RESEARCH PROJECT REPORT

Submitted in partial fulfillment of Master of Business Administration

Session 2020-2021

Topic- A Study on Consumer Behaviour towards Mobile Banking

Services

Submitted By: Internal Guide

Shubhi Chaurasia Mrs. Mandakini Garg
1901640700049 Faculty- Master of Business Administration

PRANVEER SINGH INSTITUTE OF TECHNOLOGY

Affiliated to Dr APJKTU
 DECLARATION

I hereby declare that this submission is my own work. It contains no

material previously published or written by another person, nor has this

material to a substantial extent been accepted for the award of any other

degree or diploma of the university or other institute of higher learning.

[SHUBHI CHAURASIA]
[1901640700049]
 ACKNOWLEDGEMENT

Research Project Report is the one of an important part of MBA program, which
has helped me to gain a lot of experience, which will be beneficial in my succeeding
career. For this with an ineffable sense of gratitude I take this opportunity to express
my deep sense of indebtedness and gratitude to Dr.S.K. Bhalla, Director PSIT and
Mr. Jatin Pande, Head of Business Administration Department, for their
encouragement, support and guidance in carrying out the project.

I am very much thankful to, my Project Guide Mrs. Mandakini Garg, Faculty –
MBA Department for her interest, constructive criticism, persistent encouragement
and untiring guidance throughout the development of the project. It has been great
privilege to work under her inspiring guidance.

I am also thankful to my parents and my friends for their indelible co-operation

for achieving the goals of this study.
 EXECUTIVE SUMMARY

I Shubhi have completed my Research project report. It was a great learning experience,
and I have learned a lot of things and gained a practical overview of the Banking
work culture.

This report is “Consumer Behaviour towards Mobile Banking Services” is designed-

To determine the acceptance and awareness level of mobile banking among customers.
To ascertain factors influencing the attitude of consumers towards mobile banking services.
To observe the overall satisfaction on mobile banking services.

It also studied the extent of the recent developments in the mobile banking system in India
to know the optimistic and pessimistic influence of mobile banking on the customers. For
the purpose of study, I have selected 100 respondents who are familiar with the modern
technology of mobile banking. It particularly focused on the problems or the benefits availed
from the mobile banking. All levels of customers were surveyed by using questionnaire and
the level of satisfaction or dissatisfaction from the mobile banking was studied. Finally, the
detail information about the benefits they had received were also considered. A small
attempt has been made to understand the benefits of the mobile banking and also the
limitation of mobile banking.

Finally, it makes an attempt to offer suggestions to the bank to educate much more about
mobile banking to its customer.
 CONTENTS

Serial Page
No. Particulars No.

CHAPTER-1: INTRODUCTION

1.1 General Introduction about Banking Sector 3-12

1.2 Public Sector Banks 12-13
1.3 Private Sector Banks 14-15
1.4 Foreign Banks 16

CHAPTER-2: MOBILE BANKING

2.1 Meaning 17
2.2 Progress of M-Banking in India 18-22
2.3 Challenges in M-Banking 22-32
2.4 Security A Major Concern 32-33
2.5 Literature Review 34-38

CHAPTER3: STUDY OF SELECTED

RESEARCH PROBLEM

3.1 Objective 40
3.2 Scope of Study 41
3.3 Limitation 42
3.4 Research Design & Research Methodology 43-44

CHAPTER4:
ANALYSIS& INTERPRETATION

4.1 Analysis & Interpretation of Data collected through 45-65

questionnaire with relevant graphs and tables

1
 CHAPTER-5:
SUMMARY & CONCLUSIONS

5.1 Findings 66-67

5.2 Conclusion 68-69
5.3 Recommendation 70-72
BIBLIOGRAPHY 73-76

QUESTIONNAIRE 76-78

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 CHAPTER -1

INTRODUCTION

3
1.1 GENERAL INTRODUCTION ABOUT THE SECTOR BANKING
SECTOR

Banking in India has been originated in the last decay of 18th century. The first banks are The
General Bank of India, which was started in the year 1786 and Bank of Hindustan which was
started in the year of 1790. The oldest bank of India was the State Bank of India which was
started in the year 1806. Mobile banking has changed the traditional way of banking system
that allows customers to do the banking services - like making deposits, withdraw, send,
receive and transfer funds from the mobile account with the help of mobile device. Mobile
banking offers various types of information for the customers. Banking sector is the lifeline
of any modern economy.

The Indian banking sector has emerged as one of the strongest drivers of India’s economic
growth. The Indian banking industry (US$ 1.22 trillion) has made outstanding advancement
in last few years, even during the times when the rest of the world was struggling with financial
meltdown. State Bank of India is the largest nationalized Bank in the country in terms of
Branch Network, Total Business, Advances, Operating Profit and low
cost CASA Deposits. The ICICI is amongst the first to receive an 'in principle' approval from
the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's
liberalization of the Indian Banking Industry in 1994.
4
A bank is a financial intermediary licensed to receive deposits and make loans. Two of the
most common types of banks are commercial/retail and investment banks. Depending on type,
a bank may also provide various financial services ranging from providing safe deposit boxes
and currency exchange to retirement and wealth management.

Usually all persons want money for personal and commercial purposes. Banks are the oldest
lending institutions in Indian scenario. They are providing all facilities to all citizens for their
own purposes by their terms. To survive in this modern market every bank implements so
many new innovative ideas, strategies, and advanced technologies. For that they give each and
every minute detail about their institution and projects Public.
They are providing ample facilities to satisfy their customers i.e. Net Banking, Mobile
Banking, Door to Door facility, Instant facility, Investment facility, Demat facility, Credit
Card facility, Loans and Advances, Account facility etc. And such banks get success to create
their own image in public and corporate world. These banks always accept innovative notions
in Indian banking scenario like Credit Cards, ATM machines, Risk Management etc. So, as a
student business economics I take keen interest in Indian economy and for that banks are the
main source of development. So, this must be the first choice for me to select this topic. At
this stage every person must know about new innovation, technology of procedure new
schemes and new ventures.

• Banking is an essential industry.

• It is where we often wind up when we are seeking a problem in financial crisis and
money related query.

• Banking is one of the most regulated businesses in the world.

• Banks remain important source for career opportunities for people.

• It is vital system for developing economy for the nation.

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Characteristics of Banking Sector

• DEALING IN MONEY
• ACCEPTANCE OF MONEY DEPOSITS
• PAYMENT AND WITHDRAWS MONEY
• INDIVIDUAL OR COMPANIES
• VARIOUS BRANCHES
• FUNCTION INCREASING RAPIDLY
• BUSINESS IN BANKING SECTOR
• IDENTIFICATION
• FACILITIES OF ADVANCE MONEY
• DEALING IN MONEY

All banks basically deal with money as they are financial institute where we do the money
exchange, we will either gave or deposit money in banks or will lend/borrow money from banks
for our requirement as per we need.

Acceptance of Money Deposits

All banks always work for their consumer satisfaction, as a result, they accept money from all their
customers in a way there they also gave an Interest on deposit with the duration passed to money
in the bank. Banks deposit money from peoples & after that, the protection of money is the
responsibility of banks any misfortune happens to the consumer’s money will be returned by banks
to the customer within a given period of time.

Payment and Withdraws

A person who has deposit their money into a bank can able to withdraw it at any time of instance.
A customer can also able to easy payment & withdraw their money with the facilities of ATM,
DRAFTS, MONEY ORDERS, CHEQUES etc.

Individual or Companies
Bank can be of any type it can be a company or firm or also a person who is involved in the
business of money. This is also how banks are defined.

6
Various Branches
A bank can also have multiple branches for the facility of their customers as every person cannot
be able to go to the main branch of the Bank so banks further grow their own branches so that they
can reach to each n every person.

Functions Increasing
BANKS always believe in developing of facilities for the customers so that they always increase
their functions for working like developing latest ATM machines for the transactions of money
and also net banking by which will be able to buy & sell any item from the sitting in our comfort
zone.

Business in Banking
BANKS do the business of money without any subsidiary business. Their only responsibility is to
satisfy their customers. this is also how banks define as they do the business of money
interchanging from 1 hand to other.
Identification
Each bank has a unique name but having BANK name as common in all. which identifies the
bank’s existence? people deal with different banks having different names but bank word in
common in all of them.

Facility of Advance
BANKS ALSO LED/GAVE money to the people in a form of LOAN with a minimum amount of
interest. people which are not able to full fill their requirements at an instance of time which
required a large amount of money at that time banks lend money to them so that they full fill their
requirements and returns back in small installment which are known as EMIs.

MARKET SIZE
The Indian banking system consists of 12 public sector banks, 22 private sector banks, 46 foreign
banks, 56 regional rural banks, 1485 urban cooperative banks and 96,000 rural cooperative banks
in addition to cooperative credit institutions. As of August 2020, the total number of ATMs in
India increased to 209,110 and is further expected to increase to 407,000 by 2021. Asset of public
7
sector banks stood at Rs. 107.83 lakh crore (US$ 1.52 trillion) in FY20. During FY16-FY20, bank
credit grew at a CAGR of 3.57%. As of FY20, total credit extended surged to US$ 1,698.97 billion.
During FY16-FY20, deposits grew at a CAGR of 13.93% and reached US$ 1.93 trillion by FY20.
Credit to non-food industries stood at Rs. 102.80 lakh crore (US$ 1.38 trillion) as of October 9,
2020.

INVESTMENTS/DEVELOPMENTS

Key investments and developments in India’s banking industry include:

• On November 6, 2020, WhatsApp started UPI payments service in India on receiving the
National Payments Corporation of India (NPCI) approval to ‘Go Live’ on UPI in a graded
manner.
• In October 2020, HDFC Bank and Apollo Hospitals partnered to launch the ‘Healthy Life
Programme, a holistic healthcare solution that makes healthy living accessible and
affordable on Apollo’s digital platform.
• In 2019, banking and financial services witnessed 32 M&A (merger and acquisition)
activities worth US$ 1.72 billion.
• In March 2020, State Bank of India (SBI), India’s largest lender, raised US$ 100 million
in green bonds through private placement.
• In February 2020, the Cabinet Committee on Economic Affairs gave its approval for
continuation of the process of recapitalization of Regional Rural Banks (RRBs) by
providing minimum regulatory capital to RRBs for another year beyond 2019-20 - till
2020-21 to those RRBs which are unable to maintain minimum Capital to Risk weighted
Assets Ratio (CRAR) of 9% as per the regulatory norms prescribed by RBI.
• In October 2019, Department of Post launched the mobile banking facility for all post
office savings account holders of CBS (core banking solutions) post office.
• Deposits under Pradhan Mantri Jan Dhan Yojana (PMJDY) stood at Rs. 1.06 lakh crore
(US$ 15.17 billion.
• In October 2019, Government e-Marketplace signed a memorandum of understanding
(MoU) with Union Bank of India to facilitate a cashless, paperless and transparent payment
system for an array of services.
• In August 2019, the Government announced major mergers of public sector banks, which
included United Bank of India and Oriental Bank of Commerce to be merged with Punjab
National Bank, Allahabad Bank to be amalgamated with Indian Bank and Andhra Bank
and Corporation Bank to be consolidated with Union Bank of India.
• The NPAs (Non-Performing Assets) of commercial banks recorded a recovery of Rs.
400,000 crores (US$ 57.23 billion) in the last four years including record recovery of Rs.
156,746 crores (US$ 22.42 billion) in FY19.
8
 • Allahabad Bank’s board approved the merger with Indian bank for the consolidation of 10
state-run banks into the large-scale lenders.
• The total equity funding of microfinance sector grew at 42 y-o-y to Rs. 14,206 crores (US$
2.03 billion) in 2018-19.

