Abstract

Mobile banking is one of the latest tools for easy and convenient banking in the current world. Day to day mobile payment and banking has become popular in Bangladesh. The main objective of the study is to find out the problem and prospect of mobile banking in Bangladesh and also a fresh look at the current M-Banking situation in Bangladesh and highlight some recommendations for rendering M-banking services effectively. Mobile Banking is a Banking process without bank branch which provides financial services to unbanked communities efficiently and at affordable cost. To provide banking and financial services, such as cash-in, cash out, merchant payment, utility payment, salary disbursement, foreign remittance, government allowance disbursement, ATM money withdrawal through mobile technology devices, i.e. Mobile Phone, is called Mobile Banking. Dutch Bangla Bank Limited (DBBL) has for the first time introduced its mobile banking service expanding the banking service from cities to remote areas. Currently many banks are providing this service and some banks are going to lunch this M-banking service. Among them BRAC Bank Limited mobile banking service named Bkash, Banglalink, Dhaka Bank and Western Union, Dutch Bangla Bank Limited services are most popular. Bangladesh Post Office, also provide mobile money services seems like m-banking. Mobile banking is not available on every device and still some popular bank does not provide mobile banking at all. The most potential customer of mobile banking is rural people. About 35% of mobile banking consumers are highly satisfied with present mobile banking service. After analyzing collected data eventually put some recommendation that may be proposed for further improvement of Mobile Banking in Bangladesh. In recommendation to reduced M-Banking limitation all banks should provide this opportunity, Government should provide help about mobile banking. Banks can use all mobile operators to make more available in all over the country. Also they should provide User guide to make easier the use of b-banking to all intended customers.

Introduction

E-banking has revolutionized the way business is transacted by globalizing the business enterprise. Mobile banking is one of the parts of E-banking. Mobile banking (also known as M-Banking, mbanking, SMS Banking) is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA). Mobile Banking is also refers to provision and availment of banking and financial services with the help of mobile telecommunication devices. The earliest mobile banking services were offered over SMS. Mobile Banking is one of the latest tools for easy and convenient banking in the current world. With the introduction of the first primitive 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 has until recently (2010) most often been performed via SMS or the Mobile Web. Apple's initial success with i-Phone and the rapid growth of phones based on Google's Android (operating system) have led to increasing use of special client programs, called apps, downloaded to the mobile device. Day by day mobile payment has become popular and its fulfilling consumers demand. But in Bangladesh Mobile Banking hasnt improved rapidly. The large numbers of Bangladeshi people are facing much harassment due to the lack of modern banking facilities. For paying utilities bill, money transfer and doing banking activities people need to go to the bank by physically and waiting in big queue. This is due to the fact that Bangladesh has more than 40 banks but still now banks couldnt introduced fully internet and mobile banking services. Another problem is that 46% of the population lives below the poverty line and wretched transportation system overall the country. Bearing this in mind, banks are trying to provide a novel service which gives retail customers account information and real-time transaction capabilities from their mobile phones. Mobile Banking can be said to consist of three inter-related concepts: Mobile Accounting Mobile Brokerage Mobile Financial Information Services

Most services in the Accounting and Brokerage categories are transaction-based. The nontransaction-based services are however essential for conducting transactions - for instance, balance inquiries might be needed before committing a money remittance. The accounting and brokerage services are therefore offered invariably in combination with information services. Information services, on the other hand, may be offered as an independent module. Electronic banking has got tremendous importance in banking sector and banking customer as well. This is why, the researcher find some interest to explore something regarding Mobile banking in some extent.

Objectives of the study

The main purpose of the study is to highlight the mobile banking prospects and services as banks apply to our country. In order to materialize the objectives, the following specific objectives have been considered: To provide precise knowledge about Mobile banking and its infrastructure.
To narrate the present scenario of Mobile banking in Bangladesh. To focus on the prospects of Mobile banking in Bangladesh. To focus on the problem of Mobile banking improvement in Bangladesh. To highlight some recommendations for proper implementing and improving Mobile

banking services effectively.

