Submitted By: Prateek Chourey
Vaibhav Khatke
Varun Choubey
Vishal Srivastava

---

[attachment=13358]

Introduction
• Electronic banking is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick-and-mortar institution. The following terms all refer to one form or another of electronic banking: personal computer (PC) banking, Internet banking, virtual banking, online banking, home banking, remote electronic banking, and phone banking. PC banking and Internet or online banking is the most frequently used designations. It should be noted, however, that the terms used to describe the various types of electronic banking are often used interchangeably.
• Electronic banking is an activity that is not new to banks or their customers. Banks having been providing their services to customers electronically for years through software programs. These software programs allowed the user’s personal computer to dial up the bank directly. In the past however, banks have been very reluctant to provide their customers with banking via the Internet due to security concerns.
• Today, banks seem to be jumping on the bandwagon of Internet banking. Why is there a sudden increase of bank interests in the Internet? The first major reason is because of the improved security and encryption methods developed on the Internet. The second reason is that banks did not want to lose a potential market share to banks that were quick to offer their services on the Internet.
• Many of the banks like ICICI, HDFC, IndusInd, IDBI, Citibank,Global Trust Bank (GTB), Bank of Punjab and UTI were offering E-banking services. Based on the above.
• Judging from the services available in the market, Mobile Banking (often referred to as M-Banking, WAP-Banking, SMS-Banking or Wireless Banking amongst others) is one of the most extensively offered applications in Mobile Commerce (M-Commerce).
• Mobile Banking is generally defined as carrying out bank transactions and other related activities via mobile (hand-held) devices.
• The services are generally based on technologies offered by “Short Messaging Service” (SMS), or by “Wireless Application Protocol” (WAP). Some banks, particularly many in Japan, also offer services based on i-mode. Most of the services can be accessed via several types of mobile (hand-held) devices including cellular phones and “Personal Digital Assistants” (PDA). Additionally client-based applications - that work similar to other Home Banking applications - are reported to be gaining popularity - particularly in Germany. The client (usually a Java MIDlet) can be installed on the mobile device, e.g. a mobile phone or a PDA.
This project is to be made by having an idea to provide a complete mobility in Banking to the customers.
It will be divided into three sections:-
 Web site
The customers will be provided a user-id n password with the help of which they can use the internet banking facility.
 Mobile Application
The customers will be provided with an application to be deployed on the mobile along with a user-id and password. With the help of this application they can access their account for free with the help of their GPRS connection.
 Server
This server will be responding to the request generated by the web as well as the mobile applications.
Mobile and internet banking presents a delicate balance between a conceptually powerful opportunity (being able to transact anytime, anywhere) and practically helpful (small menu sequences on a small screen and tiny buttons).
Objective:
• To introduce a new channel to interact with customers.
• Adapts to all networks and mobile devices
• Delivers communications across multiple mobile channels, mobile Web browser and mobile application.
• Delivers powerful payment processing and service delivery.
• The opportunity seems particularly great for MFIs, but implementation challenges also loom larger because of their small scale. This discussion assumes these banks and MFIs have adequate back office and transaction switching capability and sufficient internal controls, whether managed in-house or outsourced.
• Without that, mobile banking is not possible because it is fundamentally a front end to a financial institution’s information technology system
• Create a banking system that is easily accessible by customers from the comfort of their homes, offices etc.
• Reduce the time wasted in going to banks to stay on queues.
• Promote efficient and effective banking for the banks by focusing on those services that still require physical presence at the banking hall.
Scope of project:
 This project has a wide scope as the customers have shifted their lifestyle to handheld devices.
 The concept of mobile banking will be delightfully accepted by the customer community.
 The other banking applications available in the market are GSM based which charge a high amount for not only registering but also using the service, as they depend on the GSM operators. But our applications is GSM and GPRS based which relieves the customer from unnecessary charges.
 We expect that there will be a massive increase in the number of subscribers to mobile banking functionality. The penetration of subscribers are already quite impressive, especially in countries like India, but this performance will be replicated in other countries as operators and banks get better at the products and increase investments in marketing and services.
 As the numbers increase towards the end of the year, we will see an exponential increase in transaction volumes, particularly phone to phone payments. The most important catalyst for this will be the cash-in and cash-out facilities created. With an increase in subscribers, increased value of cash held in values, transactions will follow.