GOVERNMENT INITIATIVES

• As per Union Budget 2019-20, the Government proposed fully automated GST refund
module and an electronic invoice system that will eliminate the need for a separate e-way
bill.
• Under the Budget 2019-20, Government proposed Rs. 70,000 crores (US$ 10.2 billion) to
the public sector banks.
• Government smoothly carried out consolidation, reducing the number of Public Sector
Banks by eight.
• As of September 2018, the Government of India made Pradhan Mantri Jan Dhan Yojana
(PMJDY) scheme an open-ended scheme and added more incentives.
• The Government of India planned to inject Rs. 42,000 crore (US$ 5.99 billion) in public
sector banks by March.

Achievements
Following are the achievements of the Government:

• In October 2020, Unified Payments Interface (UPI) recorded 2.07 billion transactions
worth Rs. 3.86 lakh crore (US$ 52.10 billion).
• As on March 31, 2019, the number of debit and credit cards issued were 925 million and
47 million, respectively.
• According to RBI, India’s foreign exchange reserve stood at approximately US$ 414.14
billion as of April 19, 2020.
• To improve infrastructure in villages, 204,000 point of sale (PoS) terminals have been
sanctioned from the Financial Inclusion Fund by National Bank for Agriculture & Rural
Development (NABARD).
• Deposits under Pradhan Mantri Jan Dhan Yojana (PMJDY) increased to Rs. 1.28 lakh crore
(US$ 18.16 billion) during the week ended April 8, 2020.

9
Road Ahead
• Enhanced spending on infrastructure, speedy implementation of projects and continuation
of reforms are expected to provide further impetus to growth in the banking sector. All
these factors suggest that India’s banking sector is poised for a robust growth as rapidly
growing businesses will turn to banks for their credit needs.
• Also, the advancement in technology has brought mobile and internet banking services to
the fore. The banking sector is laying greater emphasis on providing improved services to
their clients and upgrading their technology infrastructure to enhance customer’s overall
experience as well as give banks a competitive edge.
• India’s digital lending stood at US$ 75 billion in FY18 and is estimated to reach US$ 1
trillion by FY23 driven by the five-fold increase in the digital disbursements.

ADVANTAGES OF BANKING

Safety of Public Wealth

Before the introduction of the modernized banking system, people used to save their money in
hard cash. They stored this cash in lockers, underground, with the grains, etc. There were so many
instances when the money got stolen, eaten by the rats or simply rot through the years. However,
the modern banking system completely eliminated the need to store hard cash. It actually helps
save a huge proportion of public wealth that used to get spoiled in storage.

Availability of Cheap Loans

Before modern banks were established, people would borrow money from local money lenders,
landlords, merchants or other wealthy individuals. These loans were given at exorbitant interest
rates that most people couldn’t afford to pay, in the process the borrower would always remain in
debt. It was a vicious cycle. Modern banks started providing cheaper loans to the underprivileged
section of the society, breaking the whole expensive loans system.

Propellant of Economy
Banks create money with a system called credit creation. With the help of credit creation, banks
can lend a lot more money than the deposits that it holds. When banks lend this money to
agriculture, industries, small businesses, and service providers, they are actually helping the

10
economy grow exponentially. This, in turn, creates employment and spending power. Overall, this
one function of the bank is so powerful that the entire economy of any country relies on it.

Economies of Large Scale

An extremely important benefit of any bank is its deep and wide reach through the branch banking
system and the benefits of large-scale operations. The wider the bank can reach the better services
it can provide. Now a day’s banks provide services of net banking, card payments, ATM’s, etc. at
even the most far-fetched and backward areas. Due to these large-scale operations, the services
have become extremely cheap, or sometimes even free.

Development in Rural Areas

Banks aid rural development in more than one way. Firstly, the government makes it mandatory
for the banks to lend to specialized sectors such as agriculture, rural infrastructure, etc. This leads
to the development of modern infrastructure and methods in rural areas, thereby bringing in
growth. Secondly, with the banks opening their branches in the backward areas, the rural
population has benefits of modern bank facilities such as check-in accounts, ATM’s, locker
facility, etc. Furthermore, when a new bank branch opens in a village, it needs facilities such as
24-hour electricity supply, internet connection, new staff etc. This creates employment and the
villagers can also benefit from facilities of electricity and internet.

Global Reach
Many banks operate at the multinational level, this has helped people and businesses in a way that
was not possible before the establishment of modern banks. Multinational banks aids in remittance
of cash, exchanging one currency for another; aids in export by transferring documents and
payments; lend money to government, institutions and other world organizations. The reach of the
banks is unlimited and it has helped in making the world a global village.
Though there are many benefits of the modern banks, it comes with its fair share of flaws. Let’s
discuss the disadvantages of banks to understand it better.

11
DISADVANTAGES OF BANKS

Chances of Bank going Bankrupt

The world economy goes through turbulent times every few years. Events such as great depression
of 1929, World War I & II, dot com bubble of 2000, or great recession of 2008, etc. expose banks
to unnatural risks. During delicate periods, if all the people decide to withdraw their money from
the bank, all at once, the bank will become bankrupt. Due to the function of credit creation, banks
never have enough money to pay all its customers at the same time. People, without a doubt, will
lose their money if the bank goes bankrupt.

Risk of Fraud and Robberies

The rise in internet banking has given rise in cybercrime as well. Now more people are exposed to
the risk of credit card thefts, stolen passwords, net banking frauds, etc. There have been robberies
where robbers have stolen millions of dollars through the internet, without entering the bank
premises physically. With the rise in internet banking, there will be a more innovative way for
conmen and robbers to cheat people. This leaves the public vulnerable. This also increases the
expenses that banks have to incur to safeguard their systems, which are eventually charged from
the customers.

Risk of Public Debt

This is not the risk of the bank per se, but this is the risk that people take on themselves while
dealing with a bank. Say a person is in the habit of maxing out his credit card every month and
repays the bare minimum then he will spiral into debt very fast. The habit of borrowing more than
a person can afford to repay is actually a personal bad habit, however, the easy lending policies of
banks add fuel to the fire. This can be damaging to people’s personal finances. It even affects
businesses that take term loans and working capital loans from the banks and cannot repay it.
Comparatively fewer businesses are affected by debt epidemic, but it still exists.

Account Fees
Banks sometimes charge fees that can exceed the interest rate on your account and eat away at
your investment. Some fees might come standard with a particular account, such as a maintenance
fee or ATM fees. A bank could impose other charges or possibly lower your interest rate if you
fail to meet certain requirements, such as a minimum balance. Always read the fine print to
understand your account’s terms.
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This brings us to the conclusion that modern banks have benefited society in many ways, and its
drawbacks are such that can be easily overcome by proper policies and due diligence efforts. Thus
overall, the rise of banks has been a blessing for the economy and the society.

1.2 PUBLIC SECTOR BANKS

Public Sector Banks: The term “public sector banks” refers to a situation where the majority equity
stake in the banks is held by the government. The Indian Government keeps default holdings of a
minimum 51% shareholding, but management control is only with the Central Government,
thereby classifying them as Public Sector Banks.
Public sector banks include the State Bank of India and its Associates, Nationalized Banks
(including Industrial Development Bank of India Ltd (IDBI) since December 2004), and Regional
Rural Banks.

State Bank of India (SBI)

SBI is India’s largest public sector bank and is ranked 232nd on the Fortune Global 500 list of the
world’s biggest corporations. The bank is also the country’s biggest lender. It recently joined the
list of top 50 banks globally in terms of asset distribution, following its merger with other associate
banks:
• State Bank of Travancore (SBT)
• State Bank of Patiala (SEP)
• State Bank of Mysore (SBM)
• State Bank of Hyderabad (SBH)
• State Bank of Bikaner and Jaipur (SBBJ)

As of March 2017, the total combined network of the abovementioned associate banks is 17,170
branches in India, in addition to 198 offices in 37 countries and 301 correspondents in 72 countries,
and a workforce of 209,567 employees. The combined net profit of these banks was Rs. 10,484
crores as of March 2017.

IDBI Bank (Industrial Development Bank of India)

Headquartered in Mumbai, IDBI Bank was established in 1964 by an act of Parliament to provide
credit and was owned by the Central Government. The bank’s aggregate balance sheet is INR 3.74
trillion as of March 2016. IDBI is the currently the tenth largest development bank in the world,

13
operating 3,700 ATMs and 1,995 branches, and employing around 17,570 individuals as of March
2016.

1.3 PRIVATE SECTOR BANKS

Private Sector Banks: They are the banks in which individuals and corporations are the majority
shareholders. In India, banks were nationalized in two phases, in 1969 and 1980. In 1993, the
Reserve Bank of India (RBI), the regulating body for all the country’s banking organizations,
allowed many new commercial banks in India to start operations. Some of the major commercial
banks in India that were given licenses are ICICI Bank, HDFC Bank, Axis Bank, Yes Bank, and
Kotak Mahindra Bank.
Private sector banks are recognized as the banks for the new generation, providing innovative
products, better IT support systems, and competitive pricing for their products. As of the end of
March 2017, there are 21 private sector banks in India. Besides these, four local areas banks are
also categorized as private banks.

