Literature review on mobile banking

Banking adoption: a literature /manakin sity of jyväskylä | university library | sherparomeo | | contact | help | about jyx |. Banking adoption: a literature , aijaz; karjaluoto, onic commerce (e-commerce) continues to have a profound impact on the ss environment,Technologies and begun to focus more bution channel, findings indicate that. Banking adoption it commonly relies technology acceptance model and cations, revealing ibility (with lifestyle and device),Perceived usefulness,Are the most significant drivers of m-banking services ped and developing countries. 5853 search the publication pankit kuluttajakäyttäytyminen asenteet kirjallisuuskatsaukset literature review mobile banking; m-banking mobile banking adoption technology acceptance model. Adoption of mobile technologies: a literature the most of information technology & systems usage: a literature review, framework and future research ing consumers' intention, behavior, and beliefs in mobile banking adoption and continuous ers' perceptions of mobile banking continuous usage in finland and south determinants affecting on the investment proposals the most of information technology & systems usage: a literature review, framework and future research effects of mobile banking application user satisfaction and system usage on bank-customer uous mobile banking usage and relationship commitment – a multi-country ers' perceptions of mobile banking continuous usage in finland and south ing the nexus between financial sector reforms and the emergence of digital banking culture : evidences from a developing ing consumers' intention, behavior, and beliefs in mobile banking adoption and continuous (spss) -ohjelman käyttöohje (versio spss amos 22. You must disable the application while logging in with your system ture review on mobile imer: this essay has been submitted by a student. 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). Banking is a channel through which a customer can interact with bank through device such as mobile and pda ( tommi laukkanen, suvi sinkkonen, marke kivijärvi, pekka laukkanen, 2007). Mobile banking is seen as an extension to the payment system of bank which enables mobile network to extend its services in reach of customer (gavin troy krugel, 2007). Through mobile banking application customer can check their account details, transfer money transitions, and can pay their bills while sitting at home and offices. Continuous development and usage of mobile make people to become in habit for it and this force companies to come up with new mobile services.

Literature review on mobile phones

Some studies shows that the transaction through mobile is more secure than a connection through internet on pc. But some studies go against it and showed the security a major challenge for mobile banking (tommi laukkanen, suvi sinkkonen, marke kivijärvi & pekka laukkanen, 2007). 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. Features of mobile banking includes its available anywhere, anytime, instant connectivity, pro active functionality (push and pull technology), easy access (simple authentication) ( tiwari and bus, 2008). Mobile banking is more secure than internet, it not only provide traditional bank services but also 3a services (anywhere, anytime and anyhow). Mobile banking is more convenient, effective and efficient which help to attract more customer (jin, nie, xianling, hu, 2008). Services, delivered by means of mobile phone informational services: report on any type of transactions to mobile phone payment services, based on mobile phone mobile banking can be based on different technologies sms, wap, gprs/edge/3g(eddy cormon,2009). Difference between internet banking (e-banking) and mobile banking (m-banking) is that through internet bank account information is access by pc or off the mobile and through mobile banking account information is accessed by its two channels either via sms or browser and by using mobile banking in advance era a customer get sms alert of changes in account (bankable frontier associates, 2008). Mobile banking is area in which the development can flourish and can lead to replace credit/debit card. 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 . Harma , ritvik dubey, 2009) mobile banking: use of mobile device to connect to a financial institution to conduct customer self-service (ccs) includes viewing account balance, transferring funds between the accounts, paying bills or receiving accounting alerts.

