Mobile banking is a new tool to give all services to customer on their mobile. The earliest mobile banking services were offered over SMS. In 1999, the first European banks offer mobile banking to their customers with the use of WAP enabling mobile. Now, Banks use this service to attract the potential customers. The expansion of Mobile Banking industry in last 5 years has a great impact on the economic growth of the banking sector in India. The rural mobile connections have reached the 46.5 million mark as against 42.2 million in the previous years(according to Aite Group’s report ). This study is undertaken to provide a systematic analysis of

1. MOBILE BANKING IN INDIA:
EMERGING ISSUES
Sudipta Saha Roy
SERAMPORE COLLEGE(CALCUTTA UNIVERSITY)
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2. INTRODUCTION TO MOBILE BANKING
 Mobile banking is a new tool to give all services to customer on their
mobile. The earliest mobile banking services were offered over SMS. In
1999, the first European banks offer mobile banking to their customers with
the use of WAP enabling mobile. Now, Banks use this service to attract the
potential customers.
The expansion of Mobile Banking industry in last 5 years has a great impact
on the economic growth of the banking sector in India. The rural mobile
connections have reached the mark as against in
the previous years(according to Aite Group’s report ). This study is
undertaken to provide a systematic analysis of
 (i) Some of the general aspects of the mobile banking,
 (ii) Problems and prospects of mobile banking in India.
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3. SURVEY OF LITERATURE
SOURCE FOCUS
Gary Schneider, Electronic
Commerce, Publisher: Course
Technology; 10 edition (May 22,
2012)
Methodological technique for
implementing outsourcing decisions
Pandey, Srivastava and Shukla, E-
commerce and mobile commerce
technologies, Publisher: S Chand &
Co Ltd (April 1, 2007)
E-Commerce is the growth and
development of information and
communication technologies has
playing an important role.
P.T. Joseph, Electronic Commerce
– An Indian Perspective,
Publisher: PHI Learning (January
30, 2012)
Case studies of Mobile Banking
industry, based on empirical
research.
Bharat Bhaskar, Electronic
Commerce, Publisher: Tata
McGraw Hill Education Private
Limited (July 29, 2010)
E-Commerce is the growth and
development of information and
communication technologies has
playing an important role.
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4. OBJECTIVES OF THE STUDY
 To explain the concepts and various aspects of mobile banking.
 To study the selected issues in mobile banking from urban
customers’ perspective.
 To identify problems of mobile banking in India.
 To detect prospects of mobile banking in India.
 To examine the impact of Mobile banking on customer
satisfaction by analyzing the problems faced by the customers .
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5. METHODOLOGY
 Data Source:
 Mainly secondary data sources are used (i.e. press releases, news
paper reports and data from the internet).
 Method of Analysis:
 Time series analysis.
 Time Period of study:
 Financial Year April, 2007 to September, 2012
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6. TRANSACTION FLOW IN MOBILE BANKING
ONE VIEW IS THAT MOBILE TECHNOLOGY IS JUST ANOTHER, ALTHOUGH
HIGHLY INNOVATIVE, ACCESS CHANNEL; AN ALTERNATIVE IS THAT
MOBILE TELECOMMUNICATIONS NETWORKS ARE BECOMING THE, FRONT
OFFICE FOR FINANCIAL SERVICES LEAVING THE EXISTING BANKS AS
PROVIDERS OF BACK OFFICE FUNCTIONS. MOST ARE BANK-LED AND
LARGELY PROVIDE AN INFORMATION AND TRANSACTION CHANNEL
WHICH COMPLEMENTS EXISTING BANK ACCESS CHANNELS SUCH AS
BRANCHES, TELEPHONE BANKING AND ONLINE SERVICES.
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7. SMS NETWORK ARCHITECTURE
 SMS uses the popular text-messaging standard to enable mobile
application based banking. The way this works is that the customer
requests for information by sending an SMS containing a service
command to a pre-specified number. The bank responds with a reply
SMS containing the specific information.
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8. WAP NETWORK ARCHITECTURE FOR MOBILE
APPLICATIONS
WAP uses a concept similar to that used in Internet banking. Banks
maintain WAP sites which customer's access using a WAP
compatible browser on their mobile phones. Mobile Application
users access the bank's site through the WAP gateway to carry out
transactions, much like internet users access a web portal for
accessing the banks services.
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9. MOBILE BANKING SYSTEM MANAGEMENT
 Standalone mobile applications are the ones that hold out the most
promise as they are most suitable to implement complex banking
transactions like trading in securities. They can be easily customized
according to the user interface complexity supported by the mobile.
In addition, mobile applications enable the implementation of a very
secure and reliable channel of communication.
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10. PROBLEMS IN MOBILE BANKING IN INDIA
 Mobile banking is a new tool to give all services to customer on
their mobile. The earliest mobile banking services were offered over
SMS. Mobile banking is used for performing balance checks,
account transactions, payments, credit applications and other
banking transactions through a mobile device such as a mobile
phone. However, at present it is not accepted by common peoples in
India because of followings reasons:
 1. Less IT literacy is adversely affecting on the use of mobile phone
as electronic device for banking.
 2. Most of rural peoples have no idea about m-banking and how it is
used.
 3. Continues and good quality of cellular service connectivity is not
available in the rural areas.
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11. PROBLEMS IN MOBILE BANKING IN INDIA
(CONTD.)
 4. Security and trust are most important aspects of any banking
service, but people have much of doubts about its security and
trustworthiness.
 5. M-banking provides limited range of services it not provides
deposit facility which is essential service for the customers.
 6. Refund service is very poor in the m-banking.
 7. Breakdown of M-banking creates inconvenience for customers.
 8. Language used in the m-banking software using English as
common language but rural people unable to use this software.
 9. Charges on GPRS or 3G service is not cheap to use in m-banking
service.
 11. If customer is using m-banking, he would not be able to change
to a different service provider and his phone number .
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12. MOST COMMON MOBILE BANKING FUNCTIONS IN
INDIA :( SOURCE: CELENT)
SERVICES USAGE
Bill payment 8%
Fund transfer 11%
Change password 2%
Balance requests 62%
Transaction history 17%
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Bill payment
8% Fund transfer
11%
Change password
2%
Balance requests
62%
Transaction
history
17%

