Prospect of Mobile Banking in Bangladesh

Prospect of Mobile Banking in Bangladesh"
CHAPTER: 1
Introduction
1.1 Background of the Study

Mobile banking refers to a client-sewer system that is specific ally designed for
mobile devices, allowing banking customers to use handheld devices to access their
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accounts, pay bills, authorize fund transfers, or perform other activities. Like many
other m-commerce services, mobile banking services can be challenging and no single
company has all the expertise required to develop and deliver compelling services on
its own. Mobile banking is a term used for performing balance checks, account
transactions, payments, credit applications and other banking transactions through a
mobile device such as a mobile phone or Personal Digital Assistant (PDA). The
earliest mobile banking services were offered over SMS. With the introduction of the
first primitive smart phones with WAP(wireless application protocol) support
enabling the use of the mobile web in 1999, the first. European banks started to offer
mobile banking: on this platform to their customers. Mobile banking has until
recently (2010) most often been performed via SMS or the Mobile Web. Apple's
initial success with iPhone and the rapid growth of phones based on Google's Android
(operating system) have led to increasing use of special client programs, called apps,
downloaded to the mobile device.
1.2 Objectives of the study
1.2.1 Main Objective: The Main objective of this report is to fulfill the requirement
of BBA degree.
1.2.2 Specific Objective:
The Specific targets to be fulfilled were as follows:

To narrate the present scenario of M-banking in Bangladesh.
To identify prospect of mobile banking in Bangladesh.
To provide precise knowledge of M-banking and its infrastructure.
To identify the usage rate and satisfaction level of M-banking customers,
To gain practical knowledge in banking sector of our country
To highlight some recommendations for rendering M-banking services
effectively.
1.3 Methodology of the study
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To make the Report more meaningful and presentable, two sources of data and
information have been used widely. Both primary and secondary data sources were
used to generate the report.
1.3.1Primary Sources
Primary data are root level data and are collected without correction. These data were
collected by
Face to face conversation with customer as well as employee

By observing various organizational procedures
1.3.2. Secondary sources:
Secondary data has been collected from :

Annual reports
Different publication material
Web site
Books and material
Different libraries,
and the hand note of the various seminars.
1.3.2.1 Research Design
This is basically an observatory study of Mobile Banking in Bangladesh. In addition

to that, the author has interviewed some key personnel to gain valuable insight about
other department.
1.3.2.1.2 Sampling Method

I have used convenient sampling method among the Face to face conversation with
customer as well as employee
1.3.2.1.3 Target population:

Customer as well as employee of some selected bank are the target population.
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1.4 Scope of the report
The scope of the study of limited to the issues related to the Mobile Banking in
Bangladesh. The research paper on will focus only on the banking facility provider of
the country through Mobile network.
1.5 Limitations
The major limitations of this study are:
Sufficient records, publications were not available as per my requirement.

Time constraint.
Non-cooperative behavior of some officials of the bank.
Lack of opportunity to work in all the departments for a longer time.
Up to date data are not available.
Lack of opportunity to visit more than one branch as well as Mobile Banking
Agent.
Customers are not free to interview long time.
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CHAPTER : 2
Overview of Mobile Banking
2.1 Mobile Banking

Mobile banking is usually defined as carrying out banking business with the help of
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mobile devices such as mobile phones or personal digital assistant(s) (PDAs) (Georgi
& Pinkl, 2005)
Baten (2010) has analyzed economic prospects of e-banking and explained the
present scenario of banking sector in Bangladesh and also tried to demonstrate the
scope and benefits of e-banking compared with the existing system. He tried to
present actual situation of e-banking in the marketing point of view in Bangladesh.
The results of his study show that e-banking serves several advantages to Bangladeshi
banking sector. The study also shows that the Bangladeshi customers do not have
enough knowledge regarding e-banking rendered by banking sector in Bangladesh.
Despite huge prospects, only a few banks adopted mobile banking in Bangladesh
during the last few years.
Avasthi and Sharma (2000 - 2001) point out that advances in technology are set to
change the face of banking business, technology has transformed the delivery
channels by banks in retail banking and the technology based services has impacted
the markets of banks. The study also explored the challenges that banking industry
and its regulator face.
Bhasin (2001) analyzed the impact of IT on banking sector. It has transformed the
repetitive and overlapping systems and procedures into simple single key pressing
technology resulting in speed, accuracy and efficiency of conducting business and
enabling them to enter into the new activities.
Uppal (2010) has analyzed the explosion of mobile banking in Indian banking
industry where cell phone users are increasing at a very high rate. On the basis of
analysis, he concluded that the private sector banks are on the top in providing the M-
banking services to their customers and have high profitability as compared to other
bank groups under study except foreign banks. He also highlighted the benefits of m-
banking to customers as well as to bankers and suggests some strategies with the
requested actions like spreading awareness regarding m-banking and increasing its
area and scope to enhance m-banking services in India, particularly in rural and semi-
urban areas.
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Husain (1988) also highlighted the importance of IT in various sectors. Various