ICICI Bank (Industrial Credit and Investment Corporation of India)

ICICI Bank is India’s largest private sector bank. The bank, which was a wholly-owned subsidiary
of ICICI Limited, is a multinational banking and financial company based in Mumbai,
Maharashtra, India with its registered office in Vadodara, Gujarat.
ICICI Bank was the first Indian bank to list on the NYSE in 2000, along with its 5 million
American Depository Shares, which was oversubscribed 13 times the offer size. It operates a
network of 4,850 branches and 14,404 ATMs in India and is present in 19 countries worldwide.

HDFC Bank
Founded in 1994, HDFC Bank is headquartered in Mumbai, Maharashtra. HDFC is India’s largest
private sector bank in terms of assets and market capitalization. It employs around 84,325 staff as
of March 2017 and operates a distribution network of 4,727 branches and 12,220 ATMs across
2,666 cities.
The bank is also present in Bahrain, Hong Kong, and Dubai. The company’s financials as of March
2016 are below:
Total Revenues: 74,373 crores (US$12 billion)

14
Total Assets: 86,384,021 lakhs (US$130 billion)
Profits: 12,817 crores (US$2 billion)

Axis Bank
Axis Bank is the third-largest private sector bank in India after ICICI and HDFC. It manages 3,304
branches and 14,200 ATMs across the country as of March 2017. The bank’s financial data as of
March 2016 is as follows:
Revenue: US$6.5 billion
Net Income: US$1.3 billion
Total Assets: US$82 billion
Total Equity: US$74 million
No. of Employees: 56,086

Kotak Mahindra Bank

Kotak Mahindra Bank is considered one of the upcoming commercial banks in India and is the
fourth biggest private-sector bank in the country according to market capitalization. The bank was
founded by Uday Kotak in 1985. It operates a network of 1,369 branches across 689 locations and
2,163 ATMs in the country. It employs 46,500 staff following its Rs 15,000 crore (US$2.3 billion)
merger with ING Vyasa Bank in 2015. The bank’s financial results as of March 2016 numbers are
as follows:
Revenues: INR 27,974 crores (US$4.4 billion)
Net Income: INR 3,431 crores (US$540 million)
Total Assets: US$15.8 billion

Bank of Baroda
Bank of Baroda, better known as India’s International Bank, is headquartered in Vadodara
(formerly known as Baroda), Gujarat, India. According to the latest data, the bank is ranked
1,145th on Forbes Global 2000 list. Its total assets are valued at Rs 3.58 trillion. It operates through
a network of 5,538 branches in India and abroad and manages around 10,441 ATMs as of July
2017.

15
1.3 FOREIGN BANKS
Foreign Banks: They are the final category of banks that serve as an important segment of the
commercial banking sector. They are headquartered outside India and they operate from their
wholly-owned subsidiaries or branches in the country. The foreign banks include Royal Bank of
Scotland, Bank of America, Barclays Banks, Deutsche Bank, etc.

16
 CHAPTER-2

MOBILE BANKING

17
2.1 WHAT IS MOBILE BANKING?
The term mobile banking refers to the use of mobile as channel of offering and delivering banking
services which includes traditional services such as funds transfer as well as new services such
online and electronic payments. Mobile banking is defined as doing bank transactions via mobile
phone. Mobile banking services in India will continue to grow so that economic experts forecast
that by 2013. Three hundred billion transactions worth more than 860 billion dollars will be done
through mobile banking. clients when a bill is due or when an account statement is available. This
helps the client remember bill payment and other such items before they are overdue. Growth of
Mobile Banking in India the business drivers contributed to the growth of mobile banking over
various modes of operation.

2.2 PROGRESS OF M-BANKING IN INDIA

Mobile banking probably had its origin in November 1946.In India, the first bank on wheel was
launched by the bank of Patiala in 1950. Internet banking helped give the customer's anytime
access to their banks. Customers could check out their account details, get their bank statements,
perform transactions like transferring money to other accounts and pay their bills sitting in the
comfort of their homes and offices. However, the biggest limitation of Internet banking is the
requirement of a PC with an Internet connection, not a big obstacle if we look at the US and the
European Mobile banking – The Future White Paper Overview Abstract This paper describes
the basic concepts, services offered, market survey and technology which enables Mobile
banking.
Over the last few years, the mobile and wireless market has been one of the fastest growing
markets in the world and it is still growing at a rapid pace. This opens up huge markets for financial
institutions interested in offering value added services. With mobile technology, banks can offer a
wide range of services to their customers such as doing funds transfer while traveling, receiving
online updates of stock price or even performing stock trading while being stuck in traffic. Mobile
devices, especially smart-phones, are the most promising way to reach the masses and to create
“stickiness” among current customers, due to their ability to provide services anytime, anywhere,
with high rate of penetration and potential to grow. Document Audience This document is
primarily intended for Marketing, Sales, Product Support, Internet Services Group, Project
Engineering and anyone who is interested in Mobile banking.
Mobile banking addresses this fundamental limitation of Internet banking, as it reduces the
customer requirement to just a mobile phone. Mobile usage has seen an explosive growth in most
of the Asian economies like India, China and Korea. The main reason that Mobile banking scores
over Internet banking is that it enables ‘Anywhere Anytime banking'. Customers don’t need
access to a computer terminal to access their bank accounts, now they can do so on-the-go while
waiting for the bus to work, traveling or when they are waiting for their orders to come through in
18
a restaurant. The scale at which Mobile banking has the potential to grow can be gauged by
looking at the pace users are getting mobile in these big Asian economies.
According to the Cellular Operators' Association of India (COAI) the mobile subscriber
base in India hit 40.6 million in the August 2004. In September 2004 it added about 1.85million
more. The explosion as most analysts say, is yet to come as India has about one of the biggest
untapped markets. China, which already witnessed the mobile boom, is expected to have about
300 million mobile users by the end of 2004. All of these countries have seen gradual roll-out
mobile banking services, the most aggressive being Korea which is now witnessing the roll-out of
some of the most advanced services like using mobile phones to pay bills in shops and restaurants
Mobile banking enables clients and users to carry out various transactions, which may vary
depending on the institution.

Currently, mobile banking’s become easier with the development of cellular mobile applications.
Clients are now able to check their balances, view their bank statements online, make transfers,
and even carry out prepaid service purchases.
Before the introduction and enablement of mobile web services in 1999, mobile banking was
completed primarily through text or SMS; it was known as SMS banking. European banks were
on the frontier of mobile banking service offering, using the mobile web via WAP support

19
SMS banking and mobile web were the most popular mobile banking products before 2010. With
the development of smartphones with iOS or Android operating systems, mobile banking
applications (apps) began to evolve. Clients were able to download the banking apps onto their
smartphones with more sophisticated interfaces and improved transactional abilities.
To date, many financial institutions make use of both SMS and mobile applications to keep their
clients informed of their account activities or to send out alerts regarding possible fraud and/or
updates and maintenance of service provision.
Examples can be a text message from a bank, notifying users that their ATMs or apps will not be
accessible during a particular time period due to system maintenance, or a confirmation text from
the bank regarding a transfer carried out by the client via the mobile app.

Key features of Mobile Banking in India

• Check the account balances and various information of our account
• Customers can view their last 30 days transaction from their history
• Transfer of funds from accounts
• Balance availability
• View the Payment of interest by the banks of various types of accounts
• Processing of cheque details
• BPAY payments
• Purchases that are made with credit card etc.

Types of Mobile Banking Services

Mobile banking can offer services such as the following:

I. Account Information
1. Mini-statements and checking of account history
2. Alerts on account activity or passing of set thresholds
3. Monitoring of term deposits
4. Access to loan statements
5. Access to card statements
6. Mutual funds / equity statements
7. Insurance policy management
8. Pension plan management
9. Status on cheque, stop payment on cheque

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II. Payments & Transfers
1. Domestic and international fund transfers
2. Micro-payment handling
3. Mobile recharging
4. Commercial payment processing
5. Bill payment processing
6. Peer to Peer payments

III. Investments
1. Portfolio management services
2. Real-time stock quotes
3. Personalized alerts and notifications on security prices

IV. Support
1. Status of requests for credit, including mortgage approval, and insurance coverage
2. Check (cheque) book and card requests
3. Exchange of data messages and email, including complaint submission and tracking
4. ATM Location

V. Content Services
1. General information such as weather updates, news
2. Loyalty-related offers
3. Location-based services

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.

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2.3 CHALLENGES IN M-BANKING
The reforms in the 1990s, which led to expansion, consolidation and liberalization of the banking
and financial sector in India, brought in many changes and challenges. A number of
private and foreign players entered the Indian market with superior technologies that helped them
service their customers efficiently through multiple channels such as ATMs and Online banking.
Indian banks on the other hand has been using IT more out of compulsion and primarily for
transaction processing. They now need to adopt IT to reposition banks into

the integrated financial services market. The need for providing improved customer service,
reducing transaction costs and increasing productivity, shall be the main drivers for banking
sector to adopt IT. These considerations are particularly important for public sector banks in India,
who are facing immense competition from private and foreign banks. IT can help them move from
the present scenario where they are working as isolated islands to providing a centralized banking
experience. There is a need today for IT and the financial community to come together and develop
customized IT solution to make the Indian banking sector globally competitive.IT adoption in the
banking sector will provide real time availability of transaction processing through multiple
channels. It would enhance a bank’s ability to cross sell products, ensure better management and
security and safety of funds and increase efficiently through integration of systems across various
locations. It would also ensure efficient management of Non-Performing Assets (NPAs),
minimize transactions costs, enhance ability to conduct in-depth financial analysis and gather
business intelligence. Enhanced use of IT would also encourage the use of Internet to provide
access for online bill payments, fund transfers and e-statements in addition to encouraging wireless
mobile banking and e-commerce. With growing competition faced by foreign bank s and financial
institutions, the public sectors banks in co-operation with the Indian IT industry would need to
equip themselves for the next phase of introducing the benefits of IT to their customers by
providing a centralized banking solution.

