UNIVERSITY OF MUMBAI

A STUDY ON CONSUMER PERCEPTION & ATTITUDE TOWARDS

MOBILE BANKING IN MUMBAI

A Project Submitted to University of Mumbai for partial completion of

the degree of Bachelor in Commerce (Accounting and Finance)

Under the Faculty of Commerce

By Name of the Learner

PRATIKSHA RAJWANI

T.Y.B.A.F (SEMESTER VI)

ROLL NO. 156

ACADEMIC YEAR: 2021-2022

Under the Guidance of

M.S CHARVI MA’AM

H.R. COLLEGE OF COMMERCE AND ECONOMICS VIDYASAGAR

PRINCIPAL K.M. KUNDNANI CHOWK 123, D.W. ROAD,
CHURCHGATE, MUMBAI – 400 020.

2021-2022

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 PROJECT REPORT ON ‘STUDY CONSUMER PERCEPTION &
ATTITUDE TOWARDS MOBILE BANKING IN MUMBAI’

SUBMITTED
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
AWARD OF DEGREE THIRD YEAR BACHELOR OF
ACCOUNTING & FINANCE

BY
Name: PRATIKSHA RAVI RAJWANI
ROLL NO: 156
T.Y.B.A.F
(SEMESTER VI)

H.R. COLLEGE OF COMMERCE AND ECONOMICS VIDYASAGAR

PRINCIPAL K.M. KUNDNANI CHOWK 123, D.W. ROAD,
CHURCHGATE, MUMBAI – 400 020.

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 CERTIFICATE

This is to certify that Miss PRATIKSHA RAJWANI, student of H.R.

College of Commerce & Economics studying in T.Y.B.A.F (Semester
VI), has successfully completed her project report on “STUDY
CONSUMER PERCEPTION & ATTITUDE TOWARDS MOBILE
BANKING IN MUMBAI” in the academic year 2021-2022. The
information submitted is true and original to the best of the knowledge.

________________________ ______________________

(Signature of Project Guide) (Signature of Principal)

_______________________ _______________________

(Signature of Internal Examiner) (Signature of External Examiner)

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 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous
and the depth is so enormous. I would like to acknowledge the following
as being idealistic channels and fresh dimensions in the completion of
this project.

I take this opportunity to thank the University of Mumbai for giving me

chance to do this project. I would like to thank my Principal, MRS.
POOJA RAMCHANDANI for providing the necessary facilities required
for completion of this project.

I take this opportunity to thank our Coordinator MRS. POONAM

MA’AM for her moral support and guidance.

I would also like to express my sincere gratitude towards my project

guide MS. CHARVI MA’AM whose guidance and care made the project
successful.

I would like to thank my College Library, for having provided various

reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or
indirectly helped me in the completion of the project especially my
Parents and Peers who supported me throughout my project.

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DECLARATION BY LEARNER

I the undersigned PRATIKSHA RAVI RAJWANI here by, declare that

the work embodied in this project work titled A STUDY CONSUMER
PERCEPTION & ATTITUDE TOWARDS MOBILE BANKING IN
MUMBAI forms my own contribution to the research work carried out
under the guidance of Ms. Charvi Ma’am is a result of my own research
work and has not been previously submitted to any other University for
any other Degree/ Diploma to this or any other University.

Wherever reference has been made to previous works of others, it has

been clearly indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical
conduct. Name and Signature of the learner Certified by Name and
signature of the Guiding Teacher.

NAME AND SIGNATURE OF THE LEARNER

CERTIFIED BY

NAME AND SIGNATURE OF THE GUIDING TEACHER

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 INDEX

CHAPTER PARTICULARS PAGE NO.

NO.

1 EXECUTIVE SUMMARY 10
2 INTRODUCTION 11-13
2.1 ABOUT MOBILE BANKING 11-12
2.2 HISTORY 12
2.3 DEFINITION 12-13
3 RESEARCH METHODOLOGY 14-23
3.1 STATEMENT OF PROBLEM 14
3.2 OBJECTIVE OF THE STUDY 15
3.3 HYPOTHESIS 16
3.4 SCOPE OF STUDY 17
3.5 LIMITATIONS TO STUDY 18
3.6 DATA COLLECTION METHODS 19-21
3.7 SOURCES OF DATA 21-22
3.8 RESEARCH DESIGN 22
3.9 RESEARCH INSTRUMENT 22-23
3.10 SAMPLE SIZE 23
3.11 SAMPLING UNIT 23
3.12 SAMPLING DESIGN 23
4 LITERATURE REVIEW 24-26
5 DATA ANALYSIS 27-84
5.1 PRIMARY DATA ANALYSIS 27-41
5.2 SECONDARY DATA 42-84

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 6 CONCLUSION 85
7 BIBLIOGRAPHY & 86-87
REFERENCES
8 APPENDIX 88-90

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LIST OF TABLES

TABLE NAME OF TABLE PAGE

NO. NO
1 GENDER OF THE RESPONDENTS 27
2 RESPONDENTS WITH ACCOUNTS 28
AT BANK
3 LONGEVITY OF RESPONDENTS 29
WITH BANKS
4 AWARENESS ABOUT SERVICES 30
OFFERED BY MOBILE BANKING
5 AWARENESS ABOUT 31
TRANSACTIONS
6 TRANSACTION ISSUES 32
7 CHALLENGES OF MOBILE 33
BANKING AS PER RESPONDENTS
8 HOW FREQUENTLY DO 34
RESPONDENTS USE MOBILE
BANKING
9 WILL RESPONDENTS SHIFT TO 35
MOBILE BANKING COMPLETELY
10 DOES MOBILE BANKING HAVE A 36
BRIGHT FUTURE
11 UNIQUE FEATURE WHICH WILL 37
GIVE EDGE TO MOBILE BANKING
12 ARE THERE MORE MALE USERS 38
AS COMPARED TO FEMALES
13 PREFERRED MOBILE BANKING 40
PRODUCT BY RESPONDENTS

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LIST OF CHARTS

CHART NAME OF CHART PAGE

NO. NO
1 GENDER OF THE RESPONDENTS 27
2 RESPONDENTS WITH ACCOUNTS 28
AT BANK
3 LONGEVITY OF RESPONDENTS 29
WITH BANKS
4 AWARENESS ABOUT SERVICES 30
OFFERED BY MOBILE BANKING
5 AWARENESS ABOUT 31
TRANSACTIONS
6 TRANSACTION ISSUES 32
7 CHALLENGES OF MOBILE 33
BANKING AS PER RESPONDENTS
8 HOW FREQUENTLY DO 34
RESPONDENTS USE MOBILE
BANKING
9 WILL RESPONDENTS SHIFT TO 35
MOBILE BANKING COMPLETELY
10 DOES MOBILE BANKING HAVE A 36
BRIGHT FUTURE
11 UNIQUE FEATURE WHICH WILL 37
GIVE EDGE TO MOBILE BANKING
12 ARE THERE MORE MALE USERS 38
AS COMPARED TO FEMALES
13 PREFERRED MOBILE BANKING 40
PRODUCT BY RESPONDENTS
14 RESPONDENTS SATISFACTION 41
WITH MOBILE BANKING
15 CLASSIFICATION OF BANKS 43

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 EXECUTIVE SUMMARY

Technology plays an important role in banking sector. Banking is one of the largest
financial institutions constantly exploring the opportunity of technology-enabled
services to provide better customer experience and convenience. Mobile phone is a
common technology device that became part of every individual’s life in the
information era. Mobile Banking is an emerging alternative channel for providing
banking services. India is the second largest telecom market in the world, which is
having high potential for expanding banking services using mobile. However, mobile
banking has not become the choice of millions of people. This technology help us to
save our time & provide facilities to get information about our account, transactions
and transfer the money from one account to another account from anywhere and
anytime but there is problem in customer adaptation, customer distrust on the mobile
banking.

The main objective of this study is to identify the mind-set and analyze the prospects
and issues in Mobile banking among the banking customers in Mumbai. The study
aimed at examining the knowledge of banking customers on the services offered by
banks for mobile banking; finding out challenges faced by mobile banking services in
extending their services to many customers ; determining whether customers are
extensively using mobile banking.

For this research, primary data was used. This study adopts with descriptive in
nature. A sample size of 101 respondents was given this questionnaire. Secondary
data was collected using documentary sources such as articles and research reports
from internet and media. Analyzed data was presented using percentage in tables,
charts and graphs.

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 INTRODUCTION

ABOUT MOBILE BANKING

After Internet Banking, Mobile Banking or M-Banking has become the buzz word in
the industry. It's a fact that Internet Banking has given a boost and has shown a
successful way to consider it as a good alternative procedure against physical branch
banking. Now where ever you are, you can access your bank account and you can do
lot more things like checking your account balance, transfer money to some other
account, pay your utility bills online and so on, just by comfortably sitting at your
home or office. But, the technical disadvantage of Internet Banking is, you have to
have internet connectivity and a computer. Definitely it's not a big hindrance in US or
Europe or in the other developed countries, but if one considers the developing
economies, then it's a genuine problem and more specifically in the tier II cities.

And here Mobile Banking comes into the picture to address the basic limitation of
Internet Banking. If we only consider Asian developing countries, the availability of
mobile connectivity is really huge. Where one may not find out a landline telephone
or an internet connection, but still in those remote places getting mobile connectivity
is not a major issue today. Mobile Banking has given the traditional banking a newer
look "Anywhere Banking". Now you don't need a PC or a laptop with internet
connectivity, just you need your cell phone with you.

The biggest advantage Mobile Banking provides to the banks is that it helps to cut
down the costs as it's even more economic than providing tele-banking facilities
where banks have to keep hundreds of tele-callers. Additionally, Mobile Banking
helps banks to upgrade the quality of services and nature of customer relationship
management. Using Mobile Banking, banks can communicate to the defined cluster
of clients. The offers can be customized and this personalization can give the banking
industry a huge mileage, even at a lower cost. Again, using the same mobile channels,
banks can up-sell and cross-sell their highly complex financial products to the specific
set of customers which can be coupled with the selling strategies of Credit Cards,
Home Loans and Personal Loans etc. On the contrary, the service providers can also
accrue more business by providing the Mobile Banking services to their clients. In the
services front, different banking services can be provided, depending upon the

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banking regulations in respective countries which may include Account Balance
Enquiry, Account Statement Enquiry, Credit/Debit Alerts, Bill Payment Alerts,
Cheque Book Requisition, Transaction History, Minimum Balance Alerts, Fund
Transfer Facilities, etc.

Mobile Banking activities can be categorized in two different manners.

