Mobile Banking refers to provision and an ailment of banking- and financial services with the help of mobile telecommunication devices. The scope of offered services may include facilities to conduct bank and stock market transactions, to administer accounts and to access customized information. According to this model mobile banking can be said to consist of three inter-related concepts: Mobile accounting Mobile brokerage Mobile financial information services

1. Well come
to our
presentation
1

2. Presentation
On
Mobile banking industry
(First Mover, Second Mover &
Late Mover)
Business Policy & Strategy MKT-405
Program - BBA
Section - 01
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3. Introduction ofIntroduction of Mobile banking
industry
Mobile Banking refers to provision and an ailment of banking- and
financial services with the help of mobile telecommunication devices. The
scope of offered services may include facilities to conduct bank and stock
market transactions, to administer accounts and to access customized
information.
According to this model mobile banking can be said to consist of
three inter-related concepts:
Mobile accounting
Mobile brokerage
Mobile financial information services
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4. First movers of Mobile Banking Industry
 Any advantage gained generally will vary based on the type of competitive action and
type of industry as also to the extent to which the action is difficult to imitate because of
the difficulty of imitation, first mover actions based on core competencies should be
sustainable for longer periods than actions based on other factors.
 First Mover: “Dutch Bangla Bank mobile
Banking”
 Dutch Bangla Bank pioneered Mobile Banking in Bangladesh. It was the first
bank to offer banking facilities through a wide range of mobile phones. Mobile
Banking is a Banking process without bank branch which provides financial
services to unbanked communities efficiently and an affordable cost. To
provide banking and financial services, such as cash-in, cash out,
merchant payment, utility payment, salary disbursement, foreign
allowance disbursement, ATM money withdrawal through mobile technology
devices, i.e. Mobile Phone, is called Mobile Banking.
Figure : Types of Business Environment 4

5. Advantages of First Mover
 There are some advantages to being a first mover (Dutch Bangla
Bank). Here are some of them:
 1. Dutch Bangla Bank has to the potential to make a lasting
impression on customers, which can lead to brand recognition and
brand loyalty.
 2. It is offering some interesting features for its customers
 3. Dutch Bangla Bank has more time to refine their processes and to
perfect their Products or services. Such as:
A. Cash in / Cash Out
B. Cash out from ATM
C. Send Money To other Account
D. Mobile Top Up to any Bangladeshi Mobile
E. Foreign Remittance
F. Merchant Payment
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6.  4. Dutch Bangla Bank may have an advantage in
controlling resources, such as a strategic location or an
exclusive contract with key suppliers or talented
employees.
5. Dutch Bangla Bank may have a sustainable
advantage when there is a high cost involved for
customers to switch brands at a later date.
 6. Dutch Bangla Bank was the first bank in Bangladesh
to be fully automated. The Electronic- Banking Division
was established in 2002 to undertake rapid automation
and bring modern banking services into this field.
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7. Disadvantages of First Mover
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 There are also some disadvantages to being a first mover, such as:
1. First mover (Dutch Bangla Bank) bear the economic burden of developing
a new market those followers into the market can exploit.
2. Followers into the market can learn from the mistakes of the Dutch
Bangla Bank (first mover) allowing them to reduce their risk and avoid
making costly mistakes.
“Now Largest ATM Network in Bangladesh”
3. Followers may be able to examine the processes of the Dutch Bangla
Bank (first mover) and modify them for greater efficiency and cost reduction.
4. Dutch Bangla Bank (first mover) may be heavily invested in older
technologies.
5.Dutch Bangla Bank rigidly adheres to their original path, even when it isn't
working, which opens the door for followers to move in with a revised version
of the product that better serves the market's needs.
6. Dutch Bangla Bank (First mover) may be driven by a fear of missed
opportunities, leading them to launch a new product or service before the
market is ready.

8. Second movers of Mobile Banking Industry
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 Second movers are companies that respond to a first mover's competitive
action, often through imitation or a move designed to counter the effects of
the (first mover's) action. How fast a second mover responds may
influence its results. Before following the first mover, a second mover
should evaluate initial customers' reactions to the first-movers actions and
analyze markets to identify critical issues.
 Second mover: “bKash”
 BKash Limited, a subsidiary of BRAC Bank, started as a joint venture
between BRAC Bank Limited, Bangladesh and Money in Motion LLC, USA.
In April 2013, International Finance Corporation (IFC), a member of the
World Bank Group, became an equity partner and in April 2014, Bill &
Melinda Gates Foundation became the investor of the company.
 The ultimate objective of bKash is to ensure access to a broader range of
financial services for the people of Bangladesh. It has a special focus to
serve the low income masses of the country to achieve broader financial
inclusion by providing services that are convenient, affordable and
reliable.