organizational, financial and functional problems are faced in the initial stages.
Introduction of any new technology or system People are generally reluctant to accept
new system, howsoever beneficial it may be. This aspect and many other issues,
involved in computerization have been critically and vividly discussed.
According to Pathrose (2001), banking throughout the world is undergoing a rapid

and radical transformation due to the all pervasive influence of IT and breath taking
developments in the technology of telecommunications and electronic data
processing. The winds of change are blowing in Bangladesh too. Rao (2002) analyzed
the impact of new technology on banking sector. The technology is changing the way
the business is done and opened new vistas for doing the same work differently in
most cost effective manner. Tele-banking and internet banking are creating such
opportunity that branch banking may give to home banking.
Shastri (2001) analyzed the effect and challenges of new technology for banks.
Technology has brought a sea of change in the functioning of the banks. The earlier
manual system of preparing of vouchers and other activities is being replaced by
automation thereby saving a lot of time and effort. The use of ATMs and introduction
of e-banking network have significantly scenario.
Saxena (2000) also analyzed the importance of IT in the banking sector. According to
him, the future promises are even more exciting, interesting and challenging. The
internet has enabled us to talk to each customer individually, with different needs and
requirements. The IT will affect the productivity and profitability of the banks.
Vageesh (2000) highly appreciated the new private sector banks which have adopted
IT. The new private sector banks with their state-of-the-art technology and grandiose
plans to make inroads into e-banking are now darlings of the stock markets. Banks
like HDFC and ICICI are foraying into net banking offering great convenience to
customers on one hand and results in lower transaction cost for the banks on the other
hand.
Janki (2002) analyzed how technology is affecting the employees productivity. He
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started that there is no doubt, technology to improve operating efficiency and

customer services in Bangladesh particularly public sector banks. Georgi and Pinkl
(2005) defined Mobile Accounting as transaction-based banking services that revolve
around a standard bank account and are conducted and/or availed by mobile devices.
Wikipedia (2008) identified interoperability, security, scalability and reliability,
application distribution, personalization as key challenges in developing a
sophisticated mobile banking application.
Islam (2005) explained the present scenario of banking sectors in Bangladesh and at
the same time he demonstrated the scope and benefits of E-banking compared with
the existing system. Then a feasible proposal has been made by using partial
utilization of the backbone network owned by Bangladesh Railway. He found out the
efficiency, security of the proposed infrastructure under various situation. WAP is a
non-proprietary (open), global standard that was introduced in its first version WAP
1.0 in 1998. It has been developed by the WAP Forum, a consortium of leading
manufacturers of mobile phones including Ericsson, Motorola and Nokia (WAP-
Forum, 2001).
However, there are several issues including the lack of adequate legal framework and
security of mobile transactions which tend to hamper the continued progress of
developing this sophisticated mobile banking application. Due to the issues raised in
this section and the importance of mobile banking, it is important that a study is
carried out to identify the prospects and challenges of mobile banking in a developing
country like Bangladesh.
2.2 History of Mobile Banking in Abroad

Improving access to financial services, such as savings, deposits, insurance and
remittances, is vital to reducing poverty. Savings can help poor people to invest in
productive assets like livestock, a Joan may help to expand business activities and
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insurance can provide income for a family if a bread. winner becomes sick,. In many
developing countries, however, of 10 people do not have a bank account or access to
basic financial services. Poor people are often not considered viable customers by the
formal financial sector as their transaction, are small, and, many live in remote areas
beyond the teach of hanks branch networks. Informal banking services such as
microfinance .and village savings and loan. associations remain limited in their teach,
The fist mobile banking and payment initiatives were announced during 1999 (the
same year that deployed their first prototype). The first major deployment was made
by a 'company called Pay box (largely supported financially by Deutsche Bank). The
company was founded by two young German's and successfully deployed the solution
in Germany, Austria, Sweden, Spain and the UK. At about 2.003 more than a million
people weie registered on Pay box and the company were .rated by Gartner as the
leader in the field. Unfortunately Deutse he Bank withdraws their financial support:
and the company had to reorganize quickly. Ail but the operations in Austria closed
down. Another early starter and also identified as a leader in the field was a Spanish
initiative (backed by BBVA and. Telephoiiiea), called MoM Pago, The name was later
changed to Mobi Pay and all banks and mobile. operators in'Spain were invited to
join. The product was launched in 2003 and many retailers acquired to accept the
special USSD(Unstructured supplementary service data) payment confirmation.
Because of the complex shareholding and the constant political challenges of the
different owners, the product never fulfilled the promise that it had. With no
marketing support and no compelling reason lor adoption, this initiative is floundering
at the moment. Many other large players announced initiatives and ran pilots with big
fanfare, but never showed traction and all initiatives were ultimately discontinued.
Some of the early examples are the famous vending machines at the Helsinki airport
supported by a system from Nokia, Siemens made announcements in with listed and
high-flying German e-commerce company, Brofcat. Brokat also -won the lucrative
Vodafone contract to 2002, bat crashed soon afterwards when it runs out of funds.
'Israel {as can be expected) produced a large number of mobile payment start-ups. Of
the many, only one survived. Trivnet. Others like Adam tech (with a technically
sound solution called. Cell pay) and Pay disappeared after a number of pilots bit
without any successful production deployments. Initiatives in Norway, Sweden and
France never got traction. France Telecom launched m ambitious product based on a
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special mobile phone with an integrated card reader. The solution worked well, but
never became popular because of the unattractive, special phone that participants
needed in order to perform these payments. Since 2004, mobile banking and payment
industry lias come of age. Successful deployments with positive business cases and
big, strategic Impact have been seen recently.
2.3 Mobile Banking in Bangladesh

