MOBILE BANKING SERVICES

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Mobile Banking
Mobile Banking refers to provision and availment of banking- and financial services with the help of mobile telecommunication devices. The scope of offered services may include facilities to conduct bank and stock market transactions, to administer accounts and to access customized information.

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History
The earliest mobile banking services were offered overSMS a service known asSMS banking. the first European banks started to offer mobile banking in1999, With the introduction of the first primitive smart phoneswithWAPsupport enabling the use of themobile webin 1999, The first major deployment was made by a company called Paybox (largely supported financially by Deutsche Bank)

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Some facts about mobile industry in India:

65%

of the Indian population has the mobile in their hands as on 2o12 which translate the gigantic figure of 765 million subscriber. That is 2.5 times of the total US population and Second to the China with 863 million subscribers. It is also reports penetrationof 85% by the end of 2o14. Plus, the number of mobile subscribers in India is growing by a whopping 20 million every month
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Growth of mobile(mn)

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Factors for growth of mobile:

Consolidation

and New

Competition High disposable income. Devices Makers Focused On Ease of Use Smartphone as a Lifestyle Statement Platforms Becoming 'FieldRefreshable'

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Process:-

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Growth in m-banking

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Most popular services

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PRODUCT BENEFITS
Customer

Benefits Secure, Convenient and easy method of payment Anywhere anytime payment
Merchant

Benefits Additional payment method for customers Small payment amounts can be accepted Portable payment options for merchants on move
Banks
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Market Share in Mobile Banking

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Mobile Banking Features

You can be notified whenever a card not present purchase has been made (typically an The first step to security is awareness. It is nearly Internet, or phone impossible to take effective action if you dont know that purchase) unauthorized activity has taken
place on your account until your statement has been received 30+ days later. 10/23/12 12

Profitability for banks

Research

study says cost involved for full service per branch is Rs 50. per customer per month. Cost involved per ATM is Rs 18. Cost involved for telebanking is Rs 10

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Mobile payment forum of india

Mobile

Payments is a new and alternate mode of payment using mobile phones. Instead of using traditional methods like cash, cheque, or credit cards, a customer can use a mobile phone to transfer money or to pay for goods and services. A customer can transfer money or pay for goods and services by sending an SMS, using a Java application over GPRS, a WAP service, or other mobile communication technologies . In India, this service is Bank-led. Customers wishing to avail themselves of this service will have to register with Banks which 10/23/12

Security features
Separate

password for login and transactions. Password is stored in one way encrypted form in the database. Mandatory change of password on 1st login. Password expiry after special period. Expiry of user id if not used within 180 days. Disabling login id after 5 consecutive unsucesful attempt.

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Mobile banking
Mobile

banking (also known as M-Banking, m-banking) is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or 10/23/12 Personal Digital

High Level Architecture

Architecture 1: When the bank provides the service directly to the customer

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 The

setup will have a web server, application server and the database at the banks premises. We shall call this the mobile banking server for ease of understanding. The application will ensure what services are to be provided to the customer. Based on the banking services provided to the customer, the security of the infrastructure has to be built in. The database can be the same as the Core Banking database, having another table for mobile banking users. The customer uses his/her mobile phones to transact through the mobile network. The Mobile banking server in turn talks to the Core banking systems of the bank for user 10/23/12 authentication, processing transactions,

High-Level Architecture
Architecture 2: When banks outsource this facility to 3rd party vendors

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This is the more popular architecture as Banks can quickly roll out their mobile banking solutions by connecting to a 3rd party. This is also the architecture with more security issues as interconnection with a 3rd party is involved. In this architecture, the mobile banking servers are located at the 3rd party vendors data centre. These servers will talk to the Core Banking servers of the bank through a secured channel (dedicated or shared link) for authentication, authorization and transaction processing.

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Prerequisites & Functionality

Registration

with bank User Authentication User requesting a transaction Bank processing the transaction

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Secured Data Transfer

For the highest level of security, sensitive data, such as PIN and transaction details are never stored in the SIM card or the platform. All customer and financial information is kept exclusively at the bank, which also has the sole control over the cryptographic keys used to secure financial transactions.

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The Secure Applet is pre-installed on the SIM card, readily available to the end-user. This applet handles: Displaying appropriate menus processing user responses Sending and receiving transaction messages Encrypting and decrypting sensitive information Managing transaction security and confidentiality.