9. Advantages of Second Mover
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 1. Learning from Their Mistakes:
One of the largest advantages is being able to observe your competitors’
successes and failures. Microfinance in Bangladesh has focused primarily on
small-scale unsecured credit, while bKash provides a tool for sending
payments quickly to others.
2. Stealing Market Share Rather than Creating a Market:
Dutch Bangla Bank is faced with the task of convincing people they have a
problem in need of a solution, which tends to be expensive in both dollars
and man-hours. For the bkash the market already exists.
3. Surprise:
As a second mover (bkash) you are a sniper in the hills. You’re able to create
your marketing strategy knowing where your competitor has succeeded and
failed.
4. Customer Development:
BKash combines a diverse group of investors, but they all at least share
vision for scale.

10. 5. Product Management:
Bkash as a competitor goes to market, and if they’re smart, they will be
testing and optimizing the product.
 Cash In
 Cash Out
 Send Money
 Payment
 Bye Airtime
6. Procurement:
In a market where customers have a high loyalty to an existing and inferior
solution, Dutch Bangla Bank may do the heavy lifting of getting customers
to start thinking about switching.
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11. Disadvantages Second Mover:
 1. Balance in market with competition
 2. Local Regulatory Guideline
 3. Technology Integration
 4. Service and Product synchronization.
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12. Late Movers of Mobile Banking Industry
Late movers are companies that respond to a competitive action, but only
after considerable time have elapsed after the first mover's action and the
second mover's response
Late Mover: “Trust Bank Mobile Money”
Trust Bank Mobile Money is a prepaid account facility where Customer can
do transactions from anywhere through mobile phone with 24 hours
banking facility.
Customer will be able to fund Transfer, Deposit and Withdraw money from
the accredited Pay-points by using Mobile. Customers also will be able to
send remittance faster to the remote place of Bangladesh by availing this
product.
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13. Advantages of Late Mover
 1. Market Viability:
Late movers (Trust Bank Mobile Money) have the opportunity to see how well
a new idea, concept or approach is received by the general consumer public
before getting involved. Late movers (Trust Bank Mobile Money) can learn
from the mistakes of Dutch Bangla Bank when it comes to testing market
waters.
2. Tweaks and Improvements:
 Late-moving (Trust Bank Mobile Money) business has an opportunity
to watch early mover (Dutch Bangla Bank) trials and make
adjustments before jumping into the fray. This approach can make a
late-moving (Trust Bank Mobile Money) business appear more
innovative or cutting edge, even though it doesn’t hold pioneer status.
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14.  3. Limited Financial Risk:
 A late-moving (Trust Bank Mobile Money) has the advantage of watching
how things like product features, price points and functionality are received,
and it can tailor its own approach accordingly
4. Downsides to Late Movers:
 Late movers (Trust Bank Mobile Money) can potentially be seen as “knocking
off” or “ripping off” consumers with an imitation product, which can harm
their reputation. Late movers (Trust Bank Mobile Money) can also have a
potentially tough time gaining a market share of an established product or
service.
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15. Disadvantages of Late Mover
1. Late Mover Theory:
 The timing of a company’s entry to a new market determines the risks,
opportunities and environment that await it. Consequently, market entry
timing -- first mover (Dutch Bangla Bank), second mover (Bkash) or last
mover(Trust Bank Mobile Money) -- also affects the company’s market
power, strategic options and pre-emptive opportunities, each of which
influences a company’s return on investment.
 2. Late Mover Must Play Catch-up:
 Making a first mover (Dutch Bangla Bank), into a market is equivalent to
a pre-emptive strike, because it creates a lead for the pioneering company.
Dutch Bangla Bank have high rates of repeat purchases, effective
marketing programs and growing sales.

 Pioneer Acquires Supplier Commitments:
 With no other companies competing for key resources, the industry
pioneer ( Dutch Bangla Bank), can acquire commitments from suppliers
for raw materials, new technology and distribution channels.
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16. Thank You All
For
Attending The Session
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