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