Mobile banking-system-in-bangladesh-a-closer-study


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Mobile banking is one of the latest tools for easy and convenient banking in the current world. Day to day mobile payment and banking has become popular in Bangladesh. “Mobile Banking System in Bangladesh: A Closer Study” is the title of this assignment. The main objective of the study is to take a fresh look at the current M-Banking situation in Bangladesh and prospect of mobile banking in Bangladesh also highlight some recommendations for rendering M-banking services effectively. Mobile Banking is a Banking process without bank branch which provides financial services to unbanked communities efficiently and at affordable cost. To provide banking and financial services, such as cash-in, cash out, merchant payment, utility payment, salary disbursement, foreign remittance, government allowance disbursement, ATM money withdrawal through mobile technology devices, i.e. Mobile Phone, is called Mobile Banking. “Dutch-Bangla Bank Limited” (DBBL) has for the first time introduced its mobile banking service expanding the banking service from cities to remote areas. Currently many bank are providing this service and some bank are going to lunch this M-banking service. Among them “BRAC Bank Limited” mobile banking service named Bkash, Banglalink, Dhaka Bank and Western Union”, “Dutch-Bangla Bank Limited” services are most popular.“Bangladesh Post Office”, also provide mobile money services seems like m-banking. Mobile banking is not available on every device and still some popular bank does not provide mobile banking at all. The most potential customer of mobile banking is rural people. About 35% of mobile banking consumer are highly satisfied with present mobile banking service.After analyzing collected data eventually put some recommendation that may be proposed for further improvement of Mobile Banking in Bangladesh. In recommendation to reduced M-Banking limitation all banks should provide this opportunity, Government should provide help about mobile banking. Banks can use all mobile operators to make more available in all over the country. Also they should provide User guide to make easier the use of b-banking to all intended customers.

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Mobile banking-system-in-bangladesh-a-closer-study

  1. 1. Mobile Banking System in Bangladesh: A Closer Study A Closer Study
  2. 2. Assignment OnMobile Banking System in Bangladesh: A Closer Study Course code: MGT-312 Course Title: Fundamentals of MIS Submitted to Mr. Md. Rahimullah Miah Lecturer of MIS Department of Business Administration Leading University, Sylhet, Bangladesh Submitted by Faglul Karim Raihan ID: 1001010142 Sec-C, 7th Semester (24th Batch) Department of Business Administration Leading University, Sylhet Date of Submission: April 18, 2012
  3. 3. Table of content CHAPTER CONTENT NAME PAGE NO Letter Of Transmittal i Dedication ii Declaration iii Acknowledgement iv Letter Of Acceptance v Abstract 11 Introduction 2-62 General Context Of 7-20 The Study3 Methodology Of The 21 Study4 Result And 22-24 Discussion5 Conclusion And 25-26 Recommendations6 References 27-28 Appendices 29-31 Profile Of Author 32
  4. 4. List of TablesTABLE NO: NAME OF TABLE PAGE NO: 1 Bkash Payments are now accepted at 9 the following outlets 2 Bkash Agent Location in Sylhet Sadar 10-11 3 Mobile service operators of M- 23 banking 4 Usage rate of M-banking customers 24 5 Satisfaction level of M- banking 24 customers List of FiguresFigure No: Name of Figure Page No: 1 Country City Map 21 2 Network Architecture for mobile banking 31 system
  5. 5. LETTER OF SUBMISSIONApril 18, 2012Mr. Md. Rahimullah MiahLecturer of MISDepartment of Business AdministrationLeading University, Sylhet, BangladeshSubject: Letter of Submission.Dear Sir,It is an enormous pleasure to submit my assignment titled “Mobile Banking System inBangladesh: A Closer Study” assigned as a requirement of our course related.In preparing this assignment I have acquired many knowledge about mobile banking. I have triedmy best to furnish the assignment with relevant data, which I had to collect from online andrelated journal. I hope this assignment will help the banking sector to gather some insights onthe windows to do further studies in this aspect.I would like to convey my tributes to you and thank you for giving me the opportunity to workon this topic. Your queries in this aspect will highly be expected.Thank youSincerely yoursFaglul Karim RaihanID: 1001010142Section C7th Semester (24th Batch)BBA ProgramDepartment of Business AdministrationLeading University, Sylhet, Bangladesh
  6. 6. DedicationIn dedication to all my friendsand family who help me find happy moments every day to celebrate
  7. 7. DECLARATIONThis assignment paper is prepared by me. The title of this assignment is “Mobile BankingSystem in Bangladesh: A Closer Study” under the supervision of Mr. Md. Rahimullah Miah,Lecturer of MIS, Leading University, Sylhet, Bangladesh. Any duplication is prohibited withoutthe permission of Author.Faglul Karim RaihanID: 1001010142Section C7th Semester (24th Batch)BBA ProgramDepartment of Business AdministrationLeading University, Sylhet, BangladeshE-mail: raihan_lu@yahoo.comMobile:0171577865April 18, 2012
  8. 8. ACKNOWLEDGEMENTFirst of all I pay a special thanks to my almighty God, who made me able to complete this report.Then I would like to give thanks to Renowned Philanthropist Mr.Ragib Ali as he establishedLeading University and we got this opportunity to read here. After wards, I would like to expressmy heartfelt gratitude to Prof. Dr. Mr. Bashir Ahmed Bhuiyan, Head of the Department of BusinessAdministration, Leading University-Sylhet.I would like to thanks our course instructor Mr. Md. Rahimullah Miah, respected lecturer ofLeading University for giving me this chance to make a assignment. My thanks also goes to myfamily members and friends who are co-operated with me at any of the steps of the assignmentand continuously support me without any hesitation and make themselves an important part ofthis job.AUTHOR
  9. 9. LETTER OF ACCEPTANCEThis is to certify that Faglul Karim Raihan, ID No. 1001010143, Section C, 7th Semester,24thBatch, Department of Business Administration, Leading University, Sylhet, Bangladesh hascompleted his assignment work entitled on “Mobile Banking System in Bangladesh: A CloserStudy” under my supervision. He has completed his work with sincerity, commitment anddedication. He discussed different issues and problems with me to meet the requirements of thisstudy and preparing the assignment.I wish all the best in his effort.Md. Rahimullah MiahLecturer of MISDepartment of Business AdministrationLeading University, Sylhet, Bangladesh
  10. 10. ABSTRACTMobile banking is one of the latest tools for easy and convenient banking in the currentworld. Day to day mobile payment and banking has become popular in Bangladesh.“Mobile Banking System in Bangladesh: A Closer Study” is the title of this assignment.The main objective of the study is to take a fresh look at the current M-Banking situationin Bangladesh and prospect of mobile banking in Bangladesh also highlight somerecommendations for rendering M-banking services effectively. Mobile Banking is aBanking process without bank branch which provides financial services to unbankedcommunities efficiently and at affordable cost. To provide banking and financial services,such as cash-in, cash out, merchant payment, utility payment, salary disbursement,foreign remittance, government allowance disbursement, ATM money withdrawalthrough mobile technology devices, i.e. Mobile Phone, is called Mobile Banking. “Dutch-Bangla Bank Limited” (DBBL) has for the first time introduced its mobile bankingservice expanding the banking service from cities to remote areas. Currently many bankare providing this service and some bank are going to lunch this M-banking service.Among them “BRAC Bank Limited” mobile banking service named Bkash, Banglalink,Dhaka Bank and Western Union”, “Dutch-Bangla Bank Limited” services are mostpopular.“Bangladesh Post Office”, also provide mobile money services seems like m-banking. Mobile banking is not available on every device and still some popular bankdoes not provide mobile banking at all. The most potential customer of mobile banking isrural people. About 35% of mobile banking consumer are highly satisfied with presentmobile banking service.After analyzing collected data eventually put somerecommendation that may be proposed for further improvement of Mobile Banking inBangladesh. In recommendation to reduced M-Banking limitation all banks shouldprovide this opportunity, Government should provide help about mobile banking. Bankscan use all mobile operators to make more available in all over the country. Also theyshould provide User guide to make easier the use of b-banking to all intended customers.