13. MOBILE BANKING SUBSCRIBER FORECAST 2007-
2010(MILLIONS),SOUECE:AITE GROUP
FINANCIAL YEAR 2007 2008 2009 2010
Mobile internet user 33.6 38 42.2 46.5
Mobile banking user 1.7 9.5 21.1 34.9
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33.6
38
42.2
46.5
1.7
9.5
21.1
34.9
0
10
20
30
40
50
2007 2008 2009 2010
Mobile internet user Mobile banking user

14. DATE VALUE(RS)(‘000) DATE VALUE(RS)(‘000)
December,2011 1979847.64 May,2012 2865454.43
January,2012 1909045.32 June,2012 3067107.11
February.2012 1960417.16 July,2012 3379714.95
March,2012 2325320.68 August,2012 3548627.55
April,2012 2345677.57 September,2012 4104519.01
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MOBILE BANKING TRANSACTION DATA
1979847.64
1909045.32
1960417.16
2325320.68
2345677.57
2865454.43
3067107.11
3379714.95
3548627.55
4104519.01value(Rs.)('000)

15. FINDINGS
 Time Saving: Mobile banking is available anytime, anywhere throughout the
country.
 Low Cost: It is convenient, affordable and it will make access to banking and
advanced payment transactions at affordable cost.
 Trust Worthy: It is much safer and safeguard against fraudulent transactions and
one can trust mobile banking as traditional banking system.
 User Friendly: It is using system is also easy and anyone can use it.
 Security: In mobile banking a confidential pin code is used by the user. So mobile
banking is fully secured.
 Speedy Process: One benefit of mobile banking is a very speedy process.
Transaction can be done anytime anywhere quickly in less time.
 IT literacy: Less IT literacy is adversely affecting on the use of mobile phone. Most
of rural peoples have no idea about m-banking.
 Business Expansion: Mobile Banking is the golden opportunity to the business
expansion.
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16. LIMITATIONS
• The study is based on secondary data because of time and cost constraints.
• A larger time horizon of analysis would by more revealing.
• Data unavailability for the mobile banking services.
• Limited time for completed project report.
SCOPE FOR FURTHER STUDY
o The present study as basically concerned with Mobile Banking. We could
not explore many important aspect ‘problems and prospects of Mobile
Banking in India’, because of paucity of information and time. However we
would like to identify the following aspect of the further study & research.
• Issues & Challenges in Mobile Banking In India: A Customers Perspective
• Mobile Banking – The Future Prospects in Indian banking sector
• Present Scenario and Future Prospects of E- Banking in Indian Banking
Sector
• Mobile Banking – Advantages for financial services
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17. CONCLUSION
oThe Internet is not yet a universally accessible resource in
developing countries. India lacks the necessary policies and
infrastructure that would enable widespread usage of the
Internet. The Internet has enormous potential as a tool for
development. The extent of adoption of Mobile Banking is
hampered by a range of obstacles including the unavailability
and/or unreliability of infrastructure, the absence of government
policy frameworks, and the lack of banking facilities.
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18. BIBLIOGRAPHY
 Books
 Bharat Bhaskar, Electronic Commerce, Publisher: Tata McGraw Hill
Education Private Limited (July 29, 2010)
 C.S.V.Murthy, Electronic Commerce (concepts, models, strategies),
Publisher: Himalayan Books (December 1, 2011)
 Gary Schneider, Electronic Commerce, Publisher: Course Technology;
10 edition (May 22, 2012)
 Laudon & Traver, e-commerce – Business, Technology, Society
Publisher: Prentice Hall; 1 edition (October 19, 2007)
 Pandey, Srivastava and Shukla, E-commerce and mobile commerce
technologies, Publisher: S Chand & Co Ltd (April 1, 2007)
 Websites
 http://www.myprivatebanking.com/Article/2011-Mobile-Applications-
Report
 http://www.spidercenter.org/files/m-banking study.pdf
 http://rbidocs.rbi.org.in/rdocs/notlfication/PDFs/MGR241209.pdf
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19. THANKS
TO
ALL
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