MOBILE BANKING

Topic: Mobile Banking

 

      Subject      : Research Methodology

      Professor : Dr. JK Sachdeva

      Author:

  • Joydip Mondal (Batch – F1) (21230023286)
  • Siddhartha Mallick (Batch – F1) (21230023246)
  • Srijani Dutta (Batch – F1) (21230023025)

 

 

 

 

  1. Mobile Banking:

Mobile banking is a way to do your banking using a mobile device, like a smartphone or tablet. It lets you check your account balance, transfer money, pay bills, and do other banking tasks using a mobile app provided by your bank. It’s like having a bank branch in your pocket.

2.   A Brief History of Mobile Banking

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.

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.

Examples can be a text message from a bank, notifying users that their ATMs or apps will not be accessible during a particular time period due to system maintenance, or a confirmation text from the bank regarding a transfer carried out by the client via the mobile app.

 

  1. Mobile banking services in India

In India the services of Mobile banking were started with SMS messaging in the year 2002 and slowly picked up with the increase of mobile subscriber base in recent years and today half the populations are using the mobile phones. But only less than 5% are using their mobiles for the banking services even though the mobile banking is convenience, but its usage is not being used to its potential. The world of smart phones is in-turn making the people to use the ever-growing internet usage on mobile handsets, for using the applications based on banking services have emerged as a new concept. Peterson, (2009) Banks in India compete to use this advanced technology to increase customer base and reduce their operational costs. Wang, Lin & Tang, (2003) Ashta, (2010) With the launch of mobile banking in India, there is indeed a tremendous growth in mobile banking transactions. The primary factor which attracts customers to mobile banking is its availability 24 hours / 365 days and ease of transactions, but still mobile banking has a long way to achieve as majority of customers still prefer to bank in the traditional ways. Mehta (2012) Earlier the banks used to offer SMS banking, now these banks are offering most of the banking services on mobile phone through WAP-based applications.

 

 

 

  1. How mobile banking make helps banking financial model?

Mobile banking enhances the banking financial model by increasing accessibility and convenience for customers. It allows people to manage their finances anytime, anywhere, promoting greater financial engagement. This accessibility boosts customer satisfaction and retention, contributing to a more stable customer base.

Moreover, the cost-effectiveness of mobile banking reduces the need for physical branches and associated operational expenses. This efficiency contributes to overall cost savings for banks, positively impacting their financial performance.

The ease of conducting transactions through mobile apps encourages more frequent interactions, leading to increased transaction volumes. Additionally, mobile banking facilitates the collection of valuable customer data, enabling banks to better understand and respond to customer needs, ultimately improving their financial products and services.

The shift to mobile banking also opens up new revenue streams, such as fees for premium services and partnerships with fin-tech companies. Overall, mobile banking plays a pivotal role in modernizing the banking industry, fostering financial inclusion, and improving the overall financial health of both customers and banks.

  1. How mobile banking helps people to manage their financial service?

Mobile banking plays a crucial role in helping people manage their financial services more efficiently and conveniently. With the advent of smartphones and dedicated banking apps, individuals can access their accounts anytime and anywhere, providing unprecedented flexibility. The ability to check account balances, review transaction history, and receive real-time updates empowers users to stay on top of their financial activities. Mobile banking also facilitates seamless fund transfers between accounts, enabling quick and secure transactions. The convenience of paying bills, from utilities to credit cards, through the mobile app streamlines the process and ensures timely payments, reducing the risk of late fees. Additionally, features like mobile deposit allow users to conveniently deposit checks by capturing an image using their device’s camera, eliminating the need to visit a physical bank branch. The integration of advanced security measures, such as biometric authentication and real-time transaction alerts, enhances the overall safety of mobile banking. Overall, mobile banking provides individuals with a user-friendly and accessible platform to actively monitor, manage, and control their financial affairs, promoting financial literacy and fostering a greater sense of financial well-being.

