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