Mobile Apps in
Peoples Bank in Sri
Lanka
By Siyath, Lionel, Sujeewa and Kamani

September 2013

1
Provisional Draft only – not for circulation
Application of Mobile Apps in Peoples Bank in Sri Lanka
1. Aim and Objective ...
Manager, File manager
3.2 Present uses of Mobile Application
From the last few years every mobile company are making the s...
Considerable Cost Saving:
Mobile VoIP application can help people to making international call from his mobile. As a resul...
BlackBerry®, Java®, Linux®, and Meego™) or cross-platform environments (including mobile
enterprise application platforms ...
In large number of mobile application some are pre-installed in phone and others user can
download from internet and insta...
Not only individuals or business, the mobile application also has a great effect in society. The
whole society can be faci...
One of the big challenges of mobile application is its platform capability and limitation. Beside
the interesting usabilit...
3.12.3User Experience
This is especially important in cross-platform scenarios where screen sizes may not only differ
but ...
4.3 ELECTRONIC BANKING
•

Full Fill Banking Needs VIA Electronic technologies
Use computers & electronic technologies as s...
4.3.2Central Switch system
o

Card Management System is handled through this system and that is separated
from the Core Ba...
People‟s bank Main web page

Telephone Banking

b) The bank provides high quality distance banking services (Modern Bankin...
4.5People’s Bank Business Units

Branch

Central
Switch

Overseas
Customer Unit
(OCU)

Corporate
Banking
Division (CBD)

C...
4.6Following Diagram illustrates the connection between Core system and the other
systems

External
Systems

FCBU

Corpora...
5.1 PEOPLE’S MOBILE BANKING

The State Bank of People Bank has taken steps to adopt the new Technologies along with
Online...
-Free - No charges
-Specifically designed for individuals.
-Fast – do it all at a push of a button
The People‟s Bank has e...
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26.
27.
28.
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31.
32.
33.
34.
35.
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38.
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Dialog /Mobitel Bills
Dialog/Mobitelre-loads
...
Mobile devices are not within the security perimeter and are connected to a range of external
networks, so the connectivit...
Mobile Banking refers to provision and availability of banking- and financial services through the
help of mobile telecomm...
-

Domestic and international fund transfers
Micro-payment handling
Mobile & Direct to Home package recharging
Purchasing ...
-Content services
-General information such as weather updates, news
-Loyalty-related offers
-Location-based services
A re...
10.1 Handset operability
There are a large number of different mobile phone devices and it is a big challenge for banks to...
-Encryption of the data being transmitted over the air.
-Encryption of the data that will be stored in device for later / ...
-Preferred Language
-Date / Time format
-Amount format
-Default transactions
-Standard Beneficiary list
-Alerts
-Mobile co...
The most critical part of mobile apps is its user interface (UI). It is directly related to the usability
of the applicati...
standard and regulated devicesare a thing belong to the past. Buy Your Own Device (BYOD)
concept is gaining momentum, and ...
and will be in a position to deliver financial products to its business community more effectively
and efficiently than be...
Banks, in: Technology Management for the Global Future - Proceedings of PICMET '06.
17. Vaidya (2011): “Emerging Trends on...
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Application of mobile apps in financial services institutes:with special reference to Peoples Bank in Sri Lanka

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Mobile application is a set of software/set of programs that runs on a mobile device and performs certain tasks for the user. Mobile application is a new and fast developing Segment of the global Information and Communication Technology.
Mobile application is easy, user friendly, inexpensive, downloadable and run able in most of the mobile phone including inexpensive and entry level phone. The main feature of this cell phone was it had a fantastic platform which allowed running very dynamic application based on internet. The mobile application has wide uses for its vast functioning area like calling, messaging, browsing, chatting, social network communication, audio, video, game etc.

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Application of mobile apps in financial services institutes:with special reference to Peoples Bank in Sri Lanka