  11. 11. CHAPTER ONE1. Introduction1.1 Mobile Banking:Mobile banking refers to a client-server system that is specifically designed for mobile devices,allowing banking customers to use handheld devices to access their accounts, pay bills, authorizefund transfers, or perform other activities. Like many other m-commerce services, mobilebanking services can be challenging and no single company has all the expertise required todevelop and deliver compelling services on its own. Mobile banking (also known as M-Banking,SMS Banking) is a term used for performing balance checks, account transactions, payments,credit applications and other banking transactions through a mobile device such as a mobilephone or Personal Digital Assistant (PDA). The earliest mobile banking services were offeredover SMS. With the introduction of the first primitive smart phones with WAP support enablingthe use of the mobile web in 1999, the first European banks started to offer mobile banking onthis platform to their customers.Mobile banking has until recently (2010) most often been performed via SMS or the MobileWeb. Apples initial success with iPhone and the rapid growth of phones based on GooglesAndroid (operating system) have led to increasing use of special client programs, called apps,downloaded to the mobile device. [Website 3]1.1.1 Background of Mobile Banking:A woman counts her cash after a withdrawal from the first cash point machine in London, in1967. For 30 years, financial institutions have been on a quest to satisfy their customers‟ needfor more convenience. First came the automated teller machine (ATM), which New York‟sChemical Bank introduced to the American public in 1969. It did little more than dispense cashat first, but the ATM evolved over time to become a true bank-away-from-bank, providing a fullsuite of financial transactions. Then come Internet banking in the mid-1990s, which enabledconsumers to access their financial accounts using a home computer with an Internet connection.Despite its promise of ultimate convenience, online banking saw slow and tentative growth asbanks worked out technology issues and built consumer trust. Today, Internet banking hasreached a critical mass, with about 35 percent of U.S. households conducting bank transactionsonline. Not so with mobile phones. They can be carried anywhere and are -- by an enormousnumber of people. More than 238 million people in the U.S. have mobile phones. That‟s a
  12. 12. whopping 78 percent of the population. And worldwide there are more than 3.25 billion mobilephone subscribers, with penetration topping 100 percent in Europe. If mobile phones onlydelivered voice data, then their use as a vehicle to deliver banking services would be limited.Most phones, however, also provide text-messaging capabilities, and a growing number areWeb-enabled. That makes the mobile phone an ideal medium through which banks can deliver awide variety of services. Banks classify these services based on how information flows. A pulltransaction is one in which a mobile phone user actively requests a service or information fromthe bank. For example, inquiring about an account balance is a pull transaction. So is transferringfunds, paying a bill or requesting a transaction history. Because banks must respond or take someaction based on the user request, pull transactions are considered two-way exchanges. A pushtransaction, on the other hand, is one in which the bank sends information based on a set of rules.A minimum balance alert is a good example of a push transaction. The customer defines the rule-- "Tell me when my balance gets below $100" -- and the bank generates an automatic messageany time that rule applies. Similar alerts can be sent whenever there is a debit transaction or a billpayment. As these examples illustrate, push transactions are generally one way, from the bank tothe customer. [Website 1]1.2 Objectives of the Study  To identify prospect of mobile banking in Bangladesh.  To make suggestions on the basis of findings.  To provide precise knowledge of M-banking and its infrastructure.  To narrate the present scenario of M-banking in Bangladesh.  To identify the usage rate and satisfaction level of M-banking customers.  To highlight some recommendations for rendering M-banking services effectively.1.3 Scope of the StudyThe scope of the study is limited to the issues related to the Mobile Banking in Bangladesh. Theassignment will focus only on the banking facility provider of the country through Mobilenetwork.