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Secure SIM card Applet The SIM card includes an applet with an intuitive GUI and security features that ensure the same level of security and confidentiality as if the operations were performed at the bank. The applet: Formats and displays mobile banking menus and data Prompts the user for information and collects user input Generates transaction keys, ciphers sensitive information and signs data to be sent Provides the means for key management Sends banking requests using SMS messages.
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BMS
Business Mediation Server (BMS) On the operators side, the BMS ensures communication between mobile subscribers and financial institutions, and routes mobile banking transactions exchanged between the SIM card in the mobile users phone and the BSP at the users bank. The BMS: Receives subscribers mobile banking requests, interprets them, formats and forward the requests to the subscribers bank for processing Maintains the status of the requests Logs transaction results for auditing10/23/12 and

BSP
Bank Secure Platform (BSP) On the financial institution side, the BSP handles transactions between mobile users and the banks systems. More specifically, the BSP: Facilitates communication between bank systems and end-users Hosts response templates (pages) Authenticates mobile customers Maintains connectivity between the wireless telecom world and the banking environment Ensures that financial transactions and customer data are secure, using the services of
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Transaction Flow

A customer browses Mobile Banking pages on the mobile phone and requests an account balance from the bank by selecting the account and entering the PIN to confirm the transaction. The request is encrypted and signed in the SIM and sent to the BMS via the mobile operators network through the SMSC and the S@T Gateway. The BMS communicates with the BSP at the bank. The BSP decrypts information related to the transaction (the account), translates the PIN, translates the request and sends it to the bank system for processing. When the BSP obtains the requested information it sends the response back to the BMS. The BMS sends the response to the S@T gateway which formats and forwards it to the SIM card in the mobile phone. The response is decrypted in the SIM card and presented to the user. The mobile user sees the result of her or his request on the phone display.

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OPERATING SYSTEM REQUIREMENTS

Operating System Requirements: The Mobile Banking platform software runs on standard UNIX or Linux servers freeing the operator and the financial institution from the high cost of purchasing and maintaining proprietary operating systems associated Technologies Mobile Banking uses the following technologies and products: Linux or UNIX operating system Thales HSM 8000 Oracle 10g or newer RDBMS
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Access to mobile banking Services

Mobile Banking services can be accessed through: SMS: You can simply send keywords as SMS. Click here for the list of keywords. Dial *USSID*: A menu based session connects you to your bank. Mobile Applications: A rich mobile application to carry your bank in your phone. (Also available for your Android / iPhone / Blackberry or other smart phones) Operator WAP sites: Easy to use menu driven banking on leading operator WAP sites.
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Registration at the bank

For Indian Resident Customer: original letter of introduction from existing bank Driving License - Book type or laminated & embossed Employee Identity Card PAN Card Ex-Service Man Card Bar Council/Indian Medical Association Card/Senior Citizen Card PIO Booklet for returning NRIs Photo Identity card issued by Public Sector 10/23/12

Comparison between various mobile banking Services

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USSID
enquiry at ICICI bank Dial *525# >> enter 1 for bank account >> enter 1 for balance enquiry >> enter 1 for primary account or 2 for other account >> if other account is selected ,enter last 6 digit of account number. Same holds for the other bank a/c transactions.
Balance

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SMS Banking

SMS banking is a type of mobile banking, a technologyenabled service offering from banks to its customers, permitting them to operate selected banking services over their mobile phones using SMS messaging.

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SMS BANKING
CREDIT CARD Balance Enquiry IBALCC(space)Last 6 digits of Credit Card Reward Points IRPCC(space)Last 6 digits of Credit Card Last Payment ILPCC(space)Last 6 digits of Credit Card Payment Due Date IPDDCC(space)Last 6 digits of Credit Card *Last 6 digits of Credit Card number not required to specify if only 1 Credit Card is linked to your User ID Please provide one character space between the keyword and parameter(s) 10/23/12

LOAN ACCOUNT Amortisation Schedule Income Tax Certificate Provisional Income Tax Certificate Final Reschedulement Letter Reset Letter Loan Agreement Copy Interest Certificate

IAMT(space)16 Digits of Loan Account Number IITP(space)16 Digits of Loan Account Number IITF(space)16 Digits of Loan Account Number IRSL(space)16 Digits of Loan Account Number IRTL(space)16 Digits of Loan Account Number ILAC(space)16 Digits of Loan Account Number IINT(space)16 Digits of 10/23/12 Loan Account Number

OTHER SERVICES Status of Service Request SR(space)Service Request Raised Number Locate ATM Locate BRANCH Locate Bank@HomeDropBox ATM(space)PINCO BRANCH(space)PINCODE BHOME(space)PINCODE

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Mobile Apps
ICICI bank Offers: offers are across categories like travel, fashion, mobiles, electronics etc ICICI bank voice search ICICI bank mobile trading ICICI finance calculator ICICI bank Locate us