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Recognizing its potential to achieve financial inclusion faster, RBI has issued guidelines for
enabling mobile telephony-based financial services the Reserve Bank of India issued the
guidelines for Mobile Banking Transactions in October 2008. Some important guidelines are:
• Only banks which are licensed and supervised in India and have a physical presence in India
including core banking solution will be permitted to offer mobile banking services.
• The services shall be restricted only to customers of banks and/or holders of debit/credit cards
issued as per the extant Reserve Bank of India guidelines.
• Only Indian Rupee based domestic services shall be provided. Use of mobile banking services
for
• cross border inward and outward transfers is strictly prohibited.
• The guidelines issued by Reserve Bank of India on “Know Your Customer (KYC)”, “Anti
Money Laundering (AML)2” and Combating the Financing of Terrorism (CFT) from time to
time would be applicable to mobile based banking services also.
• Banks should follow the rules of Know Your Customer (KYC) and provide full details of the
Terms and Conditions of the service offered shall be communicated to the customer.
• Technology used for mobile banking must be secure and should ensure confidentiality,
integrity, authenticity and non-reputability i.e. authentication by ID and mPIN guidelines
Transactions up to Rs 1000/- can be facilitated by banks without end-to-end encryption.)
• The customer /consumer protection issues assume a special significance in view of the fact
that the delivery of banking services through mobile phones is relatively new.
• For the present, banks are permitted to offer this facility to their customers subject to a daily
cap of Rs. 5000/- per customer for funds transfer and Rs.10,000/- per customer for transactions
involving purchase of goods/services (Daily cap of Rs 50,000/- per customer for both funds
transfer and transactions involving purchase of goods/services since December 2009).
• Banks wishing to provide mobile banking services shall seek prior one-time approval of the
Reserve Bank of India, by furnishing full details of the proposal.
• Banks are required to maintain secrecy and confidentiality of customers' accounts. In the
mobile banking scenario, the risk of banks not meeting the above obligation is high. Banks
may be exposed to enhanced risk of liability to customers on account of breach of secrecy,
denial of service etc., on account of hacking/ other technological failures.
• Banks are required to make mandatory disclosures of risks, responsibilities and liabilities of
the customers on their websites and/or through printed material

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List of Top 10 Mobile Banking Apps in India are
1.ICICI iMobile Application
ICICI Bank’s iMobile application provides a comprehensive and secure platform for users with
over 250 financial as well as non-financial services. This app functions to take care of the daily
banking requirements from the smartphone.
ICICI iMobile app is available on both Android and iOS. As compared to other mobile banking
apps, iMobile has the highest rating on Google Play Store which makes it the top-rated mobile
banking app.
Google Play Store Rating: 4.4 stars with more than 10 million downloads
Key Services offered by iMobile App
• Easy bill payment and recharge
• Quick fund transfers with NEFT/RTGS/IMPS
• One-stop smart shopping platform
• Manage all you invest and deposits
• Instant personal loan
• Instant credit card
• Start a savings account
• Open/close fixed deposits
• Scan to pay
• Instant purchase/sale of gold
• Real-time analyses with consolidated statements of transactions
• Start Mutual Fund SIP
• Make travel and stay bookings
• Buy life insurance

Advantages of using iMobile App:

• Convenience in accessing a bank account
• Safe and secure banking
• Quick and easy fund transfer method
• A convenient way of paying bills
• Evergreen discounts, offers and rewards

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How to download ICICI iMobile app?
• Go to Google Play store/Apple App store in your smartphone
• Type ‘iMobile’ in the search bar
• Download ICICI Bank iMobile App
• How to activate the iMobile app?
• Open iMobile app and verify your mobile number
• Set a 4-digit login PIN
• Complete one-time grid card authentication using the debit card linked with the
account

2.HDFC Mobile Banking App

HDFC Bank Mobile Banking Application offers an easy, secure and convenient platform
for over 120+ banking transactions from anywhere and anytime. The app is equipped with
advanced encryption and security to keep your account safe.

You can also recharge your mobile, make DTH payments, pay bills and credit card dues
with HDFC Mobile Banking App. Instant money transfers, Demat portfolio management,
UPI payments can also be catered with mobile banking.

Google Play Store Rating: 4.1 stars out of 5 with more than 10 million downloads

Key services offered by HDFC Mobile Banking App

• Quick and secure login

• Instant fund transfer using RTGS/NEFT/IMPS
• Pay all your utility bills
• Automatic bill payment for recurring payments
• Manage your Demat account and start investing
• Update Aadhaar details
• Download e-TDS certificate
• View account balance, statements, etc.
• Apply for loans
• Apply for a new savings account

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What makes HDFC Mobile Banking one of the top mobile banking apps?

• Financial transactions like payments and fund transfers are made quick and easy
• Customers can subscribe to automatic bill payment services for recurring payments
• View, manage and update savings accounts, fixed deposits, credit cards, etc. with
the bank
• High-security technology like fingerprint ID/face ID is used to keep the app secure
• More than 120 banking services including bill payments, recharge, open/close FD,
UPI payments, open/close savings account, order currency notes or travel cards,
and a lot more

How to activate the HDFC Mobile Banking App?

• Download HDFC Net banking app from Google Play Store/ Apple App Store
• Open the app and enter username and IPIN provided by the bank (also used for
internet banking)
• Set up quick access PIN by entering the customer ID and OTP received on the
registered mobile number

3.State Bank of India YONO App

SBI YONO (You Only Need One App) fulfils all the banking, insurance, investment and
daily shopping requirements of its users. With this one app, users can bank, shop, travel,
pay bills, recharge, invest, etc. conveniently. It also allows users to apply for SBI cards,
make card payments, view transaction history and is suitable for international usage as
well.

Google Play Store Rating: 3.9-star rating with more than 50 million downloads.
Key Features of SBI YONO App:

• Instant account opening in less than 5 minutes with personalized Platinum Debit
Card and concession on banking services
• Availability of exclusive discounts and offers for SBI customers
• An interface that is easy to understand with intuitive navigation
• Quick fund transfers with UPI enabled payments
• Link and view all State Bank group relationships in one app

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 • Intelligent classification and categorization of transactions
• Avail overdraft against Fixed Deposits
• Request cheque books and ATM cards
• Get pre-approved personal loans of max. 1 lakh without any documentation
How to activate the SBI Yono App?

• SBI account holders can use their internet banking credentials to register and log-
in to YONO app
• In case you do not have internet banking credentials, you can generate a temporary
internet banking password using your debit card
• Register using your password and start using the app
• At the time of registration, set a 6-digit MPIN for YONO app
• HDFC PayZapp
• HDFC PayZapp is a payment application using which one can send money, pay for
shopping in a click, transfer funds, make bill payments, etc. The best part about
PayZapp is that it offers rewards, coupons and discounts on online shopping
websites and a lot more.

4.HDFC PayZapp app

Using this payment app by HDFC, you can shop on your mobile at partner apps, buy movie
tickets, groceries, compare and book flight tickets and hotels, shop online and get great
discounts at Smart Buy. HDFC account holders can link their debit/credit cards with
PayZapp for a convenient experience.

Google Play Store Rating: 3.9 stars with more than 10 million downloads
Key Services available on HDFC PayZapp Mobile App:

• Mobile recharge/utility bill payment

• Add/send funds
• Book movie tickets
• Make travel bookings and payments
• Order and pay for dining/fast food
• Online shopping
• Buy gift cards
• Online grocery shopping

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Ways to make payment with PayZapp

• Scan the QR code through PayZapp and pay with the app
• Pay direct money to anyone with their money number
• Make an online payment, online recharge, etc. via Online Pay
• How to activate the HDFC PayZapp?
• Download PayZapp App from Google Play Store/Apple App store
• Register with your mobile number registered at HDFC Bank
• Verify using the authentication code sent to your mobile number
• Create a 4-12-digit security code
• Link your debit and credit card by scanning the embossed card

5.Bank of Baroda M-Connect Plus App

M-Connect Plus App by Bank of Baroda is a feature-loaded mobile banking app where
users can access a wide range of banking products from balance enquiry to cardless cash
withdrawals. All the services provided by the app are free of charge. One-time SMS charge
is applied at the time of activation. Fund transfer facility is also provided under this app
using IMPS/NEFT.

It has a simple and easy to use interface and activation process. Users can auto-link all their
savings, current, CC, OD, Loan, PPF accounts with one customer ID.

Google Play Store Ratings: 4.2 stars out of 5 with more than 10 million downloads

Key Services offered by Bank of Baroda M-Connect Plus:

• Quick fund transfer with BOB, to other banks via NEFT/IMPS

• Mobile/DTH recharges
• Utility bill payments
• Cheque book request
• View account balance
• Update Aadhaar
• Change MPIN, De-link accounts
• Scan to pay

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How to Activate Bank of Baroda M-Connect Plus?

• Download the app from Google Play store or Apple App store
• There are four options to register-
• Self-registration using the debit card details
• Using BOB internet banking credentials
• Using BOB ATM
• Submitting application form at the branch
• After registering, you will receive a 4-digit MPIN via SMS
• Verify using the OTP sent to your registered mobile number
• Change MPIN after logging in the app for the first time

6.Axis Mobile App

Axis Bank’s Axis Mobile App is a safe and secure mobile banking platform which offers
more than 100 services to its users for almost all banking requirements. It is one of the
most popular and efficient mobile banking applications with convenient access to bank
accounts, fund transfers, bill payments, UPI payments, and a lot more.

Google Play Store Ratings: 4.6 stars with more than 10 million downloads

Key features of Axis Mobile App:

• Easy access to all your Axis Bank accounts

• Personalized menu
• One-stop-shop for retail and business loans
• Get pre-approved credit cards
• Process UPI payments
• Scan and Pay
• View account summary, account statements, transaction details
• View and pay latest, unbilled and past statements of your credit cards
• Open FD or RD instantly
• Access your Deposit, Loan, Forex, Demat and Mutual Fund details
• Schedule/ Pay/ Auto-Pay your utility bills for more than 200 billers
• Recharge your Prepaid Mobile, Data Card and DTH connection instantly
• Make quick fund transfers to the same bank or other bank customers using IMPS
or NEFT

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How to Activate the Axis Mobile App?

• Download Axis Mobile from the Google Play Store or Apple App store
• Register using your internet banking credentials or Debit Card credentials
• Credit card users can register using the Credit Card credentials
• Loan Customers can register using their customer id and password (self-generated)
for registration
• Enter the 8-digit activation code received in the registered mobile number
• Set a 6-digit mPIN which is required every time to log in to Axis Mobile

7.Kotak- 811 & Mobile Banking App

Kotak Bank has released its upgraded version of mobile banking in the form of Kotak- 811
& Mobile Banking App. Using this app, Kotak account holders can open a new zero
balance 811 savings account in just 5 minutes. Besides this, the app provides almost all the
banking services including transfer and payments, account balance check, bill payment and
recharges, investments, credit card issuance, Demat account access, and much more.

Google Play Store Ratings: 4.5 stars with more than 10 million downloads
Key Services offered by Kotak- 811 & Mobile Banking App:

• Manage financial transactions

• Send and receive money via NEFT, RTGS and IMPS
• Apply for loans, insurance, etc.
• Regulated UPI payments
• Make travel bookings
• One-stop shopping on e-commerce websites
• Pay mobile bills, utility bills and recharge
• Instant update of profile details
• Hotlisting debit and credit card
• Purchase and redeem Mutual Funds and keep track of your investments
• Apply for a Kotak Credit Card and make credit card payments
• Regenerate your Debit and Credit card PINs

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How to Activate the Kotak- 811 App?