  1. 1. Mobile Apps in Peoples Bank in Sri Lanka By Siyath, Lionel, Sujeewa and Kamani September 2013 1
  2. 2. Provisional Draft only – not for circulation Application of Mobile Apps in Peoples Bank in Sri Lanka 1. Aim and Objective of the assignment Our aim of this assignment is to state how best we can apply selected mobile applications with special reference to “Peoples Bank”. 2. Definition of Mobile Applications “A wireless mobile application is defined as a software application, a wireless service or a mobile service that can be either pushed to users‟ handheld wireless devices or downloaded and installed, over the air, on these devices.” An application which resides in the mobile phone or which is accessed/used by a mobile phone over any channel such as SMS, MMS, GPRS, Voice, 3G (Gunawardena , 2013). 3. Mobile Applications: An Overview Mobile application is a set of software/set of programs that runs on a mobile device and performs certain tasks for the user. Mobile application is a new and fast developing Segment of the global Information and Communication Technology. Mobile application is easy, user friendly, inexpensive, downloadable and run able in most of the mobile phone including inexpensive and entry level phone. The main feature of this cell phone was it had a fantastic platform which allowed running very dynamic application based on internet. The mobile application has wide uses for its vast functioning area like calling, messaging, browsing, chatting, social network communication, audio, video, game etc. In large number of mobile application some are pre-installed in phone and others user can download from internet and install it in mobile phone. This large number of mobile application market served by increasing no of mobile application developer, publishers and providers. From the technical point of view the different mobile applications are run able in different managed platforms like iPhone, BlackBerry, Android, Symbian, windows; also some virtual machine such as Java/J2ME, BREW, Flash Light, Silverlight. 3.1 According to application area, there are different categories of mobile application: - Communications: Internet browsing, email IM client, Social Networking - Games: Puzzle/ Strategy, Cards /Casino, Action/ Adventure etc. - Multimedia: Graphics /Image viewer, Presentations viewers, Video Players, Audio Players - Productivity: Calendars, Calculators, Diary, Notepad / Memo / Word Processors, Spreadsheets Travel: City guide, Currency converter, Translators, GPS/Maps, Itineraries / Schedules, Weather Utilities: Profile manager, idle screen/Screen saver, Address book, Task manager, Call 2
  3. 3. Manager, File manager 3.2 Present uses of Mobile Application From the last few years every mobile company are making the smartphone and feature phone. And increasing the computing power of those mobile phones, rapidly increase the smart mobile application. Most of the people from developed countries including America and Europe can‟t imagine leaving home without mobile. Not only the developed countries but also the developing countries the mobile application uses rate growth rapidly. The mobile application are using in different areas. Let‟s think about communication like internet browsing, Voice chat, Facebook, Twitter etc. Now a day every standard mobile has Facebook application. User can share with their friends and family from anywhere and any place like in car, in train. People can use messenger for chatting. Those mobile applications are being design to help us in our daily life and allow us to connect with internet, interact with world, getting information from distance place, social communication using Facebook or twitter, identifying location etc. Now a day most of the smartphone has WLAN/Wi-Fi. So user can connect to Internet or local network with high data transmission rate. Because of better connectivity in future the mobile application provider are going to make application for doing business. 3.3 Mobile Application’s Effect in Society from the Ethical Perspective Not only individuals or business, the mobile application also has a great effect in society. The whole society can be facilitating using mobile application. Some issues of social effect describe as bellow: Quick communication: Some mobile application like Facebook, Twitter, Messenger, Skype, viber and Google Talk are helps the society people for communication to each other. They can stay in touch where the geographical distance is not a factor. So the social relation improves and make strong. And this is good for family, friend and society. Save time and increase productivity: In society or in developed country people can do their daily work like check email, contact with business partner from any time in bus, train, car or walk. So, no need to wait in room or office. In this way save the time and people can get more time to work. The manpower‟s productivity of society or country is increasing gradually. Improve IT infrastructure in developing country: In developing country the uses of mobile application improve the knowledge of people, because, they are accessing Internet from everywhere. As a result the IT infrastructure improves in any developing country. Increase Job vacancy: The mobile application development and mobile application business make more job vacancy in society. So many people can get job in this field. This is also good for society/country. Less computer use less power consumption: When most of the people will use mobile application for their daily simple work and getting facility from mobile application, the computer uses will be less as well as the power consumption will be less. 3
  4. 4. Considerable Cost Saving: Mobile VoIP application can help people to making international call from his mobile. As a result the monthly expenditure reduced. Entertainment: Using mobile applications people in society can entertained themselves. There are so many other social effect issues which all are ethically good for the society. On the other hand there are some bad effects of mobile application which are not ethically good for the society. Those issues are as follows: 1. When the so many Internet based mobile application is available to the teenager, they are wasting time by using Facebook, Skype, YouTube etc. The young generations are in risk when they are using internet game or other bad application. 2. Beside the uses of mobile application most of the people use mobile in every place like bus, train, office, college, university. Some body feels disturb for them. 3. Frequently use of mobile is bad for health. 3.4 Limitations in Mobile Application usage One of the big challenges of mobile application is its platform capability and limitation. Beside the interesting usability of mobile application they have some more interesting platform problems and limitation: 3.4.1 Small Screen Size: In mobile platform it is difficult or impossible to view text and graphics like a desktop computer screen. 3.4.2 Lack of windows: In desktop we can see many windows at a time. But in mobile Platform it is difficult. 3.4.3 Navigation: Most mobile devices do not have mouse like pointer, so it has limited flexibility in navigation 3.4.4 Types of pages accessible: The mobile platform does not support all type of file format. 3.4.5 Speed: The speed of processing and speed of connectivity of mobile platform is slow. 3.4.6 Size of messages or email: Many device support limited number of characters in Message or email. 3.4.7 Cost: The cost of cellphone, mobile application and the internet bandwidth charge is high. 3.5 Mobile development environments There are also many development environments. Developers can also choose from either native development tools for each of the major mobile devices and platforms (including Apple® iOS, Android™, Microsoft® Windows® Mobile and Microsoft® Phone 7, Symbian®, RIM® 4