1. By the Nature of Service: It can be any of the two, either Enquiry Based or
Transaction Based. For example, Account Balance Enquiry or a Cheque Book
Requisition can be the good examples of Enquiry Based Services where a Fund
Transfer or a Bill Payment is a Transaction Based activity.

2. Depending on the Originator: Again there can be two different types of services;
Push and Pull, depending on the nature of the originator. A Push based service is from
the Bank to the Client and vice versa. For example, Bill Payment Alert can be a Push
based service, when getting Recent Account History is a Pull based one.

HISTORY:-

The earliest mobile banking services used SMS, a service known as SMS banking.
With the introduction of smart phones with WAP support enabling the use of the
mobile web in 1999, the first European banks started to offer mobile banking on this
platform to their customers. Mobile banking before 2010 was most often performed
via SMS or the mobile web. Apple's initial success with iPhone and the rapid growth
of phones based on Google's Android (operating system) have led to increasing use of
special mobile apps, downloaded to the mobile device. With that said, advancements
in web technologies such as HTML5, CSS3 and JavaScript have seen more banks
launching mobile web based services to complement native applications.

DEFINITION:-

Mobile banking is a service provided by a bank or other financial institution that

allows its customers to conduct financial transactions remotely using a mobile device

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such as a smartphone or tablet. Unlike the related internet banking it uses software,
usually called an app, provided by the financial institution for the purpose. Mobile
banking is usually available on a 24-hour basis. Some financial institutions have
restrictions on which accounts may be accessed through mobile banking, as well as a
limit on the amount that can be transacted. Mobile banking is dependent on the
availability of an internet or data connection to the mobile device. Transactions
through mobile banking depend on the features of the mobile banking app provided
and typically includes obtaining account balances and lists of latest transactions,
electronic bill payments, remote check deposits, P2P payments, and funds transfers
between a customer's or another's accounts. Some apps also enable copies of
statements to be downloaded and sometimes printed at the customer's premises. Using
a mobile banking app increases ease of use, speed, flexibility and also improves
security because it integrates with the user built-in mobile device security
mechanisms. From the bank's point of view, mobile banking reduces the cost of
handling transactions by reducing the need for customers to visit a bank branch for
non-cash withdrawal and deposit transactions. Mobile banking does not handle
transactions involving cash, and a customer needs to visit an ATM or bank branch for
cash withdrawals or deposits. Many apps now have a remote deposit option; using the
device's camera to digitally transmit cheques to their financial institution.

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 RESEARCH METHODOLY

STATEMENT OF PROBLEM

During COVID there were minimum cash transactions and more of online
transactions so to study what exactly is mobile banking I have chosen this topic for
research. This project aims at examining the point of view of banking customers on
the services offered by banks for mobile banking; finding out challenges faced by
mobile banking services in extending their services to many customers; determining
whether customers are consistently using mobile banking & the barriers faced by
them.

This project is based on primary, in-depth research about mobile banking in

MUMBAI.

Thus, the research project is named as, “Study on consumer perception & attitude
towards mobile banking in Mumbai”.

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 OBJECTIVE OF THE STUDY

• To understand the basic concept of mobile banking.

• To examine, if banks customers are aware of the services offered by banks on
mobile banking.
• To study customer perception towards mobile banking
• To determine whether the customers are using mobile banking services in their
day to-day chores.
• To study the challenges faced by banks in adoption of technology.
• To propose suggestion to improve the Mobile Banking Services based on
findings.
• To find out purpose of using mobile banking services.
• To examine & study the barriers faced by customers towards mobile banking.
• To determine the customer preference towards mobile banking products
• To ascertain the acceptance level of mobile banking products among the
customers.
• To study on the level of customer satisfaction who utilize mobile banking
services facility in Mumbai.
• To ascertain factors influencing the attitude of consumers towards mobile
banking.
• To find out if there is a significant relation between Gender & mobile banking
apps

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 HYPOTHESIS

HYPOTHESIS 1:

NULL HYPOTHESIS (H0): Customer awareness and illiteracy is not a significant

issue in mobile banking.

ALTERNATIVE HYPOTHESIS (H1): Is customer awareness and illiteracy a

significant issue in mobile banking.

HYPOTHESIS 2:

NULL HYPOTHESIS (H0): Consumers are not satisfied with mobile banking

ALTERNATIVE HYPOTHESIS (H1); Consumers are satisfied with mobile banking

HYPOTHESIS 3:

NULL HYPOTHESIS (H0): There is negative prospect for mobile banking in

MUMBAI.

ALTERNATE HYPOTHESIS (H1): These is positive prospect for mobile banking in

MUMBAI.

HYPOTHESIS 4:

H0: There is no relationship between gender & use of mobile banking applications
among the respondents

H1: There is a slight relationship between gender & use of mobile banking
applications among the respondents

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 SCOPE OF STUDY

The present study aims at examining the customers’ perception towards mobile
banking services with special reference to Mumbai city. This study also intends to
seek for solution to assist the banking industry to improve mobile banking and
services. The following topics related to mobile banking will be discussed with
existing bank customers:

• Mindset about the mobile banking acceptance.

• Willingness to adopt mobile banking service in future.
• Challenges facing mobile banking.
• Preferred mobile banking services.

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 LIMITATIONS TO THE STUDY

The study we conducted has certain limitations which recommends

future researches.

• Time was limited to collect data. So we recommend future

researchers to take more time so that generalizations can be
made.
• Scope of the project was confined to MUMBAI city only.
• The attitude of the consumer may change in future.
• The knowledge derived from the primary research was of
limited certainty due to the Covid-19 pandemic the physical
survey was a challenge so due to safety reasons the survey was
conducted online. This might have led to dishonest and not fully
accurate data.
• Also, the response from the online survey was very limited
because not everyone has internet connection, and only 101
individuals submitted the response to the survey.
• The survey was only conducted in one language (English) and
this might have created a language barrier for the people who do
not completely understand the language.

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DATA COLLECTION METHODS
There are two types of research that can be carried out for any research.
They are as follows:

Primary Research:

• Primary Research is the first-hand information and research, collected

for the first time in order to solve the research problem.
• It is collected by the researcher directly from the original source, i.e.
the respondents or the sample population.
• The research data collected is then analysed by the researcher in
order to draw conclusions and to find a solution to the research
problem.
• Primary research is done through various methods such as Surveys,
Questionnaires, Interviews, and Observations.
• Primary data is useful to researchers as they get relevant information
to solve a specific research problem.
• The data collected is more accurate as it is directly collected from the
respondents.
• For the purpose of this research projects, Questionnaires have been
sent to 101 individuals in order to understand and analyse their
preferences with regards to mobile banking.
• Due to the many advantages of primary data, it has been selected as a
source of data collection for this research project.

Types of Primary Research:

1. Observation: Watching how respondents behave provides

many insights, but can leave questions unanswered. It is mainly
used in retail markets.

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2. Postal surveys: Surveys are sent to the address of potential
customers who complete the form and send back in a pre-paid
envelope. It is a relatively cheaper method, and can cover a wide
geographical area while avoiding the potential for interviewer bias.

3. Telephone interview: Telephone interviews allow quicker feedback

than a postal survey. However, potential customers are often wary of
being called and may be reluctant to give anything other than short
answers.

4. Online surveys: Online surveys are gaining popularity because they

have a relatively low cost, and are usually used by individuals or small
businesses to get information.

Secondary Research:

• Secondary research is a type of research that has already been

compiled, gathered, organized and published by others. It includes
reports and studies by government agencies, trade associations or other
businesses in your industry, or research material published in research
reports and similar documents.
• This research data can be made available by public libraries,
websites, data obtained from already filled in surveys etc.
• As secondary data is already available to the researcher, it saves time
in collecting the data and then analysing it.
• Secondary data may be available free of cost or at a very low cost,
which saves the researcher monetary resources.
• Various research papers and articles and blogs have been examined in
order to conduct the research on the investor preferences and behaviour
of investors, pertaining to mutual funds.

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Types of Secondary Research:

1. Online Information: Information available through various

websites, articles and blogs.

2. Existing Market Research Reports and Papers: Information can

be collected from these sources because these sources have already
performed primary research on the research problem and have
found certain solutions for the same.

3. Information from agencies such as industry bodies, government

agencies, regulatory bodies, libraries, etc. is also available to the
researcher for conducting a thorough analysis.

SOURCES OF DATA

QUANTITATIVE DATA: SURVEYS

• This method captures information through the input of responses

to a research instrument containing questions (such as a
Questionnaire).
• Information can be input either by the respondents themselves
(E.g.: An Online Survey) or, the researcher can input the data
(E.g.: a phone survey, a one-on-one survey, a mall intercept,
etc.).
• The main methods for distributing surveys are via a website,
postal mail, phone, or in person.
• However, newer technologies are creating additional delivery
options including through wireless devices, such as smart
phones and technologies wherein the information gets recorded
in real time and can be viewed and intercepted very easily
through pie charts and bar graphs.

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 • Survey for this study was undertaken via an online
questionnaire. Questions included views of the people from
various backgrounds.

QUALITATIVE DATA COLLECTION

• Qualitative data collection requires researchers to interpret the

information gathered, most often without the benefit of
statistical support. If the researcher is well trained in
interpreting respondents’ comments and activities, this form of
research can offer very good information. However, it may not
hold the same level of relevancy as quantitative research due to
the lack of scientific controls with this data collection method.

RESEARCH DESIGN
• The research design comprised a method of primary data
collection using a survey given to 101 respondents. The design
also included secondary data expressed through a review of past
literature in the concerned area, indicating that a certain
segment of the study was exploratory in nature.
• The design used descriptive tools such as pie chart to highlight
the data analysis.

RESEARCH INSTRUMENT
The research tool used was that of a survey comprising 14 questions as
well as personal interviews that covered different areas of the research
problem. The questions were multiple choice in nature and closed
ended. It was compulsory for all 101 respondents to answer all the
questions. The survey was anonymous but certain demographic details

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such as gender were asked. The questionnaire made is enclosed in the
annexure.

SAMPLE SIZE
Sample size is the number of respondents who have been surveyed or
the number of people who have filled up the questionnaire.
The sample size of my research project is 101 respondents.

SAMPLING UNIT
A decision has to be taken concerning a sampling unit before selecting
samples. Sampling unit may be a geographical one such as state,
district, village or a construction unit such as house, flat, etc.
In my research project, the sampling unit consists of respondents from
Mumbai.

SAMPLING DESIGN
The study used the technique of Random Sampling for the survey.
This refers to a basic sampling design where a subset of the population
is randomly selected to be a part of the sample.
The sample of this study was limited to 101 respondents.