  13. 13. 1.4 Limitations of the StudyDue to time constraints, the study has been conducted only on mobile banking service onsecondary information. A macroscopic analysis (aggregate analysis) has been made here for theunavailability of appropriate data in some cases. To prepare this assignment I have faced a lot ofproblems such as unavailability of lab, electricity problem, unavailability of related books andjournals, lack of time, unavailability of information in net etc. For more accurate analysis, furtherdetail studies are required.1.5 Methodology of the StudyThe assignment has been done mainly based on secondary sources of data or information.Secondary data has been collected from different publication material and web site as well as thebooks and material from different libraries, the hand note of the various seminars.1.6 Literature ReviewRotchanakitumanuai and Speece (2003)Investigated why corporate customers do not accept mobile banking, which can assist banks toimplement this self-service technology more efficiently. Many Thai banks are currentlyimplementing mobile banking. Banks that offer service via this channel claim that it reducescosts and makes them more competitive. However, many corporate customers are not highlyenthusiastic about mobile banking. They used in-depth qualitative interviews methodology forcollecting their data. The interviews with Thai firms suggested that security of the Internet is amajor factor inhibiting wider adoption. Those already using Internet banking seem to have moreconfidence that the system is reliable, whereas non-users are much more service conscious, anddo not trust financial transactions made via Internet channels. Non-mobile banking users tend tohave more negative management attitudes toward adoption and are more likely to claim lack ofresources. Legal support is also a major barrier to Internet banking adoption for corporatecustomers.El-Sherbini et al. (2007)Investigated the customers perspectives of mobile banking, their perceived importance for it,usage patterns and problems rising on its utilization. The paper discussed the strategicimplications of the research findings. Empirical data were gathered from bank customers inKuwait to achieve the research objectives. All bank customers in Kuwait were considered as
  14. 14. population of research interest. The results showed the perceived importance of internet bankingservices by customers, current and potential use of MB services in Kuwait and problemsperceived by bank customers in using MB. The researchers main hypothesis tested that top fiveservices considered relative important in Kuwait banks were "Review account balance", "Obtaindetailed transactions histories, "Open accounts", Pay bills" and Transfer funds between ownaccounts".Ahmed Ali said.(2010)I think I should clarify some of the suggestions you gave.1. I agree that GP should have an option to link to bank accounts. But until now they haverefused to allow such a link. 8 Banks already have this technology but GP has prevented themfrom serving GP customers. Banks have taken the initiative but GP has stopped it just becausethey can and thinking that their proposal will pass.2. Yes GP will not pay interest. But that doesnt stop GP from earning interest on this money (thesimply put it together and put it in a FDR)3. As much as GP wants you to belive, Bangladesh isnt the only country where there are moremobile users than bank users. (I will get into that in another article). None of those countries areconsidering GPs version of mobile banking.4. Short term deposits are more crucial to the banking industry than what you estimate. Nowherein the world has a mobile company been put in charge of short term deposits.GP clearly didnt have good intentions. Otherwise all the foreign banks wouldnt group with localbanks to oppose this outlandish proposal. Again this is not only me that feel this way. The entireworld acted in opposition to GPs Mobile Banking Thesis. GPs Mobile Banking is not the sameas Mobile Banking
  15. 15. Sathye. (1999)Analyzed the factors affecting the adoption of Mobile banking by Australian consumers. Hissample was from individual residents and business firms in Australia. The study focused on thecapital cities where use of mobile internet and population was likely to be high. White andyellow pages were used as the frame of reference for personal and business customers,respectively. The findings suggest that security concerns and lack of awareness about mobilebanking and its benefits stand out as being the obstacles to the adoption of mobile banking inAustralia. He also suggests some of the ways to address these impediments. Further, he suggeststhat delivery of financial services over the Internet should be a part of overall customer serviceand distribution strategy. These measures could help in rapid migration of customers to mobileInternet banking, resulting in considerable savings in operating costs for banks.
  16. 16. CHAPTER TWO2. General Context of the study2.1Mobile Banking in Bangladesh“Dutch-Bangla Bank Limited” (DBBL) is Bangladeshs most innovative and technologicallyadvanced bank. DBBL stands to give the most innovative and affordable banking products toBangladesh“Dutch-Bangla Bank Limited” (DBBL) has for the first time introduced its mobile bankingservice expanding the banking service from cities to remote areas. Bangladesh Bank GovernorAtiur Rahman yesterday inaugurated the service by depositing Tk 2,000 and withdrawing Tk1,500 through Banglalink and Citycell mobile networks in Motijheel area. Bangladesh Bank hasalready allowed 10 banks to initiate mobile banking. Of them DBBL kicked off first." Mobilebanking is an alternative to the traditional banking through which banking service can be reachedat the doorsteps of the deprived section of the society,” the central bank governor said at aninaugural press briefing at Hotel Purbani. Atiur Rahman said through mobile banking variousbanking services including depositing and withdrawing money, payment of utility bills andreaching remittance to the recipient would be possible. By going to the DBBL-approved Citycelland Banglalink agents throughout the country the subscribers on showing necessary papers andpayment of a fee of Tk 10 can open an account. To avail of the banking service a subscriber willrequire owning a cell phone of any provider and he will be given a four-digit PIN. Byusing the PIN he can operate all types of banking services including depositing and withdrawingmoney maintaining security and secrecy of his account.The customer will hand over cash to the agent and the agent will initiate the transaction from hismobile phone, the agent will help the account holder to do the banking using his PIN. Acustomer can deposit or withdraw money five times a day and he can deposit or draw Tk 5,000per day. One percent of the transaction account or Tk 5, whichever is higher, will be taken ascash-in-charges. In case of cash out the charge will be 2 percent of the transaction amount or Tk10. However, the registration fee, salary and remittance disbursement services will be providedfree of cost. DBBL has 4585 agent all over Bangladesh. Dhaka Division ( 2444 ),Chittagong Division ( 1207 ),Sylhet Division ( 306 ),Barisal Division ( 131 ), Rangpur Division (224 ), Khulna Division ( 129 ), Rajshahi Division ( 144 ) . [Website 4]