  5. 5. BlackBerry®, Java®, Linux®, and Meego™) or cross-platform environments (including mobile enterprise application platforms such as SAP AG‟s Sybase Unwired Platform, Kony Solutions Inc.‟s KonyOne™ platform, or Antenna Software Inc.‟s Antenna Mobility Platform™, or mobile consumer application platforms, including PhoneGap™ and Appcelerator® Titanium). 3.6 Addressing the Challenges of Enterprise Mobile Development 3.6.1Data Access Where is the enterprise data users need to access? Should it be accessed through a Web browser, or through a native application running on the device? In some cases, the data might exist solely in a backend database. That requires connectivity, but the state of wireless coverage is such that, 3.6.2Security Every mobile device manufacturer understands the importance of security, and offers accommodations for it. For developers, however, that means each operating system has its own custom architecture. Sometimes different mobile platforms provide varying degrees of support for securing data stored on the device. At the same time, not every mobile application needs the same level of security, and users dislike multiple logins to access data on the device itself or back-end data. 3.6.3User Experience This is especially important in cross-platform scenarios where screen sizes may not only differ but offer the option of portrait versus landscape. How is the screen real estate best used? What features should be available? Developers have to remember that users on the go are usually looking for specific information, and determine how to make that information as easy to find as possible. They also have to differentiate between internal and external users. In this modern age of Information and communication Technology, peoples are habituated to use mobile and portable smart devices. Therefore, Mobile application development and usage is a new and rapidly growing sector in the world. There is a global positive impact of mobile application. Within last few year, smartphone and mobile application uses growth rate is so high according to some BI study. So the Mobile and mobile application also has a great positive impact on society and Business sector. Mobile applications are running on a small hand hold mobile device which is moveable, easy to use and accessible from anywhere and any place. Now a day, so many people are using mobile application in order to contact their friends, browse internet, file content management, document creating and handling, entertainment etc. From everywhere user can get facility of mobile application. The mobile application has an impact on society as well as business world. The mobile application run in a mobile environment which usability depends on several factors such as: Screen resolution, Hardware limitations, Expensive Data Usage, Connectivity issues, Limited Interaction possibilities. Therefore, mobile device manufactures are trying to develop mobile device with more screen resolution, more storage, better connectivity which provide better environment for modern mobile application as well as mobile developers are also take effort to develop mobile applications with more effectives . 5
  6. 6. In large number of mobile application some are pre-installed in phone and others user can download from internet and install it in mobile phone. This large number of mobile application market served by increasing no of mobile application developer, publishers and providers. From the technical point of view the different mobile applications are run able in different managed platforms like iPhone, BlackBerry, Android, Symbian, windows; also some virtual machine such as Java/J2ME, BREW, Flash Light, Silverlight. 3.7According to application area, there are different categories of mobile application: - Communications: Internet browsing, email IM client, Social Networking - Games: Puzzle/ Strategy, Cards /Casino, Action/ Adventure etc. Multimedia: Graphics /Image viewer, Presentations viewers, Video Players, Audio Players Productivity: Calendars, Calculators, Diary, Notepad / Memo / Word Processors, Spreadsheets Travel: City guide, Currency converter, Translators, GPS/Maps, Itineraries / Schedules, Weather - Utilities: Profile manager, idle screen/Screen saver, Address book, Task manager, Call Manager, File manager 3.8Present day uses of Mobile Application From the last few years every mobile company are making the smartphone and feature phone. And increasing the computing power of those mobile phones, rapidly increase the smart mobile application. Most of the people from developed countries including America and Europe can‟t imagine leaving home without mobile. Not only the developed countries but also the developing countries the mobile application uses rate growth rapidly. The mobile application are using in different areas. Let‟s think about communication like internet browsing, Voice chat, Facebook, Twitter etc. Now a day every standard mobile has Facebook application. User can share with their friends and family from anywhere and any place like in car, in train. People can use messenger for chatting. Those mobile applications are being design to help us in our daily life and allow us to connect with internet, interact with world, getting information from distance place, social communication using Facebook or twitter, identifying location etc. Now a day most of the smartphone has WLAN/Wi-Fi. So user can connect to Internet or local network with high data transmission rate. Because of better connectivity in future the mobile application provider are going to make application for doing business. 3.9 Mobile Application’s Effect in Society from the Ethical Perspective 6
  7. 7. Not only individuals or business, the mobile application also has a great effect in society. The whole society can be facilitating using mobile application. Some issues of social effect describe as bellow: 3.9.1Quick communication: Some mobile application like Facebook, Twitter, Messenger, Skype, viber and Google Talk are helps the society people for communication to each other. They can stay in touch where the geographical distance is not a factor. So the social relation improves and make strong. And this is good for family, friend and society. 3.9.2save time and increase productivity: In society or in developed country people can do their daily work like check email, contact with business partner from any time in bus, train, car or walk. So, no need to wait in room or office. In this way save the time and people can get more time to work. The manpower‟s productivity of society or country is increasing gradually. 3.9.3Improve IT infrastructure in developing country: In developing country the uses of mobile application improve the knowledge of people, because, they are accessing Internet from everywhere. As a result the IT infrastructure improves in any developing country. 3.9.4Increase Job vacancy: The mobile application development and mobile application business make more job vacancy in society. So many people can get job in this field. This is also good for society/country. 3.9.5Less computer use less power consumption: When most of the people will use mobile application for their daily simple work and getting facility from mobile application, the computer uses will be less as well as the power consumption will be less. 3.9.6Considerable Cost Saving: Mobile VoIP application can help people to making international call from his mobile. As a result the monthly expenditure reduced. 3.9.7Entertainment: Using mobile applications people in society can entertained themselves. There are so many other social effect issues which all are ethically good for the society. On the other hand there are some bad effects of mobile application which are not ethically good for the society. 3.9.7.1Those issues as follows: 3.9.7.1.1When there are so many Internet based mobile application is available to the teenager, they are wasting their time by using Facebook, Skype, YouTube etc. The young generations are in risk when they are using internet game or other bad application. 3.9.7.1.2Beside the uses of mobile application most of the people use mobile in every place like bus, train, office, college, university. Some body feels disturb for them. 3.9.7.1.3Frequently use of mobile is bad for health. 3.10 Limitations in Mobile Application usage 7