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 LITERATURE REVIEW

1. (Manjulal Bai., 2019).“Mobile Banking Services and Customer

Satisfaction with Reference to ICICI Bank.”
This paper aims to study the developments of mobile banking
sector in India and to understand the positive and negative effects of
mobile banking on the consumers of ICICI bank. The research
collected 50 responses through questionnaire method for primary
research. From this study, it came to know that ICICI bank is
providing good mobile banking services to its customers, shows
that majority of respondents are satisfied with the mobile banking
services provided by ICICI bank.

2. (DR. (MRS.) N. YESODHA DEVI & KANCHANA, 2011)

“A STUDY ON CUSTOMER AWARENESS, OPINION, REASONS
FOR OPTING MOBILE BANKING.”
This paper aimed to find out if consumers are aware about mobile
banking, what were there thoughts about it, and the reason why they
used mobile banking. The researcher collected responses from 249
respondents by means of a questionnaire for primary data analysis,
random sampling method was used. The findings show that Mobile
banking is used by the respondents whenever they require, there is no
significant difference among the education groups in the average
awareness score on Mobile banking usage, there is no significant
difference between public and private bank in the average problem
score of mobile banking, there is no significant difference among the
monthly income groups in the average awareness score on Phone /
Mobile banking usage.

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3. (Ms. Chandrawati Nirala, 2015)“Customer Perception on Mobile-
Banking in Chhattisgarh”.
This paper aims to study what factors influence the usage of Mobile
banking, the problems of mobile banking. It was concluded that the
factors which attracted customer towards Mobile banking were
comfort and convenience to use it anywhere. Banks Customer of
Chhattisgarh are willing to use all Mobile Banking services but due
lack of technical knowledge and poor information structure i.e.
network problem they are not properly utilized these services.
Technology problem and security concern are the biggest
challenges faced by them, they were not satisfied with traditional
banking. The researcher had collected responses from 100
respondents by means of a questionnaire for primary data analysis,
random sampling method was used, In Bilaspur city Customers of
these banks were asked for responses-namely Bank of India, Bank
of Baroda, State bank of India and Punjab National Banks.

4. (Babulal, 2019) “Mobile Banking in India: A Review”

The paper aims to know the growth and the factors which affect mobile banking in
India. The research had used secondary Data which were available on the website of
RBI Ks and KPMG report and other reports relegated to the research topic. The study
concluded that Mobile Banking is easy to use and can be use any time anywhere due
to its mobility. It is becoming very famous because of the innovative payment system.
But there are some bank holders who are not aware about the mobile banking and
avoid using it. Because here people still believe that traditional banking is safe and
best to handle. There are more of young literate persons who use mobile banking. To
spread awareness about mobile banking banks should start same campaigns.

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5. (Meshram, 2017) “A STUDY ON MOBILE BANKING AWARENESS OF
CUSTOMERS PERSPECTIVE WITH REFERENCE TO KOTHRUD, PUNE
AREA”
This paper aims to study the customers perspective & awareness about mobile
banking services with reference to Kothrud, Pune area, to find the factors
influencing the awareness and usage of mobile banking services in that area. The
researcher had collected responses from 100 respondents by questionnaire
method. From the study it was concluded around 65 % of customers are using
mobile banking and remaining 35% are not. The majority of the mobile banking
service is comfortable without using online banking service and they are also
interested to test the facility.

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 DATA ANALYSIS
PRIMARY DATA ANALYSIS

QUESTION 1:-
What is your gender?

TABLE 1: Gender of the respondents

GENDER NO. OF
RESPONDENTS
Male 55

Female 46

CHART 1: Gender of the respondents

ANALYSIS:

Around 101 responses were collected, out of which majority of the respondents are
Male (54.5%) and about (45.5%) are female respondents.

There isn’t a vast difference in the gender of respondents

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QUESTION 2:-

Do you have any bank account?

TABLE 2: Respondents with accounts at Bank
NO. OF RESPONSES
YES 84
NO 17

CHART 2: Respondents with accounts at Bank

ANALYSIS:

Majority of the respondents (83.2%) do have a bank account, but there are still some
percentage of people (16.8%) who don’t have a bank account.

Some campaigns should be started to assure that in upcoming 3-4 years everyone in
Mumbai has a bank account.

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QUESTION 3:-
For how long have you been a customer of that bank?
TABLE 3: Longevity of Respondents with Banks
YEARS NO OF RESPONSES
Less than 1 year 18
1-5 years 49
6-10 years 15
Above 10 years 19

CHART 3: Longevity of Respondents with Banks

ANALYSIS:

From the above chart we get to know that almost half of the respondents have been
customers for less than 5 years, few of them had been bank customers for more than
10 years & others for less than 1 year.

Thus it indicates that most of them were youth who were not older and therefore their
time period as bank customers is less than 5 years.

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QUESTION 4:-
Do you know mobile banking services offered by that bank?

TABLE 4: Awareness about services offered by Mobile Banking

RESPONSES NO. OF RESPONSES

I know all of them 46
I know few of them 38
I know only one 13
I don't know any of them 4

CHART 4: Awareness about services offered by Mobile Banking

ANALYSIS:

From the survey we wanted to know whether the respondents were aware of the
services offered by banks on mobile banking. The results show that out of 101
respondents, 45.5% respondents knew all the services provided by banks on mobile
banking. Whereas, 37.6 % knew some of the services.

Since majority of them knew all banking services, it implies that most of the
customers are utilizing full services offered by the bank.

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QUESTION 5:-

Are you aware that you can make transactions through mobile banking services?

TABLE 5: Awareness about Transactions

RESPONSES NO. OF RESPONDENTS

Yes 78
No 15
I don’t know 8

CHART 5: Awareness about Transactions

ANALYSIS:

Awareness on using a service among customers or users is very important for it to

prosper. The study wanted to know whether respondents were aware of making
transactions through mobile banking services. The findings show that 77.2% were
aware of making transactions through mobile banking.

The survey showed that respondents were aware of making transactions through
mobile banking. The findings show that the majority of the respondent were aware of
making transactions through mobile banking. This implies that most of them were
educated and thus there were early adopters of technology.

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QUESTION 6:-
Do you face any problem during transaction?

TABLE 6: Transaction issues

RESPONSES NO. OF RESPONDENTS

YES 15
NO 45
SOMETIMES 41

CHART 6: Transaction issues

ANALYSIS:

The survey showed that 44.6 % face no issues while making a transactions, few
respondents do face some issues & very few of them always face a problem while
making transaction.

The reason why people face problems sometimes might be due to network errors and
for those who always face issue, a tutorial should be provided.

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QUESTION 7:-
What do you think are the main challenges in extending mobile banking services to
more customers?

TABLE 7: Challenges of mobile banking as per respondents

CHALLENGES NO. OF RESPONDENTS

Handset Capability 18
User friendly 19
Privacy & security issues 37
Customer awareness and illiteracy 21
Comfortable without mobile banking 6

CHART 7: Challenges of mobile banking as per respondents

ANALYSIS:

The chart shows that 36.6% people believe that the main challenge in extending
mobile banking services is privacy and security issues,20.8% consumers think that
customer illiteracy and awareness is an issue, 18.8% people believe that the services
offered are not user friendly, 17.8% believe that handset capability is also a challenge,
and the remaining are comfortable without it. To improve these issues the banks
should provide security to their consumers from frauds & malpractices.

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QUESTION 8:-

How many times do you use Mobile Banking Services?

TABLE 8: HOW FREQUENTLY DO RESPONDENTS USE MOBILE

BANKING

RESPONSES NO. OF RESPONDENTS

Everyday 29
Few times a week 31
Few times a month 30
Only in emergencies 9
Not at all 2

CHART 8: HOW FREQUENTLY DO RESPONDENTS USE MOBILE

BANKING

ANALYSIS:

The chart shows that how frequently are mobile banking services used by the
consumers, it shows that 30.7% use them few times a week, 29.7% use them few
times in a month, 28.7% use them every day, whereas 8.9% use them only in case of
emergency. From this we get to know that most of the consumers are including
mobile banking in their routine life.

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QUESTION 9:-

If given a choice to switch to mobile banking completely rather than traditional

banking, will you choose it?

TABLE 9: Will Respondents shift to Mobile Banking completely

RESPONSES NO. OF RESPONDENTS

YES 48
NO 25
I AM NOT SURE 28

CHART 9: Will Respondents shift to Mobile Banking completely

ANALYSIS:

Almost half of the consumers (47.5%) are ready to switch to mobile banking, 27.7%
are not so sure about it, the remaining (24.8%) would stick to traditional banking. It
means that people are accepting it as it saves time and can be used anywhere.

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QUESTION 10:-

Knowing all of these facts & challenges, do you think m-banking has a bright future
in Mumbai?

TABLE 10: Does Mobile Banking have a bright future

RESPONSES NO. OF RESPONDENTS

YES 68
NO 16
MAYBE 17

CHART 10: Does Mobile Banking have a bright future

ANALYSIS:

From the responses we get to know that according to majority of the consumers
(67.3%) mobile banking has a bright future, some (15.8%) believe that it does not a
future , remaining are not so sure about the future of mobile banking.

It does prove our hypothesis that mobile banking has a positive prospect in Mumbai.

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QUESTION 11:-

What is the one feature you think will be decisive in ascertaining the growth of
mobile banking?

TABLE 11: Unique feature which will give edge to Mobile Banking

RESPONSES NO. OF RESPONDENTS

Innovative Payment System 23
Speedy Process 29
Overview over Bank account 16
Technological advancements 24
Growth of e-commerce 9

CHART 11: Unique feature which will give edge to Mobile Banking

ANALYSIS:

The above pie chart shows that according to the consumers the game-changing
element in the growth of mobile banking would be speedy process (28.7%),
Technological advancements (23.8%), innovative payment system (22.8%) & some
believe overview of bank account. Means that for the growth of mobile banking
industry the banks should concentrate on these factors specially on making
transactions within few seconds.

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QUESTION 12:-

Many people believe that there are more of male users than female users, do you
agree with this statement

TABLE 12: ARE THERE MORE MALE USERS AS COMPARED TO

FEMALES

RESPONSES NO. OF RESPONSES

Strongly disagree 28
Disagree 23
Neutral 37
Agree 11
Strongly agree 2

CHART 12: ARE THERE MORE MALE USERS AS COMPARED TO

FEMALES

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ANALYSIS:

The chart shows that most of the people were neutral about the question, whereas
27.7% strongly disagree to the statement, 10.9% people do agree to the statement.