• Download the app from Google Play Store or Apple App store
• Register using your Customer Relationship Number (CRN), debit/credit card PIN
or internet banking password
• Start the one-time activation process by entering the OTP received on your
registered mobile number
• Set a 6-digit MPIN and login to use the application

8.IDBI Go Mobile+ App

IDBI Go Mobile+ App enhances the consumer’s banking experience with a simple,
customizable interface providing a wide range of features and services. Mobile banking
allows users to access several banking services anytime and anywhere. IDBI customers can
register and login to IDBI Go Mobile+ app and view account statements, remittance,
transfer funds, make bill payments, etc. Moreover, one can also make utility bill payments
or recharge prepaid mobile using this app.

The bank has equipped the app with sophisticated encryption technology to secure data
transfer from your mobile phone to the Bank’s mobile banking server.

Google Play Store Ratings: 4.3 stars with more than 1 million downloads
Key Services offered by IDBI Go Mobile+ App:

• View account balance, details, mini statement and account statement

• Access Demat holdings and transaction details
• Calculate finances to make investment decisions
• Make bill payments, add billers, schedule auto-pay
• Make visa card payments
• Get IDBI credit card, make credit card payments
• Manage credit cards
• Hotlist debit/credit cards
• Set International or Domestic usage on your card
• Recharge your prepaid mobile number
• Make DTH recharge
• Make cheque book request
• Link and Update Aadhaar
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 • Register for email account statement
• Apply for loans and more

How to Activate IDBI Go Mobile+ App?

• Download the app from Google Play Store or Apple App store
• Register using one of the given options:
• Net banking credentials
• ATM channel
• Send MBREG<space><Customer ID> to 9560853000
• Submit Channel Registration Form at the nearest IDBI Bank Branch
• After registration, start one-time activation process and set your personalized MPIN
by authenticating your debit card or internet banking credentials
• Login and start using the mobile app

9.CANDI- Mobile Banking App

Canara Bank’s CANDI- Mobile Banking App is launched by the bank under the bigger
objective of implementing ‘One Bank, One App’. It is a multi-channel application which
supports most of the banking services including fund transfer, opening a fixed deposit or
recurring deposit, EMI payments, loan payments, and a lot more.

Google Play Store Ratings: 4 stars with more than 1 million downloads
Key Services offered by CANDI App:

• Touch and pay with RTGS/NEFT

• Start FD or RD
• Invest in mutual funds
• Schedule automatic recurring payments
• View balance and download bank statements
• Transfer funds using NEFT/RTGS/IMPS
• Scan & Pay QR codes using Bharat QR
• Request for Cheque book
• View and track the history of transactions

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How to Activate the CANDI App?

• Download the app from Google Play Store or Apple App store
• Register using one of the given options:
• Net banking credentials
• ATM channel
• Submit Channel Registration Form at the nearest IDBI Bank Branch
• After registration, start one-time activation process and set your personalized MPIN
by authenticating your debit card or internet banking credentials
• Login and start using the mobile app

10.PNB ONE Mobile Banking App

PNB ONE is a unified mobile banking app stacked with several banking products and
services. It enables the PNB account holders to perform major banking transactions
anytime and anywhere without having to visit the branch. The bank has used biometric
authentication along with MPIN to secure the application.

Google Play Store Ranking: 3.4 stars with more than 1 million downloads

Key services offered by PNB ONE Mobile Banking App:

• View all accounts easily

• View details of bank account, account statement, etc.
• Transfer funds to self, within PNB accounts or to other bank accounts via
NEFT/IMPS/RTGS
• Open a term deposit or recurring deposit
• Start investments in mutual funds or insurance
• View recent transactions
• Apple for new cards, hotlist debit cards
• Schedule auto-pay, link/delink credit cards
• Regulated UPI payments
• Scan and pay facility
• Request for cheque books
• PAN/Aadhaar registration
• Link PPF account and the transfer amount
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 • View & Download E- Interest Certificate for loan & Deposit

How to Activate the PNB ONE App?

• Download the app from Google Play store or Apple App store
• Enter the account number and choose an option for registration, either Mobile
Banking or Both (Internet & Mobile Banking) according to your choice
• Enter the OTP received on your registered mobile number
• Enter your linked card number and PIN
• Set login and transaction password
• After this, you will receive a success message along with the User ID for login
• Click on ‘Sign In’ and you can start using the app

2.5 SECURITY

Given below are some parameters which should be considered while selecting the best
mobile banking application-

• Security and authentication devised: Security of your banking app has to be the
priority. Before selecting an app, see if the app has two-factor authentication
enabled. An app with biometric authentication would be perfect. This is important
because you don’t want to indulge in any kind of security threat to your hard-earned
money.

• User Interface: Most of the people are familiar with internet and mobile banking.
However, some new users are not so used to the mechanism of digital banking.
Thereby, a mobile banking application should have an easy to use interface so that
anyone and everyone can use it easily.

• Availability of non-financial services: All mobile banking apps cater to the

financial banking requirements of the users. An ideal application should not
overlook the non-financial requirements such as balance enquiry, cheque book
request, mini statement, etc.

34
 • Multiple payment options: It is always better to have options. While selecting the
best mobile banking app, make sure that the app provides multiple payment options
such as IMPS, NEFT, BHIM UPI, Scan and Pay, etc. This will make it even more
convenient for the customers to use the app for all kinds of transactions.

• Tracking of finances: There has to be a proper tracking system for finances so that
the user can configure his/her future finances and investments.

• Timely Alerts: Proper notifications and alerts should be provided by a mobile

banking app to remind and notify the user about his/her important banking details.
The facility of turning on and off of the notifications should also be there.

All of these apps fulfil the requirements of an ideal banking application. Apart from these
applications, there are many other platform devices by different banks which can be used
to access banking products conveniently without having to visit the bank. So, keep in mind
all the parameters of selecting the right mobile banking app for you and download the same
for your Android or iOS mobile devices.

*All mobile banking app images are downloaded from Google Play Store.

2.6 LITERATURE REVIEW

A. Palani, P. Y. (2012) in his article” A Study on Customer Perception Towards Mobile

Banking in the Indian Overseas Bank Chennai” his research, carried out to confirm the model
of mobile banking. The causes were identified and the researched through correcting the causative
factors so that mobile banking can be used by more people. This will help the banking operations
to be more cost effective. The research is focused on what are the customer’s perceptions about
mobile banking offered by Indian Overseas Bank and what are the drivers that drive consumers.
He found that still the users face many problems right from the telecom operator to banks, the
handset to software application support for using services.

35
Amola Bhatt, S.B. (2016) in article” Factors Affecting Customer’s Adoption of Mobile
Banking Services. Journal of Internet Banking and Commerce” he says demographic,
attitudinal, behavioral characteristics of mobile bank users were examined. The infrastructural
facility of updated user-friendly technology and its availability was found to be the most important
factor that motivated consumers’ attitudes. This study identified two additional factors i.e.
infrastructural facility and customer service relevant to mobile banking that were absent in
previous researches.

Chandran, R. (2014) in his article “Pros and cons of Mobile banking. International Journal
of Scientific and Research Publications” he says that Over the years, banking has transcended
from a traditional brick-and mortar model of customers queuing for services in the banks to modern
day banking where banks can be reached at any point for their services. It is well recognized that
mobile phones have immense potential of conducting financial transactions thus leading the
financial growth with lot of convenience and much reduced cost. For inclusive growth, the benefits
of mobile banking should reach to the common man at the remotest locations in the country
Chuchuen, C. (2016) in his article “The Perception of Mobile Banking Adoption: The Study of
Behavioral, Security, and Trust in Thailand. International Journal of Social Science and Humanity”
he says there are many factors that relate in M-banking adoption process.

Rangan, V. Kasturi and Lee, Katharine L., (2012), “Mobile Banking for the Unbanked “,
The case describes in detail the workings of two mobile banking operators in Africa WIZZIT in
South Africa and M-PESA in Kenya. It explores the dimensions of strategy that make for success
in the market for the unbanked. It raises questions regarding the portability of the model to other
countries and settings.

V. Raja, Joe A. (2012), “Global e-banking scenario and challenges in banking system”, This
paper is an attempt to explore the various levels of internet banking services provided by banks
using the secondary data. It also compares the traditional banking systems with net banking. It lists
out the various advantages of internet banking and the successful security measures adopted by
different banks for secured banking transactions. It also analyzes how E-banking can be useful for
banking industry during this global financial meltdown.

Van B., Paul, Veloso, Francisco M. and Oliveira, P., (2012), “Innovation by Users in
Emerging Economies: Evidence from Mobile Banking Services”, This paper examined the
extent to which users in emerging economies innovate, and whether these innovations are
meaningful on a global stage. To study this issue, the researcher conducted an empirical
36
investigation into the origin and types of innovations in financial services offered via mobile
phones, a global, multi-billion-dollar industry where emerging economies play an important role.
The researcher used the complete list of mobile financial services, as reported by the GSM
Association (GSMA), and collected detailed histories of the development of the services and their
innovation process. Analysis of this study shows that 85% of the innovations in this field originated
in emerging markets. The researcher also concludes that at least 50% of all mobile financial
services were pioneered by users, approximately 45% by producers, and 5% jointly by users and
producers. Additionally, services developed by users diffused at more than double the rate of
producer-innovations. Finally, the researcher observed that threequarters of the innovations that
originated in emerging markets have already diffused to OECD countries and that the (user)
innovations are therefore globally meaningful.

Nel J., Boshoff C., Raleting T., (2012), “Exploiting the technology cluster effect to enhance
the adoption of WIG mobile banking among low-income earners” This study investigated the
attitude formation of low-income, non-users of Wireless Internet Gateway (WIG) mobile banking,
by including use of the Short Message Services (SMS) as a moderator of attitude formation. A
non-probability sample of 465 South African non-users of mobile banking was drawn and
clustered into High users and Low users of the SMS, based on the average number of text messages
sent in a week. The moderating effect of "use of the SMS" was investigated by means of a structural
equation modelling multi-group analysis. The findings revealed that the influence of Ease of use
on Attitude and of Self-efficacy on Ease of use were stronger for High users and significantly
different from Low users, while the opposite was true for the influence of Facilitating conditions
on Usefulness.