  8. 8. One of the big challenges of mobile application is its platform capability and limitation. Beside the interesting usability of mobile application they have some more interesting platform problems and limitation. We are trying to discuss the limitation in bellow: 3.10.1Small Screen Size: In mobile platform it is difficult or impossible to view text and graphics like a desktop computer screen. 3.10.2Lack of windows: In desktop we can see many windows at a time. But in mobile platform it is difficult. 3.10.3Navigation: Most mobile devices do not have mouse like pointer, so it has limited flexibility in navigation. 3.10.4Types of pages accessible: The mobile platform does not support all type of file Format 3.10.5Speed: The speed of processing and speed of connectivity of mobile platform is Slow. 3.10.6Size of messages or email: Many device support limited number of characters in Message or email. 3.10.7Cost: The cost of cellphone, mobile application and the internet bandwidth charge is high. 3.11 Mobile development environments There are also many development environments. Developers can also choose from either native development tools for each of the major mobile devices and platforms (including Apple® iOS, Android™, Microsoft® Windows® Mobile and Microsoft® Phone 7, Symbian®, RIM® BlackBerry®, Java®, Linux®, and Meego™) or cross-platform environments (including mobile enterprise application platforms such as SAP AG‟s Sybase Unwired Platform, Kony Solutions Inc.‟s KonyOne™ platform, or Antenna Software Inc.‟s Antenna Mobility Platform™, or mobile consumer application platforms, including PhoneGap™ and Appcelerator® Titanium). 3.12Addressing the Challenges of Enterprise Mobile Development 3.12.1 Data Access Where is the enterprise data users need to access? Should it be accessed through a Web browser, or through a native application running on the device? In some cases, the data might exist solely in a backend database. That requires connectivity, but the state of wireless coverage is such that, 3.12.2 Security Every mobile device manufacturer understands the importance of security, and offers accommodations for it. For developers, however, that means each operating system has its own custom architecture. Sometimes different mobile platforms provide varying degrees of support for securing data stored on the device. At the same time, not every mobile application needs the same level of security, and users dislike multiple logins to access data on the device itself or back-end data. 8
  9. 9. 3.12.3User Experience This is especially important in cross-platform scenarios where screen sizes may not only differ but offer the option of portrait versus landscape. How is the screen real estate best used? What features should be available? Developers have to remember that users on the go are usually looking for specific information, and determine how to make that information as easy to find as possible. They also have to differentiate between internal and external users. 4. Corporate Profile of Peoples Bank in Sri Lanka The People‟s Bank was established on July 1, 1961 and it is one of the biggest state-owned commercial bank in Sri Lanka with over 16,000 employees and 731 branches and service centers across the country. The bank serves more than 18 million corporate and private customers with retail, trade finance and off shore banking services and relationships built on the principles of comprehensive financial guidance and advices. The bank plays a major role in uplifting the rural sector by taking the bank activities to grass root levels as the bank‟s vision. 4.1 Banking history of People’s Bank Banking activities were done through following methods and banking hours were Restricted to few hours. • • • • Manual Process Ledger Cards / Sheets Tokens Adding Machines etc. 4.2 Development of Banking e-COMMERCE were introduced and All Transactions are done using electronic channels e.g.: Internet / Telephone / Electronic devices etc. History of e-COMMERCE o o o e-COMMERCE were started in 1984 and expanded in 1994 when SSL (Secure Sockets Layer ) was introduced (EDI – Electronic Data Interchange was standardized) Two major e-COMMERCE sites were Popularized in 1995 (eg: Amazon.com and Ebay.com) In this period electronic signatures and cyber laws (Cyber law or Internet law is a term that encapsulates the legal issues related to use of the Internet) were introduced. 9
  10. 10. 4.3 ELECTRONIC BANKING • Full Fill Banking Needs VIA Electronic technologies Use computers & electronic technologies as substitute for manual operations without human interference. People‟s Bank always uses best technologies to provide better customer service. As a result the bank has computerized all branches under Core Banking solution (CBS) and provide anytime, anywhere banking facility to all customers. 4.3.1Core Banking System (CBS) Runs on AS/400 machine - Operating system is OS400 and Database is DB2 is a networking of branches and Service centers, which enables customers to operate their accounts, and avail banking services from any branch of the Bank on CBS network, regardless of where he/she maintains his/her account. The customer is no more the customer of a Branch. Customer becomes the Bank‟s customer. Thus CBS is a step towards enhancing customer convenience through anywhere and anytime banking. Using the main core system of the Bank provides following financial services for the customers as retail and Corporate Banking. Current accounts, Savings accounts, Fixed Deposits (Local, NRFC, RFC), Loans (Export loans, Import loans, Block loans, SMI loans etc.), Overdraft facilities, Inward/Outward cheque clearing, Standing Orders, Pay Orders, Branch Advice, Claim Vouchers, Letter of credits, Import/Export Bills, Mini Dealer system (Purchasing & Selling Foreign currency). Aim of this is to provide convenient, efficient, and high quality banking experience to the customers, comparable to world class standards. Benefits of customers using CBS • A CBS branch is like a Sales and Service Delivery Center. Back office processes/activities are handled through technologies at the Data Center which resides in some other location. Branch, therefore, has more time for serving customers. This improves the quality and efficiency of the services rendered and the customer is directly benefited by way of satisfying happy banking experience. 10
  11. 11. 4.3.2Central Switch system o Card Management System is handled through this system and that is separated from the Core Banking System. Is connected 442 Automated Teller Machines (ATM) Includes Credit Card system and Debit card system 4.3.3Other Payment delivery channels Pawning system, People‟s EPF web system, Cheque Clearing system (Lanka Clearing ), People‟s bank intranet, HR System, Treasury system, In-house developments, Inter Bank Payment system (SLIP) Electronic Funds Transfer (EFT) a) Used to perform financial transactions electronically eg: Withdrawal, Deposits o ATM (Automated Teller Machine) Available functions - Withdraw/Deposit money, Transfer money o Swift system SWIFT (The Society for World Wide Interbank Financial Telecommunication)   o One of the financial messaging network in the World Messages are securely and reliably exchanged between banks and other financial institutions Western Union system Western Union is a quicker money transfer system, collect and send money all over the world through 170000 Western Union agents in the world. Web System for Remittances (People‟s eRemittance) Separate web page designed by People‟s Bank to receive all inward remittances which are sent by different exchange companies / banks to People‟s Bank to avoid the delay of paying remittances to People‟s Bank customers or non customers Internet related Facilities Internet Banking Mobile banking People‟s EPF Net Customs Web Parm-top Banking SMS Banking Central Bank Web People‟s bank Intranet 11
  12. 12. People‟s bank Main web page Telephone Banking b) The bank provides high quality distance banking services (Modern Banking Trends) such as   Holiday Banking Home Banking 4.4 People’s Bank Organizational hierarchy Chairman Board of Directors Corporate Management Chief Managers Senior Managers Managers Operational Staff 12
  13. 13. 4.5People’s Bank Business Units Branch Central Switch Overseas Customer Unit (OCU) Corporate Banking Division (CBD) Card Center Branch People’s Bank Treasury Subsidiary Companies Foreign Currency Unit (FCBU) Head Office Clearing Dept IT Dept. Other Departments People’s Leasing Co. PVT. Ltd. People’s Merchant Bank, People’s Travel Data Center at Thalangama Finance Dept., Risk Dept., Legal Dept., SMI Loans Dept., HR Dept., GM/Chairman Dept., Recoveries Dept, Transport Dept., Mail Dept., Maintenance Dept., Salaries Dept., Investigating Dept., Marketing Dept Disaster Recovery Center 13