There are around 151.82 million people in Bangladesh according to , 2016 which only
13 percent have bank accounts whereas more than 95 percent are mobile phone users.
Banks can now offer the banking services to both the rural community and the
population (without banking transaction) through mobile pho Mobile banking in
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Bangladesh continues to grow fast, scaling a new height last year with 53 percent
growth year-on-year.
In 2015, the industry saw Tk 157,773.31 crore in transactions through mobile phones
-- the amount being more than half the country's national budget, according to a report
of Bangladesh Bank. In 2014, the mobile banking industry saw Tk 103,155.37 crore
in transactions. People are becoming increasingly comfortable with the banking
platform, analysts said. The average monthly transactions made through mobile
phones stood at more than Tk 13,147.77 crore last year, rising from Tk 8,596.28 crore
in 2014.
In the last couple of years, we have observed that people at the bottom of the
pyramid are also massively taking part in economic activities and that volume is
increasing significantly every day. This contribution directly impacted the transactions
in mobile banking, said Subhankar Saha, a BB executive director. The central bank
said the volume is quite natural and there is scope for further growth. Saha, who is
also the BB spokesperson, said they are expecting more than 30 percent growth in
2016. The central bank plans to strengthen security measures this year, Saha added.
There are about 3.19 crore mobile banking accounts and this figure will increase in
the coming days; the total volume of transactions will also rise, he said.
Of the total accounts, only 1.25 crore are active users, according to the BB report.
People are mainly using this modern banking channel to transfer money domestically.
But the opportunities to use this channel to deposit government fees and charges and
make purchases are yet limited, he said. Last year, the sector saw Tk 27,879.56 crore
in person-to-person money transfers, and the amount was only 17.67 percent of the
total transaction. The figures for business transaction, salary disbursement, and bills
payments were also nominal. Saha said entrepreneurs have to work in these areas.
However, the market leader in mobile financial services -- bKash -- said customer-
centric products along with the trust and confidence of common people have helped
the sector grow.
Besides fund transfer services, we are offering 'buy airtime' for mobile top-up,
merchant payments at shops, salary disbursement and different collection solutions
for corporate customers, which have contributed to our growth, said Zahedul Islam,
the spokesperson for bKash. Earlier in a report USAID said Bangladesh has a rapidly
growing mobile financial service industry, accounting for more than 8 percent of the
total registered mobile money accounts globally. The country launched such products
in 2011 and in five years, the market hit the highest position in the world so far.
Currently, 28 banks have approval for offering mobile financial service although 20
launched operations so far. Two leading operators hold around 90 percent market
share. Mobile banking refers to a system that enables bank customers to access
accounts and general information on bank products and services through Mobile
devices.
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2.4 Advantages of Mobile Banking

The biggest advantage that mobile banking offers to banks is that it drastically cuts
down the costs of providing service to the customers.
You can make transactions or pay bills anytime. It saves a lot of time.
Mobile banking thorough cell phone is user friendly. The interface is also very
simple. You just need to follow the instructions to make the transaction. It also
saves the record of any transactions made.
Banking through mobile reduces the risk of fraud. You will get an SMS
whenever there is an activity in your account. This includes deposits, cash
withdrawals, funds transfer etc. You will get a notice as soon as any amount is
deducted or deposited in your account.
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Banking through cell phone benefits the banks too. It cuts down on the cost of
tele- banking and is more economical.
Mobile banking through cell phone is very advantageous to the banks as it

serves as a guide in order to help the banks improve their customer care
services.
Banks can be in touch with their clients with mobile banking.
Banks can also promote and sell their products and services like credit cards,
loans etc. to a specific group of customers.
Various banking services like Account Balance Enquiry , Credit/Debit Alerts,

