| If technological revolution is at its | | | | biggest limitation of Internet banking |
| peak, One of the notable sectors of the | | | | is the requirement of a PC with an |
| economy where technology is at it helm | | | | Internet connection, not a big obstacle |
| of affairs with respect to customer | | | | if we look at the US and the European |
| service is BANKING. Over the years has | | | | countries, but definitely a big barrier |
| banking transcended from a traditional | | | | if we consider most of the developing |
| brick-and mortar model of customers | | | | countries of Asia like China and India. |
| queuing for services in the banks to | | | | Mobile banking addresses this |
| modern day banking where banks can reach | | | | fundamental limitation of Internet |
| at any point for their services. In | | | | banking, as it reduces the customer |
| today's business, technology has been on | | | | Requirement to just a mobile phone. |
| the predominant indicators of growth and | | | | Mobile usage has seen an explosive |
| competitiveness. Entry of new banks | | | | growth in most of the Asian economies |
| resulted in a paradigm shift in the ways | | | | like India, China and Korea. The main |
| of banking. The banking industry today | | | | reason that Mobile banking scores over |
| is in the midst of an IT revolution. The | | | | Internet banking is that it enables |
| combination of regulatory and | | | | 'Anywhere Banking'. Customers now don't |
| competitive reasons have led to | | | | need access to a computer terminal to |
| increasing importance of total banking | | | | access their banks, they can now do so |
| automation in the banking Industry. . | | | | on the go - when they are waiting for |
| Information Technology has basically | | | | their bus to work, when they are |
| been used under two different avenues in | | | | traveling or when they are waiting for |
| banking. One is Communication and | | | | their orders to come through in a |
| Connectivity and other is Business | | | | restaurant.The scale at which Mobile |
| Process Reengineering, both basically | | | | banking has the potential to grow can be |
| focusing on increasing its customer | | | | gauged by looking at the pace users are |
| reach. Information technology enables | | | | getting mobile in these big Asian |
| sophisticated product development, | | | | economies. |
| better market infrastructure, | | | | Revolution of Mobile phones in banking |
| implementation of reliable techniques | | | | services: |
| for control of risks and helps the | | | | According to the Cellular |
| financial intermediaries to reach | | | | Operators'Association of India (COAI) |
| geographically distant and diversified | | | | the mobile subscriber base in India |
| markets The latest revolution seems to | | | | crossed the 50 million mark in October |
| happen with respect to mobile banking an | | | | 2005, which stood at 50.87 million. The |
| attempt to leverage on the synergies of | | | | explosion as most analysts say, the |
| mobile banking technology in telecom and | | | | worldwide number of cellular subscribers |
| information technology in the banking | | | | will surpass 2 billion in 2005-up from |
| services.Today, Banks have welcomed | | | | 11M in 1990 and 750M in 2000. Worldwide |
| wireless and mobile technology into | | | | cellular subscribers are forecasted to |
| their boardroom to offer their customers | | | | reach 3.2B by the end of 2010.Among the |
| the freedom of paying bills, planning | | | | leaders in mobile technologies, most |
| payments while stuck in traffic jams, to | | | | aggressive being Korea which is now |
| receive updates on the various marketing | | | | witnessing the roll-out of some of the |
| efforts while present at a party to | | | | most advanced services using 3G |
| provide more personal and intimate | | | | technologies, like using mobile phones |
| relationships. Mobile banking can be | | | | to pay bills in shops and restaurants. |
| classified as Push vs. Pull and | | | | The growth of mobile technology over the |
| Transaction vs. Enquiry that is briefly | | | | last few years has enriched the progress |
| given below:o Push Basedo Pull Basedo | | | | of the mobile banking services. |
| Transaction | | | | Technologies like IVR, SMS, WAP, J2ME, |
| Some of the other features where mobile | | | | and J2EE & BREW have revolutionized the |
| banking has lent its hand are Fund | | | | use the mobile phones in banking |
| Transfer & Bill Payment where the | | | | services. Though all the above |
| customers have the freedom of | | | | predictions on cellular base, the Use of |
| maintaining account through mobile. | | | | mobile technology with respect to |
| Mobile banking has also welcomed other | | | | banking services is at a very infant |
| financial services likeshare trading. | | | | stage. |
| The latest Information technology | | | | There are a lot of challenges and issues |
| revolution enables sophisticated Enquiry | | | | relating to content, security, coverage, |
| Based banking services for Credit/Debit | | | | technology and connectivity speed are to |
| Alerts. | | | | be sorted out with respect to mobile |
| Some of the other outcomes of the | | | | banking technologies. |
| Revolution in the banking industry are | | | | Objectives of the Report: |
| Minimum Balance Alerts, Account Balance | | | | 1. To study the technological readiness |
| Enquiry, Account Statement Enquiry, | | | | in relation to the challenges faced by |
| Cheque Status Enquiry, Cheque Book | | | | the players particularly the banks with |
| Requests and Bill Payment Alerts. The | | | | respect to mobile banking in order to |
| last time that technology had a major | | | | enhance global competitiveness by |
| impact in helping banks service their | | | | embracing technology and banking |
| customers was with the introduction of | | | | services. |
| the Internet banking. However the | | | | 2. |