  14. 14. 4.6Following Diagram illustrates the connection between Core system and the other systems External Systems FCBU Corporate banking division Overseas Customer Unit Core System Branch Swift Extract Data for Sri Lanka Customs IHRM System Western Union Pawning System h Central Switch Head Office Customs Web IHRM System Cr. Card system Dr. Card System ATM Treasury Debit Card ATM SLIPS Cheque Clearing IBT Credit Card Foreign Exchange Money Market Primary Dealer Unit Front Office 5. Current situation with regard to mobile applications in Peoples Bank 14
  15. 15. 5.1 PEOPLE’S MOBILE BANKING The State Bank of People Bank has taken steps to adopt the new Technologies along with Online Banking facility with Mobile Banking service. People‟s Mobile Banking enables you to get the personal, business as well as development related banking services at a „touch of a button‟, giving banking an all new meaning in terms of convenience and efficiency. The specialty of this new service is the personalized USSD (Unstructured Supplementary Services Data) information portal through which customers can obtain varied services at their will. Through the use of Short Message Services (SMS) on a Dialog Axiata/ Mobitel hand phone, a People‟s Bank customer can now do a host of banking activities with greater convenience PEOPLE‟S MOBILE BANKING is for Dialog Axiata users and PEOPLE‟S SMS BANKING is for Mobitel users. 5.2 Who is eligible? People‟s Bank account (Saving or Current) holders. Dialog Axiata orMobitel mobile phone user having SMS facility registered in the name of the account holder. 5.3 What are the benefits? -Convenient – anytime, anywhere banking from your mobile -With Mobile Banking customer can do banking from anywhere at any time through an interactive browsing experience on the phone. -It can work on all mobile phone handsets (At the moment PB has the facility with dialog and mobitel phones. Discussions are going on with etisalat). -Ability to carry out transactions without visiting the bank. -Access to financial information. -Banking facilities while on the move. -Secure – New USSD menu based technology -Mobile banking is also much safer than SMS-based banking services as it has an in-built USSD encryption and „no store just forward‟ facility for performing secure transactions. This means that unlike an SMS-based service, there is no storage of data on your handset. Also, the transactions are limited to a single registered mobile number and, when you sign up you create a unique PIN which ensures that you and only you can access you accounts. -Simple – no need to remember complex commands -This new technology means that you need not remember any transaction message formats. -Select from menu until desired result is achieved 15
  16. 16. -Free - No charges -Specifically designed for individuals. -Fast – do it all at a push of a button The People‟s Bank has extended its mobile banking facility to a wider cross section of Sri Lankans by offering the service to subscribers of Dialog and Mobitel, the country‟s largest mobile telephone network holders. This facility is operated on USSD (Unstructured Supplementary Service Data) technology used by GSM phones to communicate with their service providers‟ computers. Because these services are offered on the USSD platform, they can be accessed via any phone ranging from a basic phone to the most advanced phone unit that is in the market and do not require an Internet connection. With its easy to access menu-driven portal, USSD-based mobile banking offers greater convenience and functionality enabling users to carryout numerous banking transactions. Dialog subscribers can access the USSD portal by dialing #488#. Once a customer dials into the USSD portal, he or she has to select the required function and enter a Personal Identification Number (PIN) provided by the bank for authentication after which the system will execute the request. 5.4 Following are the included facilities: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. Our products Deposit products Branded Savings, Fixed Deposits, Current Accounts Lending products Corporate Banking Other products Rates Exchange Rates Promotions Transactions Inquires Inquires on balances of accounts Examining five latest transactions Find out Exchange rates Inquires on credit card balance Information on cheques Transfer funds between accounts Exchange funds between registered own accounts Exchange funds between other accounts owned Transfer funds to the credit of third party accounts (accounts within the bank) Bill Payments 16
  17. 17. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. Dialog /Mobitel Bills Dialog/Mobitelre-loads People‟s Card SLT Bills Lanka Bell Bills National Water Supply and Drainage Board Bills CEB Bills LECO Bills Requisitions Requisitions of cheque books Requisitions of Account statements Pawning Inquiry of pawning balance Prior notice on articles require to be redeemed Changes to PIN numbers Location Map E-Banking Card Center Other Services 6. MobileBanking Systems in General Mobile banking is a system that allows customers of a financial institution to conduct a number of financial transactions through a mobile device such as a mobile phone or personal digital assistant. Mobile banking differs from mobile payments, which involve the use of a mobile device to pay for goods or services either at the point of sale or remotely, [1] analogously to the use of a debit or credit card to effect an EFTPOS payment. Mobile banking has until recently (2010) most often been performed via SMS or the mobile web. Apple's initial success with iPhone and the rapid growth of phones based on Google's Android (operating system) have led to increasing use of special client programs, called apps, downloaded to the mobile device. With that said advancements in web technologies, such as HTML5, CSS3 and JavaScript have seen more banks launching mobile web based services to complement native applications. A recent study (May 2012) by Mapa Research suggests that over a third of banks [3] have mobile device detection upon visiting the banks' main website. A number of things can happen on mobile detection such as redirecting to an app store, redirection to a mobile banking specific website or providing a menu of mobile banking options for the user to choose from. 7. Architecture of an enterprise application 17
  18. 18. Mobile devices are not within the security perimeter and are connected to a range of external networks, so the connectivity must be secure.Minimally the app should use HTTPS for communications to the gateway which resides in the DMZ.The server resides in a network DMZ because all mobile cell access comes in via the public Internet.The application should require user authentication via user name/passwords (and user roles if needed), and also encrypt all data. There are two methods of developing and deploying cross-platform mobile apps – HTML5 based apps and using cross-platform compiler tools. HTML5 apps use standard web technologies-typically HTML5, JavaScript and CSS. This Write Once and Run Many solution requires you to write your code once, which can be over different platforms. Fig. 1 - Architecture of an enterprise application 7.1Mobile Enterprise Applications (MEA) MEAs, are available only to employees of an organization, and must conform to enterprise security rules, interface with the existing enterprise IT architecture, and control data usage, both incoming and outgoing.MEAs must be part of a complete system just like any other enterprise application. The hardware architecture begins with a dedicated mobile gateway server, which provides the interface point for accessing/updating enterprise data. 7.2 A mobile banking conceptual model In one academic model, [4] mobile banking is defined as: 18
