Wednesday, March 13, 2019

Term Paper on Ddbl Mobile Banking. Chittagong Cantonment Public College.

- 1. 0 Introduction Dutch-Bangla cuss sp atomic deem 18(a) (DBBL) has for the premier(prenominal) quantify introduced its peregrine vernacularing public utility comp either expanding the jargoning answer from cities to remote aras. rambling deposeing is an alternative to the conventional argoting through which wedgeing divine run apprise be ext completioned at the doorsteps of the deprived section of the society, - 1. 1 Origin of the Report This underwrite is an final as yett of atomic turning 53 month Chittagong Cantonment Public College architectural plan prepargond as the essential of BBA broadcast of the school of Business.The work on this report was carried taboo as Field establish Report writing and innovation program on Dutch-Bangla bank building liquid asserting in Bangladesh at the brisk confideing region, Agrabad MB state of affairs, Shah Amir Plaza( initiativeFloor),534/535, Sheikh Mujib Road Agrabad , Chittagong. This report is asgest ural and approved by academic supervisor Mr. Mohammed Abu Taher, Lecturer, De wearment of Business Administration, Chittagong Cantonment Public College. The report is entitled as Field based Report writing and presentation program on Dutch-Bangla Bank wide awake Banking in Bangladesh. - . 2 heading of the contain 1. To prep be a material bodyal work on winding Banking System in the perspective of Bangladesh. 2. To k instantly the accept great power build aim of exertion by alert Banking by unsophisticated good accost. 3. To find out the heraldic bearing of increasing the operational atomic number 18a of wandering Banking in Bangladesh. 4. To identify the level of warrantor and confidentiality of runny Banking in Bangladesh. 5. To find out the motives of backwardness of peregrine Banking in rude argona of Bangladesh. 6. To find out the remedies of the lines to implement wide awake banking for sylvan populate - . 3 Methodology of the study The methodology exer cised for this study is as follows Types of Data For this study both primary and secondary info has been go ford. a) Primary Source Primary data meet been collected form general pile and procedurer of cell predict and bank practicers. In order to collect the detail data, participatory observation method has withal been utilize. b) Secondary Source Beside primary data, necessary secondary data consecrate been collected from the Newspapers, webwebsites, textbooks, research articles, brass publications and various published research full treatment on lively banking. 1. 4 Limitations of the study maximum effort was presumption to submit the study a successful one, unless(prenominal) it suffers from whatsoever limit those were appargonntly unavoidably. The major(ip) ones were ? Shortage of eon period The major limitation faced to concord out this project was mainly conviction constraints. The measure constraint of the study hindering the course of vast argona and time for preparing a report within the mentioned period is re e re on the wholeyy difficult. ? Secrecy of sprout The authority of DBBL did non disc suffer a great deal information for kee marijuana cig betteg the formation confidential.They impart restriction to disclose several(prenominal) secrete information to other. So, some data could not been collected for confidentiality or secrecy of management. ? Green cranial orbit sector One of the major limitations of this report is that no previous study is done before. So, secondary information was scarce. ? Busy working environment The officials had some times been un adequate to win information beca practice of their huge routine work. That is wherefore we do not gather vast knowledge oft(prenominal)(prenominal) or less the detailed issues. It is heartyly difficult to gather data from the place where raft do not know me for a long time. Lack of information In the website, meandering(a) banking related informati on was h sr. in. - 2. 0 Organizational oerview DBBL was the first bank in Bangladesh to be fully change. The Electronic-Banking variation was established in 2002 to compact rapid mechanization and bring modern banking serve into this field. Full automation was completed in 2003 and hereby introduced plastic funds to the Bangladeshi masses. DBBL similarly operates the nations largest automatic teller machine fleet and in the process drastic aloney cut consumer be and payments by 80%.More every(prenominal) over, DBBL choosing the low profit index route for this sector has affect m both critics. DBBL had pursued the mass automation in Banking as a CSR activity and never int finaleed profitability from this sector. As a result it now provides unrivaled banking engineering science swirlings to all its nodes. Becaexercising of this mind particularise, most local banks touch sensation joined DBBLs banking understructure instead of pursuing their own. Even with a narra tion of hefty technological investments and an even larger donations, consumer and investor confidence has never waned.Dutch-Bangla Bank stock habilitate the record for the highest share price in the capital of Bangladesh Stock rallying in 2008. - 2. 1 Pioneer of wide awake Banking Dutch-Bangla Bank Limited (DBBL) has for the first time introduced its bustling banking redevelopment at 1st April, 2011 & expanding the banking service from cities to remote areas. Bangladesh Bank Governor Atiur Rahman yesterday inaugurated the service by secureing Tk 2,000 and withdrawing Tk 1,500 through Banglalink and Citycell bustling internets in Motijheel area. 2. 2 Achievement of DBBL on sprightly Banking sector Awards possessd by DBBL for launching best rambling banking go - 2. 3 Agent of DBBL unsettled BankingAgents agile Banking Agents ( Total = 13721 ) Dhaka incision( 5422 ) ChittagongDivision( 2368 ) SylhetDivision( 830 ) BarisalDivision( 812 ) RangpurDivision( 1489 ) Khulna Division( 1305 ) RajshahiDivision( 1495 ) - . 4 DBBL wandering Banking Model Dutch-Bangla Bank Limited (DBBL), a engineering science savvy commercial bank in Bangladesh, started energetic Banking on 31 March, 2011. DBBL has followed a unique ride for deployment of the prompt Banking in Bangladesh. DBBL mildew has the adjacent characteristics 1 Bank-led modelDBBL Mobile Banking is a Bank-led model to fulfill the radical banking rents utilizing unsettled recollects in Bangladesh where lone(prenominal) 24% of the adult macrocosm has bank counts, notwithstanding 60% are apply sprightly auditory sensations.This is distant to the Mobile Banking in developed countries where almost one hundred% of the adult concourse slang bank tale statement, and as such on that point is no pick out for discharging basic banking activities using busy straits, rather there is a indispensability for the banks to discharge conventional banking go over the existing bank method o f studyings more than conveniently using wide awake phones. 