Oliveira P., Eric V. H., (2011), “Users as service innovators: The case of banking services”
Fond that 55% of today's computerized commercial banking services were first developed and
implemented by non-bank firms for their own use, and 44% of today's computerized retail banking
services were first developed and implemented by individual service users rather than by
commercial financial service providers. Manual precursors to these services – manual procedures
that carried out functions similar to computerized services in our sample – were almost always
developed by users as self-services.

Mas I., Dan R., (2011), “Scaling Mobile Money”, Retail payment systems require scale to get
off the ground and struggle to grow incrementally. This is due to three factors: (i) Network effects:
when it comes to payment systems, the value of joining a network is directly proportional to the
number of people already on it; (ii) Chicken-and-egg trap: in order to grow, these systems must
aggressively attract both customers and cash-in/cash-out merchants in tandem, otherwise,

37
merchants will stop offering the service due to low transaction revenue and customers will not join
the system because they cannot access a convenient outlet; (iii) Trust: customers have to become
comfortable going to non-bank retail outlets to meet their cash-in/out needs and initiating
transactions through their mobile phones. Until a deployment serves a large number of customers,
people will lack trust in the new system, because they know few who can vouch for it. To overcome
these barriers, mobile money deployments need to reach a critical mass of customers as quickly as
possible, lest they get stuck in the ‗sub-scale trap ‘. To do this, they need to get three things right.
First, they must create enough urgency in customers ‘minds to learn about, try and use the service.
Second, they must invest heavily in above and below the line marketing to establish top of mind
awareness of (and trust in) the service among a large segment of the population. And, third, they
must incur considerable customer acquisition costs (beyond marketing and promotion) to ensure
that their cash-in/out merchants are adequately incentivized to promote the service.

Traynor P., Amrutkar C., Rao V., Jaeger T., McDaniel P., Porta T. L., (2011), “From mobile
phones to responsible devices” Mobile phones have evolved from simple voice terminals into
highly-capable, general purpose computing platforms. While people are becoming increasingly
more dependent on such devices to perform sensitive operations, protect secret data, and be
available for emergency use, it is clear that phone operating systems are not ready to become
mission critical systems. Through a pair of vulnerabilities and a simulated attack on a cellular
network, we demonstrate that there is a myriad of unmanaged mechanisms on mobile phones, and
that control of these mechanisms is vital to achieving reliable use. Through such vectors, mobile
phones introduce a variety of new threats to their own applications and the telecommunications
infrastructure itself. In this paper, we examine the requirements for providing effective mediation
and access control for mobile phones. We then discuss the convergence of cellular networks with
the Internet and its impact on effective resource management and quality of service. Based on
these results, we argue for user devices that enable predictable behavior in a network—where their
trusted computing bases can protect key applications and create predictable network impact.

Ahmed S. M, Shah J. R., Md. A. I., Samina M., (2011), “Problems and prospects of mobile
banking in Bangladesh” This study revealed that 61 % respondents think it saves time than
traditional banking, the highest number of respondents use mobile banking for ‘Air-time top-
up’ service, that is 21%, out of 120 respondents 56% replied it is less costlier than traditional
banking, 100% respondents did agree that it is speedy, and 38% respondents are upper class.
Although this concept is new in Bangladesh but its potentiality is high. From this research, other
researchers and policy makers will get an insight about the problems and prospects of mobile
banking in Bangladesh.

38
Lin H. F. (2011), “An empirical investigation of mobile banking adoption: The effect of
innovation attributes and knowledge-based trust”, This study developed a research model to
examine the effect of innovation attributes (perceived relative advantage, ease of use and
compatibility) and knowledge-based trust (perceived competence, benevolence and integrity) on
attitude and behavioral intention about adopting (or continuing to use) mobile banking across
potential and repeat customers. Based on a survey of 368 participants (177 for potential customers
and 191 for repeat customers), this study uses a structural equation modeling approach to
investigate the research model. The results indicate that perceived relative advantage, ease of use,
compatibility, competence and integrity significantly influence attitude, which in turn lead to
behavioral intention to adopt (or continue-to-use) mobile banking. Additionally, by using multi-
group analysis with t-statistics, the results found that the antecedents of attitude toward mobile
banking differ between potential and repeat customers.

Mas I., (2011), “Capturing the Potential of M-Payments for the „Unbanked”, This article
discusses the potential of using mobile phones to greatly increase access to financial services in
developing countries, and reviews the main success factors in a mobile banking project.

Dube T., Kosmas N., Collins M., Lloyd C., (2011), “Adoption and Use of SMS/Mobile
Banking Services in Zimbabwe: An Exploratory Study” The findings showed that although SMS
banking was first launched in 2004, the service was still in its infancy. Evidence showed that
accessibility and affordability were the major drivers to the adoption of SMS banking. The research
confirmed the assertion that the appeal is more about accessibility and affordability in developing
countries. This has been exacerbated by the lack of regulation for electronic banking in Zimbabwe.
The study recommended an increased awareness campaign by banks.

39
 CHAPTER-3

STUDY OF SELECTED
RESEARCH PROBLEM

40
STATEMENT AND INTRODUCTION OF RESEARCH PROBLEM

The research problem that will be dealt in this research is -

‘A Study on Consumer Behaviour towards Mobile Banking Services’
Purpose of studying Research Topic

• Mobile banking plays major roles in the ongoing scenario, based on the up gradation of the
technology customer of the banks have started using the banking services through the use
of mobile phones.
• Know-a-days mobile phones have become the basic need of every one which helps the
consumers to make various kinds of activities. The activities that are done with the help of
mobile banking are online transfer of money, ticket reservation, transfer of funds, etc.
• Consumers attitude towards mobile banking service is based on the expectation of the
consumers like communication has to be properly informed, the transaction process has to
be with limited duration, need for interaction, ease to use, etc.
• Customer attitude has been varying frequently based the changes in technology in banking
system. Banking service of consumers has been effective with the help of mobile phones.
• The sampling size of the research is 100.
• Banks that is proving the various services for the customer’s in order to retain them, based
on that the expectation of the customer has to be found by the banks to make their services
better.
• The attitude of the customers is varying form period to period based on the up gradation of
the technology.
• Mobile Banking that helps the customer to make all the activities of the customer to easily
done with in a fraction of a second without waiting for anyone, at the same time the banks
have to be dynamic in their technology to satisfy the customers.

41
3.1 STATEMENT OF RESEARCHED OBJECTIVE

1)To determine the awareness level of mobile banking among customers.

2) To determine factors influencing the attitude of consumers towards mobile banking services.
3) To observe the overall satisfaction on mobile banking services.

3.2 SCOPE OF THE STUDY

In the present scenario major economic and technical changes are undergoing in industrial and
financial revolution through the new information-processing technology. The scope of my study
is limited to the Mobile Banking services in Banking Sector.
For this purpose, I have designed a Questionnaire and done my analysis on the basis of answers of
the respondents.

• Findings of this research paper can be used by other researchers doing research in this field
of study.
• Its findings can also be used by the students studying this area.
• Findings of this research paper can be used by government bodies and authorities.
• Findings of this research paper can be used by companies in automobile and other
industries.
• It can also be used by anyone with expressed permission asked.

42
3.3 LIMITATIONS

The present study is not free from limitations. Same of the important limitations of this study are
pointed out as follows.
1) Lack of proper co-ordination from the respondents.
2) Lack of proper communication with the respondents.
3) Lack of time.
4) Biased response from the respondents.

Many of the respondents felt that the information they gave, would be circulated and did not feel
easy. But after convincing them, I was able to get the information.

3.4 RESEARCH DESIGN AND RESEARCH METHODOLOGY

Research design – Exploratory and Descriptive

Exploratory Research design

Exploratory research is "the preliminary research to clarify the exact nature of the problem to be
solved." It is used to ensure additional research is taken into consideration during an experiment
as well as determining research priorities, collecting data and honing in on certain subjects, which
may be difficult to take note of without exploratory research. It can include techniques, such as:

1. secondary research - such as reviewing available literature and/or data

2. informal qualitative approaches, such as discussions with consumers, employees,
3. management or competitors
4. formal qualitative research through in-depth interviews, focus groups, projective methods,
case studies or pilot studies

43
Descriptive Research design
Descriptive research is used to describe characteristics of a population or phenomenon being
studied. It does not answer questions about how/when/why the characteristics occurred. Rather it
addresses the "what" question (what are the characteristics of the population or situation being
studied?).

1. The characteristics used to describe the situation or population is usually some kind of
categorical scheme also known as descriptive categories.
2. Descriptive research cannot describe what caused a situation. Thus, descriptive research
cannot be used as the basis of a causal relationship, where one variable affects another.
3. In other words, descriptive research can be said to have a low requirement for internal
validity.
4. The description is used for frequencies, averages and other statistical calculations. Often
the best approach, prior to writing descriptive research, is to conduct a survey investigation.
Qualitative research often has the aim of description and researchers may follow-up with
examinations of why the observations exist and what the implications of the findings are.

RESEARCH METHODOLOGY

Data collection – Primary & Secondary

Data that has been collected for the study of subject in this research paper is through various
sources some of which are mentioned hereunder:

• Google forms survey (for primary data collection)

• Wikipedia
• Research papers from “Google Scholar”
• Various other websites
Data that has been collected is both Primary and secondary in nature and has been used to study
the research problem.
Tools of Analysis

44
 The collected data has been analyzed with the help of percentage and interpreted through various
Figures.

CHAPTER-4

DATA ANALYSIS
&
INTERPRETATION

45
4.1 Analysis and interpretation of Data

1- GENDER

S. No Particulars No. of Respondents %

1 Male 60 60
2 Female 40 40

Gender

40%

60%

Male Female

Interpretation:

From the above table and chart, it is clear that majority of the respondents who are using
the services of mobile banking are

• male (60%) than

• female (40%)

46
 2- AGE
S. No Particulars No. of Respondents %

1 15-25 92 92
2 26-35 6 6
3 36-45 2 2

Age

2
6

92

15-25 26-35 36-45

Interpretation:
From the above table and chart, it is clear that majority of the respondents who are using the
services of mobile banking are of the age group
• below 25 age group (92%)
• only 6% of the people who belongs to age group 26-35 are availing the services of M-
Banking.
• Only 2% of the people who belongs to age group 36-45 are availing the services of M-
Banking

47
 3- EDUCATION

S. No Particulars No. of Respondents %

1 Illiterate 0 0
2 High School 1 1
3 Intermediate 4 4
4 Graduate 43 43
5 Master’s Degree 52 52

EDUCATION
1

52 43

Illiterate High School Intermediate Graduate Master's Degree

Interpretation:

From the above data it is clear that majority of the respondents who are using the services of
mobile banking are-

• having Master’s degree (52%) and

• then it is highly used by graduates (43%)
• followed by Intermediates one (4%)

48
 4- PROFESSION

S. No Particulars No. of Respondents %

1 Government 2 2
Employee
2 Private Employee 27 27
3 Business 9 9
4 Self-Employee 2 2
5 Student 60 60
6 Housewife 0 0

PROFESSION

27

60
9

Government Employee Private Employee Business

Self Employee Student Housewife

Interpretation:
From the above table and chart, it can be seen that mobile banking services is used by every type
of person
• majority is of Student (60%)
• it also highly used by those who are in private jobs (27%).
• It is very less likely to be used by Self-employee (2%).