  19. 19. Mobile Banking refers to provision and availability of banking- and financial services through 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 Most services in the categories designated accounting and brokerage are transaction-based. The non-transaction-based services of an informational nature are however essential for conducting transactions - for instance, balance inquiries might be needed before committing a money remittance. The accounting and brokerage services are therefore offered invariably in combination with information services. Information services, on the other hand, may be offered as an independent module. Mobile banking may also be used to help in business situations as well as financial services. 8. Mobile banking services At present, banking and finance services are facing high challenges and difficulties due to the increasing customer demands. These institutions are trying their best to fulfill all growing needs. Competition is intensifying to build trust and confidence among customers. Banks and financial institutions are going to develop solid strategies to support banding procedures and customers. It is no doubt that Banks are putting their customers at the center of all IT and business decisions. Banking and financial institutions throughout the globe are investing in mobile apps development. Mobile apps reduce risks, enhance customer satisfaction and address the advancements in financial sector. Development of mobile applications is exploring the ways to capitalize growth with effective payment strategies. According to Juniper Research (a company that renders mobile research and analysis) mobile banking users in 2011 were about 300m which will reach 530m in 2013 due to the growing popularity among customers. Some of the developed markets such as USA, Europe and China have highest penetration of users into mobile banking arena. It is said that mobile banking usage has already leading that of desktop based one in USA. 8.1Typical mobile banking services may include: Account information Mini-statements and checking of account history Alerts on account activity or passing of set thresholds Monitoring of term deposits Access to loan statements Access to card statements Mutual funds / equity statements Insurance policy management Payments, deposits, withdrawals, and transfers Cash-in, cash-out transactions on an ATM 19
  20. 20. - Domestic and international fund transfers Micro-payment handling Mobile & Direct to Home package recharging Purchasing tickets for travel and entertainment Commercial payment processing Bill payment processing „Peer to Peer payments‟ (e.g., Pop money, Isis) Withdrawal at banking agent Deposit at banking agent A specific sequence of SMS messages will enable the system to verify if the client has sufficient funds in his or her wallet and authorize a deposit or withdrawal transaction at the agent. When depositing money, the merchant receives cash and the system credits the client's bank account or mobile wallet. In the same way the client can also withdraw money at the merchant: through exchanging SMS to provide authorization, the merchant hands the client cash and debits the merchant's account. Kenya's M-PESA mobile banking service, for example, allows customers of the mobile phone operator Safaricom to hold cash balances which are recorded on their SIM cards. Cash may be deposited or withdrawn from M-PESA accounts at Safaricom retail outlets located throughout the country, and may be transferred electronically from person to person as well as used to pay bills to companies. One of the most innovative applications of mobile banking technology is Zidisha, a US-based nonprofit micro lending platform that allows residents of developing countries to raise small business loans from web users worldwide. Zidisha uses mobile banking for loan disbursements and repayments, transferring funds from lenders in the United States to the borrowers in rural Africa using nothing but the internet and mobile phones. [5] In Côte d'Ivoire (and 9 other countries in Africa and the Middle East), Orange has a commercial offer called Orange Money which includes: -money transfers (users can send money using their phone to any other customer in the country), deposit and withdrawal; -financial services, including solutions facilitating savings and insurance (according to the country); -payments, giving users a way to pay their bills (and buy mobile phone credit) and to pay for goods at shops that accept Orange Money electronically without cash. -Investments -Portfolio management services -Real-time stock quotes -Personalized alerts and notifications on security prices -Support -Status of requests for credit, including mortgage approval, and insurance coverage -Check (cheque) book and card requests -Exchange of data messages and email, including complaint submission and tracking ATM Location 20
  21. 21. -Content services -General information such as weather updates, news -Loyalty-related offers -Location-based services A report by the US Federal Reserve (March 2012) found that 21 percent of mobile phone owners had used mobile banking in the past 12 months.[6] Based on a survey conducted by Forrester, mobile banking will be attractive mainly to the younger, more "tech-savvy" customer segment. A third of mobile phone users say that they may consider performing some kind of financial transaction through their mobile phone. But most of the users are interested in performing basic transactions such as querying for account balance and making bill payment. 9. Future functionalities in mobile banking Based on the 'International Review of Business Research Papers' from World business Institute, Australia, following are the key functional trends possible in world of Mobile Banking. With the advent of technology and increasing use of smartphone and tablet based devices, the use of Mobile Banking functionality would enable customer connect across entire customer life cycle much comprehensively than before. With this scenario, current mobile banking objectives of say building relationships, reducing cost, achieving new revenue stream will transform to enable new objectives targeting higher level goals such as building brand of the banking organization. Emerging technology and functionalities would enable to create new ways of lead generation, prospecting as well as developing deep customer relationship and mobile banking world would achieve superior customer experience with bi-directional communications. Among digital channels, mobile banking is a clear IT investment priority in 2013 as retail banks attempt to capitalize on the features unique to mobile, such as location-based services [7]. 9.1Illustration of objective based functionality enrichment In Mobile Banking -Communication enrichment: - Video Interaction with agents, advisors. -Pervasive Transactions capabilities: - Comprehensive “Mobile wallet” -Customer Education: - “Test drive” for demos of banking services -Connect with new customer segment: - Connect with Gen Y – Gen Z using games and social network ambushed to surrogate bank‟s offerings -Content monetization: - Micro level revenue themes such as music, e-book downloads -Vertical positioning: - Positioning offerings over mobile banking specific industries -Horizontal positioning: - Positioning offerings over mobile banking across all the industries -Personalization of corporate banking services: - Personalization experience for multiple roles and hierarchies in corporate banking as against the vanilla based segment based enhancements in the current context. -Build Brand: - Built the bank‟s brand while enhancing the “Mobile real estate”. 10. Challenges for a mobile banking solution Key challenges in developing a sophisticated mobile banking application are: 21