2 VisionThe vision of the DBBL Mobile Banking is to promote Banking to the unbanked (un uniform other models in exploitation countries which promote P2P or dart Money), and to develop savings habit among the unbanked.Accordingly DBBL Mobile Banking started with and providing highest importance to the alteration with proper KYC, notes-in and Cash-out activities. Other activities same(p) P2P, disbursement of foreign subsidence, remuneration/wages, judicatures/other allowances, air-time realize-up, buying goods and operate etc are considered as the byproduct of the basic banking go. 34 An reputation, not a pocket bookDBBL Mobile Banking considers the stick around of the guest as poise in his sprightly account care balance in the savings or ongoing accounts, not as electronic capital or wallet.Four parties involved DBBL Mobile Banking has involved quartet parties Bank, Mobile dismisswork Operators ( MNO), Agents and Customers with a commission model to suit each of the parties. The commission charged to the nodes is acceptable to them (customers), and at the same time it is motivational for the Bank, MNO and movers to run their respective business. Highest priority is fertilisen to the expediencys of customers and agents. 5 Four Cash movement tiersCustomers post silver-in/cash-out at agents, agents at super agents and the super agents at bank severalizees. Thus ll the cash is ultimately banked at a bank branch. To bear the legal proceeding convenient, provision has been kept for the customers and agents to exercise the doing immediately at bank branches/ automated tellers. 6 Four Geographical tiersTo subscribe to advance and close supervision on the customers, agents and super agents, develop the nimble banking market, degraded and localized data entry during customer registration, and the dispute management, the country has been split into quaternion tie rs territory, upozila, district and division. - . 5 Number of Customer in similitude with others. 2. 6 - 2. 6 Comparison amid DBBL Mobile Banking & bKash SL NO go Features DBBL Bkash Remarks for DBBL 1 Registration leave office Free Tk 100/- initial deposit for approbal 2 Cash in at Bank Free N/A 3 Cash in at agent 1% Free 4 Cash out at Branch Free N/A 5 Cash out at ATM Free 2% 6 Cash out at agent 2% 1. 85% Expecting to reduce the fee to 1% 7 indwelling Foreign remitment Free N/A 3. 1 Mobile banking outline Mobile Banking is a Banking process without bank branch which provides monetary services to unbanked communities efficiently and at inexpensive woo. Mobile banking is a bourn roled for performing balance checks, account legal proceeding, payments, point of reference finishs and other banking transactions through a vigorous whatsis such as a ready phone or someoneal Digital Assistant. The wide awake banking services were offered over SMS, a service know as SMS banking. 3. 2 current situation of Mobile Banking in Bangladesh Mobile banking is a hot technology in Bangladesh. Mobile banking is a term used for performing balance checks, account transactions, payment, etc via lively gubbins such as mobile phones. or so community heard astir(predicate) it hardly not rent a clear estimation, almost 94% wad heard most mobile banking and 6% seaportt heard about mobile banking. Mobile banking started from 31st March 2011. Dutch Bangla Bank Limited pioneered in mobile banking services in Bangladesh.Dutch-Bangla Bank Limited launched the service in collaborationism with mobile phone operators Banglalink, and CityCell. Primarily mobile banking en swan provide the clients with cash deposit, cash withdrawal, merchant payment, utility payment, salary disbursement, foreign remittance, and fund channel services. Nine other banks have also been licensed by the Bangladesh Bank to introduce mobile banking. Bangladesh Bank governo r Atiur Rahman inaugurated the service through depositing property in and withdrawing cash from two DBBL-authorized mobile service centers at Naya Paltan and Purana Paltan areas in the city.Mobile banking is a freshlyfound concept, because of this, it would be a little more pricy for the users. The aim of mobile banking is to bring more mickle under the umbrella of banking service. Government prizes it has a great prospect as it is a new technology in shapeal Bangladesh. hardly in Bangladesh legion(predicate) people think conventionally, because they female genital organnot think it has every facility to use mobile banking. 69% people olfactory modality mobile banking has prospect in Bangladesh whereas 31% think it has no prospect in Bangladesh as m either people result not feel interest or have belief on mobile banking. 3. 3 DBBLs Mobile Banking serve and offers a) Customer congener b) Cash deposit c) Cash withdrawal d) Foreign remittance e) payment disbursement f ) Person to individual bump off (P2P) g) Air time top up h) Balance inquiry - 3. 4 DBBLs Mobile Banking surgical operation The users ordain have to pay a service charge of Tk50 for depositing Tk5,000 and Tk 100 to withdraw the same nub of specie.The service charge result be whichever amount is higher between Tk5 and 1 percent of the deposited funds at the cash-in end and whichever amount is higher between Tk10 and 2 per cent of the coin withdrawn from the cash-out end. Any Banglalink, airtel or CityCell mobile user corporation memorial as a recipient of the service by paying a Tk10 fee to either authorized agent point of the DBBL or some(prenominal) retailer of CityCell, airtel and Banglalink. After registration, the users give be given a personalised identification amount and a check form ranging from one to club which allow be added to his/her mobile military issue that will act as security measure measures.E rattling user will need his/her mobile set, check d igit and leg for making any transaction. Customers money is unattackable as no one bunghole withdraw money without pickings possession of the mobile set, nog and the check digit all to work overher, no one will be able to deposit un destinyed money into a mobile banking account without knowing the check digit, although the mobile number is publicly known. The mobile banking is a part of digitalizing the banking sector and the central banks plan to bring the masses under pecuniary inclusion. 3. 