This shows that as the time is changing people’s mentality is also changing as now
most people believe that there is no difference in men and women.

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QUESTION 13:-

Which mobile banking service do you prefer from the following?

TABLE 13: Preferred Mobile Banking product by Respondents

RESPONSES NO. OF RESPONDENTS

The Bank’s Mobile Banking 37
Application
SMS Banking 9
Phone Banking 20
USSD Banking 7
WhatsApp Banking 4
UPIs 23

CHART13: Preferred Mobile Banking product by Respondents

ANALYSIS:

This chart shows that almost 37% customers prefer their bank’s mobile application
because of the trust in their banks, 23.8% customers use UPIs as it is easy to use, time
saving.

The banks provide consumers the security and trust that customers look for while
making transactions thus the banks mobile banking application is the most preferred
service.

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QUESTION 14:-

What is your overall satisfaction level?

CHART 14: Respondents satisfaction with Mobile Banking

ANALYSIS:

In the above graph we can see that almost majority of the people have rated 4(33.7%)-
5(38.6%) that means they are satisfied with the services. Thus it proves our null
hypothesis that consumers are satisfied with the mobile banking services.

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 SECONDARY DATA

1) INTRODUCTION TO BANKS AND ITS TYPES

A bank is a financial institution that provides banking and other financial services to
their customers. A bank is generally understood as an institution, which provides
fundamental banking services such as accepting deposits and providing loans. There
are also non-banking institutions that provide certain banking services without meeting
the legal definition of a bank. Banks are a subset of the financial services industry. A
banking system also referred as a system provided by the bank that offers cash
management services for customers, reporting the transactions of their accounts and
portfolios, throughout the day. The banking system in India should not only be hassle
free but it should be able to meet the new challenges posed by the technology and any
other external and internal factors.

For the past three decades, India’s banking system has several outstanding
achievements to its credit. The Banks are the main participants of the financial system
in India. The Banking sector offers several facilities and opportunities to their
customers. All the banks safeguards the money and valuables and provide loans, credit,
and payment services, such as checking accounts, money orders, and cashier’s cheque.
The banks also offer investment and insurance products. As a variety of models for
cooperation and integration among finance industries have emerged, some of the
traditional distinctions between banks, insurance companies, and securities firms have
diminished. In spite of these changes, banks continue to maintain and perform their
primary role is accepting deposits and lending funds from these deposits.

The Banking landscape in India has seen tremendous change over the years. With
innovative banking solutions and tailor-made products, banking has made progress that
has jumped leaps & bounds. Banking is no more about accepting deposits and
disbursing loans. It is more about managing your money prudently. Banking is all about
smart ways of investing your money to see it multiply.

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 CLASSIFICATION OF BANKING INDUSTRY

CHART 15: CLASSIFICATION OF BANKS

BANKING SERVICES

Banking services are regarded as one of the important service. Banks provide
financial services to the customers. Due to the rising competition and liberalization,
the banking industry has become the buyer’s market. Banks need to create and
develop the services, which can satisfy the consumer needs. Customer satisfaction is a
very important construct in today’s market and it is directly influenced by service
quality as per earliest studies. Banking in India is so convenient and hassle free that
one (individual, groups or whatever the case may be) can easily process transactions
as and when required. The most common services offered by banks in India are Bank
Accounts, Loans, Money Transfer, Credit and Debit Cards, Lockers.

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In our country only banking sector is that sector which works as a channel in
attracting savings and mobilizing them in required areas. It works as a weapon of
capital formation. As, change is the rule of nature. To alter the policies according to
environment fluctuation is known as change and to explore or use new technology for
making change is known as innovation. Today all sectors are working as innovation
acceptor. Banking sector’s profitability depends on better customer relationship.
Moreover, nowadays today’s consumer banking needs are getting more complex and
demands are for more innovative products. Therefore, give them better services banks
have introduced a new profitable technology called MOBILE BANKING. In addition,
many more like internet banking, ATM, debit card, credit card etc.

With mobile banking technology, banks can offer a wide range of services to their
customer such as funds transfer while travelling, receiving online updates of stock
price or even performing trading while being stuck in traffic. M banking gives ability
to customer to control their cash outflows anytime, anywhere, without having to
connect to internet The use of a mobile phone to make payment and carryout other
banking transaction called m-banking has started taking roots in a number of
developing countries, including India. M banking is a service of banks to make
available, the facility of banking wherever the customer is and whenever he needs. In
today’s world, every person has personal mobile rather than having computer at
home. Even rural person also have mobile. With mobile banking customer can bank
from anytime and anywhere.

In this information era, Digital Banking is an important part of the whole banking scene.
People are constantly on the move. Branch banking is not popular anymore. People like
to avoid long queues and unreasonable waiting times for most of their banking
needs. Old aged customers also like to avoid the trouble of traveling to the bank.

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2) CONCEPT OF MOBILE BANKING

Mobile banking is a service that provides the banking facilities with help of mobile
phone. It helps us to know about our account information with the help of SMS.
Mobile banking not only give the account information but it provide transaction and
payment facilities also such as bill payment and shopping payment and other bank
services also can be provide with the help of mobile banking so mobile banking is
very useful for us and provide all facilities from anywhere and anytime time with the
help of mobile baking. Mobile banking is the act of making financial transaction on a
mobile device (cell phone, tablet, etc.). Most online payments are done via internet
banking option it has become one of the most convenient payment methods for
transferring money. Most banks have created their own apps that can be downloaded
on the phone and used any time Through mobile devices, users can make transactions
through mobile apps, net banking facilities, or internet fund transfer services cut as
IMPS (Immediate payment services), NEFT (National Electronic Fund Transfer) and
RTGS (Real-time Gross settlement).

When cell phones turned into smart phones, and began to mimic the power found in
most computers, banks have been able to provide consumers with powerful 3 mobile
banking apps that allow you to complete your banking from wherever you are. This
includes making deposits depending on the bank and its mobile app checking funds,
making bill payments, transferring or sending money. Mobile banking differs from
the payment features available on many of today's smart phones, as it provides a sign-
on link to your individual checking or savings accounts by an app you download from
your bank's website. Though some European banks offered mobile banking as early as
1999, it took until 2007 for major banks in the India to develop mobile banking apps
that actually worked and customers wanted.

In developing countries, the role of the mobile phone is more extensive than in
developed countries as it helps bridge the digital divide. The mobile phone is the one
device that people already carry at all time and service beyond voice and text
messaging are booming all over the globe. The main reason that mobile banking
scores over internet banking is that it enables ‘Anywhere Bank to access their banks.
They can now do so on the go when they are waiting for their bus to work, when they

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are travelling or when they are waiting for their orders to come through in a
restaurant. Technology has revolutionized all the aspects of our life and even the
banking sector is no execution from computerization to networking, to internet
banking and now mobile banking, the banks have advanced with time and are
providing more and more new form of services which are not only convenient to
customer but also provide competitive edge to the banks. With mobile technology
banks can offer a wide range of services to their customer such as doing fund transfers
purchasing stocks access to account information etc. This is called mobile banking or
M-banking.

The banker has to understand customer’s needs and in the same way the customer has
to know about the various services offered by the banks and it increased level of
awareness among the customers. The impact of technology is widespread in our life,
and it is impossible to visualize a life devoid of it. Innovations happening across the
globe in different fields have made our life very relaxed and effortless. The diffusion
of technology is very deep and brisk in every walk of our life. The application of
mobile technology is very applicable in all types of business transactions, and banking
and financial services are not immune to this. The brisk expansion and popularity of
online buying have stimulated banks and financial sector companies to motivate their
clients to go for online and mobile banking modes for making payments and other
related banking transactions. Besides this, the escalation of mobile banking can be
ascribed to the multiplicity of problems faced by customers in accessing financial
services with the help of existing modes of delivery.

Mobile banking in the noticeably short period of its launching has become a popular
mode of banking amongst its users. It has virtually resulted in seamless and
unrestricted banking and has also become a new norm of banking. Mobile banking is
characterized as “a channel whereby the customer interacts with a bank via a mobile
device, such as a mobile phone or personal digital assistant”. It helps its subscribers to
access information related to their accounts and do remote transactions in their
accounts at a low cost.

Mobile banking has provided temporal and spatial freedom to its users, which is often
considered as a key limitation of the customary mode of banking. It has also helped
banks in cutting down their operational costs and expanding their reach to the

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customers. It has made banks more productive, proficient, and capable of providing
superior services to their customers. It has also helped banks in introducing a plethora
of other related services to their existing customers at virtually no additional cost. The
prospects of mobile banking in Mumbai also look very bright due to the sheer size of
its population, the number of internet users, and impetus towards financial inclusion
by the government, and realization by the public of the ease and convenience of
mobile banking.

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3) HISTORY & EVOLUTION OF MOBILE BANKING

One of the most leading sectors in the world in the adoption of mobile technology is
the banking industry including India. India was depicted to be the fastest growing
mobile communications nation in Asia. Presently, banking industry of India has
engaged the use of Information and Communication Technology (ICT) as a platform
for effective and efficient means of conducting financial transactions. But, banking
sector of India found technology oriented financial services in the year of 1987
through the Automated Teller Machines (ATMs). It was installed by HSBC bank,
after 20 years completion of the execution process of cash dispensers for the first
appearance in the world made by Barclays bank in UK, 1967. To strengthen the
banking sector, financial reforms were initiated as a part of the economic reform
started in India since 1991 onwards. Reforms were introduced in two phases, based on
the report of Narsimahan committee in the year of 1991 and 1997. The second
committee report, suggested whatever programme required by the banking sector
reforms and make it in the India’s banking system to become internationally
competitive. This suggestion also helped to making fast development of
technological-oriented financial services provided by the bankers to their customers in
the past two decades.

In recent days, finance-related services that are offered by employing mobile

telecommunication technologies are generally referred to as m-banking technology-
enabled financial information or services (Tiwari. R, et.al). So, the first m-banking and
payment initiatives were announced during 1999. The first bank to provide mobile
banking facilities in India was ICICI bank in the year 1999, followed by HDFC bank
and IDBI bank. Self-service Technological advances have reshaped the size and nature
of the financial industry, allowing it to extend beyond the traditional to modern concept
of saving and borrowing through extension of the technological progression in the
banking sector.

The terms m-banking, m-finance, mtransfers and m-payments refer to the inter-
services between customers and bankers. Now, m-banking development is a next
generation of electronic banking which delivers financial services when the customers
use their handheld devices to access their accounts and pay their bills from a bank which

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operates their account without having to physically visit their bank. In recent days,
mobile banking is performed between bankers and its customers in the form of Short
Message Service (SMS) or the Mobile Internet for the purpose of attaining higher levels
of customer satisfaction and increased loyalty by providing 24X7 facilities and bankers
will benefit further from reduced administrative expenses, lesser number of branches
and lower handling charges with better service to the customers than branch banking.