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Download iMobile
iMobile is available on more than 1200 handsets -iPhone, symbian, & many more To use this application your mobile number must be registered with ICICI Bank. Click here to register now. Step 1: Download iMobile Step 2: Activate iMobile on your mobile phone Step 3: Authenticate your account and login

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I-MOBILE
M-SHOP Log in Fetching store Select store from list Select item Pay cash available through debit card only

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FUTURE PROSPECTS
Mobile

banking will supplant online banking. Mobile banking will become more interactive. Smart phones will become a preferred payment mechanism. Mobile banking is expected to become the second largest channel for banking after ATMs

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 Mobile

banking can boost economic growth according to world bank. Mobile banking is expected to replace the debit/credit system in future.

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Mobile Banking Charges

Earlier,

3Rs for every SMS sent was charged. SMS banking service is free (w.e.f Aug 2010), for all savings a/c. In case of cheque book requested through SMS banking, charges, if any, would be applicable as per charge schedule.

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HSBC
Services in US View your balances and transaction history Transfer funds between your HSBC account Pay bills to virtually anyone in the U.S. Locate ATMs and branches Click to edit Master subtitle style Send and receive secure Bank Mail

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HSBC
Services in Hong Kong Before logon View Stock/Market Information at a glance View Exchange Rates and Deposit Rates Search for nearest HSBC Branches and Express Banking View Reward Cash e-Shop View latest information for MPF and Personal Insurance.

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HSBC
After logon Trade H.K. and U.S. stocks
Real

time stock quote Foreign Currency

Buy/Sell

Make

Hong Kong dollar and foreign currency funds transfer within HSBC

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 Make

local transfer to other local bank register accounts registered bills

Pay

Apply

Personal Installment Loan and Revolving Credit Facility Hot Picks and Vouchers with Reward Cash at Reward Cash e-Shop
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Redeem

CHALLENGES
There

are a large number of different mobile phone devices and it is a big challenge for banks to offer mobile banking solution on any type of device. Mobile banking through SMS is very limited. Mobile banking is yet to take off in rural market Security concerns of end users act as an impediment to the uptake of mobile banking services.
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Contd.
The

lack of awareness about services and security protocols Low comfort level of users due to poor literacy levels, language barriers, etc. Prevalence of entry-level handsets that do not support applications like JAVA and internet browsing Low awareness

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International experience with regards to MB

Kenya,

which pioneered the M-PESA system of mobile banking. Mobile check Deposit. Mobile Wallet Remote Deposit. According to a recent Federal study, the use of paper checks have declined 7.1% since 2006 thanks to a 45% growth in electronic payments in the world

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M-PESA
M-PESA

is an innovative mobile payment solution that enables customers to complete simple financial transactions including person to person money transfer It is aimed at mobile customers who do not have a bank account, either by choice, because they do not have access to a bank or because they do not have sufficient income to justify a bank account.

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Mobile Check Deposit

It

can be done through an application. The iphone app store and android have these applications. We need to put in the details of the check like amount, account number, Check number and the password.

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Remote Deposit

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 Remote

deposit refers to the ability to deposit a check into a bank account from a remote location, such as an office or home, without having to physically deliver the check to the bank. Need to put Details and the photograph of the check.

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Potential in Indian market

The

National Sample Survey data shows that 51.4 per cent of the nearly 89.3 million farmer households do not have access to any credit from institutional or non-institutional sources. Only 27 per cent of these households are indebted to formal sources. According to a recent study by the Centre for Micro Finance, Since only 41 per cent of the adult population has bank accounts, whereas more than 70 per cent of adults own a mobile connection, linking banking with 10/23/12 telecom seems to be the correct choice for

Mobile Phone Penetration

Mobile

penetration in India is poor: World Bank More than 30 billion apps were downloaded in 2011 and three-quarters of the world's inhabitants now have access to a mobile phone. India has 70 mobile subscriptions per 100 people, a new report from the World Bank says. Source-Economics times

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Mobile banking-story so far

Mobile

banking has failed to take off in India: RBI The Reserve Bank of India (RBI) deputy governor H R Khan has hinted that mobile banking has failed take-off in India and hence has called upon banks and mobile companies to work together for the benefit of their customers

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 Banks

are yet to fully exploit this technology even for their existing customers. In May 2012, close to 3.34 mn transactions(amount per transaction=856.2) were concluded for Rs 2.86 bn through mobile as against Rs 1.28 mn transactions of Rs 0.91 bn(per transaction=711 approx.) in May 2011. This growth rate is low compared to the number of bank accounts and the vast mobile subscriber base of more than 900 mn
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