  22. 22. 10.1 Handset operability There are a large number of different mobile phone devices and it is a big challenge for banks to offer mobile banking solution on any type of device. Some of these devices support Java ME and others support SIM Application Toolkit, a WAP browser, or only SMS. Initial interoperability issues however have been localized, with countries like India using portals like R-World to enable the limitations of low end java based phones, while focus on areas such as South Africa have defaulted to the USSD as a basis of communication achievable with any phone. The desire for interoperability is largely dependent on the banks themselves, where installed applications (Java based or native) provide better security, are easier to use and allow development of more complex capabilities similar to those of internet banking while SMS can provide the basics but becomes difficult to operate with more complex transactions. There is a myth that there is a challenge of interoperability between mobile banking applications due to perceived lack of common technology standards for mobile banking. In practice it is too early in the service lifecycle for interoperability to be addressed within an individual country, as very few countries have more than one mobile banking service provider. In practice, banking interfaces are well defined and money movements between banks follow the IS0-8583 standard. As mobile banking matures, money movements between service providers will naturally adopt the same standards as in the banking world. On January 2009, Mobile Marketing Association (MMA) Banking Sub-Committee, chaired by Cell Trust and VeriSign Inc., published the Mobile Banking Overview for financial institutions in which it discussed the advantages and disadvantages of Mobile Channel Platforms such as Short Message Services (SMS), Mobile Web, Mobile Client Applications, and SMS with Mobile Web and Secure SMS. [8] 10.2 Security Security of financial transactions, being executed from some remote location and transmission of financial information over the air, are the most complicated challenges that need to be addressed jointly by mobile application developers, wireless network service providers and the banks' IT departments (Mathur, 2010). The following aspects need to be addressed to offer a secure infrastructure for financial transaction over wireless network: -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. -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. -Authentication of the device with service provider before initiating a transaction - This would ensure that unauthorized devices are not connected to perform financial transactions. -User ID / Password authentication of bank’s customer. 22
  23. 23. -Encryption of the data being transmitted over the air. -Encryption of the data that will be stored in device for later / off-line analysis by the customer. One-time password (OTPs) are the latest tool used by financial and banking service providers in the fight against cyber fraud.[9] Instead of relying on traditional memorized passwords, OTPs are requested by consumers each time they want to perform transactions using the online or mobile banking interface. When the request is received the password is sent to the consumer‟s phone via SMS. The password is expired once it has been used or once its scheduled life-cycle has expired. Because of the concerns made explicit above, it is extremely important that SMS gateway providers can provide a decent quality of service for banks and financial institutions in regards to SMS services. Therefore, the provision of service level agreements (SLAs) is a requirement for this industry; it is necessary to give the bank customer delivery guarantees of all messages, as well as measurements on the speed of delivery, throughput, etc. SLAs give the service parameters in which a messaging solution is guaranteed to perform. 10.3 Scalability and reliability Another challenge for the CIOs and CTOs of the banks is to scale-up the mobile banking infrastructure to handle exponential growth of the customer base. With mobile banking, the customer may be sitting in any part of the world (true anytime, anywhere banking) and hence banks need to ensure that the systems are up and running in a true 24 x 7 fashion. As customers will find mobile banking more and more useful, their expectations from the solution will increase. Banks unable to meet the performance and reliability expectations may lose customer confidence. There are systems such as Mobile Transaction Platform which allow quick and secure mobile enabling of various banking services. Recently in India there has been a phenomenal growth in the use of Mobile Banking applications, with leading banks adopting Mobile Transaction Platform and the Central Bank publishing guidelines for mobile banking operations (Mathur, 2010). 10.4 Application distribution According to Mathur, 2010, due to the nature of the connectivity between bank and its customers, it would be impractical to expect customers to regularly visit banks or connect to a web site for regular upgrade of their mobile banking application. It will be expected that the mobile application itself check the upgrades and updates and download necessary patches (so called "Over the Air" updates). However, there could be many issues to implement this approach such as upgrade / synchronization of other dependent components. 10.5 Personalization It would be expected from the mobile application to support personalization such as: 23
  24. 24. -Preferred Language -Date / Time format -Amount format -Default transactions -Standard Beneficiary list -Alerts -Mobile content -Mobile Marketing -Mobile payments -SMS Banking -Notes 11.Enterprise Mobile Application in Peoples Bank In the new banking era, where each and every bank is trying to attract and retain more and more customer with the help of quality and best services. Mobile banking appsare new and wonderful customer service tools to provide banking facility to customer on his or her mobile phone and more rapidly and more fast. Mobile banking (also known as M-Banking, M-banking, SMS Banking etc.) is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a mobile phone. Mobile banking today is most often performed via SMS or the Mobile Internet but can also use special programs called clients download to the mobile device (Mathur, 2010). The main advantage of mobile apps for the Peoples Bank would be that it helps to improve its customer acquisition and retention while reducing its operational costs. There is no doubt that will minimize the transaction expenses through electronic functions without human participation. Peoples Bank customers will feel comfortable in carrying out basic banking procedures on mobile devices. Most commonly used mobile banking services among the customers are SMS based inquires, using text commands. Further it will also include information services like transaction records, balance status, market information, account administration and settings etc. Peoples Bank has to pay more attention to its customer experience. It will reduce complaint rates and pleasing customer community with effective service delivery. Peoples Bank can anticipate customer demands of smartphones being developed for platforms such as iPhone and Android. Since it is a fact that many Sri Lankan consumers are seeking reliable and effective ways to control and increase their finances in uncertain economic times which they have facing at present and also in the past. The bank definitely can provide its un-served clients through using mobile apps. Clients can receive loans even day to day business via mobile devices. We can be sure that by adopting mobile apps banks will become fully operational, agile and technology enriched. The bank will be in a better position to engage its customers and meet their demand in an advanced style. One can see that the Bank can improve its service quality and will be in a position to deliver financial products to its business community more effectively and efficiently than before. 24