However, around the globe various IT initiatives developed by the bankers and use the
mobile phone to provide financial services without access to traditional banks.
Innovations in mobile technology the banks are conduct fast paced demands among the
various group of peoples or customers in the 21st Century through the high-quality of
response and m-banking which is an integral part of m-commerce has become very
popular among mobile users ever since its existence in 2007. The success of m-banking
services depends upon the mobile network operator, m-banking technology vendor,
bank and the customer. Further, m-banking has great deal of capabilities to offer value-
added service, transformation of information and decision making services to the
organization. M-banking is a type of m-commerce service since it allows consumers to
perform the following technology-enabled financial information availed from the banks
through the mobile device. Therefore, the Government of India and the Reserve Bank
of India (RBI) encourage banks to provide banking facilities to those peoples through
m-banking technology. In the year 2008, the RBI issued m-banking guidelines to the
banks. This disqualifies mobile network operators from offering their own service.

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.

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.

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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. India is still
having a potential market to expand mobile banking services.

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4) MOBILE BANKING VS TRADITIONAL BANKING

What is mobile banking?

Mobile banking is often confused with online banking, but the two are fundamentally
different. It is important to note that mobile banks are also referred to as online banks,
as they do not have a brick and mortar location and operate solely over the internet.

Unlike a traditional bank, a mobile bank does everything online. It is usually

necessary to have a phone, tablet, or computer that can access the internet in order to
use mobile banking services. You can do everything from opening a bank account,
withdrawing cash, transferring funds, and more with mobile banking.

To open an account, you will normally need to confirm your identity, which you
would also need to do at a traditional bank. This is called Know Your
Customer (KYC) and is an important part of preventing illegal banking activity. To
confirm your identity remotely, you typically will do so over a video call or by taking
a dated selfie along with a piece of government-issued identification.

What is traditional banking?

Traditional banking is probably what you are most familiar with. The bank has a
physical location that you visit in order to open an account. Some traditional banks
will allow you to open accounts online, but you still may need to visit the bank to
confirm your identity or submit documents.

While traditional banking has evolved so that you can do most of your regular
banking online or on a mobile app, you will probably have to visit your local branch
at some point. While some people prefer being able to talk to a real person when they
need it, for others it can be a nuisance.

Traditional banking also involves using ATMs to deposit and withdraw cash. Using
an ATM that doesn’t belong to your bank usually incurs extra fees. If you live or

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work near an ATM then it’s not that big of a deal, but it can be an inconvenience if
you don’t.

The pros of mobile banking

The biggest argument for mobile banking is convenience. Look at HDFC as an

example, which has become very popular in INDIA. HDFC gives its users most of the
benefits of a normal bank, without the hassle of going to an actual bank. There are no
monthly fees, cash can be withdrawn easily from a variety of ATMs with no
additional fees, and currency conversions are very simple.

Opening an account through an online bank is also far faster than traditional banks.
While some banks may take a few days or even weeks to set up everything for you,
mobile banks can typically open an account in one day. Additionally, it is rare that a
minimum deposit amount is needed for online banks.

Mobile banking also offers users a lot more control. You can receive notifications for
every single action that takes place on your card, and even lock or cancel your debit
and/or credit cards through the app. You can see what is happening in your bank
accounts in real time, and generally opening a sub-account can be done in minutes.

Additionally, mobile banking is not limited to a set of opening hours in which

business is done. Transactions are often instant and there is no waiting around for a
transfer to arrive because the bank isn’t open yet.

Lastly, fees are far lower when it comes to mobile banking. Switching your funds
from one currency to another is instant and free. Compare that to traditional banks,
where international transfers are often extremely costly with a poor exchange rate,
and the benefits are immediately obvious. Because mobile banks aren’t required to
have multiple locations, they can offer their users substantially reduced fees.

It is a common myth that mobile banking is not as safe as traditional banking,

however, this is not true. There is no added risk for choosing to use an online bank.

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The pros of traditional banking

If personal service is of importance to you, then you will probably appreciate

traditional banking more. Sometimes we want advice about what to do with our
accounts or how to maximize our savings, and having a face to face conversation
about it builds a lot more trust. Traditional banks allow you to build relationships with
their employees. If trust and service are what matters, then you can’t beat traditional
banking.

Depositing money is often far easier with traditional banking as well. Knowing that
you can always go to an ATM to deposit cash is a benefit many of us don’t consider.

Traditional banking may also offer different services you can’t get with mobile
banking. Things like mortgages, different types of insurance, and investment services
are currently only available through traditional banks. If you want a one stop shop,
then going with a traditional bank may be your best option.

The cons of mobile banking

A big problem with mobile banking are the possible technological issues. If an app or
website crashes, there’s nothing you can do. While you could certainly reach out to
customer service (we’ll talk more about that later), they probably won’t be able to
help you. In cases like this, being able to go to a physical bank location is a big
advantage.

Customer service is not only faceless when it comes to mobile banking, but can also
involve long wait times and agents who aren’t actually able to help you with your
problem. Some problems are also easier to solve in-person instead of emailing back
and forth. While some customer service agents at online banks are great, others or not.
It can be very hit or miss.

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Mobile banking also offers a far more limited number of services. You might be able
to have a chequing account, a credit card, and maybe even a savings account, but
that’s about it. You will have to look elsewhere for things like loans, mortgages,
insurance, et cetera.

Lastly, if you don’t have a smartphone, you can’t do mobile banking. While more and
more people own smartphones, just under half of the world population owns one,
which means they can’t use mobile banking.

The cons of traditional banking

If saving time and money are what you are after, then traditional banking might not be
the best option for you. Things generally take longer at a normal bank and their fee
structure is higher than mobile banking. Additionally, interest rates on savings and
investment accounts are lower at traditional banks than they are at online banks.

For avid travelers, traditional banking will be far more expensive than mobile
banking. Being able to transfer currency across borders and withdraw foreign
currency can add up really quickly if you are using a traditional bank.

What we can conclude from this chapter is –

Whether you choose to go with a traditional bank or a mobile bank depends on what
you value most when it comes to banking. Each type of bank has its own unique value
to add; it just depends on what you are looking for. If you want one place where you
can do all of your banking then a traditional bank is probably a better option. If you
travel a lot or need to send money abroad often, then an online bank is far more
convenient.

The nice thing about mobile banking is that it is often free to open an account, so you
can always try one and make an informed decision for yourself. It may be worth your
while to make use of both traditional and mobile banks, depending on your needs.

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 5) TYPES OF MOBILE BANKING SERVICES

Mobile Banking is the process of accessing banking services through your mobile
phone. Banking services can be accessed on a smartphone or a regular phone. Mobile
Banking is generally offered through the following channels –

• The Bank’s Mobile Banking Application

• SMS Banking

• USSD Banking

• WhatsApp Banking

• UPIs

Mobile Banking Apps:

As soon as we hear Mobile Banking, Apps are the first thing that come to our mind.
With hordes of apps swamping the market, it is only prudent to have an app for your
bank’s mobile banking service. Almost all banks in India have a mobile banking app.
Some examples are:
• YONO from SBI
• iMobile from ICICI

• HDFC Mobile Banking from HDFC Bank

• Axis Mobile from Axis Bank

• PNB ONE from Punjab National Bank

• CentMobile from Central Bank

Mobile Banking apps have to be downloaded from Google Play, Apple App Store or
Windows Store. You have to make sure that your smartphone is compatible with the
app before downloading and installing it.

Once you have installed the app, you are usually required to register on the app with
the registered mobile number on your account. Different banks have different ways of
registering on the app.

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 SMS Banking

SMS Banking is a simpler version of the mobile banking service. It does not need the
internet or a smartphone. It allows many banking services by sending a KEYWORD
to a designated phone number.

Benefits of SMS Banking

• It does not require the internet. Your mobile payment plan is enough.

• It does not require a smartphone. A simple GSM mobile is sufficient to use SMS
Banking.

• SMS Banking is available for all customers. It does not require any separate
registration. Just that the mobile number from which you are sending the SMS
should be the one linked to your bank account.

How does it work?

The customer has to type a KEYWORD and send it as an SMS to the designated
number given by the bank for SMS Banking.

E.g.: If a customer wants to get his account balance, he might be required to send an
SMS like this –

BAL CUSTOMERID PIN [ACCOUNT NUMBER]

The important point to remember is that if the keyword is typed incorrectly, your
request will not be processed.

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 USSD Banking

*99# - National Unified USSD Platform (NUUP) is a platform provided by NPCI

(National Payment Corporation of India) which works on the USSD technology.
Though similar to SMS Banking, USSD Banking creates a real-time connection with
the bank’s server to allow instant transactions. It can be used on any basic mobile phone,
removing the need for a smartphone or internet connection.

How to use USSD Banking?

• Dial *99# from your phone.

• Choose the bank from the list of banks linked to your mobile number

• Enter last 6 digits of your debit card and expiry date separated by single space

• Set a 6-digit UPI PIN

• Your UPI PIN is set and Virtual Payment Address is automatically created.

• Every time you dial the *99# number, you will be given a list of transactions to
choose and execute.

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WhatsApp banking

WhatsApp is not only a software application to chat and share pictures and videos but
not it has also updated its services in alliance with banks to resolve queries on real-
time basis. Recently WhatsApp has launched its banking and transactional services in
India by entering into a partnership with the Government of Delhi and NBCI –
National Payments Corporation of India. Several banks have linked their services with
WhatsApp e-banking services to provide better customer service and to enhance their
banking services.

How does WhatsApp Banking work?

A virtual chat box banker has been initiated to perform many functions like opening a
new account, getting an existing account details, confirm payments, and make
changes and much more.

All one must do it to save he relevant contact detail of their bank on their phone and
start using WhatsApp banking after initiating a chat on that number and following the
prompts like they would using their online or mobile banking system.

Banks enable their customers to receive updates and avail relevant series through the
messaging platform

Steps to Follow:

1. To save and call the number provided by their bank using their registered
phone number which is updated on their bank records.

2. By calling or giving them a missed call, this is taken as a concern by the

customer to be ready to use the WhatsApp online banking services using the
messenger.

3. Shortly, they will receive a welcome message from their respective bank and
the number they receive the message from should be saved as their WhatsApp
banking contact number

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 4. To initiate a conversation the user needs to type a hi or a hell and the service
will prompt him with several options regarding what he would like to do next

5. Carefully scrutinizing the on-screen options, the user needs to punch in the
correct number adjacent to the series that is required and solve his query.