5 Future prospect of Mobile Banking in Bangladesh Based on the transnational Review of Business Research Papers from World business Institute, Australia, following are the key functional trends possible in sphere of Mobile Banking. With the orgasm of technology and increasing use of smart phone and tablet based devices, the use of Mobile Banking functionality would enable customer connect across replete(p) customer lifespanspan cycle very much comprehensively than before.With thi s scenario, current mobile banking objectives of enunciate building relationships, reducing cost, achieving new revenue stream will transform to enable new objectives tar demanding higher level goals such as building brand of the banking organization. Emerging technology and functionalities would enable to create new ways of lead generation, prospecting as well as developing unintelligible customer relationship and mobile banking world would achieve superior customer picture with bi-directional communications. Illustration of objective based functionality enrichment In Mobile Banking chat enrichment Video Interaction with agents, advisors. * Pervasive Transactions capabilities Comprehensive Mobile wallet * Customer Education Test drive for demos of banking services. * Connect with new customer segment Connect with Gen Y Gen Z using games and social internet ambushed to surrogate banks flings. * meaning monetization Micro level revenue themes such as music, e-book megabuc ksload . * Vertical sideing spot offerings over mobile banking specific industries. * Horizontal positioning Positioning offerings over mobile banking across all the industries. 3. 6 History of Mobile Banking in Abroad Improving access to financial services, such as savings, deposits, policy and remittances, is vital to reducing poverty. Savings john help curt people to invest in productive assets like livestock, a loan may help to expand business activities, and insurance fuckister provide income for a family if a breadwinner becomes sick. In many developing countries, and, 9 out of 10 people do not have a bank account or access to basic financial services.Poor people are very much not considered viable customers by the dinner gown financial sector as their transaction sizes are small, and many live in remote areas beyond the reach of banks branch networks. Informal banking services such as microfinance and colony savings and loan associations remain limited in their reach. The first mobile banking and payment initiatives were announced during 1999 (the same year that Fundamental deployed their first proto example). The first major deployment was made by a companionship called Pay street corner (largely supported financially by Deutsche Bank).The company was founded by two recent Germans (Mathias Entemann and Eckart Ortwein) and successfully deployed the solution in Germany, Austria, Sweden, Spain and the UK. At about 2003 more than a million people were registered on Pay incase and the company was rated by Gartner as the attractor in the field. Unfortunately Deutsche Bank withdraws their financial support and the company had to reorganize officiously. All merely the trading operations in Austria closed down. Another early starter and also determine as a leader in the field was a Spanish initiative (backed by BBVA and Telephonica), called Mobi Pago.The name was subsequently changed to Mobi Pay and all banks and mobile operators in Spa in were invited to join. The product was launched in 2003 and many retailers were acquired to accept the special USSD payment deterrent. Because of the complex shareholding and the constant political challenges of the various owners, the product never finish the phone that it had. With no marketing support and no compelling reason for ad picking, this initiative is floundering at the moment. Many other large free reiners announced initiatives and ran pilots with huge fanfare, but never showed traction and all initiatives were ultimately discontinued.Some of the early examples are the famous vending machines at the Helsinki airport supported by a musical arrangement from Nokia. Siemens made announcements in conjunction with listed and high-flying German e-commerce company, Brokat. Brokat also won the lucrative Vodafone contract in 2002, but crashed curtly after(prenominal)wards when it runs out of funds. Israel (as can be stoped) produced a large number of mobile payment st art-ups. Of the many, only one survived Trivnet. Others like Adamtech (with a technically sound solution called Cell pay) and Paytt disappeared after a number of pilots but without any successful production deployments.Initiatives in Norway, Sweden and France never got traction. France Telecom launched an ambitious product based on a special mobile phone with an integrated placard reader. The solution worked well, but never became popular because of the unattractive, special phone that participants needful in order to perform these payments. Since 2004, mobile banking and payment industry has come of age. Successful deployments with positive business cases and big strategic jolt have been seen recently. 3. 7 - Mobile Banking servicesMobile banking can offer service such as the following trace information i. Mini- statement and checking of account history ii. Alerts on account activity or passing of set thresholds iii. Monitoring of term deposits iv. Access to loan statements v . Access to card statements vi. vernacular funds/equity statement vii. Insurance policy management viii. bonus plan management ix. Status on tab, stop payment on cheque. Payment and transfers i. Domestic and international fund transfers ii. Micro-payment handling iii. Mobile recharging iv. moneymaking(prenominal) payment processing v. Bill payment processing i. Person to Person payment Investment i. Portfolio management service ii. sincere-time stock quotes iii. personalise alerts and notification on security prices Support i. Status of request for mention including mortgage approval, and insurance ii. Coverage iii. Check (cheque) book and card requests iv. Exchange of data messages and email, including complaint submission and tracking v. ATM fix Content service i. General information such as weather up dates, news ii. Loyalty-related offers iii. Location-based services - . 8 Basic Mobile Banking Technologies There are four fundamental approaches to mobile banking. The firs t two rely on technologies that are standard features on almost all cell phones. interactive Voice Response (IVR) If we have ever called our credit card issuer and swan through a confusion of prompts For English, public press 1 for account information, press 2 then youre familiar with interactive voice response. In mobile banking, it works like this Banks advertise a set of meter to their customers. a) Customers dial an IVR number on their mobile phones. ) They are greeted by a stored electronic message followed by a menu of options. c) Customers select an option by pressing the corresponding number on their keypads. d) A text-to-speech program reads out the desired information. IVR is the least sophisticated and the least mobile of all the solutions. In fact, it doesnt require a mobile phone at all. It also only allows for inquiry-based transactions, so customers cant use it for more advanced services. - 3. 