The revolution of Mobile Banking

Mobile banking (also known as M-banking and SMS banking etc.) is a term used for performing balance checks, account tranactions, payments etc.. Mobile banking today is most often performed through an SMS or the Mobile internet but can also use special programmers called `clients`. Mobile banking refers to provision and an ailment of banking-and financial services with the help of mobile telecommunication devices may include facilities to conduct bank and stock market transaction, to administer accounts and to access customized information. The coming of internet has revolutionized the way the financial service industry conducts business empowering organizations with new business models and new ways to offer 24*7 accessibility to their customers. The ability to offer financial transactions online has also created new players in the financial industry.

Over the last few years, the mobile and wireless market is one of fastest growing market in the world and it is still growing at a rapid pace. 35% of online banking households will be using mobile banking by 2010, up from less than 1% today. Today 70% of bank center call volume is projected to come from mobile phones. Mobile banking will eventually allow users to make payments at the physical point of sale. “Mobile contacts less payments” will make 10% of the contacts less market by 2010. With mobile technology, banks can offer a wide range of services to their customers such as funds transfer while traveling, receiving online updates of stock price of even performing stock trading while being stuck in traffic.

Wide spectrum of mobile/branchless banking models is evolving. Mobile banking is being used to attract low-income population in often rural locations; the business model will depend on banking agents, i.e., retail or postal outlets, process financial transactions on behalf or banks. The banking agent is an important of the mobile banking business model since customer care, service quality, and cash management will depend on them.


Mobile banking can offer services such as the following:. account Information ,mini –statements and checking of account history ,Alerts on account activity or passing set threshold ,monitoring of term deposit ,access to loan statements , insurance policy management ,pension plan management ,status on checker, stop on payment.

To start with the M-Banking the involves registration of customer and getting user ID and password. Then downloading of application in the mobile by SMS to Banks site. For clients in remote locations (Financial Inclusion ) ,it will be important to help them deposit and withdraw funds at banking agents , I, e. , retail postal outlets that turns cash in to electronic funds and vice versa . The feasibility of such banking agents depends on local regulation which enables outlets to take deposits or not. Specific sequence of SMS messages will enable the system verify if the client has sufficient in his or her wallet and authorize a deposit or withdrawal transaction at the agent. When depositing money , the merchant receives cash and system credits the client’s bank account or mobile wallet .In the same way the client can also withdraw money at the merchant: through exchanging SMS to provide authorization ,the merchant hands the client cash and debits the client’s account .


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