Procedure to make a payment through WhatsApp application

Android users –

• Step 1 – Open the chat window of the person, the money is supposed to be sent to.

• Step 2 – Click on the “Payment” Option and accept the given terms and conditions

• Step 3 – Now the user needs to enter three main details – the amount to be sent, UPI
PIN and just send the money.

For iPhone users, the user needs to click on the plus sign on the receiver’s chat
window and proceed from step 2 to complete the payment transaction.

Another way of sending payment through WhatsApp is using

the QR Code feature.

• User needs to go to the settings tab and click on “Payments”.

• Select the “New Payments option and scan the QR Code button.

• Again, fill in the amount and punch in the UPI PIN for verification

• Payment will be complete

• Benefit of the Payment tab:

• It allows the user to view all the transactions processed under the payments tab

It also allows the user to view all the bank accounts that are linked with the WhatsApp
account.

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 Benefits of WhatsApp chat Payments:

• A payment can be made by anyone to anyone around the world

• The payment feature has a user-friendly pay feature which makes transferring funds
as easy as sending a picture or a video.

• The receiver will receive a notification confirming about the transaction being made
towards him by the sender

• Only a Virtual address to process the payment is required, the user does not need to
get into the hassle of attaining the account number of IF SC code from the receiver.

• It is a great innovation and one of the best and simplest payment features that have
bene introduced.

Challenges in using WhatsApp for Banking and Financial

Transactions

• Paytm has raised a concern over the safety and security of financial transactions
through WhatsApp also stating that it is quite lenient towards the payments
experience of user.

• Normally any software infrastructure would allow transactions of finances only after
eKYC, Aadhar authentication, eSign, UPI and Digilocker. Many entrepreneurs have
complained WhatsApp has spooked incumbents and has given concessions taking
advantage of its huge user base.

• Many competing companies have called it anti-national and have even degraded it by
comparing it to low brands available in the market.

• Unlike Google which initiated Tez as its payment application, WhatsApp is using
only its chat window to process all transactions which could be a challenge
considering it being the busiest app of the world.

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• Because of the dame user base, UPCI has not allowed a complete launch regarding
payments on to WhatsApp. Instead it is waiting for the response and reactions and
will decide only after reviewing the status

• WhatsApp needs to have better and faster coalition with all the banks and must adhere
to all NPCI laid guidelines diligently especially regarding payments to avoid faltering
anywhere.

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 UPIs
UPI or Unified Payments Interface allows you to link more than one bank account
under a single e-wallet. You can send/receive money using your unique identifiers
called 'Virtual Payment Addresses (VPAs)/UPI ID' for e.g. custname@bankname.
UPI payments are sent directly from your bank account and hence you do not need a
debit card, credit card or the bank account details or IFSC codes.

There is no hassle of adding a beneficiary before transferring money. You can transfer
to another UPI recipient using their phone number or UPI ID. You can make bill
payments to shopkeepers and merchants by scanning the QR codes at their location.

How do you use an UPI wallet?

UPI Wallets are mobile apps you need to download and install on your mobile phone.
Some examples of UPIs are Pockets, SBI Buddy, Google Pay, BHIM DLB UPI and
many more. These days, every bank has its own UPI app. You can download the one
offered by your bank for convenience.

• You have to register of the UPI app and create your unique VPA (Virtual Payment
Address) for your UPI account.

• Once you open the app, it will verify your mobile number and list the banks linked
to your mobile number.

• You can select your primary Bank account for the app. You can later add other
bank accounts too.

• The app will give an option to create a Virtual Payment Address (VPA)/ UPI ID
(example – name@bankname).

• It will then link your Bank account with this UPI ID.

• You are all set. You can start sending or receiving payments secure & instantly

The apps are usually available on Google Play & Apple App Store. Along with
transferring money, you can also make bill payments, mobile recharge, book tickets
and many more.

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6) IMPORTANCE OF MOBILE BANKING

Mobile banking allows consumers to be able to access banking services from

anywhere. Businesses and business owners are now able to save time by making use
of mobile applications to process their payments or even receive funds from clients
directly to their phone numbers. It is particularly popular among small to medium-
sized enterprises (SMEs).

With mobile technology, banks are able to cut down on operational costs while still
maintaining client satisfaction. The fact that any client of a bank can make use of their
app to request a service, such as opening an account or even the ability to schedule
debit orders or other payments from an application, allows for larger transactional
volumes, eventually driving business growth.

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 • DO’S & DONT’S OF MOBILE BANKING

 DO’S :

1. Keep you ATM Cards safely.

2. Keep changing passwords of your Cards/Banking applications at regular
interval. It does not take much time.
3. Keep your latest mobile number and email id registered with your bank. Bank
keeps you updated regarding any transaction in your account.
4. Always use online transaction platforms wisely. It is smart idea to use only
reputed online platform for transaction.
5. Use M Passbook application of our bank to keep yourself updated regarding
balance and transaction in all your accounts.
6. Carefully check the mobile number of beneficiary before making any payment.
7. Read the instructions in handset carefully before any action.
8. Verify your transactions regularly. Any unauthorized transaction, if observed
should be reported to the bank.
9. Inform bank immediately if your phone has been stolen or if you have lost it.
10. Choose a PIN which is not easy to guess. Change the PIN frequently.
11. View the confirmation SMS post any transaction to ensure the correctness. If
you do not receive a confirmation SMS within 15 minutes of transaction inform
the bank immediately.
12. Wait for five minutes before making repeated transactions to same beneficiary
of same amount.
13. Call bank if you have forgotten your PIN.

 DONT’S:

1. Don't share your Debit/Credit cards with any one.

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 2. Don't share your personal information like Debit card
details/PIN/CVV/OTP/Card Expiry Date/UPI PIN, over phone mails/e
mail/SMS to anyone even though some one pretending to be bank officials.
Your bank never asks for such details to customers.
3. Don't click on unknown links sent to you through SMS/emails.
4. Don't install such application through which your mobile phone/Laptop can
be remotely controlled.
5. In order to get your account details/card details, Fraudster may approach
with many tempting offers like lottery, free loans, KYC updation over phone,
vaccination for COVID-19 and many more. Don't share any information to
them. Your bank account details are not required for such things.
6. Don't save password in your mobile phone contact list.
7. Don't use your card details of such website with is http://. Such websites are
not safe for your credentials. Secure websites start with https://.
8. Don't share your PIN with anyone not even with bank agent or customer care
representatives.
9. Don't let anyone see you enter PIN.
10. Don't respond to any e-mails or phone calls that falsely claim to be from a
bank.

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7) WHAT DOES MOBILE BANKING OFFER

Ease of access: Mobile banking allows you instant access to your bank account with a
few clicks. Whether you are accessing mobile banking on an app or on your mobile
browser, the user interface is designed in simple terms that are easy for all age groups
to understand and execute. Most of the user interfaces are interactive and allow
customers to carry out transactions with ease. This is particularly helpful for aged
customers who are novices at using smartphones. Another most important benefit of
using mobile banking is that it is free of cost. You do not need to pay any charges or
fees to use mobile banking.

A single destination: Mobile banking allows users to integrate all their relationships
with a particular bank under a single login. This includes their bank accounts, credit
cards, Demat account, Insurance policies, UPIs, and investments under a single
umbrella. This enables better management of your relationships with the bank.

Fund transfers: Sending and receiving money has already seen advancements beyond
a layman’s imagination. Mobile banking has only furthered this feature by leaps &
bounds. Fund transfers are now done in real-time with RTGS or without any bank
account details using IMPS. There are no more hassles of writing cheques or depositing
them physically in the branch. This has saved enormous costs by reducing paper usage
and thus saving a large number of trees.

Bill Payments: The boon of paying bills through mobile banking is highly underrated.
There is still huge apprehension among the public in using mobile phones to pay bills
of any kind. They still rely on physical bill payments that ensure that their account is
rightly credited. This misconception is slowly lifting encouraging more and more
people to utilize mobile banking bill payment systems to their benefit. Banks have also
upgraded their systems to make bill payments hassle-free so that consumers can realize
that this facility allows quick, real time bill payment on most utilities, mobile
connections, DTH connections, broadband connections and investment services like
insurance and mutual funds.

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Transaction Security: One of the major concerns with mobile banking has always
been data security. Cybercrimes have caused enough panic to deter consumers from
trying this novel idea. However, bankers have ensured constant system up-gradation to
deliver the highest security to customer’s data. SSL Encryptions are in place to protect
information exchange between your mobile phone and the bank’s server. Mobile
banking apps make sure that no information is stored on the mobile phone’s internal
storage or the SIM card to prevent misuse of your information in case your mobile
device is lost or stolen. Also, financial transactions these days use a 2-level
authentication system to prevent fraud, OTP being the most common 2nd level
authentication. As mobile devices upgrade with the latest technologies like Face ID and
Fingerprint readers, banks have also updated their applications to include them for
better security.

Service Requests: Submitting account-related service requests has always been a

hassle with the traditional branch banking system. Customers were made to run from
counter to counter to get the right form or fill in the right details and submit it to the
right officer. In spite of all the hassle, the form may end up on the wrong table to be
ignored, thus the customer’s service request never fulfilled. That has changed now with
mobile banking. Starting from checkbook requests to email updates on your account, it
is all available on your mobile banking platform. With constant SMS alerts, you can
also keep track of your requests. This has made banking officials more accountable for
fulfilling these requests and has served well for the customers in getting their job done.

Investments: Banking is not just about depositing and withdrawing money anymore.
It is about managing your money, investing it shrewdly to get better returns. In India,
insurance and mutual funds are the go-to investment options for the common man.
Banks have started offering that too through mobile banking. Most banks these days
have their own product range of insurance & mutual funds. They are now allowing
customers to access these products through mobile banking and investing in them
instantly. Most banks even offer a free Demat account to attract customers who are
involved in the share market. With real-time NAVs and live share prices, mobile
banking has garnered a lot of investors using it throughout the day.

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Shopping on your mobile: Who doesn’t love to shop? That too when offered with lots
of discounts and offers through your bank, on your mobile banking account. Mobile
banking taps into the potential of customers who love to shop. It offers them with
periodical deals based on their interests and spending habits. They also tie-up with
popular brands for special discounts and sales. Rewards Program is offered in most
banks encouraging customers to shop more. Mobile banking combines these features
to offer a refreshing shopping experience to its customers.