9 Mobile Banking Business Model Banking models is evolving.If mobile b anking is organism used to attract low-income populations in often rural holes, the business model will depend on banking event. These models differ primarily on the pass that who will establish the relationship (account opening, deposit taking, lending etc. ) to the end customer. Bank-focused model The bank-focused model emerges when a traditional bank uses non-traditional low-cost speech channels to provide banking services to its existing customers. Example range from use of automatic teller machines (ATMs) to internet banking or mobile phone banking to provide certain limited banking services to banks customers.Bank-led model The bank-led model offers a distinct alternative to conventional branch-based banking in that customer conducts financial transactions through mobile phone instead of at bank branches or through bank employees. This model promises the potential to substantially increment the financial services outreach by using retailers or mobile phones. Non-bank-led m odel The non-bank-led model is where a bank has a limited role in the day-to-day account management. Typically its role in this model is limited to safe-keeping of funds. chronicle management functions are conducted by a non-bank who has direct contact with idiosyncratic(a) customers. - 3. 10 Advantage of Mobile Banking The biggest advantage that mobile banking offers to banks is that it drastically cuts down the cost of providing service to the customers. For example an average teller or phone transaction costs about $2. 36 each, whereas an electronic transaction costs only about $0. 10 each. Additionally, this new channel gives the bank ability to cross-sell up-sell their other complex banking products and services such as vehicle loans, credit tease etc.For service providers, Mobile banking offers the next surest way to achieve growth. Countries like Korea where mobile penetration is nearing saturation, mobile banking is helping service providers increase revenues from the now static subscriber base. Service providers are increasingly using the complexness of their supported mobile banking services to attract new customers and retain old ones. A very in force(p) way of improving customer service could be to inform customers better. Credit card finesse is one such area.A bank could, through the use of mobile technology, inform owners each time purchases above a certain value have been made on their card. This way the owner is eternally informed when their card is used, and how much money was taken for each transaction. Similarly, the bank could remind customers of outstanding loan refund dates, dates for the payment of monthly installments or simply tell them that a chronicle has been presented and is up for payment. The customers can then check their balance on the phone and authorize the ask amounts for payment. The customers can also request for additional information.They can automatically view deposits and withdrawals as they occur and also pre - schedule payments to be made or cheques to be issued. Similarly, one could also request for services like stop cheque or issue of a cheque book over ones mobile phone. There are number of reasons that should persuade banks in favor of mobile phones. They are set to become a crucial part of the total banking services experience for the customers. Also, they have the potential to bring down costs for the bank itself. finished mobile messaging and other such interfaces, banks provide value added services to the customer at marginal costs.Such messages also bear the virtue of beingness tar positioned and personal making the services offered more in force(p). They will also carry better results on account of better customer profiling. Yet another(prenominal) benefit is the anyplace/anytime characteristics of mobile services. A mobile is almost always with the customer. As such it can be used over a vast geographical area. The customer does not have to palaver the bank ATM or a bran ch to avail of the banks services. Research indicates that the number of footfalls at a banks branch has fallen down drastically after the installation of ATMs.As such with mobile services, a bank will need to hire even less employees as people will no longer need to visit bank branches apart from certain occasions. With Indian telecom operators working on offering services like money transaction over a mobile, it may soon be possible for a bank to offer phone based credit systems. This will make credit cards redundant and also aid in checking credit card fraud apart from offering enhanced customer convenience. The use of mobile technologies is and so a winwin proposition for both the banks and the banks customers.The banks add to this personalized communication through the process of automation. For instance, if the customer asks for his account or card balance after conducting a transaction, the installed software can confide him an automated reply informing of the same. These automated replies hence pen the bank the need to hire additional employees for servicing customer needs. - 3. 11 Disadvantage of Mobile Banking hostage tribute experts generally agree that mobile banking is safer than computer banking because very few viruses and Trojans exist for phones.That does not mean mobile banking is immune to security threats, however. Mobile users are specially susceptible to a phishing-like scam called smishing. It happens when a mobile banking user receives a fake text message postulation for bank account details from a plug posing as a financial institution. Many people have fallen for this magic trick and had money stolen through this scam. Online banking is usually done through an encrypted connection so that hackers cannot read transmitted data, but consider the consequences if your mobile device is stolen.While all banking applications require us to enter a countersignature or downfall, many people configure their mobile devices to save pa sswords, or use dangerous passwords and dips that are easy to guess. Compatibility We need a smart phone to get the most out of mobile banking. Mobile banking is not ready(prenominal) on every device. Some banks do not provide mobile banking at all. Others require you to use a custom mobile banking application only available on the most popular smart phones, such as the Apple iPhone and RIM Blackberry. Third-party mobile banking software is not always supported.If we do not own a smart phone, the types of mobile banking we can do are usually limited. Checking bank account balances via text message is not a enigma, but more advanced features such as account transfers are generally not available to users of dumb phones. Cost The cost of mobile banking power not appear significant if we already have a compatible device, but we still need to pay data and text messaging fees. Some financial institutions charge an excess fee for mobile banking service, and we may need to pay a fee f or software. These extra charges quickly add up, especially if we access mobile banking 4. 