6.    The 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.

 

 

 

  1. How mobile banking apps help people feel secure and protected?

Mobile banking apps contribute to people feeling secure and protected through a variety of user-friendly features. Firstly, they employ strong encryption methods, ensuring that personal and financial information is transmitted securely. The use of biometric authentication, like fingerprints or facial recognition, adds an extra layer of protection by ensuring that only authorized individuals can access the account. Robust password and PIN requirements further enhance security. Real-time alerts keep users informed about any account activity, empowering them to quickly address any suspicious transactions. Device authorization links the app to specific devices, preventing unauthorized access. In case of a lost device, users can remotely deactivate their accounts. Transaction limits and additional verification for high-value transactions provide an added safeguard. Regular security updates keep the app resilient against emerging threats. Altogether, these security measures create a sense of confidence, assuring users that their financial information is well-protected and that the app is equipped to thwart potential threats, fostering a feeling of security and trust in mobile banking.

 

  1. Today’s popular mobile banking application ?
  • Google Pay: A mobile payment app by Google that lets you make online and in-store payments, and also offers features like money transfers.
  • PhonePe: An app for digital payments and mobile recharges, allowing users to link their bank accounts for seamless transactions.
  • Paytm: A versatile mobile wallet app offering services like mobile recharges, bill payments, ticket bookings, and online shopping with a digital wallet.
  • SBI Mobile Banking App: State Bank of India’s official app that enables account holders to manage their finances, transfer funds, pay bills, and access other banking services on the go.
  • Amazon Pay: Amazon’s digital wallet, providing a secure way to make payments for goods and services on the Amazon platform and other affiliated merchants.

 

  1. Review:

Rao & Prathima (2003) : ‘Indian banking Offering m-banking services still have a long way to go but there is huge potential of Mobile banking in India.

Liao and Cheung (2002) : Fund that individual expectations regarding accuracy, security, network speed, user-friendliness, and user involvement and convenience were the most important quality attribute in the perceived usefulness of Internet-based mobile banking.

Kolodinsky, Hogarth & Hilgert (2004) : In there study suggested that relative advantage, simplicity, compatibility, risk tolerance, Observability and product involvement are associated with adoption in Mobile Banking.

 

  1. Data Analysis :

 

Mean

4.098039216

3.7254902

3.762376238

4

3.735294118

Standard Deviation

1.112572649

1.08232298

1.201236986

1.218666696

1.10736929

Standard Error

0.110161107

0.10716594

0.118940185

0.120665983

0.109645898

T- stat

9.967576042

6.76978312

6.409744842

8.287339742

6.706079571

Response

Positive

Positive

Positive

Positive

Positive

Hypothesis

Alternate Hypothesis

Alternate Hypothesis

Alternate Hypothesis

Alternate Hypothesis

Alternate Hypothesis

 

  1. Top of Form
  2. Conclusion

Q1. Mobile banking is a convenient way to manage finances.

Result: For question 1 we take Alternate Hypothesis as t-stat = 9.96 which is more than 1.96.

Therefore, people are agreeing that mobile banking is convenient way to manage financial transaction.

Q2. Mobile banking apps offer robust security features.

Result: For question 1 we take Alternate Hypothesis as t-stat = 6.67 which is more than 1.96.

Therefore, people are agreeing that mobile banking offer better security features

 

Q3. Mobile banking apps support a wide range of transaction types.

Result: For question 1 we take Alternate Hypothesis as t-stat = 6.40 which is more than 1.96.

Therefore, people are agreeing that mobile banking support a wide range of transaction.

Q4. Mobile banking apps prioritize user privacy for financial information.

Result: For question 1 we take Alternate Hypothesis as t-stat = 8.28 which is more than 1.96.

Therefore, people are agreeing that mobile banking can capable of prioritize user privacy

Q5. Notify your mobile banking providers right away if you see any unusual activity.

Result: For question 1 we take Alternate Hypothesis as t-stat = 6.70 which is more than 1.96.

Therefore, people are agreeing that mobile banking offer better security features

 

 

 

 

The END

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