  17. 17. Features/Services of DBBL Mobile Banking: -in (cash deposit) -out (cash withdrawal) -time Top-up“BRAC Bank Limited” is set to introduce mobile banking secondly, a top official said theservice will enable millions of banked and unbanked people to deposit, withdraw and transfermoney through mobile phones. BKash, a joint venture between BRAC Bank and US-basedMoney in Motion, will provide mobile banking with a fully encrypted VISA technology platformfor transactions through mobile phones. Any mobile user can register and open up a bKashaccount and then do transactions through their mobile phones in easy, convenient and reliableway. “bKash will fundamentally change the way people now do transactions, as all transactionswill be possible through mobile phones in future,” said Syed Mahbubur Rahman, managingdirector of the bank. “Customers will not need to come to the bank; rather the bank will go tothem,” he said at a press conference in Dhaka on the occasion of its 10th founding anniversary.The bank said a bKash account will act as a digital mobile wallet and anybody can take theservice. “Your mobile phone will become your wallet. Customers can get financial servicesthrough phones, even by the handset that costs the lowest,” Rahman said. Under a partnershipwith UNDP and Local Government Division, bKash is rolling out mobile banking in 4,501 unionparishads in the country. bKash has already signed a deal with a leading mobile operator and isin talks with others to enable all mobile users -- currently around 7.5 crore -- to have individualdigital wallets, said Mamdudur Rashid, deputy managing director of the bank. BRAC Banklaunched its operation 10 years back with the objective of bringing unbanked people underformal banking coverage. The business model of the bank is to mobilise deposits from urbanareas and disburse it to rural areas. The countrys youngest bank has already set some records: ithas acquired over 12 lakh customers, bringing full banking services not only to small andmedium enterprises, but all strata of the banking industry, said the bank “Being the youngestBangladeshi bank, we have emerged as the largest SME bank serving about 3.65 lakhentrepreneurs at grassroots level, an achievement that helped global recognition for this
  18. 18. Bangladeshi bank,” said Rashid The bank believes in 3P philosophy -- people, planet and profitand has been active in Green banking. It has already turned 22 of its SME Unit Offices solar-powered and plans to convert the rest in the same manner by 2012. [Website 5]Features/Services of bKash Mobile Banking:  Cash in & cash out  Payment  Send money  My wallet  Token - check balance - create token - request statement - encash token - change pin - redeem token Bkash Payments are now accepted at the following outlets Outlet bKash Account Number Agora Gulshan-2 0182 307 4908 Uttara 0182 307 4911 Dhanmondi 0182 307 4907 Shantinagar 0182 307 4910 Elephant Road 0182 307 4909 Nandos Dhanmondi 0184 111 3322 Gulshan 0184 199 6644 Barista Uttara 0183 336 2169 Gulshan-1 0183 336 2176 Karwan Bazar 0183 336 2178 Hallmark Gulshan-2 0183 487 7060 Dhanmondi 0183 487 7061 Shantinagar 0183 487 7062 Ramna 0183 487 7063 Table-1
  19. 19. Bkash Agent Location in Sylhet Sadar Sylhet SadarThana/Upazilla Shop Name Shop AddressSylhet Sadar Abu Kawsar Store Chand Manjil, Kalighat, Sadar, Ward No. 14, SylhetSylhet Sadar Anjuman Enterprise Station Road, Puler Mukh, Dakkhin Surma, SylhetSylhet Sadar Asha Electronics Bandar Bazar, Puran Lane, SylhetSylhet Sadar Asha Varieties Store Lalbazar Road, Baruthkhana, SylhetSylhet Sadar Bandon Telecom Dorga Gate, Sadar, SylhetSylhet Sadar Beani Bazar Airport road, No. 3 Khadim Nagar, Sylhet Departmental StoreSylhet Sadar Bismillah Telecom Al Hammad Trade Centre, Zinda Bazar, SylhetSylhet Sadar Chandni Enterprize Chandni Ghat, Ward No. 26, Sadar, SylhetSylhet Sadar Ema Telecom No. 2, Tahmina Rahman Mansion, SylhetSylhet Sadar Ima & Eva Telecom Akhalia, Sadar, SylhetSylhet Sadar Imran Enterprise Gotatikar Point, South Surma, SylhetSylhet Sadar Inpage Teletalk Dorga Gate, Upazila: Kotwali, Union: 01 No Ward, District: Sylhet, Post Code: 3100Sylhet Sadar Jamuna Telecom Dash Para, Khadim Nagar, Shah Poran, SylhetSylhet Sadar Janapriyo Telecom Azad Shopping Center, Muktijuddha Chattar, Kadamtoli, SylhetSylhet Sadar Kismat Photostat & Islampur Bazaar, Upazila: Sylhet sadar, Union: 04 No Khadimpur, Gallery District: Sylhet, Post Code: 3100Sylhet Sadar M/S Hanifa Traders Jitu Miah Point, Sheikh Ghat, Ward no. 1, Sylhet Sadar, SylhetSylhet Sadar M/s. Arif Store 25 No, WARD, SCC, Baipas Road (Daudpur), SylhetSylhet Sadar M/s. Nazmul Telecom Shibgong Point, Sadar, SylhetSylhet Sadar M/s. Nova Telecom 7 Masjid Market, Madina Market, SylhetSylhet Sadar M/s. Zahida Telecom Naya Sarak Point, Sylhet Sadar, SylhetSylhet Sadar Ma Enterprise Boteswar Bazar, SylhetSylhet Sadar Ma Photgraphic Centre Sylhet Plaza Market (Ground Floor), Zindabazar,Sylhet Sadar Maa Telecom Airport Road, Kaltan Samity Market, SylhetSylhet Sadar Maa Telecom Shah Poran, Khadim Nagar, Sadar, SylhetSylhet Sadar Mim Varieties Store Surma Gate, Khadim Nogor, Sylhet Sadar, District: Sylhet, Post Code: 3100, Division: Sylhet.Sylhet Sadar Mohadeb Store Kalighat, SylhetSylhet Sadar Murshed Telecom Boteshar Bazar, Khadim Nagar, SylhetSylhet Sadar Mustafa Telecom Mirboxtula, Naya Sarak, SylhetSylhet Sadar My Choise Dot Com Polytechnique Gate, Sylhet Sadar, Ward No. 25, Sylhet
  20. 20. Sylhet Sadar Nazmul Telecom Etim School Road, Baghbari, Kotwali, SylhetSylhet Sadar Nobodigonto Network Notun Bazar Akhalia Sadar, Tuker Bazar, SylhetSylhet Sadar Nowrin Telecom No. 3 Karimullah Market, 3rd Floor, Bandarbazar, SylhetSylhet Sadar Piccadilly Gallery & Howapara Main Road, Zinda Bazar, Sylhet TelecomSylhet Sadar Pinki VCD & Telecom Airport road, Khadim Nagar, SylhetSylhet Sadar Prime Lighting and Meghna B-16, Daria Para, Ward no. 2, Sylhet DecoratorsSylhet Sadar R S Telecom Surma Market, Sadar, SylhetSylhet Sadar Rahmania Telecom Chowki Dighi, Airport Road, SylhetSylhet Sadar Rima Music & Telecom Mu Market, Nipobon Aa/a, Khadim Nagor, Sador, SylhetSylhet Sadar RK Enterprise Subidbazar, Moinul Building, SylhetSylhet Sadar Rukon Telecom Bhatalia Road, Sylhet Sadar, District: Sylhet, Post Code: 3100, Division: Sylhet.Sylhet Sadar S R Gift Gallery Tilagor Point, Upazila: Sylhet, Union: 21 No Ward, District: Sylhet, Post Code: 3100Sylhet Sadar Saikat Enterprise Taltola Point, Amzodia Market, SylhetSylhet Sadar Saya Telecom Serampur Bazar, South Surma, SylhetSylhet Sadar Shohag Phone Service Airport Road, Choukidekhi, SylhetSylhet Sadar Sikdar Enterprise Bandarbazar, SylhetSylhet Sadar Sky Tel Bashundhara, Rajbari, Raynagar, SylhetSylhet Sadar Sohel Telecom Kazitula, Sadar, SylhetSylhet Sadar Sonny Audio Complex Baluchar PointM.C.Collage Road, Sadar, SylhetSylhet Sadar Star Telecom Airport Road, Ambarkhana, SylhetSylhet Sadar Star Telenet Gate no. 2, Usmani Medical Road, Ward no. 3, Sadar, SylhetSylhet Sadar Sylhet Robi Sheba 117-Azadi, Mirboxtula, SylhetSylhet Sadar Tanmoy Enterprise Kanishail Road, Shamimabad, SylhetSylhet Sadar Zahed & Sons Lais Super Market, Station Road, Sylhet Table-2
