In past 2 to 3 years mobile banking advance itself to the extent that it increase three times if we go on comparison with debit/credit cards banking (mahesh . By sending many messages at a time make the system slow down and even paralyze and legitimate user may not be able to access the mobile banking system or accept the service major threat for mobile operation is the attack of viruses which mainly damage the functionality of mobile system, consume phone electricity and eliminate the record of the mobiles.
This is not an example of the work written by our professional essay opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of uk ds: mobile banking in india, mobile banking banking is defined as a provision and availment of mobile and bank services by using telecommunication device, the services may include keep in contact with bank to administer account and access customized information (tiwari and bus, 2007). They think regulation will help reduce the risk level and the institutions reach the top of the industry, but regulation should not minimize the benefits of mobile banking is a part of new banking dimension i.
This is on the basis of understanding of customer’s perception regarding the mobile banking. Banzal (2010) found that another major issue is the revenue sharing agreements between mobile service providers, banks, content providers, aggregators and other service providers like utilities, travel agencies, hotel industry, retailers banking is an application of m-commerce which enables customers to access bank accounts through mobile devices to conduct and complete bank-related transactions such as balancing cheques, checking account statuses, transferring money and selling stocks (kim et al.
Factors which nourished the mobile banking and due to which the need of mobile banking is felt are the economic development (globalization is leading to mobility), high density of mobile devices, powerful devices, high data transfer, attitude of new generation towards the use of mobile banking the need and wish for mobility is increased. Crisis highlights need to make customer protection, financial access and financial stability mutually reinforcing technological advances in mobile banking necessitate regulations that are flexible enough to accommodate innovation and customer demand yet stringent enough to protect customer privacy.
Increasing smart phone adoption and initiatives such as media promotions and customer education programmes for mobile banking have led to this uptrend. High education level of this segment provides a huge opportunity for the bankers to covert them from traditional banking to the mobile banking provide that the security of transaction and privacy issues are given top priority so that they can have favorable perception towards mobile banking.
Mobile payments: use of a mobile device to make a purchase or other payment-related transaction. The survey was created online as well as off population comprised the residents of national capital region delhi using mobile banking services .
To the study there are different challenges faced by the mobile banking discussed by different author which relate to mobile banking through different prospects. Some issues including awareness about mobile banking which cover rural and urban areas, the extent of resolving the issue of security and privacy these issues can be handled very carefully and effectively but the need to take an eye of interest (uppal, 2010).
Karjaluoto (2002); rugimbana (1995) found that there is vast market potential for mobile banking due to its always-on functionality and the option to do banking virtually any time and anywhere. On the basis of education of respondents it was found that there is significant difference in respondent’s perception regarding the ease of use of mobile with higher education level find it easy to use the mobile banking in their smartphone where as undergraduate find it difficult to use mobile banking in their normal mobile phones.
The regulator has also mandated if sms sent by the bank is not delivered to the customer due to network or handset related problems, an ussd communication confirming the completion of the transaction should be sent to the service providers are also asked to ensure that for availing banking services such as cash deposit, cash withdrawal, money transfer and balance enquiry, the customer is able to complete the transaction in not more than two stage transmission of message in the case of sms or not more than two stage entry of options in the case of ussd and ivr. Financial regulation has to be developed through a consultative approach with the mobile industry to ensure it closely tracks market development without becoming a regulatory barrier (gsma, 2008).
Data security issues in mobile banking for example hackers, malware, viruses attacks etc some of the security issues that occur in mobile banking is as follow; information leakage, loss and alteration can be happen in mobile banking as the technology is based on wireless devices, the information is transferred from one end to another end by using radio waves modulation and demodulation. There is no significant difference in the customer perception of mobile banking service quality dimensions based on respondents’ income level.
Major issue that come arise while using mobile banking is to know your customer, new customer identity evertime verified whenever he have to use the service. The clarification of issues help banks and telecom companies to assess the risk involved in providing mobile banking in better way (cau, 2010).
After the launch of mobile banking in india, mobile banking transactions have seen some growth. The access service providers shall facilitate the banks to use sms, ussd and ivr (interactive voice response) to provide banking services to its customer.
Through mobile banking application customer can check their account details, transfer money transitions, and can pay their bills while sitting at home and offices. Challenges faced by government are prepare a proper guideline for the mobile banking system, maintaining track of all the financial transaction, setâ€up a list of services and there charges for all the mobile banking service, ensuring the compatibility of the software in "bank led" model, allow interâ€ bank transaction( muntasir b.
The services offered by mobile banking included getting account information, transferring funds, sending checkbook request, managing deposits, checking transactions and so on. Banking has two security segments; one is called handset zone user's zone and other is mobile operator zone.
This branchless banking has great potential to extend the distribution of financial services to poor people who are not reached by traditional bank branch network; it lowers the cost of delivery, including cost of both to the banks of building and maintaining a delivery channel and to customers of accessing services (ivatuary and mas, 2008). It is also require that mobile banking facilitator supervise risks of fraud and illegal activities under the rules of know your customer (kyc) (cau, 2010).