Customizable user interface: As mentioned earlier, mobile banking apps are dynamic
and highly customizable. It allows customers to choose their interests and needs to
receive targeted product offers and updates. Many banks offer you your spending
analysis to enlighten you about changes you need to save more money or invest better.
Insurance and investment products that suit your needs better will be advertised on your
mobile banking platform. This makes mobile banking more of personal banking
experience for users.

Value-Added Services: As with any service provider, Value Added Service is a

separate bouquet of benefits given to the customer. Mobile banking is not an exception
either. It has the advantage of being in close proximity to the customer more than any
other service. This enables banks to send regular feature updates, offers, and deals to
the customer. These Value Adds are also customized based on the customer’s account
type, their spending habits, and investment style. Some of the value adds include
preferred language to operate the app, spending analysis reports, investment offerings,
deals on insurance products, upgraded credit card, and more.

Infrastructure cost savings: This feature helps both the bank and the customer. With
your bank in your hand, you are not required to visit the bank physically. This saves
you time and the hassle of arranging for transport to visit the bank. Especially aged
customers can avoid traveling to the bank incurring transport cost and overcoming
health challenges. For banks, this means better utilization of their branch square
footage. With fewer customers visiting the branch, they are able to manage the crowd
better and utilize the extra space to accommodate more staff to ease banking operations.

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Account Access: Customers can easily access their bank account using their
smartphones by downloading the mobile banking All they need is to use their User ID
and password to access their accounts. They can then carry out different banking
transactions instantly.

Balance Enquiry: One of the main reasons why people used to visit the bank was to
keep their passbooks updated so that they always knew their current balance. When the
balance enquiry service was offered through ATM, people started using it instead of
visiting the bank. Now, it is even more convenient to check account balance using the
mobile banking.

E-Passbook: Some banks offer a separate digital passbook mobile app that customers
can download to check their previous transactions and the latest account balance while
others just have this service, as a part of their main mobile banking there is no need to
visit a bank or ATM for balance enquiry or account statement.

Account Statement: If you want to check your bank account statement, you no longer
need to go to the bank or ATM since you can get the statement on the mobile app of
your bank. Since there are only a few free ATM transactions available to everyone these
days, it is better to avail them only for cash withdrawal; account balance or account
statement should be checked using the mobile app. You can also download your
account statement in PDF format and save it on your phone.

Fund Transfer: If internet banking and mobile banking have made the lives of people
any easier, it is mainly because of this service. People can now transfer money from
their bank account to an account in their own bank or another bank easily. They may
have to pay a nominal charge to carry out interbank transfers but intra-bank transfers
are usually free. IMPS, NEFT or RTGS transactions can also be carried out easily using
mobile apps.

Bill Payment: Mobile banking has made it easy to pay your mobile, credit card or
utility bills. You can even schedule payments on a certain day of the month so that you
do not have to worry about the payments. There is no need to stand in long queues to
pay your phone bills, credit card bills, etc.
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Branch Locator: If you are in a new city or area, you may need to find a branch of
your bank then you can easily use the mobile banking app to find it. Most banks have
a ‘Branch Locator’ that you can use to find the nearest branch.

ATM Locator: When you are in a new city or area, you might want to withdraw cash
from an ATM. The easiest way to find an ATM of your bank is to open your mobile
banking app and go to the “ATM Locator.” You will be able to find the address and
exact location of the ATM within your vicinity. • Requests: There is no need to visit
the bank to request a chequebook, new debit card, credit card, duplicate debit card, etc.
since you can do so easily using the mobile app. Most banks also offer the service to
hotlist or block a debit or credit card in the case of loss or theft.

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8) PROS & CONS, BENEFITS OF MOBILE BANKING

• Pros:

1. Perform Transactions Anytime, Anywhere :

As earlier mentioned, one of the biggest reasons people switch to mobile banking is
convenience. You can send money, pay bills, and manage your finances anytime,
anywhere. You don’t have to visit a bank and you don’t have to wait for business
hours to run your banking errands. As long as the system is online, you can log-in and
access different banking features and services.

2. It Saves You Time and Money

Mobile banking eliminates the need to commute. This alone will save you time and
money because you don’t have to deal with traffic and long lines, not to mention
spend for fuel. With just a few taps or clicks, you’ll be done with your transaction
without even leaving your home. Mobile banking also minimizes or eliminates
transaction fees. This is especially beneficial if, for example, you need to send money
to a person whose bank is in a different location. Different banks also offer various
methods of eliminating transaction fees, such as pre-enrolling third-party accounts or
by scanning a QR code.

3. It’s Safe and Secure

With mobile banking, you don’t have to worry about theft. You also lessen the stress
or anxiety of possessing a large number of bills because you won’t have to carry them
in the first place. Everything is digital, so there’s no physical money that can be stolen
by thieves.

With regards to the security of your financial information, there are various protective
measures such as passwords and two-factor authentication. These are on top of your
own mobile device’s security features, such as biometrics and passcodes.

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4. It’s Better for the Environment

With mobile banking, there’s no need to fill out forms in duplicate or even in
triplicate. All you need is to type the details in the app and you’re good to go. Your
receipts will instead come in the form of emails and text messages. All of these
simply mean that you’ll be reducing paper waste.

In addition, because you didn’t commute or drive to the bank, you’ll also reduce your
personal carbon footprint. All in all, mobile banking is definitely better for the
environment.

5. Easy to pay on credit

Mobile banking enables you to set up a form of standing order, so your customers
can pay you without thinking in installments. This can be done online within a
matter of minutes, so you can forget about any complex paperwork.

6. Mobile-friendly platforms

Most people can use mobile banking on their phones due to mobile-friendly
websites. These sites automatically adapt to whatever device you happen to be
using. For businesses, there are no restrictions on compatible devices.

7. Strong customer service

Businesses can get access to 24-hour customer service lines from practically all
mobile banking services. These service options are accessible in a number of ways,
including over the phone, live Internet chat, and email.

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8. Simple to use

Your customers don’t need any form of expertise to set up mobile banking or use it.
When they’re paying within your business, they need nothing but a few keystrokes to
make a payment.

9. No change

Mobile banking is about financial transactions being made from bank account to bank
account. If the money is there, the transaction will succeed. This means you don’t
have to worry about whether you have the right change available. At the same time,
your customers don’t have to worry about having an exact amount of money. It’s
more convenient for both sides.

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 • CONS :

1. There May Be a Steep Learning Curve

There are some people who aren’t as updated with the latest technological trends
and internet safety practices. Thus, they may not be as familiar with using mobile
banking apps or banking websites. Depending on the person’s previous experience
with technology, they may have a steeper learning curve compared to others. This
can discourage the person entirely from using mobile banking.

2. No Internet, No Transactions

Mobile banking requires an internet connection in order to send the data to the bank’s
servers. Therefore, if you’re in a location with minimal or no access to the internet,
you won’t be able to perform the transaction successfully.

Some banking apps and websites, however, allow you to schedule payments and
transfers. This way, even if you don’t log-in, the transaction will push through as long
as you have sufficient balance in your account. (Although this certainly doesn’t apply
to emergency situations.)

3. Security Issues

Despite the various security measures, some people still get victimized by phishing
emails and scams. Even those who are used to the internet sometimes get fooled,
especially since cybercriminals are now getting more and more creative.

With anything based in cyberspace, security is always a worry. Hackers from all over
the world are forever trying to bypass security systems put in place by businesses and
banks. Mobile banking facilities do need to keep up-to-date with the latest security
features.

4. Worrying the public

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 Together with security worries, the general public is often wary of making online
transactions. Only recently have more and more people become accustomed to
shopping online. The time it took for it to enter the mainstream shows how
tentative the public are when it comes to joining technological revolutions like
online banking.

5. It doesn’t cover everything

Mobile banking can handle certain transactions, but there are also transactions it can’t
handle. For example, most businesses with online banking will have limits on
transactions that can be made through mobile banking. Anything over this limit will
still require customers to sign various forms and present certain types of
identification.

6. Cost to install
Despite costs for mobile banking facilities coming down for businesses, it’s still quite
expensive to install. Businesses really have to plan for the future when working out
whether this is the right option for them. It can really hurt short-term profits if you’re
going to make this investment.

7. Double training
Your employees will need to be trained in how to operate the business’ mobile
banking system. They will also need to know how to operate cash-based transactions
should the system ever falter or go down for maintenance. That means more training
you’re going to have to fund as a business owner.

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• BENEFITS :

Ease of Use:
Mobile money helps people pay for goods and services; transfer money from
almost anywhere even if they are not near a bank office. For example, in Kenya,
M-Pesa has made it an integral part of the economy and providing mobile
experiences that meet consumer expectations.

The Unbanked:
Embracing mobile money services will go a long way to addressing the needs of
the unbanked, under banked, and the unhappily banked. Thereby, enabling them
to make payments, transfer money to merchants, friends or relative using mobile
devices. Reducing the need for long queue's in banks and bringing them into the
fold of modern economy.

Accessibility:
Mobile money transfers are filling this need and proving better at reaching poor
rural resident than banks or standard money transfer services. It has changed
commerce and eased trade by breaking the rigid rules of high finance and
banking transactions.

Convenient Savings:
Among the benefits of mobile money services is the ability to use the mobile
phone to save and be able to cash-out the money whenever needed. This also
reduces the need for physical cash, therefore, creating a firewall for theft.

Remittances:
Considering huge number of the unbanked who send domestic/international
remittances in cash and widespread use of mobile phones, both in developed and
emerging markets, mobile money has the potential to keep pace with consumer's
needs and expectations to transfer money at any time of the day/week no matter
how little the fund.
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 The Mobile Generation:
The adoption of mobile technology is changing virtually all aspects of consumer
behavior. This presents an unprecedented opportunity for mobile money service
renders to activate relationships with both new and existing customers across
multiple mobile channels.

Boosts Economic Growth:

The handiness of mobile devices and with mobile network operation services
scattered anywhere than traditional banks, availability of mobile money services
in different strategic locations is crucial for long-term adoption and widespread
use of such services, boosting economic growth and social development on both
the micro and macro-level.

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9) SWOT ANALYSIS OF MOBILE BANKING INDUSTRY

Here SWOT stands for –

S- STRENGTH

W- WEAKNESSES

O- OPPURTUNITIES

T- THREATS

• Strengths –
1. Leverage Banking transactions.
2. Ease of availability.
3. Rapid growth of mobile & wireless market.

• Weaknesses –
1. Lack of awareness about the new channel among the mobile users.
2. Security concerns about the new channel.
3. Mobile handset operability.
4. Application distribution.

• Opportunity –
1. Rapid increase in number of mobile users.
2. Mobile handsets rich features can be embedded in the application.
3. Nowadays the youth prefers everything to be done on mobiles.