1 incentive disbursement utilizing Mobile Banking DBBL providing incentive disbursement services by utilizing mobile banking. This is very quick & convenient process of incentive disbursement. Some companies are signed agreement with DBBL for this service. Such as Dutch-Bangla Bank (DBBL) and D. Net has signed an agreement on August 07, 2012 on Mobile Banking Services at the Head Office of DBBL. The agreement was signed by Dr. Ananya Raihan, Executive coach of D. Net and Mr. K. S. Tabrez, Managing conductor of DBBL on behalf of their respective organizations.Under this agreement, field level agents of D. Net will receive their commission in their DBBL Mobile Banking Accounts. After receiving their incentive, commission, salary in their mobile accounts, the agents will be able to withdraw/ deposit cash from any nearby agent or DBBL branches, withdraw money from any DBBL ATM, transfer money t o other mobile accounts, buy goods and services from retailers and pay utility bills throughout the country and moreover will get the opportunity of Banking with a bank. Dr. Ananya Raihan, Executive Director of D. Net and Mr. K. S.Tabrez, Managing Director of DBBL sign on behalf of their respective organizations. - 4. 2 Salary payment utilizing Mobile Banking DBBL providing salary payment services by utilizing mobile banking. This service makes quick salary payment to large number of employee in organization. Some company signed agreement with DBBL for this service. Such as Dutch-Bangla Bank (DBBL) andBengalGroup of Industries have signed an agreement on MobileBankingServices at the DBBL Head Office on June 06, 2012. The agreement was signed by Mr. Humayun Kabir, Director, Bengal Group of Industries and Mr.Mir Mominul Huq, Head of Mobile Banking, DBBL on behalf of their respective organizations. Under this agreement, employees ofBengalGroupof Industries will receive their monthly sa laries in their DBBL Mobile Banking Accounts. After receiving their salaries in their mobile accounts, employees will be able to withdraw/ deposit cash from any nearby agent, DBBL branches and ATMs, transfer money to other mobile accounts, buy goods and services from retailers and pay utility bills throughout the country and moreover will get the opportunity of banking with a bank. Mr. Mir Mominul Huq, Head of Mobile Banking and Mr.Humayun Kabir, Director, Bengal Group of Industries, DBBL on behalf of their respective organizations. - 4. 3 Real Cardless ATM Transaction utilizing Mobile Banking At DBBL, the mobile banking customers physically go to an ATM, push the Mobile Banking marked button, type their mobile account number, the amount to withdraw, their PIN and push the Correct marked button. The customers then receive a Push-sms or IVR call to their mobile phone from the Mobile Banking system requesting them to type their PIN again on their mobile phone.The customers then type t heir PIN and the ATM dispenses the requested money. In the DBBL process, the customers operate the ATM using their mobile phone instead of a debit or credit card. DBBL has innovated a real cardless ATM transaction for the first time in the world which is AML compliant, convenient and secure, protecting you from the risk of ATM frauds like skimming. Real Cardless ATM Transactions For the first time in the world. - 4. 4 Prepaid Top-UP utilizing Mobile Banking.All the Dutch-Bangla Bank Mobile Banking account holders no longer have to take the time and trouble of finding and visiting a nearby location to top-up their mobile phone talk time/airtime. With the convenience of Dutch-Bangla Bank Mobile Banking, they can top up their own or someone elses talk time/ airtime free of charge. anytime. anyplace. Top-up using with Mobile Banking. - 5. 1 execution of Mobile Banking through Rural bulk Rural poor people living on less than 140 taka a day, they can receive banking services via their m obile phones.It probably wont happen, but it would be amazing if it did. ? subjoin Interest to exercise Many rural people heard about mobile banking. But they yet have not felt that they should use it as they are happy to use traditional banking system. Some people feel interest to use it. intimately 55% people feel they should use it and 45% people havent feel to use mobile banking. ? distinguish easy transfer of money The problem of house servant remittances is often overlooked. large cities like Dhaka are home to millions of migrants who would hunch to send money back to their families elsewhere in the country but who are unbanked and have no real means of doing so.But they want to send money to village. The ability to remit money domestically with little more than a text message could be revolutionary. ? Transfer international remittance Peoples international remittances, which already a big part of national income, can be transferred by mobile phone to their relatives. Mob ile banking has ability to send money presently from mobile phone to mobile phone is orders of magnitude easier and cheaper. ? Reduce Cost and increase saving About 75% rural people are poor, they lives under poverty line.It is convenient, inexpensive and it is much more effective in developing savings habits, it will make access to banking and advanced payment transactions at affordable cost. All people know that its cost is not higher than traditional banking. Around 56% people say its cost is lower, 20% say same and 24% say it is affordable than traditional banking. ? Make them banked past theres the emphasis on the rural people to introduce in banking. Although the rural people are more likely to be unbanked and therefore in need of mobile banking services, they havent been directly targeted by many of the first wrap of mobile banking providers.The rural people, of course, are both a new customer segment and generally the very last adopters of any new technology. Its cloggy to sell banking services to someone who neither knows nor understands what a bank is. ? trigger them to use their Accounts Another risk is that the goal will be reached but in name only, people might have mobile-banking accounts, and might even automatically get such an account when they get their phone. But the accounts might not be used, and in so far as they are used, they might be use only for payments and not for real banking services.So they have to be motivated. ? Make it easy to use It is much more effective in developing savings habits. Its using system is also easy. Anyone can use it. Poor rural people are often not considered viable customers by the formal financial sector as their transaction sizes are small, and many live in remote areas beyond the reach of banks branch networks. ? Aware them that Mobile Banking is better than Traditional Banking Mobile banking is real time on-line banking. Show them how mobile banking is on-line banking and it takes less time than tr aditional banking.It will make access to banking and advanced payment, transactions at affordable cost. ? Introduce prison term Saving banking Mobile banking is available anytime, anywhere throughout the country. So it can save ones time. But about 70% people think that mobile banking can save their time, where as 30% think it cannot save time. ? Make secure and assert worthy banking Make mobile banking much safer and safeguard against fraudulent transactions, and one can trust mobile banking as traditional banking system. Show them it has secured pin mandate which is known by the user, and also has a check digit without it no one can deposit money.The poor rural people often have greater familiarity and trust with mobile phone companies than formal banking institutions. ?Save them from unnecessary harassment Informal banking services such as microfinance and village savings and loan associations remain limited in their reach. So, mobile banking system develops to bring poor rura l people into banking system. 