  25. 25. The most critical part of mobile apps is its user interface (UI). It is directly related to the usability of the application. As stated by Pinch Media, on the day after an app is downloaded, only 20% users use it. By day 30, the figure drops to 3%. These figures will tell as that a generic mobile app satisfies the long-term expectations of only 3% of the target user community. Peoples Bank needs to design its enterprise mobile apps UI in keeping the end user in mind. From the coloring scheme to the complexity of the interface to the page flows, all need to be focused on one thing, which is making the user experience better. Apart from the UI, performance of the mobile app is the biggest factor that makes a user like a particular app. It is no doubt that smart phones today overcome the computational capabilities of the laptops. Functionality is the core of any mobile app. It is the primary reason why enterprises such as a Bank choose to build an app over buying “Commercial off the Shelf” Applications. When using mobile apps, the bank has to consider security and its compliance requirements without haste to meet the mobility challenge. People Bank has to give serious thought to this because almost all enterprise apps are linked into the internal enterprise system in one way or other. If not Peoples Banks systems will become vulnerable since a security flaw in the app will lead to such vulnerability. Security policy enforcement in mobile apps is the biggest challenge faced by enterprises wanting to go mobile. The mobile applications envisaged by the bank should consider that the technology used for creating a mobile app solves the problems of their customer community rather than merely being easy to use. Therefore, correctly identifying the expectations of the target users is vital importance. Bank must make sure that most problems of the customers are solved by a one touch access on the app. While the mobile app is solving a problem, it must be task oriented and driven by event so that the customer is always kept in the loop as the app starts functioning. The biggest mistake the bank can make is selecting an app which makes to cram too many images and content into a single mobile app. The best app is the one which focusses one or two specific problems. It is also vital important to identify and involve the target bank customers of a mobile app. The banks objective of introducing an app is to attract an increasing number of customers to use his/her app. The bank has to conduct market research in such a way that research team should talk to customers constantly regarding their needs and expectations. The Bank can also present dummy designs of the final app to the target audience so that they may select the best design appropriate to them. It is like solving a “Rubik‟s cube puzzle” when you are about to make a decisions to select mobile apps for an enterprise such as a financial organization at present. There are so many other factors that the bank and its development team need to take into account. Ignoring any of those factors will certainly lead to setbacks such as end user dissatisfaction to negative Return on Investment (ROI) to complete failure of the project. One of the major challenges that the bank and its teams envisaged to face is the diversity of mobile devices and platforms that are used by the target user base. Financial institute provided, 25
  26. 26. standard and regulated devicesare a thing belong to the past. Buy Your Own Device (BYOD) concept is gaining momentum, and device manufacturers and platform owners engaged in a leadership battle, the types and number of mobile devices available to the users is ever increasing. The ROI of developing and supporting individual native enterprise apps for such a myriad of device-OS combinations does not justify the cost. Therefore a new breed of apps is fast evolving, i.e. cross-platform mobile apps. 11.1Cross-platform mobile apps These are the apps that once created, can run on multiple mobile platforms like iOS, Blackberry, Android apps etc. This will save a tremendous amount of development efforts of the bank, since there is only one instance of the app that is being created. Cross-platform apps also reduce the support and management effort considerably for the same reason. Due to the reduced efforts and subsequently the cost, cross-platform apps are much lucrative for the bank. But the Bank has to make a note of cross-platform apps come with inherent complexities. Hence managing user experience across multiple devices is a challenge. Also, since every mobile platform has its own idiosyncrasies and flaws, they sometimes get amplified when deploying cross-platform apps. 12. Self-evaluation and Conclusions The mobile application run in a mobile environment which usability depends on several factors such as: Screen resolution, Hardware limitations, Expensive Data Usage, Connectivity issues, Limited Interaction possibilities. Therefore, mobile device manufactures are trying to develop mobile device with more screen resolution, more storage, better connectivity which provide better environment for modern mobile application as well as mobile developers are also take effort to develop mobile applications with more effectives . The main advantage of mobile apps for the Peoples Bank would be that it helps to improve its customer acquisition and retention while reducing its operational costs. There is no doubt that will minimize the transaction expenses through electronic functions without human participation. Peoples Bank customers will feel comfortable in carrying out basic banking procedures on mobile devices. Most commonly used mobile banking services among the customers are SMS based inquires, using text commands. Further it will also include information services like transaction records, balance status, market information, account administration and settings etc. Peoples Bank has to pay more attention to its customer experience. It will reduce complaint rates and pleasing customer community with effective service delivery. We can be sure that by adopting mobile apps banks will become fully operational, agile and technology enriched. The bank will be in a better position to engage its customers and meet their demand in an advanced style. One can see that the Bank can improve its service quality 26
  27. 27. and will be in a position to deliver financial products to its business community more effectively and efficiently than before. References 1. Gunawardena, G.J. (2013) Power Point Presentation on mobile applications, 30 Aug. 2013.Lecture delivered at NILIS, 2013. 2. KPMG “Monetizing Mobile” July 2011 3. "The World's first WAP Bank is Norwegian". itavisen.no. 1999-09-24. Retrieved 2010-10-18. 4. "A third of banks have mobile detection". Mapa Research. 2012-05-16. Retrieved 2012-0516. 5. Tiwari and Buse, 2007, p. 73-74 6. "Zidisha Set to "Expand" in Peer-to-Peer Microfinance", Microfinance Focus, Feb 2010 7. Federal Reserve Board, "Consumers and Mobile Financial Services," March 2012 7 [1] 8. http://www.mmaglobal.com/mbankingoverview.pdf 9. [2], Mobile payments 10.Friedman, Thomas (November 2, 2010). "Do Believe the Hype". New York Times. 11. Owens, John and Anna Bantug-Herrera (2006): Catching the Technology Wave: Mobile Phone Banking and Text-A-Payment in the Philippines Ovum Analyst Research, European Retail Banking Investment Strategies (2013): [3] The Himalayan Times: http://www.thehimalayantimes.com/fullNews.php?headline=Dollar+at+historic+high&NewsID 12. Mathur, Mukesh (2010). Mobile banking: the best customer service tool for the banks to attract and retain customers. Pacific Business Review – A Quarterly Refereed Journal 12. Mobile Banking Surges as Emerging Markets Embrace Mobile Finance 13. Tiwari, Rajnish and Buse, Stephan (2007): The Mobile Commerce Prospects: A Strategic Analysis of Opportunities in the Banking Sector, Hamburg University Press (E-Book as PDF to be downloaded) 14. Tiwari, Rajnish; Buse, Stephan and Herstatt, Cornelius (2007): Mobile Services in Banking Sector: The Role of Innovative Business Solutions in Generating Competitive Advantage, in: Proceedings of the International Research Conference on Quality, Innovation and Knowledge Management, New Delhi, pp. 886–894. 15. Tiwari, Rajnish; Buse, Stephan and Herstatt, Cornelius (2006): Customer on the Move: Strategic Implications of Mobile Banking for Banks and Financial Enterprises, in: CEC/EEE 2006, Proceedings of The 8th IEEE International Conference on E-Commerce Technology and The 3rd IEEE International Conference on Enterprise Computing, E-Commerce, and EServices (CEC/EEE'06), San Francisco, pp. 522–529. 16. Tiwari, Rajnish; Buse, Stephan and Herstatt, Cornelius (2006): Mobile Banking as Business Strategy: Impact of Mobile Technologies on Customer Behavior and its Implications for 27
  28. 28. Banks, in: Technology Management for the Global Future - Proceedings of PICMET '06. 17. Vaidya (2011): “Emerging Trends on Functional Utilization of Mobile Banking in Developed Markets in Next 3-4 Years” 28

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