• Threats –

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 1. Acceptance of new technology.
2. Customers misuse.
3. Traditional banking at risk.

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10) IMPACT OF COVID 19 ON MOBILE BANKING

M-banking will be the new normal to many industries and businesses after COVID -
19. It is very challenging for many countries as it was in 2008 crisis, we need to
accept the digital change and innovate the way of transaction with the new M-banking
application that emerging Fintech company serves. Banks need to build the trust,
create the digital and safe environment for digital banks make customers aware with
the helpful use of it. Due to shut down there was very less physical transaction done
as it was not safe to withdraw money and even for banks to accept deposits. RBI
report says, ATMs stood at over 91% of their full capacity which means there was
need to refill the cash in 91% of machines. Slowdown in the deposits grew up to
7.98%. According to RBI, 15.5 lakh crore of outstanding debt in the market has been
affected, retail and wholesale trading were hault, and more than 19 Sectors were
affected. Top five affected sector were port and services, aviation, construction,
mining and mineral, retailing done by corporate all sectors affect banking at very high
rate. We are living in a digital world and India being a developing country here banks
had a very advantage of promoting mobile banking, although India is having online
banking internet infrastructure since very long but it was adopted by majority of
customers that bank managed with them. Banks are now supporting customers
guiding them personally for their needs. Many people who were reluctant to move to
mobile banking application are now considering the shift as an easy mode. Mr. Niraj
Mittal says, there has more 29% more transaction in Q1 2020 from Q1 2019 as
corporate and retailer have higher issuance rate from bank accounts to mobile wallets.
Developing countries like India are very beneficial as more and more Fintech
company are investing in banks and with the help of their internet infrastructure and
technology banks will be able to serve customers with better facility and more secured
transactions. In this new normal period, we are experiencing a new network
environment where everything is available on our fingertips. We are seeing much
faster and reliable transaction pattern. Mobile banking has brought a very significant
increase in number of users after lockdown as mobile application has been more
customized and made more user friendly like Paytm, Yono (SBI), PayZapp and many
more.

According to the above data from RBI Reports, it can be observed that the growth in
the number of mobile banking transactions in the years 2012-2014 have been very

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minimal. But after the launch of the Digital India program in the year 2015, there was
a sudden increase in the number of transactions i.e., 386.6mn in 2015-2016, almost
double than that of the previous year i.e., 171.9mn transactions in 2014-2015. Later in
the year 2016-2017 mobile banking transactions grew from 386.6mn transactions in
2015-16 to 976.85mn transactions. The post demonetization period has shown
increasing trends in the number of mobile banking transactions when compared to the
pre demonetization period. It is believed that demonetization was one of the catalysts
for mobile banking in India. Followed by the COVID-19 pandemic in India, Mobile
Banking transactions in the month of Jan 2020 were 14,402.70 lakh (1440.27 mn) and
in June it shooted up to16188 lakh volume of transaction. The total number of
transactions from Jan 2020 to June 2020 were 84602 lakhs (8460.2mn) (Source: RBI
Combining all 354 banks of India recognized by RBI of Public and Private sector).
Hence COVID-19 is considered as one of the largest catalysts after demonetization to
promote the adoption of mobile banking in India.

COVID-19 has prepared the Indian banking infrastructure to continue its operations
through mobile & online banking services. This will also insure the banks against any
further unprecedented pandemics and lockdowns as well as help them to maintain its
overhead costs.

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11) HOW TO REGISTER FOR MOBILE BANKING

Step 1: Download the particular mobile internet banking app regulated by your bank
from Google Play store or Apple App store.

Step 2: Now, you need to set an MPIN which is your secret password to access the
mobile banking app. This has to be entered every time you login into the app

Step 3: After logging in, you can use your net banking user ID and password to
access your mobile internet banking account

To register by visiting the bank-

In some banks, the account holders are required to register for mobile banking by
filling up a registration form and submitting the same along with other required
documents at the bank. On the other hand, some banks allow the customers to use
SMS or phone banking to register for mobile internet banking

To register via ATM cum debit card, you can-

Step 1: Visit the nearest ATM of your bank

Step 2: Select the ‘Mobile Registration’ option on the ATM screen

Step 3: Click on the ‘Mobile Banking Registration’ option

Step 4: Enter your registered mobile number to verify and proceed to register

How to transfer funds via mobile internet banking?

To transfer funds via a Mobile Banking application, follow the given steps-

Step 1: Install and Set-up the mobile banking app furnished by your bank

Step 2: Link your bank account to the app

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Step 3: You can either send money to a bank account or a person directly.

1. To send money to an account, you have to add beneficiary by entering the

receiver’s account number and IFSC code
2. To send money to a particular person, you have to enter the mobile number of
the beneficiary and his/her MMID

Step 4: Enter the amount which you wish to transfer

Step 5: Enter your transaction password and then click the ‘Confirm’ button. An
OTP will be sent to your registered mobile number. Enter the OTP to authenticate the
transfer.

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12) CONSUMER AWARENESS

Majority of the consumers are aware that mobile banking is now available in India.
But very few are aware and familiar with various banking transactions that can do
with help of mobile banking. Also majority of the consumers have heard about mobile
banking but very few have actually used it.

Consumer awareness has significant impact on entreat to use in mobile banking.

Consumers are interested because they have heard about it somewhere and think that
with the help of mobile banking they can do their banking transaction anywhere and
anytime. Consumers often come to know about new products or services through
unofficial channels like family, friends, and colleagues and through internet. Thus
word of mouth is one of the strong communication channel which provide
information to various consumer groups.

Age group between 18years to 25 years are frequently adopting mobile banking and
find it time and cost saving. Whereas in other age groups consumers are less
acceptable towards mobile banking. On the whole it can be said that technology is
now enabling consumers to do their banking transaction just by clicking some buttons
on mobile or by sending SMS. So this is acting as a pull fact or to increase adoption
of mobile banking.

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CONCLUSION:-

Mobile banking has become popular owing to the COVID situation & convenience
that it gives its customers. You can access your account, pay bills, and make cash
transfers through cell phone banking. It offers many benefits over internet banking
and banking in person. With the wide range of mobile connectivity, mobile banking
through cell phone can be accessed by anyone. In India, all the banks should start to
follow the concept of mobile banking besides, existing financial services, which will
help us in making our lives easier.

Therefore, this study discussed the challenges and prospects of mobile banking in
Mumbai.

The study concludes that majority of the respondents knew most of the services
offered by banks through mobile banking. Thus, customers could use many services
as possible if they have the security about the services offered through mobile
banking.

It is further concluded that the extension or growth of mobile banking was faced by
fear of customers’ insecurity and network failure/error and lack of knowledge. This
limited the use of mobile banking services among bank customers.

Moreover, it is found out that despite the use of mobile banking among customers
only few of them were using these services effectively. This according to them was
due to insecurity and unreliability of the services.

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BIBLIOGRAPHY:-

Babulal, M. L. (2019). Mobile Banking in India: A Review.

https://www.researchgate.net/publication/349076536_Mobile_Banking_in_India_A_
Review

DR. (MRS.) N. YESODHA DEVI, M. J., & KANCHANA, D. (. (2011). A

STUDYON CUSTOMER AWARENESS, OPINION, REASONS FOR
OPTING MOBILE BANKING.
http://www.zenithresearch.org.in/images/stories/pdf/2011/Nov/16_vol-
1_issue-
7%20_%20%20%20J%20NANCY%20SEBASTINA%20phone%20banking%
20corrected%20copy.pdf

Manjulal Bai. (2019). “Mobile Banking Services and Customer Satisfaction with
Reference to ICICI Bank.
https://www.researchgate.net/publication/332525412_Mobile_Banking_Servic
es_and_Customer_satisfaction_with_reference_to_ICICI_Bank_-_A_Study

Meshram, P. V. (2017). A STUDY ON MOBILE BANKING AWARENESS OF

CUSTOMERS PERSPECTIVE WITH REFERENCE TO KOTHRUD, PUNE AREA
. http://troindia.in/journal/IJPEMSH/vol3iss2/6-9.pdf

Ms. Chandrawati Nirala, D. S. (2015). Customer Perception on Mobile-Banking in

Chhattisgarh.
https://www.ijemr.net/DOC/CustomerPerceptionOnMobileBankingInChhattis
garh(729-737).pdf

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REFERENCES:-
1. https://en.wikipedia.org/wiki/Mobile_banking
2. https://www.definitions.net/definition/mobile+banking
3. https://www.paisabazaar.com/banking/mobile-internet-banking/
4. https://www.creditmantri.com/mobile-banking/
5. https://www.centralbankofindia.co.in/en/dos-and-dont-for-safe-banking
6. https://www.careeraddict.com/10-pros-and-cons-of-using-a-mobile-banking-system-
for-your-business

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 APPENDIX

1. What is your gender?

• Male
• Female

2. Do you have any bank account?

• Yes
• No

3. For how long have you been a customer of that bank?

• Less than 1 year
• 1-5 years
• 6-10 years
• Above 10 years

4. Do you know mobile banking services offered by that bank?

• I know all of them
• I know few of them
• I know only one
• I don't know any of them

5. Are you aware that you can make transactions through mobile banking
services?
• Yes
• No
• I don’t know

6. Do you face any problem during transaction?

• Yes
• No
• Sometimes

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 7. What do you think are the main challenges in extending mobile banking
services to more customers?
• Handset Capability
• User friendly
• Privacy & security issues
• Customer awareness and illiteracy
• Comfortable without mobile banking

8. How many times do you use Mobile Banking Services?

• Everyday
• Few times a week
• Few times a month
• Only in emergencies
• Not at all

9. If given a choice to switch to mobile banking completely rather than

traditional banking, will you choose it?
• Yes
• No
• I am not sure

10. Knowing all of these facts & challenges, do you think m-banking has a bright
future in Mumbai?
• Yes
• No
• Maybe

11. What is the one feature you think will be decisive in ascertaining the growth of
mobile banking?
• Innovative Payment System
• Speedy Process
• Overview over Bank account

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 • Technological advancements
• Growth of e-commerce

12. Many people believe that there are more of male users than female users, do
you agree with this statement?
• Strongly disagree
• Disagree
• Neutral
• Agree
• Strongly agree

13. Which mobile banking service do you prefer from the following?
• The Bank’s Mobile Banking Application
• SMS Banking
• Phone Banking
• USSD Banking
• WhatsApp Banking
• UPIs

14. What is your overall satisfaction level?

• 1
• 2
• 3
• 4
• 5

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