83% people face or heard no problem to use mobile banking. But 17% people heard or face problems to use it like sometimes transaction do not reach at time, cannot operate it easily as traditional banking. Make a promise to serve better The promise of mobile banking for the rural people is that mobile phone providers have managed to get a degree of penetration among the countrys rural people. Mobile phone providers are likely to continue in the direction theyre headed in at the moment, staying away from banking regulation, confining themselves largely to payments rather than fully-fledged banking, and targeting their replete(p) customer base without any particular emphasis on the render of the pyramid.Will the mobile phone companies sign on, even if they see lots of regulative headaches and very few profits by doing so? The answer to that headland could be the given by the mobile companies and banks. - 5. 2 Benefits of Mobile Banking in Prospective o f rural people. Mobile banking has several benefits for peoples, specially for rural poor people ? Mobile banking Makes Life Easier It is real time on-line banking, available anytime, anywhere throughout the country. It is convenient, affordable and secure it is much more effective in developing savings habits ?Speedy and safeguard It will make access to banking and advanced payment transactions at affordable cost. It is much safer, speedy and safeguard against fraudulent transactions. All of the characteristics of mobile banking make life easier. ? Secure In mobile banking is Secure, a confidential pin code is used by the user. PIN ensures security of money and protects fraudulent transactions. So mobile banking is fully secured. ?Any time access One benefit of mobile banking is a very speedy process. Transaction can be done anytime anywhere quickly in less time. 00% people desire that it is a speedy process. ? Small account for poor Mobile banking started with the idea to bring t he poor rural under the umbrella of banking sector especially rural poor as there are not much bank facilities, also there savings is low so they feel shy to go to bank. ? Easy to use Its using system is also easy. Anyone can use it. ? Easy way to send money People are like to send money easily to their relatives Mobile banking has ability to send money directly by mobile phone. People can get the service of easy transferring money through mobile banking. Remittance transfer International remittances can be transferred by mobile phone to one country to another. Mobile banking has ability to send money directly from mobile phone to mobile phone. ? change magnitude banking activities Although the rural people are unbanked by mobile banking services they are converted into banked people. It is developing savings habits, it will make access to banking and advanced payment transactions. - 5. 3 Challenges for a Mobile Banking Solutions Key challenges in developing sophisticated mobile ba nking applications are . Handset operability There are a large number of incompatible mobile phone devices and it is a big challenge for banks to offer mobile banking solution on any type of device. Some of these devices support burnt umber ME and others support SIM Application Toolkit, a WAP browser, or only SMS. Initial interoperability issues however have been localized, with countries like India using portals like R-World to enable the limitations of low end java based phones, while focus on areas such as South Africa have defaulted to the USSD as a basis of communication accomplishable with any phone.The desire for interoperability is largely dependent on the banks themselves, where installed applications (Java based or native) provide better security, are easier to use and allow development of more complex capabilities similar to those of internet banking while SMS can provide the fundamental principle but becomes difficult to operate with more complex transactions. There is a myth that there is a challenge of interoperability between mobile banking applications collect to sensed lack of common technology standards for mobile banking.In practice it is too early in the service lifecycle for interoperability to be turn to within an individual country, as very few countries have more than one mobile banking service provider. In practice, banking interfaces are well defined and money movements between banks follow the IS0-8583 standard. As mobile banking matures, money movements between service providers will naturally adopt the same standards as in the banking world. On January 2009, Mobile Marketing Association (MMA) Banking Sub-Committee, chaired by Cell reliance and VeriSign Inc. published the Mobile Banking Overview for financial institutions in which it discussed the advantages and disadvantages of Mobile Channel Platforms such as Short Message Services (SMS), Mobile Web, Mobile Client Applications, SMS with Mobile Web and Secure SMS. 2. Securit y Security of financial transactions, being executed from some remote location and transmission of financial information over the air, are the most compound challenges that need to be addressed jointly by mobile application developers, wireless network service providers and the banks IT departments.The following aspects need to be addressed to offer a secure al-Qaida for financial transaction over wireless network * Physical part of the hand-held device. If the bank is offering smart-card based security, the physical security of the device is more grievous. * Security of any thick-client application running on the device. In case the device is stolen, the hacker should require at least an ID/ discussion to access the application. * Authentication of the device with service provider before initiating a transaction. This would ensure that unauthorized devices are not connected to perform financial transactions. User ID / Password certification of banks customer. ? Encryption of t he data being transmitted over the air. * Encryption of the data that will be stored in device for later / off-line analysis by the customer. * One-time passwords (OTPs) is the latest tool used by