Bill Payment Alerts, Transaction History, Fund Transfer Facilities, Minimum
Balance Alerts etc. can be accessed from your mobile.
You can transfer money instantly to another account in the same bank using
mobile banking.
Mobile banking has an edge over internet banking. In case of online banking,
you must have an internet connection and a computer. This is a problem in
developing countries. However, with mobile banking, connectivity is not a
problem. You can find mobile connectivity in the remotest of places also
where having an internet connection is a problem.
Mobile banking is helping service providers increase revenues from the now
static subscriber base.
Service providers are increasingly using the complexity of their supported mobile
banking services to attract new customers and retain old ones.
A very effective way of improving customer service could be to inform customers

better.
The biggest advantage that mobile banking offers to 'banks is that It drastically cuts
down the costs of providing service to the customers. For example an average teller or
phone transaction costs about $2,36 each, whereas an electronic transaction costs only
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about $0.10 each. Additionally; this new channel gives the hank ability to cross-sell
then- other complex banking products and services such as vehicle loans, credit cards
etc.
For service provides, Mobile banking offers the next surest way to achieve growth.
Countries like Korea where mobile penetration is Hearing saturation, mobile banking
is helping service providers increase revenues from the now static subscriber base.
Service providers are increasingly using the complexity of their supported mobile
banking services to attract new customers and retain old ones,
A very effective way of improving customer service could IK. to inform, customers
better. Credit card fraud is one such area, A bank could, through the use of mobile
technology, inform owners each time purchases above a certain value have been made
oil their card. This way the owner is always informed when their card is used, and
how much money was taken for each transaction. Similarly, the bank could remind
customers of outstanding loan repayment dates, dates for the payment of monthly
installments or simply tell them that a bill has been presented and is up fur payment.
The customers can then click their balance on the phone and authorize the required
amounts for payment. The customers can also request for additional information.
They can automatically view deposits and withdrawals as they occur and also pre-
schedule payments to be made or cheques to be issued. Similarly, one could also
request far services; like stop chieque or issue of a cheque book over one's mobile
phone.
There are number of reasons that should persuade 'banks in favor of mobile phones.
They are set to become a crucial part of the total banking services experience for the
customers. About, they have the potential to bring down costs for the bank itself.
Through mobile messaging and other such interfaces., banks provide value added
services to the customer at marginal costs
2.5 Why Mobile Banking is Necessary:
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In low income people, m-banking may enable to use such kind of Banking where
Banking facilities cant reach till now the cost and safety of using m-banking is
comparatively low.
M-banking potentially brings new Customer where banking sector is running as like
as dog for there product marketing; these may be stronger than retail banks and better
placed to reach out to un-banked customers.
M-banking is still very new, whereas other forms of e-banking are quite well
established; the potential to influence and adapted to the customer may be higher
compare to former banking because a lot of people use mobile phone in our country
2.6 Mobile banking process:
2.8 Why PIN is required?

PIN is required to be inputted during cash withdrawal from an Agent or ATM. PIN ensures
security of your money and protects fraudulent transaction.
2.8.1. Why PIN is strictly confidential?
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PIN is the key for transaction of Mobile Banking. Only correct match of PIN & Mobile
Number can access the Mobile Account. PIN is needed to verify the A/C owner by the
system. If a PIN is disclosed, respective account is at risk; therefore, PIN should be handled
very carefully.
2.9 Why check digit?
Mobile number is public and known to many people. Without knowing your check
digit, none will be able to deposit money at your account, thus it helps to keep your
mobile account confidential. On the other hand, a check digit eliminates typing error,
thus protects sending or depositing money to a wrong account.
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CHAPTER: 3
Prospect of Mobile Banking of Bangladesh
3.1 Prospect of Mobile banking in Bangladesh
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Mobile Ban king is a Banking process without bank branch which provides financial
services unities efficiently and at affordable cost. The aim of the service is to bring
more people under the umbrella of banking service, Bangladesh Bank governor Dr
Atiur Rahman inaugurated the service through deposit and withdrawal of money from
two banking outlets in the city. Government thinks it has a great prospect as, it is a
new technology HI digital Bangladesh. But in Bangladesh many people think
traditionally, because they cannot think it has any facility to use mobile banking. 69%
people feel mobile banking has prospect in Bangladesh whereas 31 % think it has no
prospect in Bangladesh as many people will not feel interest or have belief mobile
banking. Increasing faster transmission via GPRS 3G technology to be lunched soon
in Bangladesh is expected to bring in a mobile revaluation. Users are slowly getting
used to the concept of mobile in hand held device as digital cash or wallet to carry out
purchase. Presently low value M-commerce transecting are happening. To extent low
cost banking services to existing clients & un-banked individuals especially in rural
areas.
3.2 Present Scenario of Mobile Banking in Bangladesh:

In Bangladesh, multinational banks are operating for long there is a
significant number of nationalized, and private commercial banks and specialized
banks. Multinational banks are said to offer better services than others. In order to
improve performance, some banks have started mobile banking service.
Name of Banks Mobile service operators
Brac Bank GP, Robi.
Dhaka Bank GP, Banglalink.
Bank Asia GP, Banglalink, Robi, TeleTalk.
Premier Bank GP, Citycell, Robi, TeleTalk.
Dutch-Bangla Bank GP, Citycell, Robi, TeleTalk.
Trust Bank GP.
Islami Bank S.S.L. Wireless
3.3 Objective of Mobile Banking:
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Around 87% of the total population of Bangladesh is un-banked. To bring such a huge
population into the banking channel, DBBL is implementing a system to launch
mobile banking soon. The project is in its final stage now. With this facility any
person having a
mobile number will be able to use his number as a bank account. In this mobile
account they will be able to do the following:
Cash deposit to any Agent

Cash withdrawal from any Agent
Cash withdrawal from ATMs
Funds transfer to another mobile account
Utility bill payment, Tuition fee payment, Air time top-up.
Receive remittance from home and abroad
Salary disbursement
Disbursement of Govt. allowances
Merchant Payment
Balance Inquiry
3.4 Agent Networks:

MFS agents are the last mile delivery point for the customers. They facilitate
customer registration and cash-in/ cash-out transactions. Most of the providers
provide a commission ranging from BDT 20- 25 to agents for signing up new
customers. Agents also coordinate with the branches of the partner banks to process
customer documentation, although in some cases, distributors or super agents are
taking over this responsibility.
Table: Status of Agent, Bank branch & ATMs
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Number of Bank
Provider agents branches ATMs
bKash 135,000 155 300
DBBL Mobile Banking 116,000 136 3,005
mCash 862238 294 450
Mobile Banking 95274 100 720
UCash 105000 156 103
IFIC Mobile Banking 88891 120 49
Trust Bank Mobile Money 20000 152 152
Note: Includes 65,000 MobiCash agents .Includes 61,241 MobiCash agents .ncludes
300 FastTracks(Accordingly source UASID based on mfsinbangladesh Feb 2015)
The total value of monthly transactions made through mobile phones stood at $1.42
billion or Tk 11,104 crore in February 2015, according to the study, 'Mobile Financial
Services in Bangladesh.
Of the amount, cash-in transactions accounted for $595 million, cash-out $523 million
and person-to-person $265 million.
Table: Market share by subscribers as of Feb 2016:
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Service provider %
bKash 58%
DBBL 16.60%
Mcash 8.50%
Ucash 7.70%
My Cash 3%
Other 6.10%
Accordingly USAID Report wise Feb 2016.
As per Bangladesh Banks reports, at the beginning of 2013, the total number of
agents was 60,000. At the end of February 2015, that number reached more than
540,000. the number of total unique agents would actually only be 180,000. In terms
of agent numbers, bKash is the market lead, followed by DBBL. The majority (57%)
have been agents for one year or less, which is common in high growth markets. This
can be attributed primarily to the recent expansion in MFS, including increased
competition in a market which is still dominated by a single player. According to
recent research conducted by the Helix Institute of Digital Finance, 86% of agents
stated that they foresee themselves continuing as agents in a year, indicating high
level of satisfaction.19 Furthermore, their research indicated that most of the agents in
Bangladesh are non-dedicated and have alternate revenue streams beyond what they
earn from being an MFS agent.
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3.5 Overview of bKash