  21. 21. “Banglalink, Dhaka Bank and Western Union” jointly launched the Mobile Money Transferservice. With this new Mobile Money Transfer service enabled by Banglalink, Dhaka Bank andWestern Union, consumers in Bangladesh who register for a Dhaka Bank approved account inBanglalink Mobile can choose to credit the money sent through the Western Union® MoneyTransferSM service from over 200 countries and territories to their mobile account.Bangladeshi expatriates can also visit a Western Union® Mobile Money TransferSM enabledAgent locations to conduct a Mobile Money Transfer and send cash to any valid Banglalinkmobile phone number.Banglalink mobile users (Dhaka Bank approved account holders) may have access to theirmoney from any of over 1,700 Dhaka Bank-accredited Banglalink Mobile Cash Points which areopen till 8pm every day, seven days a week.In the future, this mobile account balance may also be used for local fund transfers, utilitypayments, train ticket purchase and airtime topups.Speaking on the occasion, Banglalink‟s chief commercial officer Asher Yaqub Khan said: “Ourphilosophy at Banglalink is based not only on pioneering new mobile services, but also makingmobile technology as affordable and accessible as possible for consumers.”Western Union moved money from 170 countries to Bangladesh in 2011 and is present at437,000 agent locations in over 200 countries and territories. Banglalink‟s mobile networkcovers over 87 percent of Bangladesh geographically where over 97 percent of people live in.Dhaka Bank is providing the banking infrastructure underling the service.Dhaka Bank ManagingDirector Khondker Fazle Rashid thanked the central bank for initiating a visionary step likeMobile Financial Services.He said Dhaka Bank has always tried to support Bangladesh Bank‟sendeavour to provide banking coverage to the unbanked population of the country and has beenthe first-ever bank to execute mobile-based transaction in the country.Western Union Regional Vice President for South Asia and Southeast Asia Ratheesh Kumarsaid: “Western Union is celebrating its 160th anniversary and has been moving „money for
  22. 22. better‟ for over 135 years. After working in Bangladesh for over 17 years, this service is anothersignificant milestone.Bangladesh has grown to be the world‟s seventh remittance-receiving market, with a growingneed for Bangladeshis overseas to send money to support their families back home. Remittancesmake up 9.6 percent of the country‟s GDP. Over 70 percent of Bangladesh‟s population lives inrural areas where financial services may not be available. [Website 2]“Bangladesh Post Office” The regular paper based money order service of the post officeseemed a time consuming, expensive and inefficient approach of remit money to any part of thecountry. There was a demand for quick transfer of money to locations where the beneficiary cancollect and use it instantly. With this perspective in view, Bangladesh Post launched a newmoney order service named Electronic Money Transfer Service (EMTS), commonly known asMobile Money Order Service. This fulfilled the expectations of people to remit the desiredamount of money to their near and dear ones so as to utilize when they need. This is mobile aswell as web based remittance service available in all important post offices of the country. Thesender can send the money within a minute and recipient/beneficiary can collect it instantly.Both sender and recipient get confirmation of the remittance and disbursement as soon as it ismade in their mobile phones. This service is available in all important post offices of the country.Presently 2000 post offices provide the EMTS which is covering all district, upazilla/thana andimportant/busy rural post office locations. Every month hundreds of post officials are beingtrained and the service is expanded to those locations.Bangladesh Post maintains a server and call center to monitor and support the service. AllElectronic Money Transfer Service locations (post offices) are equipped with computer, internetconnectivity and/or mobile phones which are used to send the issue or payment request to theserver.Procedure: The sender goes to the post office and fills up an issue form (EMO -1) givingrequired information like sender name, address, mobile phone number, recipients name, addressmobile phone number, amount of money to be sent etc. The post office staff sends theinformation to the central server through the computer or official EMTS mobile phone. When therequest is accepted and confirmed by the server through issuing SMS generating a 16 digit
  23. 23. unique PIN to senders mobile phone and a separate confirmation message is sent to issuing postoffice. The sender shall inform the recipient to collect the money from his/her nearest post office.The recipient goes to the post office and again fill up the disburse form (EMO-2) and claim themoney showing the PIN. The post office counter operator verifies the information given by therecipient from server with those used earlier by sender; if everything is match the disbursementprocedure is made. As soon as the disbursement is completed the sender is again confirmed byanother SMS generated by the server. [Website 8]Features1.Remittance in a minute2.User Friendly- adoption of mobile phones & applications3.Maximum Area coverage: Locations distributed throughout the country(presently 2000 POs), to be expanded to all Post Office locations4.Transaction security ensured by a 16 digit auto PIN generation mechanism5.Independent of Mobile Operator-customer enjoying mobile operators service can use thisservice.6.EMTS devices not specific to power sources like electricity -have freedom of using any Sourceof Power (electricity, battery, solar charger)7.Ensure customer satisfaction- Daylong well acquainted Help Desk Service8.Optional Corporate Services:a)One 2 Many transactions-Option for Salary Disbursementb)Many 2 One Transactions- Option for collection of tution/Admission fees from students9.Location Independent Disbursement10.Widely used Network Partner- Banglalink Mobile Operator11.Database Management and Security-VPN Connectivity12.Scope to add new value added service and future expansion2.2 History of Mobile Banking in Abroad:Improving access to financial services, such as savings, deposits, insurance and remittances, isvital to reducing poverty. Savings can help poor people to invest in productive assets likelivestock, a loan may help to expand business activities, and insurance can provide income for a
  24. 24. family if a breadwinner becomes sick. In many developing countries, however, 9 out of 10people do not have a bank account or access to basic financial services. Poor people are often notconsidered viable customers by the formal financial sector as their transaction sizes are small,and many live in remote areasbeyond the reach of banks branch networks. Informal banking services such as microfinance andvillage savings and loan associations remain limited in their reach.The first mobile banking and payment initiatives were announced during 1999 (the same yearthat Fundamo deployed their first prototype). The first major deployment was made by acompany called Pay box (largely supported financially by Deutsche Bank). The company wasfounded by two young German‟s (Mathias Entemann and Eckart Ortwein) and successfullydeployed the solution in Germany, Austria, Sweden, Spain and the UK. At about 2003 more thana million people were registered on Pay box and the company were rated by Gartner as the leaderin the field. Unfortunately Deutsche Bank withdraws their financial support and the companyhad to reorganise quickly. All but the operations in Austria closed down. Another early starterand also identified as a leader in the field was a Spanish initiative (backed by BBVA andTelephonica), called Mobi Pago. The name was