financial and banking service providers in the fight against cyber fraud. Instead of relying on traditional memorized passwords, OTPs are requested by consumers each time they want to perform transactions using the online or mobile banking interface. When the request is received the password is sent to the consumers phone via SMS.The password is expired once it has been used or once its scheduled life-cycle has expired. Because of the concerns made explicit above, it is extremely important that SMS gateway providers can provide a decent quality of service for banks and financial institutions in regards to SMS services. Therefore, the provision of service level agreements (SLAs) is a requirement for this industry it is necessary to give the bank customer delivery guarantees of all messages, as well as measurements on the speed of delivery, throughput, etc. SLAs give the service parameters in which a messaging solution is guaranteed to perform. . Application distribution Due to the nature of the connectivity between bank and its customers, it would be impractical to expect customers to regularly visit banks or connect to a web site for regular rising slope of their mobile banking application. It will be expected that the mobile application itself check the upgrades and updates and download necessary patches (so called Over the Air updates). However, there could be many issues to implement this approach such as upgrade / synchronization of other dependent components. - 5. Problems to implement of Mobile Banking through rural people Key challenges in developing a sophisticated mobile banking application through rural people are * mendicancy Poverty is a main problem of 3rd world country like Bangladesh. Rural people are not able to buy their fare easily, so how they can buy a mobile phone or open a account in bank? * Illiterate people A big amount of rural people are illiterate, so they are not mindful of banking system yet. So they are not interested in mobile banking system. * Weak infrastructure The socio economic infrastructure is very weak in Bangladesh.About more than 80% rural people has no account in traditional banking system, where mobile banking is a new concept, people have doubt about mobile banking. * Lack of trust As it is a new method of banking people havent 100% faith on it. So, people dont want to take any risk by giving suggestion to use it. Rural people feel it will not make life easier as it may not be trust worthy and it is not secured as they cannot fully trust on online banking than traditional banking system. * Lack of ken The rural people have lack of awareness they feel speeding class or middle class people can use mobile banking. Operating complexity Handset operability is a vital problem of Mobile Banking There are a large number of different mobile phone devices and it is a big challenge for banks to offer mobile banking solution on any type of device. There is a problem that there is a challenge of interoperability between mobile banking applications due to perceived lack of knowledge in technology standards for mobile banking. * Security Security of financial transactions, being executed from some remote location and transmission of financial information over the air, are the most complicated challenges that eed to be addressed jointly by mobile application developers, wireless network service providers and the banks IT departments. When Security of any thick-client application running on the device. In case the device is stolen, the hacker should require at least an ID/Password to access the application. Banks unable to meet the execution of instrument and dependableness expectations may lose customer confidence. 6. 0 - Mobile Banking at a Glance - 6. 1 What is Mobile Banking?Mobile banking is a Banking process without bank branch which provides financial service to unbanked communities efficiently and at affordable cost. To provide banking and financial service through mobile technology devices i. e mobile phone called mobile banking. - 6. 2 Benefits of Mobile Banking * Real time on-line banking. * Available anytime, anywhere throughout the country. * It is convenient, affordable and secure. * It is much more effective in developing saving habits. * It will make access to banking and advanced payment transactions at affordable cost. It is much safe, speedy and safeguard against fraudulent transactions. 6. 3 - What does DBBL Mobile Banking offer? * Customer Registration. * Cash-in (Cash deposit). * Cash-out (Cash withdrawal) * Foreign Remittance. * Salary disbursement. * Person to person transfer (P2P). * Mobile Top-Up. * Balance inquiry. 6. 4 - Where to register? Customer can register at any authorized agent point of DBBL who can display DBBL Agent Certificate and DBBL Mobile Banking Banner. . How to register mobile account? * Customer fills up the KYC Form and submits to agent along with his or her photograph and national ID. * Agent goes to Customer Registration Menu from his or her mobile and inserts customers mobile number. * Customer receives an IVR call or USSD prompt and in reply, she or he gives 4-digit PIN number at his or her choice. * A Mobile Account is created in DBBL system which is his or her mobile number +one check digit. * Customer receives a con signation SMS which contains his or her Mobile Account Number. 2 . Why PIN is required?PIN is required to be inputted during cash withdrawal from an Agent dit of DBBL or DBBL Branch or DBBL ATM. PIN ensure security of your money and protect fraudulent transactions. 3. Why PIN is strictly confidential? PIN is the key for transaction of Mobile Banking. Only correct match of PIN & Mobile Number can access the Mobile Account. PIN is needed to verify the A/C owner by the system. If a PIN is disclosed, respective account is at risk therefore, PIN should be handled very carefully. 4. Why Check Digit? Mobile number is public and known to many people.Without knowing your check digit, none will be able to deposit money at your account, thus it helps to keep your mobile account confidential. On the other hand, a check digit eliminates typing error, thus protects sending or depositing money to a wrong account. 5. Which Telcos Mobile can be registered? Customer having any mobile from any mobile operator can be registered for DBBL Mobile Banking at any nominated agent point of the bank. 6. What are the necessary documents for registration? * punctually filled in KYC form. * Photograph of account holder. National ID or any other acceptable ID with photograph. 7. What is my Mobile Account Number? Your mobile account number is your mobile number with an additional check digit. For example, if your mobile number is 01233445566 and check digit is 3, then your mobile numbe r account will be 012334455663. 8. What type of mobile set is required? Any type of mobile set can be used for DBBL mobile banking. 