MOBILE

BANKING
Presented by: Shubhi chooramani
XII - B

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 DEFINITION
Mobile banking is a system that allows customers of a financial institution to
conduct a number of financial transactions through a mobile device such as a mobile phone or
personal digital assistant.
Mobile banking differs from mobile payments, which involve the use of a mobile device to pay
for goods or services either at the point of sale or remotely, analogously to the use of a debit
or credit card to effect an EFTPOS payment.
The earliest mobile banking services were offered over 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 banksstarted to offermobile banking on this platformto their customers.

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IMPORTANCE OF MOBILE BANKING FOR THE BANKS
Proactive and simple alertingservicesreduces branch/ call centre costs
M-commerce is expected to account for an increasinglyhigh proportion oftransactions.
Mobile device can be an ideal POS device allowingtransactionsto be authorized in many
more places than ever before
Mobile services are expected to generate accessto new business opportunities & new
alliances across business sectors
Highmarket penetration (up to 80%in some countries) and still growing

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ADVANTAGES OF MOBILE BANKING

Customers: Banks:
Control costs, removal of cost
You don’t have towait in line. duplication
You don’t have to plan your Cater to increasing online channel
customers
dayaround the bank’s hours.
Personalize customer interactions
You can look at your balance
Unparalleled convenience and
whenever youwant, not just proactive customerservice
when you get a statement. Crossselling

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 MOBILE BANKING APPLICATIONS

SMS WAP DOWNABLE APPS

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 SMS PAYMENTS

SMS payments are a means of paying for goods, services or products via a text message sent from a
mobile phone. They work like standard SMS or Short Messaging Service. With the SMS payment
system purchaserssend a text message to pay for an item or service. Thistext message is sent to mobile
payment providers. The provider clears the transaction between the purchaser and the vendor. The
cost of the purchase is added to the monthly phone bill or deducted from a pre-paid balance by the
mobile phone operator. By using SMS payments, mobile phone users can securely, quickly and
safely pay merchants, buy goods or services, real or virtual, as well as make deposits or send
remittances.

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ADVANTAGES OF SMS PAYMENT SYSTEMS
It is quick and easyto use.
The purchaser doesn’t have to enter in their credit card or bank details, or even
have a bank account.
They don’t need to remember any passwords or user names as with paymentsiteslike
PayPal.
It is more secure as no personal details or account details are released.
For the Business,Charityor Service Provider
They have instant accessto billions ofmobile phones equipped with SMS facilities
worldwide.
They have access to millions of customers who don’t have a bank account or credit
card and thus were prevented from buying their goods or services before. They now
have accessto a whole new set of customers.
They can build upon customerloyalty via SMSmarketingmessage, discounts and
coupons.
They don’t need to verify customers’ identities or worry about chasing payments or
cards being denied.
All the billingis handled by themobile phone operator.
It is easy and quite often costs nothing to set up. 7
 WAP PAYMENTS
WAP Payments simply means using the Wireless Application Protocol (WAP) facility on your Smart
phone to connect to the internet and then using an online payment method such as PayPal, Google
Wallet or Yahoo Wallet or simply entering your credit card details into the payment box on a
company’s website.
Some mobile network operators allow users to pay for WAP Payments directly from their mobile
phone bill as with standard SMS payments. Companies wishing to accept WAP payments need to talk
to a SMS payment solutions company to ensure they get a WAP payment gateway installed on their
site.

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 DOWNLOADABLE APPS
Apps are basically little, self-contained programs, used to enhance existing functionality, hopefully in a
simple, more user-friendlyway. Modern smart phones come with powerful web browsers, meaning you can do
pretty much anything you can do on a desktop computer in a phone’s browser. Online sites
and services now go down the standalone app route, giving them better control of the user experience
and, hopefully,makingeverythingsimpler and quickerto open and use.
In case of online banking, you need to sign in to your bank’s web site using the phone’s browser, but it’ll
be a painful doing text entry, resizing the display so you can see the little box for the PIN, having to
sign in every time andmoreminormodern frustrations.
A banking app simplifies the process, remembering your login information for next time and
presenting the critical data about how much money you haven’t got in big, chunky fonts, designed
to make everything vastly more readable on a smaller phone display and that’s the essence behind
most apps. They aim to make life easier and tasks bettersuited to mobile use.

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MOBILE BANKING FACILITIES
Account information
Mini-statements and checkingof account history
Alerts on account activityor passingofset thresholds
Monitoringoftermdeposits
Accessto loan statements
Accessto card statements
Mutualfunds/ equity statements
Insurance policy management

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Investments Support
Portfoliomanagementservices Status ofrequestsfor credit, includingmortgage
Real-time stock quotes approval, and insurance coverage
Personalized alerts and Check (cheque) book and card requests
notifications on security prices Exchangeof datamessages and email,including
complaintsubmission and tracking
ATM Location

Content services

General information such as weather updates,

news
Loyalty-related offers
Location-based services

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SECURITY MEASURES IMPLEMENTED FOR
MOBILE BANKING:
SMS channels can be usedwith encryption by mobile payment applicationsto
protect data integrity and security.
Use of Crypto-Java SIM cards &PKI(Public Key Infrastructure) for establishing
hierarchy of trust; non-repudiation.
Debit/Credit cardslinked to a specific phone number of consumer for added
transaction security
Implementation ofsecure PIN / One-timepassword fortransactions
For a financial application, gatewaysshould reside behind your fire wall instead
of the carrier premises

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 CONCLUSION
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THANK
YOU
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