later changed to Mobi Pay and all banks andmobile operators in Spain were invited to join. The product was launched in 2003 and manyretailers were acquired to accept the special USSD payment confirmation. Because of thecomplex shareholding and the constant political challenges of the different owners, the productnever fulfilled the promise that it had. With no marketing support and no compelling reason foradoption, this initiative is floundering at the moment. Many other large players announcedinitiatives and ran pilots with big fanfare, but never showed traction and all initiatives wereultimately discontinued. Some of the early examples are the famous vending machines at theHelsinki airport supported by a system from Nokia. Siemens made announcements inconjunction with listed and high-flying German e-commerce company, Brokat. Brokat also wonthe lucrative Vodafone contract in 2002, but crashed soon afterwards when it runs out of funds.Israel (as can be expected) produced a large number of mobile payment start-ups. Of the many,only one survived – Trivnet. Others like Adamtech (with a technically sound solution called Cellpay) and Paytt disappeared after a number of pilots but without any successful productiondeployments. Initiatives in Norway, Sweden and France never got traction. France Telecom
  25. 25. launched an ambitious product based on a special mobile phone with an integrated card reader.The solution worked well, but never became popular because of the unattractive, special phonethat participants needed in order to perform these payments. Since 2004, mobile banking andpayment industry has come of age. Successful deployments with positive business cases and bigstrategic impact have been seen recently.2.3 SWOT Analysis of Mobile BankingStrengths: Weakness:1. Mobile as a technology provides all the 1. Lack of awareness about the new channelsupport required to leverage Banking among the mobile users.transactions. 2. Security concerns about the new channel2. Ease of availability- any time, any where. 3. Mobile Handset Operatability3. Rapid growth of Mobile and wireless market. 4.Application distributionOpportunity: Threats:1. Rapid increase in the Mobile user base and 1. Regulatory restrictions by "Bangladesh Bankacceptance of the Mobile technology even in to launch Mobile banking as a separate channel.Rural areas makes a bigger market available for 2. Acceptance of new technology by banking to expand. 3.Customer misuse of products and services 4. Traditional banking risks such as credit risk,2. With technology advancements in Mobile liquidity risk and market risk are also present inhandsets rich features can be embedded in the e-banking sectors.application.3. Lowering of Mobile Tarrif rates - GPRSplans, SMS
  26. 26. 2.4 Advantages of Mobile Banking:The biggest advantage that mobile banking offers to banks is that it drastically cuts down thecosts of providing service to the customers. For example an average teller or phone transactioncosts about $2.36 each, whereas an electronic transaction costs only about$0.10 each. Additionally, this new channel gives the bank ability to cross-sell up-sell their othercomplex banking products and services such as vehicle loans, credit cards etc.For service providers, Mobile banking offers the next surest way to achieve growth. Countrieslike Korea where mobile penetration is nearing saturation, mobile banking is helping serviceproviders increase revenues from the now static subscriber base. Service providers areincreasingly using the complexity of their supported mobile banking services to attract newcustomers and retain old ones.A very effective way of improving customer service could be to inform customers better. Creditcard fraud is one such area. A bank could, through the use of mobile technology, inform ownerseach time purchases above a certain value have been made on their card. This way the owner isalways informed when their card is used, and how much money was taken for each transaction.Similarly, the bank could remind customers of outstanding loan repayment dates, dates for thepayment of monthly installments or simply tell them that a bill has been presented and is up forpayment. The customers can then check their balance on the phone and authorize the requiredamounts for payment.The customers can also request for additional information. They can automatically view depositsand withdrawals as they occur and also pre- schedule payments to be made or cheques to beissued. Similarly, one could also request for services like stop cheque or issue of a cheque bookover one‟s mobile phone.There are number of reasons that should persuade banks in favor of mobile phones. They are setto become a crucial part of the total banking services experience for the customers. Also, theyhave the potential to bring down costs for the bank itself. Through mobilemessaging and other such interfaces, banks provide value added services to the customer atmarginal costs.
  27. 27. Such messages also bear the virtue of being targeted and personal making the services offeredmore effective. They will also carry better results on account of better customer profiling. Yetanother benefit is the anywhere/anytime characteristics of mobile services. A mobile is almostalways with the customer. As such it can be used over a vast geographical area. The customerdoes not have to visit the bank ATM or a branch to avail of the bank‟s services. Researchindicates that the number of footfalls at a bank‟s branch has fallen down drastically after theinstallation of ATMs. As such with mobile services, a bank will need to hire even less employeesas people will no longer need to visit bank branches apart from certain occasions.With Indian telecom operators working on offering services like money transaction over amobile, it may soon be possible for a bank to offer phone based credit systems. This will makecredit cards redundant and also aid in checking credit card fraud apart from offering enhancedcustomer convenience. The use of mobile technologies is thus a win-win proposition for both thebanks and the bank‟s customers.The banks add to this personalized communication through the process of automation. Forinstance, if the customer asks for his account or card balance after conducting a transaction, theinstalled software can send him an automated reply informing of the same. These automatedreplies thus save the bank the need to hire additional employees for servicing customer needs.2.5 Disadvantages of Mobile BankingSecurity: Security experts generally agree that mobile banking is safer than computer bankingbecause very few viruses and Trojans exist for phones. That does not mean mobile banking isimmune to security threats, however.Mobile users are especially susceptible to a phishing-like scam called "smishing." It happenswhen a mobile banking user receives a fake text message asking for bank account details from ahacker posing as a financial institution. Many people have fallen for this trick and had moneystolen through this scam.Online banking is usually done through an encrypted connection so that hackers cannot readtransmitted data, but consider the consequences if your mobile device is stolen. While allbanking applications require us to enter a password or PIN, many people configure their mobiledevices to save passwords, or use insecure passwords and PINs that are easy to guess.Compatibility: We need a smart phone to get the most out of mobile banking.
