesMobile banking can offer services such as the following:[edit] Account Information 1. Mini-statements and checking of account history 2. Alerts on account activity or passing of set thresholds 3. Monitoring of term deposits 4. Access to loan statements 5. Access to card statements 6. Mutual funds / equity statements 7. Insurance policy management 8. Pension plan management 9. Status on cheque, stop payment on cheque 10. Ordering check books 11. Balance checking in the account 12. Recent transactions 13. Due date of payment (functionality for stop, change and deleting of payments) 14. PIN provision, Change of PIN and reminder over the Internet 15. Blocking of (lost, stolen) cards[edit] Payments, Deposits, Withdrawals, and Transfers 1. Domestic and international fund transfers 2. Micro-payment handling 3. Mobile recharging 4. Commercial payment processing 5. Bill payment processing 6. Peer to Peer payments 7. Withdrawal at banking agent 8. Deposit at banking agentEspecially for clients in remote locations, it will be important to help them deposit andwithdraw funds at banking agents, i.e., retail and postal outlets that turn cash intoelectronic funds and vice versa. The feasibility of such banking agents depends on localregulation which enables retail outlets to take deposits or not.
  14. 14. A specific sequence of SMS messages will enable the system to verify if the client hassufficient funds in his or her wallet and authorize a deposit or withdrawal transaction atthe agent. When depositing money, the merchant receives cash and the system credits theclients bank account or mobile wallet. In the same way the client can also withdrawmoney at the merchant: through exchanging sms to provide authorization, the merchanthands the client cash and debits the merchants account.[edit] Investments 1. Portfolio management services 2. Real-time stock quotes 3. Personalized alerts and notifications on security prices 4. mobile banking[edit] Support 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[edit] Content Services 1. General information such as weather updates, news 2. Loyalty-related offers 3. Location-based servicesBased on a survey conducted by Forrester, mobile banking will be attractive mainly tothe younger, more "tech-savvy" customer segment. A third of mobile phone users saythat they may consider performing some kind of financial transaction through theirmobile phone. But most of the users are interested in performing basic transactions suchas querying for account balance and making bill payment.[edit] Challenges for a Mobile Banking SolutionKey challenges in developing a sophisticated mobile banking application are :[edit] Handset operabilityThere are a large number of different mobile phone devices and it is a big challenge forbanks to offer mobile banking solution on any type of device. Some of these devicessupport Java ME and others support SIM Application Toolkit, a WAP browser, or onlySMS.
  15. 15. Initial interoperability issues however have been localized, with countries like India usingportals like R-World to enable the limitations of low end java based phones, while focuson areas such as South Africa have defaulted to the USSD as a basis of communicationachievable with any phone.The desire for interoperability is largely dependent on the banks themselves, whereinstalled applications(Java based or native) provide better security, are easier to use andallow development of more complex capabilities similar to those of internet bankingwhile SMS can provide the basics but becomes difficult to operate with more complextransactions.There is a myth that there is a challenge of interoperability between mobile bankingapplications 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 addressedwithin an individual country, as very few countries have more than one mobile bankingservice provider. In practice, banking interfaces are well defined and money movementsbetween banks follow the IS0-8583 standard. As mobile banking matures, moneymovements between service providers will naturally adopt the same standards as in thebanking world.[edit] SecuritySecurity of financial transactions, being executed from some remote location andtransmission of financial information over the air, are the most complicated challengesthat need to be addressed jointly by mobile application developers, wireless networkservice providers and the banks IT departments.The following aspects need to be addressed to offer a secure infrastructure for financialtransaction over wireless network : 1. Physical part of the hand-held device. If the bank is offering smart-card based security, the physical security of the device is more important. 2. Security of any thick-client application running on the device. In case the device is stolen, the hacker should require at least an ID/Password to access the application. 3. Authentication of the device with service provider before initiating a transaction. This would ensure that unauthorized devices are not connected to perform financial transactions. 4. User ID / Password authentication of bank’s customer. 5. Encryption of the data being transmitted over the air. 6. Encryption of the data that will be stored in device for later / off-line analysis by the customer.[edit] Scalability & Reliability
  16. 16. Another challenge for the CIOs and CTOs of the banks is to scale-up the mobile bankinginfrastructure 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 7fashion. As customers will find mobile banking more and more useful, their expectationsfrom the solution will increase. Banks unable to meet the performance and reliabilityexpectations may lose customer confidence. There are systems such as MobileTransaction Platform which allow quick and secure mobile enabling of various bankingservices. Recently in India there has been a phenomenal growth in the use of MobileBanking applications, with leading banks adopting Mobile Transaction Platform and theCentral Bank publishing guidelines for mobile banking operations.[edit] Application distributionDue to the nature of the connectivity between bank and its customers, it would beimpractical to expect customers to regularly visit banks or connect to a web site forregular upgrade of their mobile banking application. It will be expected that the mobileapplication itself check the upgrades and updates and download necessary patches (socalled "Over The Air" updates). However, there could be many issues to implement thisapproach such as upgrade / synchronization of other dependent components.[edit] PersonalizationIt 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[edit] Mobile banking in the world This article may require copy editing for grammar, style, cohesion, tone or spelling. You can assist by editing it. (December 2009)Mobile banking has come in handy in many parts of the world with little or noInfrastructure development, especially in remote and rural areas. This part of the mobilecommerce is also very 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 travelhundreds of miles to the nearest bank.Countries like Sudan, Ghana and South Africa received this new commerce very well.In Latin America countries like Uruguay, Paraguay, Argentina, Brazil, Venezuela,Colombia, Guatemala and recently Mexico started with a huge success.In Colombia was released with Redeban.
  17. 17. In Iran banks like Parsian, Tejarat, Mellat, Saderat, Sepah, edbi and bankmelli offer thisservice. Guatemala have the support of Banco industrial.Mexico released the mobile commerce with Omnilife, Bancomer and a privatecompany(MPower Ventures). Kenyas Safaricom (Part of the Vodafone Group) has hadthe very popular M-Pesa Service - mainly used to transfer limited amounts of money, buthas been increasingly used to pay utility bills. Zain in 2009 launched their own mobilemoney transfer business known as ZAP in Kenya and other African countriesTelephone bankingTelephone banking is a service provided by a financial institution, which allows itscustomers to perform transactions over the telephone.Most telephone banking services use an automated phone answering system with phonekeypad response or voice recognition capability. To guarantee security, the customermust first authenticate through a numeric or verbal password or through securityquestions asked by a live representative (see below). With the obvious exception of cashwithdrawals and deposits, it offers virtually all the features of an automated tellermachine: account balance information and list of latest transactions, electronic billpayments, funds transfers between a customers accounts, etc.Usually, customers can also speak to a live representative located in a call centre or abranch, although this feature is not always guaranteed to be offered 24/7. In addition tothe self-service transactions listed earlier, telephone banking representatives are usuallytrained to do what was traditionally available only at the branch: loan applications,investment purchases and redemptions, chequebook orders, debit card replacements,change of address, etc.Banks which operate mostly or exclusively by telephone are known as phone banks.

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