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Conceptual Meaning and Model of Mobile Banking

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Technology has a major impact in helping Banking sectors. Mobile banking helps to give Customer’s anytime access to their banks. Customer’s could check out their account details, get their bank statement,perform transaction like transferring money to another accounts and pay their bills Sitting in the comforts of their homes and offices.

Needs And Scope Of Mobile Banking

Needs and scope of Mobile banking in India Mobile banking is a benefit both for the bank and the user. The main benefits of mobile banking to the bank is that it is cost savings, it allow the bank to reach new customers, it raises the reputation of the bank and provide better service and satisfaction to customer. Definition of Banking: A bank is a financial firm which offers loan and deposits product on the market. It’s a financial institution where people can put their excess of money and it also provides lending facilities to consumer to enable them to buy home and to businesses to help them to grow. It is the heart of an economy in a country. Without bank nothing works. Banking business needs money to pay their cost and therefore to obtain this money the bank charged high interest rate on their loan. Banks come with a variety of name, and one bank can function as several different types of banks. Some of the most common types of banks are:

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  • Retail banking refers to banking in which financial institution effect transaction directly to customer. Retail bank offer basic banking service to the general public such as checking and saving account, safe deposit, mortgage and other.
  • Commercial bank is a bank that works with businesses. It handle banking need for large and small businesses including lending money for real and capital purchases, foreign exchange etc.
  • Investment banking is a financial institution that assists corporation and government to raise capital. It also assists companies in merger and acquisition.
  • Central bank is an organization responsible for managing banking activity.

In USA the central bank is the Federal Reserve. In US, central bank has three primary goals to conduct monetary policy, to supervise and regulate financial firms and to provide financial service. Central bank deals with large organization instead of consumer. Mobile banking is a services provided by a bank or other financial institution that allows its customers to conduct financial transaction remotely using a Mobile device such as smart phone or tablet. Mobile banking is usually available on a 24-hours basis. From the banks point of view, Mobile banking reduces the cost of handling transaction by reducing the need for customers to visit a branch for non-cash withdrawal and deposit transaction. Mobile banking differs from mobile payments, which involves the use of mobile device to pay for goods or services either at the point of sale or remotely.

According to this model Mobile banking can be said to consist of three inter-related concepts:

  • Mobile Accounting
  • Mobile Brokerage
  • Mobile financial information services

Most of the services in the categories designated Accounting and Brokerage transaction based. The Non-transaction based services of an information nature are however essential for conducting transaction. The Accounting and Brokerage services are therefore offered invariability in combination with information services. Information services on the other hand may be offered as an independent module.

Literature Review Review Of Literature

Mobile banking is a channel through which customers can interact with bank through devices such as mobile and PDA. Mobile banking helps the customers to access their bank anytime. Through mobile banking application customers can check their account details transfer money transaction and can pay their bills while sitting at home and offices. Mobile banks can provide location based services as compared to banksFrom the last ten years technology has been evolving itself by replacement of other technologies coming through as the day pass. This technology growth has a major impact on banking industry. As mobile banking is easier, effective and efficient. It helps to interact and attract more customerMobile banking is time saving process. Utility payments can be done by M-payment. So customers do not need to get in line and wait for his/her turn. India is one of the fastest growing countries in terms of mobile users. It is not only a medium use of voice communication but also widely used for mobile services. The M-banking is rapidly growing services with its multitude features variably offered with mobile apps and Internet banking. Mobile based services or M-services are referred as electronic services which are delivered to the customers via mobile technologies by using mobile devices. M-services is a limited concept of E-services which is able to provide technical services anywhere at any time. Due to this reason this concept is becoming more popular among people. M-banking ensures customers in clearing and settlements of transactions through nationwide and enables real fund transfer in any bank account and operated by users using mobile banking services. Based on the online survey, its found that most of the respondents are using online banking facilities from their respective banks. Moreover 25% of customers are using mobile banking services and remaining 75% are not. India is a country where different languages are used in different parts. The mobile banking facilitates to access banking services to the rural community. This must requires customer friendly banking software that can be used in their local languages.

Research Methdology

This present study is about the analytical and explanatory nature. However, this explanatory study is made use of primary data. this primary data is collected and gathered by practical and technical process. The key intention of this study is to evaluate and theoretically Study about Mobile banking.

PRIMARY DATA: This is the first hand information collected through in hand references. Some Self provided details by

  • Reference. This data has collected directly from customers through structured questionnaires.

Secondary Data

This shall be collected by using variety of resources. These resources are.

  • Journals of bank and finance.
  • Review of bank management process.
  • Evaluation of customers usage of M-Banking.
  • Some useful websites.

SAMPLING METHOD: The population includes male and female customers residing Kamaraj Nagar. In this project convenience sampling method is followed. SAMPLE SIZE: Sample size was 150, who fulfil the basic criteria.

DATA COLLECTION: Self administered Personal survey method was used to collect the necessary data. For this purpose appropriate questions were used to collect data.

STRUCTURE OF QUESTIONNAIRE: The questions formulated were structured and non-disguised. The questions were asked in order to get all the necessary information and to see that the respondents could answer them with case. This pattern adopted facilitated in analyzing the data.

Types Of Questions Asked:

  1. Multiple choice questions In this pattern many choices are given to the responses and the respondent choose one response. The advantages of this type is easy tabulation and quick response by the respondent.
  2. Dichotomous questions In this pattern there will be questions of YES or NO format. There are only two choices of answer and the respondents has to choose either Yes or No.
  3. Open questions These are also known as free-answer type questions.

Summary Summary

  • Customers are not satisfied with the RTGS / NEFT facility.
  • Though the Internet Banking is an effective tool but many of the customers are not using it due to the awareness of the particular direct banking channel. Now the responsibility lies with the bank to make them aware about various Internet banking channels through publicity and advertisement.
  • Bank should educate the customer about the usage of internet banking channel and also about their advantages. This would prompt the customers to shift from traditional brick and mortar channel.
  • It has been observed that even the customers who know about internet banking channel are not using this facility due to misconception and lack of information. These customers should be targeted by the bank and must be convinced to use the same.
  • The result of the study shows that customers are using only few facility of various internet banking channel. Though e- banking provides a full gamut of various services. Customer should be made aware of these services and must be encouraged to use the same.
  • The bank may improve existing facilities in rural areas through advertising, spread awareness about computer and net banking.
  • The best way to motivate the customer to use the e- banking is the most efficient customer care service.


  • The success of the company directly or indirectly depends on their customers, as they are the backbone of the company. With the development of technology the customers expectations are raising relentlessly, competitive will survive who can respond to the customer needs faster and better than anyone.
  • The project commence with fixing the objective then sample were collected accordingly around 150 samples have been collected from the population in a structure method and analysis have been done to get the results.
  • The objectives framed at the beginning of the project have been achieved.
  • The customers are aware of Dena bank and various types of the services provided by the bank.
  • The result of this study shows that perceived usefulness, perceived ease of use, customer awareness and perceived risk are the important determinants of internet banking adoption.
  • Study concludes that majority of customers are accepting internet banking because of many favorable factors. Analysis concluded that usefulness, ease of use of the system awareness about internet banking and risks related to it are the main perusing factors to accept internet banking system.
  • These factors have a strong and positive effect on customers to accept internet banking system.
  • This “customer awareness survey” is conducted to rival the awareness level of the customers towards internet banking service in different parameters as per the respondents having positive attitude towards Dena bank.


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