49
 5- MONTHLY INCOME

S. No Particulars No. of Respondents %

1 upto 10000 46 46
2 10000-15000 9 9
3 15001-20000 13 13
4 20001-25000 8 8
5 25001-30000 5 5
6 30001 and above 19 19

MONTHLY INCOME

19

5 46

13
9

Upto 10000 10000-15000 15001-20000

20001-25000 25001-30000 30001 and above

Interpretation:
Majority of the respondents are of the category upto 10000. Respondents belonging to this category
uses the mobile banking most followed by the category of 30000 and above and 15001-20000.

50
 6- STATUS OF USAGE OF BANK ACCOUNT

S. No Particulars No. of Respondents %

1 Less than 1 year 20 20
2 1-5 year 46 46
3 5-10 year 23 23
4 10-15 year 6 6
5 Above 15 year 5 5

Status of usage of Bank Account

5
6
20

23

46

Less than 1 year 1-5 year 5-10 year 10-15 year Above 15 year

Interpretation- From the above chart it can be seen that majority of the respondents are of the
category who are using banking services from 1-5 years.

51
 7- WHICH FACTOR PROMOTES YOU TO USE THE NEW TECHNIQUES IN
BANKING?
S. No Particulars No. of Respondents %
1 Reduced time of 77 77
Transactions
2 Cost effectiveness 38 38
3 Ease of use 75 75
4 Technology Savvy 41 41

Factors
90
80 77 75

70
No. of Respondentse

60
50
41
38
40
30
20
10
0
Reduced time of Cost effectiveness Ease of use Technology Savvy
Transactions

Interpretation:
From the above table and chart, it is clear that, out of 100 respondents
• 77% of respondents have preferred it because of reduced time of transactions,
• 38% of respondents have preferred it because of its cost effectiveness,
• 75% preferred it due to ease of use and
• 41% of respondents have preferred it due to technology savvy.

52
8-HOW DID YOU GET TO KNOW ABOUT MOBILE BANKING?

S. No Particulars No. of Respondents %

1 Internet 56 56
2 Friend 13 13
3 Bank itself 30 30
4 Newspaper 1 1

30

56

13

Internet Friend Bank itself Newspaper

Interpretation:
From the above table and chart, it is clear that out of 100 respondents,
• 56% of respondents have started using mobile banking services when they came to know
about it from Internet,
• 30% came to know about by their banks and
• 13% got the awareness from their Friends.

53
 9-DO YOU PERCEIVE MOBILE BANKING AS SECURE?

S. No Particulars No. of Respondents %

1 Very 32 32
2 Somewhat 62 62
3 Not at all 4 4
4 Not Secure 2 2

Secure

4 2

32

62

Very Somewhat Not at all Not Secure

Interpretation-
In the above figure it is observed that:
If asked specifically with the customers whether perceive mobile banking as secure
• 32% responds are of “Very”
• 62% responds are of “Somewhat”
• 4% responds are of “Not at all”
• 2% responds are of “Not Secure

54
10-REASONS FOR NOT USING MOBILE BANKING SERVICES PROVIDED BANK?

S. No Particulars No. of Respondents %

1 Not aware about Services 20 20
2 I feel mobile banking 30 30
services are meant for
wealthy people
3 I do not use mobile 15 15
banking because of
possibilities of identity
theft or fraud
4 I am not satisfied with the 35 35
User Interface of mobile
banking

Reasons
40 35
No. of Respondents

35 30
30
25 20
20 15
15
10
5
0
Not aware about I feel mobile I do not use mobile I am not satisfied
Services banking services banking because of with the User
are meant for possibilities of Interface of mobile
wealthy people identity theft or banking
fraud

Interpretation-
If asked specifically with the customers reasons for not using mobile banking services provided
by bank, I found
20% were Not aware about Services, 30% feel mobile banking services are meant for wealthy
people, 15% do not use mobile banking because of possibilities of identity theft or fraud, 35% not
satisfied with the User Interface of mobile banking

55
11- I USE MOBILE BANKING SERVICES BECAUSE
S. Particulars No. of Respondents
No Strongly Agree Neutral Disagree Strongly
Agree Disagree
1 It saves my time 57 35 6 1 1
2 It is Easy to use 47 43 8 1 1
3 I am happy with the 24 50 18 6 2
User Interface of Mobile
Banking
4 I trust the network 22 47 21 9 1
connectivity while
doing a transaction
using mobile banking
5 I find mobile banking 44 41 14 0 1
cost effective as
compare to visiting
banks
6 I used mobile banking 49 37 8 5 1
because of its 24 X 7
availability
7 I am completely aware 35 43 15 6 1
of all the mobile
banking services
8 I am comfortable using 39 51 8 1 1
new technologies like
mobile banking

56
 Survey
60
No of Respondents

50
40
30
20
10
0

Axis Title

Strongly Agree Agree Neutral Disagree Strongly Disagree

Interpretation-
If asked specifically why use mobile banking services
Majority “strongly agree” that it saves their time
Majority “strongly agree” that it is Easy to use
Majority “agree” that I am happy with the User Interface of Mobile Banking
Majority “agree” that I trust the network connectivity while doing a transaction using mobile
banking.
Majority “strongly agree” that I find mobile banking cost effective as compare to visiting banks.
Majority “strongly agree” that I used mobile banking because of its 24 X 7 availability
Majority “agree” that I am completely aware of all the mobile banking services
Majority “agree” that I am comfortable using new technologies like mobile banking

57
12-WHAT DO YOU THINK ABOUT THE BALANCE ENQUIRY FACILITY PROVIDED
BY MOBILE BANKING SYSTEM
S. No Particulars No of Respondents %
1 Good 58 58
2 Average 38 38
3 Poor 4 4

Balance Enquiry Facility

38

58

Good Average Poor

Interpretation-
In the above figure it is observed that:
If asked specifically with the customers about the Balance Enquiry facility provided by mobile
banking system
• 58% of respondents found it Good
• 38% of respondents found it Average
• 4% of respondent found it poor

58
13- WHAT DO YOU THINK ABOUT THE BILL PAYMENT SERVICES PROVIDED BY
MOBILE BANKING SYSTEM?
S. No Particulars No of Respondents %
1 Good 62 62
2 Average 34 34
3 Poor 4 4

Bill Payment Service

34

62

Good Average Poor

Interpretation-
In the above figure it is observed that:
If asked specifically with the customers about the Bill Payment Services provided by mobile
banking system
• 62% of respondents found it Good
• 34% of respondents found it Average
• 4% of respondent found it poor

59
14-WHAT DO YOU THINK ABOUT THE STOP PAYMENT SERVICE PROVIDED BY
MOBILE BANKING SYSTEM?

S. No Particulars No of Respondents %
1 Good 52 52
2 Average 46 46
3 Poor 4 4

Stop Payment Service

46 52

Good Average Poor

Interpretation-
In the above figure it is observed that:
If asked specifically with the customers about the Stop payment service provided by mobile
banking system
• 52% of respondents found it Good
• 46% of respondents found it Average
• 4% of respondent found it poor

60
15-WHAT DO YOU THINK ABOUT THE MONEY TRANSFER FACILITY PROVIDED
BY MOBILE BANKING SYSTEM?
S. No Particulars No of Respondents %
1 Good 67 67
2 Average 31 31
3 Poor 2 2

Mobile Transfer Facility

31

67

Good Average Poor

Interpretation-
In the above figure it is observed that:
If asked specifically with the customers about the money transfer facility provided by mobile
banking system
• 67% of respondents found it Good
• 31% of respondents found it Average
• 2% of respondent found it poor

61
16-DO YOU THINK MOBILE BANKING SYSTEM IS SAFE?
S. No Particulars No of Respondents %
1 Yes 58 58
2 No 36 36
3 Maybe 6 6

Safety

36

58

Yes No Maybe

Interpretation-
In the above figure it is observed that:
If asked specifically with the customers whether the Mobile Banking System is safe
• 58% respondents said that “Yes” it is safe
• 6% were not sure and said that “Maybe” it is safe.
• Whereas, 36% said that “No” it is not safe

62
 17-WHAT FACTORS AFFECT YOU TO OPEN MOBILE BANK ACCOUNT?
S. No Particulars No of Respondents %
1 Time Saving 90 90
2 Cost Saving 46 46
3 Trend 21 21

Mobile Bank Account Factors

Trend
21

Cost Saving
46

Time Saving
90

0 10 20 30 40 50 60 70 80 90 100

Interpretation-
In the above figure it is observed that:
If asked specifically what are the factors affecting to open mobile bank account
• 90% respondents said that it is time saving.
• 46% found it is cost saving.
• Whereas, 21% did it because of trend.

63
18-WILL YOU RECOMMEND MOBILE BANKING TO OTHERS?

S. No Particulars No of Respondents %
1 Yes 82 82
2 No 17 17
3 Maybe 1 1

Recommendation
1

17

82

Yes No Maybe

Interpretation
In the above figure it is observed that:
If asked specifically with the customers whether they will be recommending Mobile Banking to
others-
• 84.1 % respondents said that “Yes” they will recommend it to others.
• 1% were not sure and said that “Maybe” they will recommend it to others.
• Whereas, 17% said that “No” they will not recommend it to others.

64
19-RATE THE OVERALL SATISFACTION WITH MOBILE BANKING SYSTEM OF
BANK

S. No Particulars No of Respondents %
1 Highly Satisfied 32 32
2 Satisfied 27 27
3 Average 21 21
4 Dissatisfied 12 12
5 Highly Dissatisfied 8 8

Satisfaction Level
35 32

30 27

25
21
20

15 12

10 8

0
Highly Satisfied Satisfied Neutral Dissatisfied Highly
Dissatisfied

Interpretation-
In the above figure it is observed that:
• 32 % respondents have felt that they are highly satisfied
• 27% respondents have felt that they are satisfied
• 21% of respondents have felt that it is average
• 12% of respondents have felt that they are dissatisfied and remaining 8% are highly
dissatisfied.
This shows majority of respondents are satisfied with mobile banking service.