Methodology of the Study

Methodology is a system of broad principle or rule from which specific methods or procedures may be derived to interpret or solve different problems within the scope of a particular discipline. Methodology is not a formula but set of practices. The present study is a part of academic curriculum. The collected data and information have been processed and analyzed carefully. It has

been prepared in present from to make the study more informative and useful. The study was conducted to identify the problems and prospects of mobile banking in Bangladesh. There are two sources of data have been used to collect data. The sources are1. Primary Sources: Interviewing method with proper questionnaire. 2. Secondary Sources: Website Books and related journals Different seminar papers Other manual information

Literature Review
Mobile banking is growing at a remarkable speed around the world. In the process it is creating considerable uncertainty about the appropriate regulatory response to this newly emerging service. Researcher sets out a framework for considering the design of regulation of mobile banking. Since it lies at the interface between financial services and telecoms, mobile banking also raises competition policy and interoperability issues that are discussed in his paper. Finally, by unbundling payments services into its component parts, mobile banking provides important lessons for the design of financial regulation more generally in developed as well as developing economies.( Klein, 2011). I think I should clarify some of the suggestions you gave. 1. I agree that GP should have an option to link to bank accounts. But until now they have refused to allow such a link. 8 Banks already have this technology but GP has prevented them from serving GP customers. Banks have taken the initiative but GP has stopped it just because they can and thinking that their proposal will pass.

2. Yes GP will not pay interest. But that doesn't stop GP from earning interest on this money (the simply put it together and put it in a FDR) 3. As much as GP wants you to believe, Bangladesh isn't the only country where there are more mobile users than bank users. (I will get into that in another article). None of those countries are considering GP's version of mobile banking. 4. Short term deposits are more crucial to the banking industry than what you estimate. Nowhere in the world has a mobile company been put in charge of short term deposits. GP clearly didn't have good intentions. Otherwise all the foreign banks wouldn't group with local banks to oppose this outlandish proposal. Again this is not only me that feel this way. The entire world acted in opposition to GP's Mobile Banking Thesis. GP's Mobile Banking is not the same as 'Mobile Banking'. Ahmed Ali said... (2010). Due to the widespread use of computer technologies in almost all aspects of life, organizations that are connected to the Internet started extending their services to their customers to include new applications and services that satisfy their customers desires to make better businesses. One of these emerging applications is mobile banking. The term mobile banking (or m-banking) describes the banking services that the user can perform via a mobile device ubiquitously at anytime and from anywhere. In order for users to access their accounts, they need a mobile device and network connectivity. Therefore, sitting in front of a computer is not a requirement anymore; accessing accounts can occur while users are waiting their turn at the dentist clinic or relaxing at the beach! (Al-Akhras and Qwasmi, 2011). Investigated the customers' perspectives of mobile banking, their perceived importance for it, usage patterns and problems rising on its utilization. The paper discussed the strategic implications of the research findings. Empirical data were gathered from bank customers in Kuwait to achieve the research objectives. All bank customers in Kuwait were considered as population of research interest. The results showed the perceived importance of internet banking services by customers, current and potential use of MB services in Kuwait and problems perceived by bank customers in using MB. The researchers' main hypothesis tested that top five services considered relative important in Kuwait banks were "Review account balance", "Obtain detailed transactions histories, "Open accounts", Pay bills" and Transfer funds between own accounts". (El-Sherbini et al. -2007)

Investigated why corporate customers do not accept mobile banking, which can assist banks to implement this self-service technology more efficiently. Many Thai banks are currently implementing mobile banking. Banks that offer service via this channel claim that it reduces costs and makes them more competitive. However, many corporate customers are not highly enthusiastic about mobile banking. They used in-depth qualitative interviews methodology for collecting their data. The interviews with Thai firms suggested that security of the Internet is a major factor inhibiting wider adoption. Those already using Internet banking seem to have more confidence that the system is reliable, whereas non-users are much more service conscious, and do not trust financial transactions made via Internet channels. Non-mobile banking users tend to have more negative management attitudes toward adoption and are more likely to claim lack of resources. Legal support is also a major barrier to Internet banking adoption for corporate customers. (Rotchanakitumanuai and Speece, 2003)

Current scenario of mobile banking in Bangladesh

Though the developed countries in the world started providing Mobile banking services more than one decade ago, the developing country like Bangladesh stared it three years back. In Bangladesh, multinational banks are operating for long besides our nationalized, private and specialized banks. Multinational banks are offering better services than others. They offer better customer services, personal financial services, corporate facilities, trade services with the help of efficient operational department, credit department, information technology department and the most important department is the marketing department. Presently some banks have started mobile banking service. Bangladesh has just entered in the era of mobile banking. The idea is very much new here. DutchBangla Bank Limited (DBBL) is the pioneer bank in Bangladesh, who introduced mobile banking service which is Sybase 365 to bring poor people from remote area under smart banking service. Then Brac joined in this list by introducing bKash- their mobile banking service. DBBL are offering the service by the help of mobile phone operator Banglalink and Citycell, and Robi helps Brac to start bKash. Although DBBL first introduced mobile banking in Bangladesh, but bKash is the first complete banking solution through mobile. It is designed to provide financial services via mobile phones to both the unbanked and the banked people of Bangladesh. The overall bKash value proposition is

simple: a safe, convenient place to store money; a safe, easy way to make payments and money transfers. The bKash mobile wallet, a VISA technology platform which is fully encrypted to ensure most secure transactions, will be the customer account into which money can be deposited and out of which money can be withdrawn or used for various services. Customers will be able to receive electronic money into their bKash accounts through salary, loan, domestic remittance, and other disbursements and eventually will cash out the electronic money at any of the hundreds of cash out agents which bKash assign. bKash provides a wonderful opportunity for millions of unbanked people who have a cell phone to have a bank account where they will be able to deposit, pay out and transfer funds as they wish safely and securely. Beside Dutch-Bangla Bank and Brac Bank, Islami Bank, Eastern Bank, Dhaka Bank, Western Union, Woori Bank and some other banks are also offering mobile banking service at present. With this perspective in view, Bangladesh Post has launched a new money order service named Electronic Money Transfer Service (EMTS), commonly known as Mobile Money Order Service. This fulfilled the expectations of people to remit the desired amount of money to their near and dear ones so as to utilize when they need. This is mobile as well as web based remittance service available in all important post offices of the country. The sender can send the money within a minute and recipient/beneficiary can collect it instantly. Both sender and recipient get confirmation of the remittance and disbursement as soon as it is made in their mobile phones. This service is available in all important post offices of the country. Mobile Banking provides services such as the following: 1) Account Information: Mini-statements and checking of account history Alerts on account activity or passing of set thresholds Monitoring of term deposits Access to loan statements Access to card statements Mutual funds / equity statements Insurance policy management Pension plan management

2) Payment, Deposits, Withdrawals & Transfers: Domestic and international fund transfers Micro-payment handling Mobile recharging Commercial payment processing Bill payment processing A specific sequence of SMS messages will enable the system to verify if the client has sufficient funds in his or her wallet and authorize a deposit or withdrawal transaction at the agent. When depositing money, the merchant receives cash and the 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 merchant's account. 3) Investments: Portfolio management services Real-time stock quotes Personalized alerts and notifications on security prices 4) Support: Status of requests for credit, including mortgage approval, and insurance coverage Check (cheque) book and card requests Exchange of data messages and email, including complaint submission and tracking 5) Content Services: General information such as weather updates, news Loyalty-related offers Location-based services Mobile banking will be attractive mainly to the younger, more "tech-savvy" customer segment. They may consider performing some kind of financial transaction through their mobile phone. But most of the users are interested in performing basic transactions such as querying for account balance and making bill payment.

Prospects of Mobile banking in Bangladesh

Mobile Banking is a Banking process without bank branch which provides financial services to unbaked communities efficiently and at affordable cost. The aim of the service is to bring more people under the umbrella of banking service. Bangladesh Bank governor Dr Atiur Rahman inaugurated the service through deposit and withdrawal of money from two banking outlets in the city. Government thinks it has a great prospect as it is a new technology in digital Bangladesh. But in Bangladesh many people think traditionally, because they cannot think it has any facility to use mobile banking. 69% people feel mobile banking has prospect in Bangladesh whereas 31% think it has no prospect in Bangladesh as many people will not feel interest or have belief on mobile banking. But the growth of mobile banking technology is increasingly hard to ignore. With 2012 being the year in which mobile banking broke into the mainstream, 2012 will be the year in which financial institutions will look to capitalize on the full potential of the mobile channel moving from basic user functionality to full mobile finance; or, "Your bank in your pocket." Where We Are Now The majority of banks currently are in transition between their introductory mobile solutions and a second generation of offerings with greater capabilities. The introductory mobile offerings most banks deploy closely mirror users' online experiences. While this is a fraction of the full potential of the mobile channel, it is an essential stepping-stone to move users from the branch and online banking to their own handsets for financial interaction. While the mobile channel still is far from being definitively proven, consumers demand it. Banks are moving from one-way alerts and simple notifications to proactive content in the form of realtime, "actionable alerts." These are personalized, two-way alerts that enable customers to quickly and easily take action directly on their mobile devices in response to previously set alert thresholds or financial events as defined by the consumer. For instance, if a customer's account balance falls below a predefined threshold, an actionable alert is sent to the customer, who can then instantly transfer funds by responding to the alert. Many financial industry analysts, including Javelin, believe that the delivery of real-time, two-way, transaction-driven alerts is one of the keys for financial institutions to provide value to their customers and to drive adoption and usage of mobile banking.

Where were going As mobile banking gives firms the ability to fully engage in conversations with customers through their mobile devices, coordination of a "business workflow" across different banking systems is required. In order to accomplish this, mobile banking providers must establish open ways to access these different sources of information. This "connectivity" is crucial to delivering fully mobile banking. By opening up the mobile channel to multiple back-end and third-party systems or networks such as Visa Net, mobile payments hubs such as Cash Edge or PayPal, remote check-deposit capture technologies such as those offered by Mitek, or contextual marketing systems capable of determining when to present offers, banks can capitalize on the full capabilities of the mobile phone as a consolidation point of all other existing bank channels -- e-mail, online, customer service, and mobile-specific SMS or push notification alerts. In order to provide authoritative value to customers and produce strong adoption (and with it, definitive ROI), third-generation mobile banking solutions must empower institutions to use the mobile channel as an extension of and integrative point for existing technologies. This will instantly resolve consumer issues and complete tasks faster and more economically -- making alerts fully actionable. Many financial institutions and mobile vendors today, however, still are tied to basic core functionality, either because they developed a non-scalable, non-adaptable elementary mobile solution, or because they signed binding contracts with core financial technology providers in order to rush a baseline mobile solution to market. The smart mobile banking solutions of tomorrow must anticipate the future expectations of consumers and recognize the potential that the mobile channel represents -- a technology set to increase customer loyalty and satisfaction via conversation creation. The prospect of automated banking is no doubt huge in Bangladesh but the existing banking system with a touch of automation will be running up to the next 5-10 years. About the prospect of mobile banking, the central bank governor rides on a high hope.

Findings & Analysis

Mobile banking is real time on-line banking. As it is on-line banking it takes less time than traditional banking. It will make access to banking and advanced payment, transactions at affordable cost. People have not to wait by standing in a long line which is happen in traditional banking system. But some people think it takes higher time and some people think it takes same time as traditional banking. In this report we can see some major Findings: Service providers are increasingly using the complexity of their supported mobile banking services to attract new customers and retain old ones. A very effective way of improving customer service could be to inform customers better. The banks add to this personalized communication through the process of automation. Security of financial transactions, being executed from some remote location and transmission of financial information over the air, are the most complicated challenges that need to be addressed jointly by mobile application developers, wireless network service providers and the banks' IT departments. Mobile banking is not available on every device. Some banks do not provide mobile banking at all. Complicative application of mobile banking.
Many people are illiterate and unconscious about mobile banking.

The cost of mobile banking might not appear significant if we already have a compatible device, but we still need to pay data and text messaging fees. Mobile Banking reduces the costs of providing service to the customers. Most of the rural area people are the potential customer of mobile banking. Mobile banking is available anytime, anywhere throughout the country. So it can save ones time. But all people not think the same. Many 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. Mobile Banking drastically cuts down the costs of providing service to the customers. It is convenient, affordable 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 and it is affordable than traditional

banking. A positive aspect of mobile phones is that mobile networks can reach remote areas at low cost. It is much safer and safeguard against fraudulent transactions. One can trust mobile banking as traditional banking system. It has secured pin code which is known by the user, and also has a check digit without it no one can deposit money. But in Bangladesh traditional branch-based banking remains the most widely adopted method of conducting banking transaction. The poor often have greater familiarity and trust with mobile phone companies than formal bank in institutions. Furthermore a mobile handset can easily be adapted to handle banking transactions. But it is not commonly known by all. It is much more effective in developing savings habits. Its using system is also easy. Anyone can use it. Poor 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. 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 people into banking system.

The problems of mobile banking improvement in Bangladesh

Although banking sector is an aged sector in Bangladesh, but it is still city centric. People of rural areas are still out of the banking service. In Bangladesh, illiteracy and infrastructure are the major problems. That's why banks cannot take their services to remote areas even if they want. It is the mobile technology that is reaching out to the rural population. Most of the people were illiterate and obviously they were technology ignorant and that is the reason they dont know how to use this technology. Infrastructural problem in implementing mobile banking in rural area. Less government consciousness. Less improvement of ICT banking infrastructure, mobile network and internet services. Application servers are complicative in use.

Recommendation & Conclusion

On the basis of observations and analysis of the gathered information from the relevant studies the following recommendations may be proposed for further improvement of Mobile Banking in Bangladesh: Government has to be taken initiative even in the root level to develop it literacy and consciousness about ICT in the country. Mobile banking sector depends on telecommunication and Internet services. So government, banks and mobile operators should work jointly to develop the telecommunication and internet network throughout the country. We should develop software in our country for our banking system. The whole country should be connected under fiber optic backbone for electronic banking infrastructure as soon as possible. Government should provide legal framework for E-banking. Application servers should be easy to install, configure and add new services. Wireless services will use the latest in technology.
BTTB should utilize their extensive network so that the users can connect their banks

easily via mobile. Mobile Banking In Bangladesh presents an opportunity for banks to retain their existing, technology-savvy customer base by offering value-added, innovative services. It might even help attracting new customers. Further, Mobile Banking presents a chance to generate additional revenues. Its main contribution, however, can be expected to take place in the strategic field as it is all set to become an instrument of differentiation. Many banks recognize this threat and are already taking preventive measures by introducing mobile services. The foremost significance of Mobile Banking would therefore be of a defensive nature. Instead of providing a positive differentiation, Mobile Banking would be employed to thwart negative differentiation vis--vis rivals. Mobile Banking seems to possess the potential to become one of the widely spread and accepted application in the

field of Mobile Commerce, particularly in the backdrop of its high acceptance across commercially important sections of the society. We may expect to see Mobile Banking go into the footsteps of Online Banking, i.e. to become a standard service offered by every bank worth its name in our country.

Reference
1. http://www.google.com

2. The Daily star-Friday, July 22, 2011

3. http://www.iiste.org 4. www.enterpriseinnovation.net 5. www.wikipedia 6. www.marketresearch.com 7. www.ampublisher.com

8. www.bwtp.org
9. Dutch bangla bank ltd Mobile banking

http://www.dutchbanglabank.com/electronic_banking/mobile_banking.html
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developing countries. Information Technology for Development, 13(2), 161-175.13. Brown, I., Cajee, Z., Davies, D., & Stroebel, S. (2003). Cell phone banking:Predictors of adoption in South Africa--an exploratory study. International Journal of Information Management, 23(5), 381-394.
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Harvard University Press. 18. And many other PDF report on Mobile Banking collect from internet.

Questionnaires
1. Have you ever heard about mobile banking? a. Yes b. No

2. Do you use any mobile banking service? a. Yes b. No

3. What do you think how much time mobile banking takes than traditional system? a. Higher b. Lower c. Same

4. What are the main reasons why you have not used mobile payments? ________________________________________________________ 5. What do you think? It is a. Speedy process b. Slow process c. Average

6. Which class of people can use mobile banking? a. Upper b. Middle c. Poor d. All

7. What is your opinion of mobile banking? _________________________________________ 8. Do you think you should use it? a. Yes b. No

9. Do you think mobile banking is trust worthy? a. Yes b. No c. Not sure / confused