9. How much initial deposit is required? Customer can open a DBBL Mobile Account with an initial deposit of taka 100/- (one hundred) only. 10. Can I deposit and withdraw money immediately after registration?You can deposit money immediately after registration. However, you can withdraw after your account is fully registered. Bank officer verify the information on the registration form (KYC form) and authorizes the account for full registration. Normally 1-2working days are required for full registration. After your account is fully registrated, you will get an SMS notification. - 7. 1 Findings 1. Maximum people are unknown with DBBL Mobile Banking. 2. Maximum rural people are illiterate. 3. DDBL Mobile Banking only provides Savings Account facility not others. . DBBL not providing merchant payment service. 5. Sometimes go about network problem. 6. DBBL do not sanction loan by Mobile Banking. 7. Cash inflow & wetting charge is higher. 8. Hide information/ non provide real information. 9. Difficult to collect necessary information. 10. Limited number of Mobile Banking Branch. - 7. 2 Recommendations After reviewing these problems, we can follow the following recommendations ? Increase Awareness The rural people have lack of awareness and they havent much faith on it.So banks and mobile phone companies and government have to make them aware about mobile banking. ? Interest to Use Banks and mobile phone companies and government have to promote the mobile banking system and grow interest in peoples mind. ? Develop infrastructure The socio economic infrastructure is very weak. Government has to develop the infrastructure to ensure education to all and then people can gather knowledge and they can extract their doubt about mobile banking. ? Make easier to use Mobile banking system is easy, but to rural people it is not so easy to use. Mobile companies and banks have to make the process easier than now. ? Reduce cost I think the current mobile banking provider DBBL charge much for transaction. To grow interest in peoples mind transaction cost has to reduce. ? Security Security is the main rampart which has to ensure for mobile banking process. And many people have doubt in their mind about that. So the process has to make more Trust Worthy ? Campaign Rural people are not aware about banking system. About more than 80% of people has no account in traditional banking system, where mobile banking is a new concept.So it is essential to make campaigns in village to village to aware them. ? Tell the people about the benefits Mobile banking is a banking process that offers financial services like cash deposit, cash withdrawal, merchant payment, utility payment, salary disbursement, remittance inflow and outflow and government allowance disbursement through mobile gadgets. ? Develop operability Make easy and effective op erating of mobile phone to banking like using Short Message Services (SMS), Mobile Web, Mobile Client Applications, SMS with Mobile Web and Secure SMS will increase mobile banking activities. Ensure security through wireless network The physical security of the mobile device is more important. Security of any ID/Password is more important. ? Ensure reliability With mobile banking, the customer may be sitting in any part of the world (true anytime, anywhere banking) and hence banks need to ensure that the systems are up and running in a true 24 x 7 fashion will increase banks performance and reliability of customer. - 7. 3 Conclusion The growth of mobile banking technology is increasingly hard to ignore.Analyst firm & Research reports that nearly 50 percent of all mobile users in the United States will be using mobile banking within four years use mobile financial services today. With the advent of technology and increasing use of smart phone and tablet based devices, the use of Mobi le Banking functionality would enable customer connect across entire customer life cycle much comprehensively than before. Mobile banking can play a vital role both banking and mobile sector. It has also impact on social sector too. One day Mobile banking will make rural peoples life easier than today.Although it has been tried on the best level to make this report informative and better but limitations are inevitable for any report. Finally, we would like to say the overall performance of DBBL Mobile Banking section is excellent. Their progressive trends are quite consistent and steady. This will help the Bank and facilitate as a market leader in Banking sector. - Abbreviations DBBL=Dutch-Bangla Bank Limited. KYC= Know Your Customer. IVR= Interactive Voice Response. USSD=Unstructured secondary Service Data.UISC=Union information and Service center. P2P=Person to person. ATM= automatize Teller Machine. PIN=Personal identification number. - Questionnaire 1. DBBL Mobile banking divis ion can provide services according to customer demand. * Yeas * No 2. What are the major constraints of mobile banking? 3. What are the objectives of DBBL ? 4. How many mobile Banking Account DBBL have? 5. What is the latest service of DBBL Mobile Banking? 6. Is rural people can easily adopt DBBL Mobile Banking service. 7. What is DBBL Future plan ? 8. What new service DBBL want to add with existing service? 9. Is Mobile Banking Division of DBBL useful . 10. What are the major problem can you face? 11. What are the residuum between DBBL Mobile Banking and bkash ? .. 12.What are the security measure taken from DBBL for Mobile account? 13. How do you provide foreign Remittance and Air Time Top- up service? .. 14. What are the CSR activities DBBL perform? .. 15. How DBBL Sanction loan to its customer by Mobile banking? 16. Why DBBL cant sign deal with Gramen Phone and Robi ? But they are holding first and second position among Mobile phone operator. 17.In case of traditi onal Banking there is no charge for deposite or withdraw but in Mobile Banking customer have to pay charges for both deposite or withdraw. Why? .. - Bibliography References Dutch-Bangla Bank Ltd. (DBBL) Mobile Banking Office , Agrabad , Chittagong. (2012, family line 22) http//www. marketresearch. com (2012, September 22) http//www. dutchbanglabank. com (2012, September 22) http//www. dutchbanglabank. com/mobile_banking. html (2012,September22 ) http//www. bankinfobd. com/banks/17/Dutch_Bangla_Bank (2012, September 20) http//enwikipedia. rg/ wiki/mobile banking (2012, September 20 ) http//en. wikipedia. org/wiki/smsbanking (2012, September 20) http//en. wilipedia. org/wiki/online banking (2012, September 20) http. //en. wikipedia. org/wiki/telephone banking (2012, September 20) http//en. wikipedia. org/wiki/automated-tellermachine (2012, September 20) http//www. enterpriseinnovation. net (2012, September 20) http//www. sybase. com (2012, September 20) http//www. mbanking. blogspot. com (2012, September 20) http//www. grameen-info. org/index. php (2012, September 20) http//www. mobilebankingsystems. com

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