  28. 28. Mobile banking is not available on every device. Some banks do not provide mobile banking atall. Others require you to use a custom mobile banking application only available on the mostpopular smart phones, such as the Apple iPhone and RIM Blackberry. Third-party mobilebanking software is not always supported.If we do not own a smart phone, the types of mobile banking we can do are usually limited.Checking bank account balances via text message is not a problem, but more advanced featuressuch as account transfers are generally not available to users of "dumb phones."Cost: The cost of mobile banking might not appear significant if we already have a compatibledevice, but we still need to pay data and text messaging fees. Some financial institutions chargean extra fee for mobile banking service, and we may need to pay a fee for software. These extracharges quickly add up, especially if we access mobile banking.2.6 Prospect of Mobile banking in BangladeshMobile Banking is a Banking process without bank branch which provides financial services tounbakedcommunities efficiently and at affordable cost. The aim of the service is to bring morepeople under the umbrella of banking service. Bangladesh Bank governor Dr Atiur Rahmaninaugurated the service through deposit and withdrawal of money from two banking outlets inthe city. Government thinks it has a great prospect as it is a new technology in digitalBangladesh. But in Bangladesh many people think traditionally, because they cannot think it hasany facility to use mobile banking. 69% people feel mobile banking has prospect in Bangladeshwhereas 31% think it has no prospect in Bangladesh as many people will not feel interest or havebelief on mobile banking.2.7 Upcoming Mobile banking in Bangladesh“Mercantile Bank Limited” By next six month Mercantile Bank Limited will introducebranchless mobile banking in 50 union information service centers as pilot programme toprovide banking facilities to the grassroots level in the country. The remaining UISCs will bebrought under the programme in phases. All banking facilities including opening of bankaccount, cash withdrawal and depositing of money and receiving remittances will be availablethrough the mobile banking.
  29. 29. “Islami Bank Bangladesh Limited” SSL Wireless and Islami Bank Bangladesh Limited haveentered an agreement to provide Mobile Banking Services in Bangladesh for all the majortelecom providers.In accordance with the agreement, SSL Wireless will provide both Push and Pull Bankingsolutions to Islami Bank Bangladesh Limited with the aid of the mobile phone SMS features.From now on, whenever any customer of Islami Bank Bangladesh Limited is in need to know thedetails of the account balance and his or her mini account statement, they simply have to send astandard SMS from their handset to a designated short code 6969, that SSL Wireless provides toIslami Bank Bangladesh Limited under this agreement. After receiving the SMS from thecustomer, a query will then be dispatched from the highly 128 bit SSL encrypted server that isinstalled on Islami Bank Bangladesh Limited‟s end to the customer letting them know of thedetails they are interested in.SSL Wireless is the first of its kind in the entire nation to provide such highly automated mobilebanking solutions to all of the subscribers for any network carrier in Bangladesh includingGrameenphone, Aktel, Banglalink, Warid Telecom, CityCell and TeleTalk. This highly securedservice will not only enable the remote users to connect with the bank from their home or officebut it will also save much time for both the customer and the bank. Mobile banking solutions isone of the highest growing value added services in Bangladesh with SSL Wireless taking up themajority of the market share since their inception. SSL Wireless also have introduced the remoteaccount transactions for everyone in Bangladesh with a mobile phone and in the near future thecustomers of IBBL will receive the money sent from any place of home or abroad through thisservice. [Website 7]
  30. 30. CHAPTER THREE3. Methodology of the studySite SelectionThe topic chosen for the assignment is “Mobile Banking in Bangladesh.”Site DesignI work with non-government sector and also include government sector.Country Map Figure 1: Country City Map Source: [Website 2]Data CollectionAll the data and information which is related to my task was collected from secondary source.Data AnalysisI use Microsoft Word and Microsoft PowerPoint to prepare this assignment.
  31. 31. CHAPTER FOUR4. Result and DiscussionMobile banking is a new technology in Bangladesh which started from 31st March 2011. DutchBangla Bank Limited pioneered in mobile banking services in Bangladesh. Most people heardabout it but not have a clear idea. According to a survey report almost 94% people heard aboutmobile banking and 6% haven‟t heard about mobile banking. Many people heard about mobilebanking. But they yet have not felt that they should use it as they are happy to use traditionalbanking system. Some people feel interest to use it. About 55% people feel they should use itand 45% people haven‟t feel to use mobile banking according to the survey.Mobile banking is real time on-line banking. As it is on-line banking it takes less time thantraditional banking. It will make access to banking and advanced payment, transactions ataffordable cost People have not to wait by standing in a long line which is happen in traditionalbanking system. But some people think it takes higher time and some people think it takes sametime as traditional banking.Mobile banking is available anytime, anywhere throughout the country. So it can save one‟stime. But all people not think the same. About 70% respondents think that mobile banking cansave their time, where as 30% think it cannot save time.Mobile Banking drastically cuts down the costs of providing service to the customers.It isconvenient, affordable and it is much more effective in developing savings habits, it will makeaccess to banking and advanced payment transactions at affordable cost. All people know that itscost is not higher than traditional banking. Around 56% respondents say its cost is lower, 20%say same and 24% say it is affordable than traditional banking. . A positive aspect of mobilephones is that mobile networks can reach remote areas at low cost.It is much safer and safeguard against fraudulent transactions. One can trust mobile banking astraditional banking system. It has secured pin code which is known by the user, and also has acheck digit without it no one can deposit money. But in Bangladesh traditional branch-basedbanking remains the most widely adopted method of conducting banking transaction. The poor
  32. 32. often have greater familiarity and trust with mobile phone companies than formal bankinginstitutions. Furthermore a mobile handset can easily be adapted to handle banking transactions.But it is not commonly known by all. From the survey itis found that 63% respondents thinkmobile banking is trust worthy and 37% respondents feel it is not trust worthy.It is much more effective in developing savings habits. Its using system is also easy. Anyone canuse it. Poor people are often not considered viable customers by the formal financial sector astheir transaction sizes are small, and many live in remote areas beyond the reach of banks branchnetworks. Informal banking services such as microfinance and village savings and loanassociations remain limited in their reach. So, mobile banking system develops to bring poorpeople into banking system. 83% respondents face or heard no problem to use mobile banking.But 17% respondents heard or face problems to use it likesometimes transaction do not reach attime, cannot operate it easily as traditional banking, not trust worthy. Mobile service operators of M- banking Name of Banks Mobile service operators Brac Bank GrameenPhone, Aktel. Dhaka Bank GrameenPhone, Banglalink. Mercantile Bank GrameenPhone, Citycell, Aktel, TeleTalk. Limited Dutch-Bangla Bank GrameenPhone, Citycell, Aktel, Banglalink. Islami Bank Grameenphone, Aktel, Banglalink, Warid Telecom, Bangladesh CityCell and TeleTalk Bangladesh Post Grameenphone, Aktel, Banglalink, Warid Telecom, Office CityCell and TeleTalk Table-3
  33. 33. Usage rate of M-banking customers Usage level No. of customers Percentage (%) Frequently 10 10 Sometimes 40 40 Hardly 30 30 No use at all 20 20 Table-4 Satisfaction level of M- banking customers Satisfaction level No. of customers Percentage (%) Highly 28 35 Medium 40 50 Low 12 15 Table-5In this assignment some major findings are-  Service providers are increasingly using the complexity of their supported mobile banking services to attract new customers and retain old ones.  A very effective way of improving customer service could be to inform customers better. Credit card fraud is one such area.  The banks add to this personalized communication through the process of automation.  Mobile banking is not available on every device. Some banks do not provide mobile banking at al.  The cost of mobile banking might not appear significant if we already have a compatible device, but we still need to pay data and text messaging fees.  Mobile Banking reduces the costs of providing service to the customers.  Most of the rural area people are the potential customer of mobile banking.