Mobile payments: use of a mobile device to make a purchase or other payment-related transaction. Payments initiated in physical or virtual worlds, and can be conducted via sms, mms, mobile internet, downloadable application, and nfc chips. On the other hand the services of banking is also go through many changes starting from early eighties when telephone banking and computer banking took a lead and moved towards atm and internet banking applications. As the electronic banking was on its peak along with it change bring in mobile technologies as well including sms, wap, 3g and 4g technologies (tommi laukkanen, suvi sinkkonen, marke kivijärvi & pekka laukkanen, 2007). The main focus of mobile banking is rural area, where people have 2500 branches of banks for 105 million people and 42000 subscribers per branch, whereas mobile phone users are reached to 97 million. After the struggle of five years from 2005 to 2010 now pakistan is able to make their people dreams come true and mobile banking is now on its success way. Back to march 2007 first time the policy and regulatory paper was issued by sbp on a base of branchless banking (which can provide the financial services to the people who are underserved or unbanked). Sbp insist on implementation of mobile banking and advice financial institution and banks to process the work flow of mobile banking otherwise the that would be permitted to the mno's (mobile network operators) to start their own. In 2009, telenor has launched easypaisa( first mobile banking platform) with the help of tameer bank (a microfinance bank mostly owned by telenor). In 2010 mcb, ubl and allied bank has implemented the mobile banking and making it more profitable for banks and customers as well. He/she don't need to at the counter of bank and answer the various questions of banking is time banking keep informing customers about his/her bank account all the time y payments can be done through m-payment customers donot need to get in line and wait for his/her turn ( uppal, 6 jan 2010).

Saved by the bank through mobile banking can be utilize in expansion of business, marketing and sale activities can be benefited in a way by getting commission from cellular companies for providing services through atm i-e prepaid talk banks that are providing these services have a competitive advantage over those who are not providing it (uppal, 6 jan 2010). To the policy paper issued on regulatory frame work of mobile banking by sbp there is only bank - led model allowed. This model only one bank gets in agreement with a telecom company to provide mobile banking services to the customer. This model a bank is in agreement with many telecom companies and provides service of mobile banking to their customers and everybody who has mobile phone can reach to the mobile banking service. There are several drawbacks of this model one is the telco cannot prioritize the mobile banking sms services in order to provide quick transactions, secondly financial institution has to bear all expense related to advert/marketing, lastly bank is responsible for the arrangement of product distribution and cash inflows and outflows (sbp, 2007). Banking can be implemented through companies other than telco such as fuel distribution companies, pakistan post, chain stores etc by using technologies of mobiles and pc (sbp, 2007). Kenya mobile banking is implemented by largest mobile service provider, safaricom and launched m-pesa in 2007. According to study the income of kenyan is increase to 30% since they had started mobile banking. Further than mobile banking is supported by two biggest mobile network operators in philippines, global and smart. Or 5 % of remittances but in mobile banking this cost only less than 2% and philippians are now charge us$ 50. These participant help to translate the transaction initiated from customer to the format which can be understood by banking system.

For the implementation of mobile banking bank use its core infrastructure with some advancement in which a user is authenticated (usually a pin) through a platform usually a phone and a server, information is extracted from a user and pass it on to the bank then bank have set of processes for a transaction once the application is done with financial transaction it is switch back to the user by an acknowledgement usually in a form of bank account reconciliation (gavin troy krugel, 2007). Technology use in mobile banking can be categories in two environments, technologies at server side and technologies at customer side. Sms, ivr, ussd2 and wap are server side technologies, on the other hand consumer side technologies includes applications, solution and offer which is set in sim or in user mobile such as [email protected] and j2me (java) (gavin troy krugel, 2007). To the study there are different challenges faced by the mobile banking discussed by different author which relate to mobile banking through different prospects. Network security (unauthorized access), customer privacy, and clearance of liability on customer side as they go for loan because through mobile banking the subscriber has virtual account and there is financial risk involve in it. A challenge of wireless carriers and financial institution dispute, both have different responsibility with respect to mobile transaction. The lack of interoperability among mobile operators has limited the access of mobile payment (kopicki and miller, 2008). Which would be paid by the customer if the offer of mobile banking seems attractive to him, if it's not does so then the initial cost of banks would be a sunk cost. There are many uncertainties related to customer for example they think that they may not make mistake while doing financial transaction through mobile. The loss of connection which left the transaction incomplete make customer hesitated for usage of mobile for its financial transaction. Introduction of gsm technology helped to boost the idea and implementation of mobile banking in nigeria.