65
 CHAPTER-4

SUMMARY&CONCLUSION

66
5.1 SUMMARY OF LEARNINGS/ FINDINGS

Following are the major Findings extracted from the analysis:

1. Mobile banking services are majorly used by males than females

2. Mobile banking services are majorly accessed by student and employed people

3. The major user of mobile banking come under age group of below 25 years age and
majority of them are student community.

4. Majority of the respondents are of the category upto 10000

5. Majority of the respondents are of the category who are using banking services from 1-5
years

6. Majority of the respondents are of the category who are using banking services from 1-5
years.

7. Out of 100 respondent’s majority have preferred it because of reduced time of transactions.

8. Majority of respondents have started using mobile banking services when they came to
know about it from Internet.

9. Majority perceived mobile banking as secure.

10. Majority are not using mobile banking services because they are not satisfied with the User
Interface of mobile banking.

11. Balance Enquiry facility provided by mobile banking system 58% of respondents found it
Good

12. Stop payment service provided by mobile banking system 52% of respondents found it
Good

13. Money transfer facility provided by mobile banking system 67% of respondents found it
Good

14. Majority Responded that Mobile Banking System is safe.

67
 15. If asked specifically what are the factors affecting to open mobile bank account 90%
respondents said that it is time saving, 46% found it is cost saving, Whereas, 21% did it
because of trend

16. Majority replied with yes that they will be recommending Mobile Banking to others.

17. Majority of respondents have felt that they are highly satisfied.

5.2 CONCLUSION

a) Mobile Banking has become one of the important factors that has been effectively used by
the consumer, based this the updates of Banks has to be done to retain and satisfy the
customers.

b) Mobile Banking updates the knowledge of the behavioral intention to adopt mobile with
the usage for transfer of amount, funds, credit, debit, etc. Besides that, the findings of this
study that will provide the knowledge of Behaviour towards the mobile banking.

c) Banks has to create certain programs to the customers regarding the dynamic change in the
mobile banking process, which will make the customer to be satisfied with the service of
banks.

d) Since last five years mobile telephone service extended tremendously in India and it
provides golden opportunities to extend m-banking service in India. However, because of
various problems in m-banking system this is not widely accepted by Indian bank
customers. Hence, there is need to improve m-banking service including network coverage
and security in m-banking.

e) Bank has to create a trust in the mind of customers about security of their accounts

f) Bank should reduce the service cost and need to improve mobile banking service.

g) Illiterate people cannot understand mobile banking service instructions. So, there is a need
to simplify it and instructions should be given in regional language.

h) The technical services must be improved.

68
 i) Give proper training to customers for using mobile and for other modern banking services

j) Illiterate people can’t able to understand and operate mobile banking services. So, bank
has to conduct some programs toward the operation of Mobile banking services.

k) Bank need to simplify less procedure for accessibility of mobile banking.

l) Bank should increase the service of mobile banking.

m) Bank should give clear information to the customers about charging of service cost.

n) Awareness about various services available through the mobile banking should be created.

o) Transaction cost charged on mobile banking should be regularly communicated to

customer

5.3 RECOMMENDATIONS

Several actions are necessary to accelerate the financial inclusion through m-banking while at the
same time ensuring customer protection. Many of these actions fall in the policy and regulatory
space.
1. Building customer awareness and informing the public on use of M-banking modes is required.

2. The RBI and commercial banks should plan a coordinated campaign in partnership with the
trainers and professional to educate customers.

3. Technology used for mobile banking must be secure and should ensure confidentiality, integrity,
authenticity and non-reputability i.e. authentication by ID and mPIN.
4. Customer should regularly check transaction history details and statements to make sure that
there are no unauthorized transactions. Change password or PIN and avoid using easy-to-guess
passwords.

69
5. Mobile number portability Programme should implement immediately it will be led to use their
mobile phone as m-banking device.

6. Bank should develop m-banking software in regional language and should use most commonly
used phrases, name and shortcuts in the software.

7. Telecommunication department and cellular service providers should extend their network
coverage in rural and remote areas to facilitate them communication and m-banking also. The
government should provide conditional financial support to cellular service providers to extend
such networks in rural areas.

8. Bank should enhance their refund facilities concerns to if wrong transactions made by customers
by mistake or if any.

9. Bank can offer EMI or rental based mobile phone handsets to poorer peoples with tie up with
mobile handset company. It may give access to them via m-banking service.

10. Banks has to create certain programs to the customers regarding the dynamic change in the
mobile banking process, which will make the customer to be satisfied with the service of bank

70
BIBLOGRAPHY

71
• Bångens L and Söderberg, B. (2008), Mobile Banking –Financial Services for the
Unbanked? ISBN: 978-91-85991-01-3, http://www.spidercenter.org/files/m-
banking_study.pdf

• CGAP Consumer Protection Policy Diagnostic Report, 2010,

http://www.cgap.org/gm/document-
1.9.42213/India_Consumer_Protection_Diagnostic_Report.pdf accessed on 20/12/2010

• Cheney, Julia S. (2008), An Examination of Mobile Banking and Mobile Payments:

Building Adoption as Experience Goods? Discussion paper, the Federal Reserve System,
USA http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1266809 accessed on
25/12/2010.
• Donne and Telleze, (2008), Mobile banking and economic development: Linking adoption,
impact, and use, Asian Journal of Communication Vol. 18, No. 4, December 2008, 318-
332

• Ghosal S. N. (2010) Mobile Banking For Inclusive Growth, PNB quarterly

journal,vol.VIno.1,january-march-www.pnbiit.com/download/JanMar10.pdf accessed on
30/12/2010
• http.//en.wikipedia.org/wiki/telephone banking- accessed on 02/12/2011

• International Finance Corporation (World Bank), (2010), Mobile Banking in Indonesia:

Assessing the Market Potential for Mobile Technology to Extend Banking to the Unbanked
and Underbanked,
http://www.ifc.org/ifcext/eastasia.nsf/AttachmentsByTitle/Mobile_banking_report/$FILE
/Mobile+Banking+Final+Report.pdf accessed on 01/01/2011
• Key Pousttchi and Martin Schurig (2008), Assessment of Today’s Mobile Banking
Applications from the View of Customer Requirements, Proceedings of the 37th Annual
Hawaii International Conference on System Sciences, ISBN: 0-7695-2056-1,
http://www.computer.org/portal/web/csdl/doi/10.1109/HICSS.2004.1265440 accessed on
01/01/2011

• Leela Dhar, V., (2005) Lecture delivered on “Taking Banking Services to the Common
Man-Financial Inclusion “Deputy Governor Reserve bank of India at the Fed bank Hormis
Memorial Foundation at Ernakulam on December 2, 2005,
• https://en.wikipedia.org/wiki/Mobile_banking retrieved on 14 January at 1 pm

• https://play.google.com/store/apps/details?id=com.sbi.lotusintouch&hl=en_IN&gl=US
retrieved on 15 January at 1 pm

72
• https://play.google.com/store/search?q=hdfc%20mobile%20banking%20app&c=apps&hl
=en_IN&gl=US retrieved on 16 January at 3 pm

• https://cibnext.icicibank.com/corp/AuthenticationController?FORMSGROUP_ID__=Aut
henticationFG&__START_TRAN_FLAG__=Y&FG_BUTTONS__=LOAD&ACTION.
LOAD=Y&AuthenticationFG.LOGIN_FLAG=1&BANK_ID=ICI&ITM=nli_cms_corp_
btn_index_login retrieved on 18 January at 3 pm
• https://netbanking.canarabank.in/entry/ENULogin.jsp retrieved on 21 January at 4 pm

73
QUESTIONNAIRE

74
1. Name:
2. Gender
a) Female
b) Male
c) Other
3. Age
a) 15-25
b) 26-35
c) 36-45
d) Above 45
4. Education
a) Illiterate
b) High School
c) Intermediate
d) Graduate
e) Master's Degree
5. Profession
a) Government Employee
b) Private Employee
c) Business
d) Self-Employee
e) Student
f) Housewife
6. Monthly Income
a) Upto 10000
b) 10000-15000
c) 15001-20000
d) 20001-25000
e) 25001-30000
f) 30001 and above
7. Status of Usage of Bank account
a) Less than 1 year
b) 1-5 years
c) 5-10 years

75
 d) 10-15 years
e) above 15 years
8. Which factor promotes you to use the new techniques in Banking?
a) Reduced time of Transactions
b) Cost effectiveness
c) Ease of use
9. How did you get to know about Mobile Banking?
a) Internet
b) Friend
c) Bank Itself
d) Newspaper
10. Do you perceive Mobile Banking as secure?
a) Very
b) Somewhat
c) Not at all
d) Not secure
11. Reasons for not using Mobile Banking Services provided Bank?
a) Not aware about Services
b) I feel mobile banking services are meant for wealthy people
c) I do not use mobile banking because of possibilities of identity theft or fraud
d) I am not satisfied with the User Interface of mobile banking
e) Other
12. I Use Mobile Banking Services because
particulars Strongly Agree Neutra Disagr Strongly
Agree l ee Disagree
1 It saves my time
2 It is Easy to use
3 I am happy with the User
Interface of Mobile Banking
4 I trust the network connectivity
while doing a transaction using
mobile banking
5 I find mobile banking cost
effective as compare to visiting
banks

76
 6 I used mobile banking because of
its 24 X 7 availability
7 I am completely aware of all the
mobile banking services
8 I am comfortable using new
technologies like mobile banking

13. What do you think about the Balance Enquiry Facility provided by Mobile Banking
System?
a) Good
b) Average
c) Poor
14. What do you think about the Bill Payment Services provided by Mobile Banking System?
a) Good
b) Average
c) Poor
15. What do you think about the Stop Payment Service provided by Mobile Banking System?
a) Good
b) Average
c) Poor
16. What do you think about the Money Transfer Facility provided by Mobile Banking
System?
a) Good
b) Average
c) Poor
17. Do you think Mobile Banking System is Safe?
a) Yes
b) No
c) Maybe
18. What factors affect you to open Mobile Bank Account?
a) Time Saving
b) Cost Saving
c) Trend

77
19. Will you recommend Mobile Banking to others?
a) Yes
b) No
c) Maybe
20. Rate the overall satisfaction with Mobile Banking System of Bank?
a) Highly Satisfied
b) Satisfied
c) Average
d) Highly Dissatisfied
e) Dissatisfied

78