bKash Limited (a subsidiary of BRAC Bank) is a joint venture between BRAC Bank
Limited, Bangladesh, and Money in Motion LLC, USA. The ultimate objective of
bKash is to ensure access to a broader range of financial services for the people of
Bangladesh. It has a special focus to serve the low income masses of the country to
achieve broader financial inclusion by providing services that are convenient,
affordable and reliable.
More than 70% of the population of Bangladesh lives in rural areas where access to
formal financial services is difficult. Yet these are the people who are in most need of
such services, either for receiving funds from loved ones in distant locations, or to
access financial tools to improve their economic condition. Less than 15% of
Bangladeshis are connected to the formal banking system whereas over 50% has
mobile phones. These phones are not merely devices for talking, but can be used for
more useful and sophisticated processing tasks. bKash was conceived primarily to
utilize these mobile devices and the omnipresent telecom networks to extend financial
services in a secure manner to the under-served remote population of Bangladesh.
Mission
By providing financial services that are convenient, affordable and reliable, bKash
aims to widen the net of financial inclusion. bKash wants to provide a solution for
mobile financial services, built on a highly scalable mobile money platform, allowing
people of Bangladesh to safely send and receive money via mobile devices.
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Benefits
Fast
bKash is dedicated to widening the net of financial inclusion among the people of
Bangladesh by facilitating money transfer through mobile phones. bKash provides
mobile financial services allowing customers to send, receive, and pay money from
their mobile phones.
Send and receive money, or make payments the fastest way there is! bKash enables
you to send money to anyone, using an advanced technology available on your own
mobile phone. The recipient will receive money instantly, no matter where s/he is.
Payments through bKash also makes your life easier as you do not have to go back
home or anywhere else for bringing cash when you need to buy something if you are
out of cash. Even if you don't have the required amount in your bKash Account,
someone else can easily send you the amount in times of need.
Affordable
Send or receive money with minimal effort and cost. bKash provides the highest
benefit to its customers at an affordable cost, enabling everyone to access the formal
financial system of the economy. bKash is for everyone, and we do not distinguish
among our customers.
Secure
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Money in your bKash Account won't be lost even if you lose your mobile phone.
Every transaction is protected by your very own PIN and what's more, state-of-the-art
technology provided by VISA ensures your money is always safe and secure in our
system. bKash is a BRAC Bank subsidiary fully authorized by Bangladesh Bank to
provide mobile financial services throughout the country.
Convenient
Easy, no queues, no waiting, bKash is the most convenient way of transferring money
anytime, anywhere. You can now send money instantly staying at home just by
pressing a few buttons on your mobile phone. Sending money has never been this
easy!
Nationwide
No matter where you are in Bangladesh, bKash is always with you. The service is
supported by the mobile networks of all leading telcos, and over 35,000 Agents, all of
which assures availability of bKash services even in the remotest areas of Bangladesh.
Bill & Melinda Gates Foundation
Guided by the belief that every life has equal value, the Bill & Melinda Gates
Foundation works to help all people lead healthy, productive lives. In developing
countries, it focuses on improving peoples health with vaccines and other life-saving
tools and giving them the chance to lift themselves out of hunger and extreme
poverty. In the United States, it seeks to significantly improve education so that all
young people have the opportunity to reach their full potential. Based in Seattle,
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Washington, the foundation is led by CEO Jeff Raikes and Co-chair William H. Gates
Sr., under the direction of Bill and Melinda Gates and Warren Buffett.
Fundamo, a Visa company
Fundamo is a wholly owned subsidiary of Visa Inc. and a leading platform provider of
mobile financial services for mobile network operators and financial institutions.
Fundamo's Enterprise Mobile Financial Services platform has been deployed in more
than 40 countries across Africa, Asia, and the Middle East, offering mobile financial
services for person-to-person payments, bill payments, wireless airtime top-up, and
ticketing. Fundamo is headquartered in Cape Town, South Africa.
Shore Bank International
Shore Bank International delivers a broad range of financial services to financial

institutions and their funders globally, dedicated to expanding access to capital for
small businesses, entrepreneurs and households. The international consulting firm SBI
partners with bKash to provide services at a large scale that will allow low income
people in Bangladesh access to Financial Services. SBI received a $10 million grant
from Bill and Melinda Gates Foundation
3.6 Overview Rocket
Dutch-Bangla Bank pioneered Mobile Banking in Bangladesh. It was the first bank to
offer banking facilities through a wide range of mobile phones. Rocket is a Banking
process without bank branch which provides financial services to unbanked
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communities efficiently and at affordable cost. To provide banking and financial

services, such as cash-in, cash out, merchant payment, utility payment, salary
disbursement, foreign remittance, government allowance disbursement, ATM money
withdrawal through mobile technology devices, i.e. Mobile Phone, is called Rocket.
Benefits of Rocket
Real time on-line banking
Real time on-line banking, online banking available anytime, anywhere throughout
the country. Dutch-Bangla Bank Rocket currently allowing customers with some
essential services likes Customer Registration, Cash-in (cash deposit) , Cash-out (cash
withdrawal), Mobile Top-up, Person to Person Transfer (P2P) , Foreign Remittance,
Salary Disbursement, Balance Inquiry, Bill Payment, Merchant payment.
Access to banking and advanced payment transactions at affordable cost
Dutch-Bangla Bank Rocket makes access to banking and advanced payment

transactions at affordable cost from the authorized agent point in anywhere in the
country. The service is faster than other forms of banking services and includes the
people even of the remote areas.
Convenient and secure way to send money
Dutch-Bangla Bank Rocket is convenient and secure way to send money and It is
much safer, speedy and safeguard against fraudulent transactions. Customer's money
is safe as no one can withdraw or deposit unwanted money without taking possession
of the mobile set, PIN and the check digit all together.
Much more effective in developing savings habit
Dutch-Bangla Bank Rocket is much more effective in developing savings habit.
Customer Service Flow
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3.7 Overview UCash:

UCashe brand name of mobile financial services offered by United Commercial Bank
Limited (UCBL). In addition to core mobile financial services like cash-in, cash-out,
and person-to-person transfers, UCash offers various kinds of value added services
including rail ticket purchases, internet bill payments, merchant payments, cash
collection, salary disbursements, international remittances, and school fee payments.
UCash also offers a 4% annual percentage rate on deposits kept in mobile wallets,
which is disbursed at the end of the each month. Users can access UCashs menu by
dialing *268# from their mobile phone. UCash also has a dedicated call center
(16268) to respond to customer queries.
nationwide Additional details Subscribers 1,200,000+ Agents 105,000+ Includes
40,000+ of their own agents and 65,000 MobiCash agents ATMs Not applicable
While UCBL has 102 ATMs nationwide, UCash customers currently cannot use them
for transactions Full service branches 156 Across Bangladesh Partial service offices
None Merchants 500+ Across Bangladesh .
Pricing structure and limitations: Action type Corporate accounts Limitations End-
user (P2P) Limitations Opening an account Free None Free Applicant must be above
18 years with valid photo ID Cash in Free None Free BDT 25,000/day 5 times/day
BDT 150,000/month 20 times/month Collection 1% to 2% (negotiable). Cash out
from agent the charge is 1.8% BDT 25,000/day 3 times/day BDT 150,000/month
10 times/month Cash out from ATM N/A. Cash out from Bank Branch not acceptable.
Transfer money Free None BDT 5/transfer BDT 10,000/day 20 times/day BDT
25,000/month 50 times/month Merchant payments 0.35% to 0.80% (negotiable) . Free
None Mobile Top up They are planning to introduce this option.
3.8 MCash Overview:
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mCash, which is operated by Islami Bank Bangladesh Limited, offers a range of

products and services, including cash transfers between individuals (P2P) and
between businesses/organizations and individuals (B2P), fund transfer between bank
accounts to/from mobile accounts, student fee payments, salary disbursements and
withdrawals, bill payments, merchant payments, airtime purchases, and international
remittance payments. Its accounts are set up in accordance with Mudaraba Principles
of Islamic Shariah. Each account is tied to an individual SIM card number and can
only be accessed by the user through their personal PIN. To access their account,
users can dial *259# on any Robi, Airtel & Banglalink and GP SIM card for a USSD
menu (currently only available in English).
Opening an account FREE. Cash in FREE No limits FREE BDT 25,000/day 5

times/day BDT 150,000/month 20 times/month Collection 1.30%* corporate
collection settlement charge No limits Cash out from agent 1.80% charge will be
automatically deducted from mCash Account. BDT 25,000/daily 3 times/day BDT
150,000/month 10 times/month Cash out from ATM 1.00% charge will be
automatically deducted from mCash Account Between BDT 2,000 to 20,000 3
times/day BDT 150,000/month 10 times/month Cash out from Bank Branch FREE
No limits 1.80% charge will be automatically deducted from mCash Account. BDT
25,000/daily 3 times/day BDT 150,000/month 10 times/month Transfer money
FREE No limits BDT 4.00/transfer BDT 10,000/day 20 times/day BDT
25,000/month 70 times/month UnlimitedMerchant payment FREE.Mobile Top up
option0/day BDT 1,000/time BDT 100,000/month currently running a deposit
scheme for their registered 354,000 customers from all over the country. As part of
this scheme, they have established 7,000 distribution points to support enrolmentall
of whom they have decided to register as mCash agents. Number nationwide
Additional details Subscribers (Active) 1,200,000+ Country wide coverage Agents
90,000+ Country wide coverage, includes both mCash agents and third party agents
ATMs 400+ Only Islami Bank Bangladesh Limited ATM booths can be used to cash
out using mCash. The geographic coverage is found in major cities in Bangladesh.
Full service branches 286 Country wide coverage Partial service offices IBBL Head
Office All types of support and logistical services for corporate clients Merchants
100+ Mainly in greater Dhaka city
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3.9 Overview of SureCash
SureCash is the leading payment platform for mobile phone users in Bangladesh.
Using this platform, a customer can make and receive various payments such as
education fees, utility bills, online purchase and personal remittance using own phone.
Currently SureCash is working with 6 local banks: First Security Islami Bank,
Bangladesh Commerce Bank, National Credit and Commerce Bank, Jamuna Bank,
National Bank and Rupali Bank. The service works with 550 payment partners and
more than 100,000 retail agents.
SureCash is powered by Progoti Systems Limited, a Canada-Japan-Bangladesh joint