Some of the challenges faced by the nigeria are sustainability of of growth and progress, requisition of funds for marketing of mobile banking, development of promotion of it, security and privacy issues, middleware issues devices, network and protocol limitation, different standards ( and v. Mobile banking is a new concept that will bring some challenges and issues as well, if these issues are solved adequately it will proved to be more benefited than other technologies. 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). To the survey more than 60% of users are worried about security of personal data and password protection while using mobile banking as mobile phone encryption ability is limited as compare to personal computer because of which the mobile cannot meet the demand of financial security. Various threats such as cloning and use of "magic cards" in advance era make mobile unprotected. The applications of new technologies make the bank to keep on changing the competition rule in banking industry. The most competitive challenge is how to provide the banking services to the customer which is more convenient to them, awareness among people would be a catalyst but also upgrade the business innovation and based on these services the mobile banking is the future (zhong wan, weifeng yin and ronggao sun, 2009). In mobile banking are demonstrated as there are large numbers of people who do not have bank accounts especially in rural areas, due to unawareness and distant factor the people don't know about banking. While introducing various applications for mobiles such as wap based solutions create difficulty in uniform standards. Faced by the bank during implementation of mobile banking in bangladesh are, difficulty in selection of right software, huge investment in purchasing the software, license, inability to do interbank transaction as the national payment switch is not in place. Challenges for mobile operator includes, sharing network with multiple banks and operator, technical limitation to access other banks, breaches in data privacy, accounting errors, or fraudulent transactions could expose an operator to large liabilities and serious reputation damage, the complex delivery of financial services could distract management from its core communications business, perhaps stretching the abilities of smaller mobile operators, additional investment in solutions.

Challenges faced by solution providers are, most of the solution are telco led so bank do not feel safe, huge investment from their part as most of the bank wants to share revenue, some of the banks are also not ready in terms of core banking or infrastructure for mobile baking solution. Challenges faced by government are prepare a proper guideline for the mobile banking system, maintaining track of all the financial transaction, set‐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 inter‐ bank transaction( muntasir b. Order to provide mobile banking services the service provider has faced a challenge of security and privacy of customer, service provider has to promise users a level of security, a solution for this challenge has been made by mobile service provider is pin and pass code to authorize valid customers and encrypted data for transfer along with the threat of password or pin stolen if a mobile phone or wireless device is lost. Cope with low price charged to the customer is a also a hidden challenge for financial institutions because mobile banking is based on the revenue sharing model but in order to attract and retain customer low price than e-banking and previous banking service must be target(caroline boyd, 2007). Mobile banking has a potential to improve saving rate and provide access to financial product but it's still facing challenges which need to overcome includes high barrier to entry, low rate of loan repayment because of less contact with customer and regulatory issues (john erickson, 2010). Are gaining experience in tricks and those techniques which are unknown in 1990 are become mainstreams in 2000's such as phishing, malware, pharming such as dns poisoning, increasing advancement in phones now threats is increased more on mobile than pc's(bankable frontier associates, 2008). Regarding m-banking to policy-makers and regulators is two-fold: firstly, to encourage banks and mobile operators to develop solutions that are not proprietary, and secondly, to allow access to potential new entrants that can disrupt the lucrative business models of the banks and mobile operators. Just like convergence forced the integration of broadcasting and telecommunications, so mobile banking is forcing the convergence of the financial and telecommunications sectors. Bigger barriers in way of mobile banking is interoperability, fraud and security ,lack of awareness and understanding of benefits can achieve from mobile banking (mahesh . Are also other manifest security challenges in delivering banking and payment services through wireless channels. Key infrastructure (pki) understand the challenges of deploying pki banking, it is assumed that two keys are for encryption and another for decryption.

If mobile banking user wants to send e to the bank server, he/she obtains bank's from the directory and uses it to encrypt the encrypted message is sent to bank application bank server is able to decrypt this message, bank knows the corresponding decryption r, mobile user can use his/her private key to his/her message by encrypting the message (or ) with his/her private key. As mobile phone is a non- microsoft browser and its do not support activex for example iphone , blackberry, android, these phone do not support the designed procedure, therefore the mobile phones can't be used for mobile july 2010, financial services commission extended its regulation to allow other verification methods by which a lay man can having its simple mobile phone set can use mobile banking services by introducing non-microsoft browsers (cau, 2010). Major regulatory issues which set around the branchless banking some of them are; 1- the risk of failure after introduction, a high profile failure lead to failure of all branchless schemes in which a high risk involved, 2- non-bank institution must be introduce why only trust bank and presently using model of bank led is not always successful there must be bank led model at bank because mobile operator is a trustable authority and mobile operator can provide facilities such as a transaction can be traced geographically that a bank can never provide and mobile operator can know location exactly well than banks where a money is going to transfer and where it's going to be received. Regulation that have been used for traditional banking can't be used for mobile banking because the risks of traditional bank and risks of mobile banking can't be equal so there is a need to develop more regulation for mobile banking, there are some areas in which the regulator attention is more require for example, making legal anti money transaction, agency rule, fullfilment cost of regulation, foreign exchange controls, payment regulation for non-banks, i. Regulation against risk of fraud, loss of privacy of customer and even for loss of service for the establishment of trust among the customer and it's the most necessary element for the development of mobile banking. In bank of india, the guidelines are only formulate by the reserve bank of india and it specifies that only those bank who have physical presence in india will be licensed and supervised and will be allowed to offer mobile banking in india. Development of mobile banking require some rules and regulation to be implemented for the protection of consumer, promote secure transactions, encourage economic stability. In regulation, clearly define those activities and institutional arrangements for mobile banking that directly focus on licensing, regulation and management by financial authority. It is require by those who are offering mobile banking to clearly expose prices and services offered by them along with it ensure fair dealing and data protection for all consumer. 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). 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.

The clarification of issues help banks and telecom companies to assess the risk involved in providing mobile banking in better way (cau, 2010). 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. Some development in regulation allowed that only a bank can offer mobile banking services because of the reason that mobile operator due to its lack of perception and recognition power, do not know how to apply same regulatory environment to the non- bank to some extent. As the security, protection (end to end encryption) can be done only by the mobile operators since the sim in under control of mobile operator. There are two ways to resolve this issue one is to relax the sim control, there will be a time reach in near future that the sim will be public utility and some control rights would be taken away from mobile operator and given to the third parties, second is relaxation of security as the implementation of mobile banking solely on mobile operator is not possible, it can be operated with comprehensive security and suitable control on appropriate reporting of maximum number of customers, transaction size and enhanced server based control. Order to achieve success in fulfillment of regulation and implementation of regulation, the regulator have to keep in mind that regulation must be apply in a proportionate manner to ensure safe and sound mobile money transfer. The regulation must allow to be with the new mobile coming up for money transfer services. 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). Respect to completing a mobile banking transaction, a mobile carrier's legal obligation also differs in fundamental ways from a financial institution's. The mobile carrier's obligation to verify the origination and termination of a telecommunications transmission is mainly to ensure that a call is completed, and, that customers are accurately billed for the service. Banking has two security segments; one is called handset zone user's zone and other is mobile operator zone.

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. When the rays passes from the air there are many other rays with which the interference of respective wave can be happen by which information may be leaked, loss and distort or it can be intercepted hackers can extract the information by installing devices on electromagnetic devices or may delete, modify or add in information which can damage the purpose of legitimate user which is initiated by ility of communication channels and mobile devices lead to incomplete transaction. Denial of service attack in which attackers send messages in huge amount to mobile phones by taking control of gateway, attacker change the process of completing services by interfering into mobile banking service system. 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. The possibility of virus attacks on mobile banking is far greater than the internet banking or network banking. The virus of mobile can be transferred from one device to other and can infect the whole system even it is transferrable bluetooth where it place a file including virus when connect to the near mobile phone bluetooth (jin , nie, xianling, hu, 2008). Threats to the mobile banking are related to the presently computer networks and internet background. Security issued which is faced during the implementation of mobile banking through wap are, no end to end encryption between client and bank server and there is no end to end encryption between client and gateway. Mobile banking can be conducted in two modes by using wap and sms techniques, the security short comings of this subsection we discuss the security short comings of the sms e. The gsm encryption only between the mobile phone and the base n end to end security is currently not available. 3 sms service centre storage of copies of sms messages at the sms centre server hosted by network service provider also provides a point of vulnerability to banking service.