  34. 34. CHAPTER FIVE5. RecommendationOn the basis of field observations and analysis of the gathered information from the relevantstudies the following recommendations may be proposed for further improvement of MobileBanking in Bangladesh:  Government must have to take adequate measures to ensure the uninterrupted supply of raw materials for M-Banking.  To reduced M-Banking limitation all banks should provide this opportunity.  Government should easier the process to lunch mobile banking service.  Government should provide help about mobile banking.  Rules and Regulations must be stricken about mobile banking.  Employees of customer service department of banks should be co-operative for registration and educating the customers this technology-based service.  User guide should be provided to all intended customers.  Banks should use all mobile service operators available in Bangladesh.  More services should be included in M- banking.
  35. 35. 6. ConclusionMore than three billion mobile phones are currently in operation worldwide and fully 70% of thetotal population of developing countries fall within the coverage of existing cellular networks.Mobile banking is suspended to become the big killer mobile application arena. However, banksgoing mobile the first time need to step the path cautiously. The biggest decision that banks needto make is the channel that they will support their services on. Mobile banking through an SMSbased service would require the lowest amount of effort, in terms of cost and time, but will notbe able to support the full breath of transaction-based services. However, in markets like Indiawhere a bulk of the mobile population users phones can only support SMS based services, thismight be the only option left.On the other hand a market heavily segmented by the type and complexity of mobile phoneusage might be good place to roll of WAP based mobile applications. According to the GartnerGroup, mobile banking services will have to support a minimum of 50 different device profilesin the near future.However, currently the best user experience, depending on the capabilities of a mobile phone, ispossible only by using a standalone client.. Mobile Application based banking is poised to be abig m-commerce feature, and if South Koreas foray into mass mobile banking is any indication,mobile banking could well be the driving factor to increase sales of high-end mobile phones.Nevertheless, Banks need to take a hard and deep look into the mobile usage patterns amongtheir target customers and enable their mobile services on a technology with reaches out to themajority of their customers.
  36. 36. CHAPTER SIX7. REFERENCE Website: 1. 2. 3. 4. 5. 6. 7. 8. BOOKS/ JOURNAL 9. BRAC Bank mobile bank news. 10. Shirali S. and Shirali S. M. H., “Mobile Banking Services in the Bank Area," SICEAnnual Conference, Kagawa University, Japan, pp.2682- 2685, September 17-20, 2007. 11. Ahmed, S. M. Sohel, and Asaduzzaman, Md. (2011), „„Consumer Choice Behaviortowards Mobile Phone Operators in Bangladesh‟‟ -Journal of Arts, Science & Commerce, ■ Vol.– II, pp. 30-39 Al-Akhras T Mousa,Al-Saiyeed Rizik,Alian Marwah and QwasmiDoaa:Innovative Secure Mobile Banking Services,2011, p.195. 12. Benamati, J. S., & Serva, M. A. (2007). Trust and distrust in online banking: Theirrole in developing countries. Information Technology for Development, 13(2), 161-175. 13. Brown, I., Cajee, Z., Davies, D., & Stroebel, S. (2003). Cell phone banking:Predictors of adoption in South Africa--an exploratory study. International Journal ofInformation Management, 23(5), 381-394. 14. Burt, R. S. (1992). Structural holes: The social structure of competition. Cambridge:Harvard University Press.
  37. 37. 15. Castells, M. (1996). The rise of the network society (Vol. 1). Malden, MA:Blackwell. 16. Chipchase, J., Persson, P., Piippo, P., Aarras, M., & Yamamoto, T. (2005). Mobileessentials: field study and concepting. Paper presented at the 2005 Conference on Designing forUser eXperience. From 17. And many other PDF report on Mobile Banking collect from internet. 18.
  38. 38. APPENDICESFeatures/Mobile Banking Services (In General)Mobile banking can offer services such as the following: 1) Account Information: -statements and checking of account history ccess to card statements 2) Payment, Deposits, Withdrawals & Transfers: -payment handlingA specific sequence of SMS messages will enable the system to verify if the client has sufficientfunds in his or her wallet and authorize a deposit or withdrawal transaction at the agent. Whendepositing money, the merchant receives cash and the system credits the
  39. 39. clients bank account or mobile wallet. In the same way the client can also withdraw money atthe merchant: through exchanging sms to provide authorization, the merchant hands the clientcash and debits the merchants account. 3) Investments: -time stock quotes 4) Support: cluding mortgage approval, and insurance coverage 5) Content Services: alty-related offers -based servicesBased on a survey conducted by Forrester, mobile banking will be attractive mainly to theyounger, more "tech-savvy" customer segment. A third of mobile phone users say that they mayconsider performing some kind of financial transaction through their mobile phone. But most ofthe users are interested in performing basic transactions such as querying for account balance andmaking bill payment.
  40. 40. Network Architecture for mobile banking systemThe following is a diagram shows a structural design for the mobile banking scheme. Figure-2In the above diagram the 2-way SSL link between the service provider and between the mobilebanking application and the service provider and also between the service provider and thewireless carrier ensures confidentiality of data. The email message sent by the bank is PGPencrypted and signed in order to ensure confidentiality and integrity of data.The following diagram shows the recommended placement of the SMS banking components inthe banking infrastructure. [website 18]
  41. 41. PROFILE OF AUTHORName: Faglul Karim RaihanDate of Birth: 16-12-1989Father`s Name: Md: Rashid AhmedMother`s Name: Raihana Sultana ChowdhuryPermanent Address: 19/3 Fazil Chisth, Subidbazar, Sylhet, Bangladesh.Occupation: StudentID No: 1001010142Section: CSemester: 7Batch No: 24Department: Business AdministrationName of Institution: Leading University, Sylhet, BangladeshContact No: +88-01715777865Email: