Development of M- Service Banking In India

Journal of Research and Development Peer Reviewed International, Open Access Journal. ISSN : 2230-9578 | Website: https://jrdrvb.org Volume-17, Issue-1(III) | January - 2025 66 Development of MService Banking In India Dr. Shrikant L. Patil Assistant Professor and Research Guide in Commerce G. P. Porwal Arts, Commerce and V.V. Salimath Science College, Sindagi. Vijayapur Dist. Karnataka State. India. Manuscript ID: JRD -2025-170115 ISSN: 2230-9578 Volume 17 Issue 1|(III) P p66-69 January 2025 Submitted: 01 Dec. 2024 Revised: 24 Dec. 2024 Accepted: 20 Jan. 2025 Published: 31 Jan. 2025 Abstract: Banking is playing a dynamic role in the field of industry. Banking is one of the largest service provider’s forms several decades. Today the banking industry welcomes the wireless and mobile technology into the boardroom to offer their customer for making payments, balance checking and fund transfer. There are both positive and negative factors effect while acceptance of mobile banking. Therefore, it is important to know the present and future aspect of the technological changes in the banking sector and also to know the problems of the technological changes to suggest the measures for overcome the problems. The Mobile banking system is becoming important to the India therefore the study is concern with the mobile banking and its present and future status and problems and prospects. Keywords: Mobile Banking in India, objectives, benefits, Issues, recommendation and Challenges. Introduction: The mobile phone is the mode of communication technology to have more users in developing countries like India. Nowadays mobile banking is common in developed and emerging countries, mobile banking is also called M-banking and SMS banking in terms of Balance check, money transfer, payment of bills, Donations. The banking industry in India as found technology advancement. Mobile banking is usually available on a 24/7 hours in all the days. Some banks and some financial institutions limit the amount for the transaction. This study has been conducted to identify the usage factor of mobile banking in the some part of region selected. Mobile banking is the largest banking transaction accepted worldwide including India. Some consumer is hesitated to adopt mobile banking due to unaware of it.Mobile banking is giving some facility by a bank to their customer to make financial transactions. India is present one of the fastest emerging countries in terms of mobile using country. Mobile phones are not only a medium of voice communication it provides services at anywhere any time. Now a day’s mobile banking services create a social effect happening, the area of education, agriculture, healthcare, and governance. Mobile banking people are appreciating various m-services’ such as M-shopping, M-agriculture, M-banking, and Meducation. Developments in Mobile Technology Motorola1 was the first company introduced mobile phone in the year 1973, which is very costly and also more weight (in Kgs) when compared with present mobile sets which are cheap and small in size. 1st Generation (1G): The first analog cellular system widely deployed in North America was the Advanced Mobile Phone System (AMPS). It was commercially introduced in the Americas in 1978, Israel in 1986, Australia in 1987 and India2 in the year 1995. 2nd Generation (2G): Second generation mobile communication replaced the analog signal with digital signal. 1 On April 3, 1973 Martin Cooper, a Motorola engineer and executive, made the first mobile telephone call from handheld subscriber equipment in front of reporters, placing a call to Dr. Joel S. Engel of Bell Labs. Quick Response Code: Website: https://jrdrvb.org/ DOI: Access this article online This is an open access journal, and articles are distributed under the terms of the Creative Commons Attribution 4.0 International, The Creative Commons Attribution license allows re-distribution and re-use of a licensed work on the condition that the creator is appropriately credited Address for correspondence: Shrikant L. Patil, Assistant Professor and Research Guide in Commerce, G. P. Porwal Arts, Commerce and V.V. Salimath Science College, Sindagi. Vijayapur How to cite this article: Shrikant L. Patil. (2025).Development of MService Banking In India. Journal of Research and Development,66-69 Original Article Journal of Research and Development Peer Reviewed International, Open Access Journal. ISSN : 2230-9578 | Website: https://jrdrvb.org Volume-17, Issue-1(III) | January - 2025 67 2 on August 1995, Chief Minister of West Bengal, Shri Jyoti Basu ushered in the cell phone revolution in India by making the first call to Union Telecom Minister Sukhram. There are two major technical developments occurred that is GSM and CDMA technologies. The NTT DoCoMo in Japan introduced internet service on mobile phones in the year 1999. 3rd Generation (3G): The mobile phone became essential communication system for millions of users worldwide. The 3G technology developed with the concept of packet switching instead of circuit switching for data transmission. 4th Generation (4G): The fourth generation4 technology introduced in the year 2009 with the technology advancement like WiMAX &Long-Term Evolution (LTE) technologies. Objective Of The Study 1. To provide the challenges faced in M-banking in India. 2. To study the recommendation in M-banking in India. 3. To study the suggestion in M-banking in India. Mobile Banking Banks are constantly adopting technology to expand its business and to reach different level of customers. Apart from ATM, Internet banking and other technology enabled services Mobile Banking is one of the services provided by banks to its customers. Astonishing growth in telecommunication sector, its penetration including rural population and technology feasibility are the major factors for the introduction of Mobile banking services. Some banks in India are started providing the mobile banking service to their customers that include State Bank of India (SBI), Union Bank of India (UBI), Punjab National Bank (PNB), HDFC, ICICI, Axis Bank, etc. Browser is software that is used to display web pages in the Internet. M-Pesa quickly captured a significant market share for cash transfers, and grew astoundingly quickly, capturing 17 million subscribers by December 2011 in Kenya alone. SMART Money works on the Philippines ‘nationwide network, one can send money to SMART ‘s 50.9 million subscribers wherever they are in the country. Name of the Bank Mobile Banking Services State Bank of India FreedoM, SMS Banking, USSD Union Bank of India SMS Banking, UMobile PNB SMS Banking ICICI iMobile, SMS Banking, M-PESA, mRupee HDFC SMS Banking, App Based, Browser Based AXIS Bank Phone Banking, Internet Banking on Mobile, SMS Banking. Mobile Service Providers 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 Payments, deposits, withdrawals, transfers and 2. Account information: 1. Cash-in, cash-out transactions on an ATM 2. Domestic and international fund transfers 3. Micro-payment handling 4. Mobile & Direct to Home package recharging 5. Purchasing tickets for travel and entertainment 6. Commercial payment processing 7. Bill payment processing 8. Peer to Peer payments 9. Withdrawal at banking agent 10. Deposit at banking agent Investments and 3. Account information: 1.Real-time stock quotes 2. Personalized alerts and notifications on security prices Support 4. Account information: 1. Check (cheque) book and card requests 2. Exchange of data messages and email, including complaint submission and tracking 3. ATM Location Content services 5. Account information: 1. General information such as weather updates, news 2. Loyalty-related offers 3. Locationbased services Future functionalities in mobile banking 1. Communication enrichment: - Video Interaction with agents, advisors. 2. Pervasive Transactions capabilities: - Comprehensive “Mobile wallet” 3. Customer Education: - “Test drive” for demos of banking services 4. Connect with new customer segment: - Connect with Gen Y – Gen Z using games and social network ambushed to surrogate bank’s offerings 5. Content monetization: - Micro level revenue themes such as music, e-book download 6. Vertical positioning: - Positioning offerings over mobile banking specific industries 7. Horizontal positioning: - Positioning offerings over mobile banking across all the industries 8. Personalization of corporate banking services: - Personalization experience for multiple roles and hierarchies in corporate banking as against the vanilla based segment based enhancements in the current context. 9. Build Brand: - Built the bank’s brand while enhancing the “Mobile real estate”. could and should play in this payment space given their vast agent network across the country touching the remotest areas where banks did not have a physical presence. It’s, therefore, enabled these MSPs to be appointed by banks as their Business Correspondents of banks to foster a healthy partnership between the two which could gainfully utilize the expertise of banks and the reach of the MSPs. Benefits Of Mobile Banking: Be accessible when and where your customers want you to be: Mobile banking does not limit your business to set times/localities. Be available 24/7 – anytime, everywhere. Empower your customers: Your users will be able to transfer sum of money, investor exchange currency without intermissions/suggestions from anyone, waiting time and quick improvement on requests. Go green, and go paperless: Bring paperless declarations directly into customers' email addresses, while saving the cost of production, paper, and transfer. The less wastage of paper makes Journal of Research and Development Peer Reviewed International, Open Access Journal. ISSN : 2230-9578 | Website: https://jrdrvb.org Volume-17, Issue-1(III) | January - 2025 68 this clarification and environment-friendly. Have a single vision of customers: Linking your mobile banking application by the present central banking solution to KYC better. Study the customer’s profile and account data to understand their financial performances for offering modified products/services. Provide best &fast services to customers: With a smart feature of smart phones like the camera, allow your customers to simply click pictures and initiate requests. For example: Open a new account by indicating and submitting KYC documents accessible instantly. Enable location-based services: Track a user’s location, push notices for recent offers proximate and ensure greater safety against scams for transactions started from amateurish locations etc. Reward your customers: Give loyalty prizes to customers in the usage of mobile transactions giving points or discount vouchers for handling via using the mobile banking application. Safeguard customer details: Bit real-time updates on relations accomplished; configure multi-level security types like OTP to registered mobile for validation via the banking application. They are a huge benefit of banking using mobile phones. The obvious is that this is a time saving, no-queue method of banking wherein almost all banking related services can be accessed through the mobile. It also offers services like ATM locating system, remote withdrawals as well as mobile payments to the users. The main increase to this technology is the availability of smart phones that have simply made our lives easier. Challenges For A Mobile Banking In India Handset accessibility There are a big number of different mobile phone devices and it is an immense challenge for banks to offer a mobile banking solution on any type of device. Some of these devices running Java ME and others support SIM Application Toolkit. a WAP browser, or only SMS. First interoperability issues, but, have been local, with countries like India using portals like "R-World" to enable the limitations of low-end Java-based phones, while a focus on areas such as South Africa has defaulted to the USSD as a basis of communication achievable with any phone. The need for interoperability is largely in need of on the banks themselves, where connected applications(Java based or native) provide better safety, are easier to use and allow development of more multifaceted capabilities similar to those of internet banking while SMS can provide the basics but becomes difficult to operate with more multipart connections. Security By way of with most internet-connected devices, as well as mobile-telephony devices, cybercrime rates are increasing year-to-year. The types of cyber crimes which may affect mobile-banking might range from unauthorized use while the owner is using mobile banking, to remote-hacking or even blocking or snooping via the internet or telephone network data streams. In the banking world, currency rates may variation by every millisecond. Security of financial transactions, being executed from some remote location and transmission of financial information over the air, are the most difficult experiments that need to be addressed together by mobile application developers, wireless net service providers and the banks' IT departments. The following aspects need to be addressed to offer a secure infrastructure for the financial transaction over a wireless network: 1. The physical part of the hand-held device. If the bank is offering smart-card based safety, the physical safety &security of the device is more important. 2. Security of any thick-client application administration on the device. In case the device is stolen, the hacker should require at least an ID/Password to right to use the application. 3. Authentication of the device with the service provider before initiating a transaction. This would safeguard that unauthorized devices are not connected to make financial transactions and User ID / PIN Authentication of the bank's customer. 4. Encryption of the data being transferred over the air. and Encryption of the data that will be stored in the device for later / off-line analysis by the customer. One-time password (OTP) 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 consumer’s phone via SMS. The password is expired once it has been used or once its scheduled life-cycle has expired Recommendations: Based on the online survey, it is found that most of the respondents are using online banking facility from their respective banks. However around 25% of customers are using mobile banking and remaining 75% are not. The majority of the online banking users are comfortable without using the mobile banking facility and they are also interested to test the facility. It is depicted from the study that the evolution of different technology in communication system and mobile device is a major challenge to frequently change the mobile banking solutions. Few banks are offering mobile banking in the form of SMS banking. With the advent of technological development banks customized applications (software) for mobile phones in the initial stage, now the introduction of Smart phones changed the traditional mobile software into Mobile Apps. Journal of Research and Development Peer Reviewed International, Open Access Journal. ISSN : 2230-9578 | Website: https://jrdrvb.org Volume-17, Issue-1(III) | January - 2025 69 The major challenges in Apps are it has to be developed for different mobile Operating Systems. The mobile is a small device, which has the risk of theft. This will be the major challenge on security issues to the customer who are using or willing to use mobile banking. The awareness how to use mobile banking and what are the security mechanisms to be followed by the customer has to be addressed for effective usage of mobile banking. India is a country where different languages are used in different parts. The mobile banking facilitates to access banking service to the rural community. This requires customer friendly banking software that can be used in their local language. The awareness creation among the existing customers and providing special benefits for using the mobile banking will increase the mobile banking users. Once the customer becomes confident on technology it will automatically increase the adoption of mobile banking in mass. Suggestions: 1. The bank should create awareness among the people about mobile banking and its usages. 2. Indian people also have to know the various usages of mobile devices to improve the digital literacy. 3. Three should be some training activity organized by the bank to improve the experience about mobile banking. 4. Bank should prove more security toward the mobile banking. 5. Other structure should also support to mobile banking, it will be more effective for mobile banking. Conclusion: Mobile Banking is easy to use and can be use any time anywhere due to its mobility. The mobile banking in India is becoming very famous because of the digital payment system. But still some account holders are not aware about the mobile banking and avoid using it. A lot in the area of awareness creation by conducting mass-media campaigns, simulation/training camps, town-hall events and reaching out to schools and colleges across the nation to ‘catch them young.’ It is expected that these initiatives will bring awareness of the various technology payment products including the mobile banking and the ease with which they can be used to encourage the use of non-cash payment products. In India people still believe that traditional banking is safe and best to handle. There are young and professional persons have more use of mobile banking. References: 1. Tiwari, Rajnish and Buse, Stephan(2007): The Mobile Commerce Prospects: A Strategic Analysis of Opportunities in the Banking Sector, Hamburg University Press (E-Book as PDF to be downloaded) 2. Tiwari, Rajnish; Buse, Stephan, and Herstatt, Cornelius (2007): Mobile Services in Banking Sector: The Role of Innovative Business Solutions in Generating Competitive Advantage, in Proceedings of the International Research Conference on Quality, Innovation and Knowledge Management, New Delhi, pp. 886–894. 3. Owens, John and Anna Bantug-Herrera (2006): Catching the Technology Wave: Mobile Phone Banking and TextA-Payment in the Philippines 4. Tiwari, Rajnish; Buse, Stephan, and Herstatt, Cornelius (2006): Mobile Banking as Business Strategy: Impact of Mobile Technologies on Customer Behaviors and its Implications for Banks, in Technology Management for the Global Future - Proceedings of PICMET '06. 5. Sharma, Prerna, Bamoriya&Preeti Singh (2011) - Issues & Challenges in Mobile Banking In India: A Customers’ Perspective. 6. www.bankrate.com/finance/banking/finding-best-mobilebanking.aspx