venture. SureCash is the winner of Bangladesh Bank 'Award of Excellence'.
3.10 My Cash Overview:
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My Cash service of Mercantile Bank Limited, offers a range of products and

services, including cash transfers between individuals (P2P), cash transfers from
businesses/organizations to individuals (B2P), bill payments, merchant payments,
airtime purchases, deposit premium scheme (DPS) savings, collections, bank deposits,
and international remittances. Money can be deposited into and withdrawn from
mobile accounts at any of Mobile Bankings 64,000+ agent locations across
Bangladesh. Accounts are tied to individual SIM card numbers and can only be
accessed by the user through their personal PIN. Users dial *225# on any mobile
network to access their account through USSD (currently only in English).
Opening an account FREE.ash in FREE BDT 25,000/day 5 times/day BDT
150,000/month 20 times/month Collection 0.25% Corporate Collection Settlement
Charge free out from agent 0.925% or 1.85% will be deducted from individuals
Mobile Banking account BDT 25,000/day 3 times/day BDT 150,000/month 10
times/month Cash out from ATM FREE Between BDT 500 and 20,000 FREE or
2.00% will be deducted from individuals Mobile Banking account Between BDT
2,000 to 20,000/day 3 times/day BDT 150,000/month 10 times/month Cash out
from bank branch 0.925% will be deducted at BDT 150,000 Mrcantile Bank
Branches .Transfer money Corporate Disbursement Charge: Free None BDT
5/transfer BDT 10,000/day 20 times/day BDT 25,000/month 70 times/month.
Merchant payment FREE BDT 10,000/day BDT 1,000/time BDT 100,000/month
Mobile top up FREE all operator.
Country wide coverage 100,000+ Subscribers (Active) Country wide coverage
64,000+ Agents Own agent of Mobile Banking Mobile Banking account holders can
only cash out at Mercantile Bank 120+ ATMs ATM booths, which are found in major
cities Country wide coverage 90+ Full service branches Country wide coverag 160+
Partial service offices The merchants mostly sell lifestyle products, air/bus tickets,
and 100+ Merchants entertainment services
3.11 State of Mobile Networks

The total number of mobile phone subscribers in Bangladesh reached more than 122
million at the end of February 2015a rate which is growing at approximately 10%
each year.12 Almost all connections are prepaid (97%) and using 2G (98%).The
launch of 3G mobile service in late2012 brought with it the prospect of rapid
Page | 31
expansion of internet and mobile app access across the country. That said, as of Q4
2014, a mere 6% of mobile subscribers were using 3G mobile broadband, although
that number grew at a rate of 232% over the past year.13 Mobile internet, however,
has reached more than 40% penetration by delivering mobile data services using 2G
networks.
Mobile Subscriptions (As of January 2016)
3.12 Mobile Account opening procedure in a flow chart
The authorized officer

scrutinized the
introduction and
examine the documents
submit
Page | 32
Applicant fills up He/ she is required

the relevant to fill up the
application form in specimen signature
the prescribed
manner
Depositing the cash
Account is opened
3.13 Necessity
A person who wants to open an account he/she should have some documents to open
an account, these are-
1. 2 copies PP size photo of Applicant

2. Photocopy of National ID Card
3. 100 take as account opening charge.
3.14 State of Mobile Financial Services

Following several years of deliberations and ad hoc permissions on mobile financial
services, the Department of Currency Management and Payment Systems of
Bangladesh Bank, the countrys central bank, issued Guidelines on Mobile Financial
Services (MFS) for the Banks on 22 September 2011 which were subsequently
amended on 20 December 2011.15 In the few years since the launch of the MFS
Page | 33
guidelines, the sector has shown significant growth (see chart on the following page
for key indicators). As Bangladesh is a bankled model, all of the MFS products on the
market are run by banks or their subsidiaries. Bangladesh Bank has allowed 28 banks
to offer MFS, of which 19 banks have already
started to work on their MFS products in some capacity. Detailed discussions with the
majority of those banks, however, have revealed that only 10 of them have gone
operational and are providing MFS on any sort of scale. The remaining banks are still
working on finalizing their transaction platforms, terms of engagement with partners,
business model, and strategies.
Those banks (also referred to as MFS providers) that already have MFS products on
the market include:
1. Rocket by Dutch-Bangla Bank Limited
2. bKash by BRAC Bank Limited
3. mCash by Islami Bank Bangladesh Limited
4. Mobile Banking by Mercantile Bank Limited
5. UCash by United Commercial Bank Limited
6. IFIC Mobile Banking by IFIC BankLimited
7. Trust Bank Mobile Money by TrustBank Limited
8. OK banking by ONE Bank Limited
9. FSIBL FirstPay SureCash by FirstSecurity Islami Bank Limited
10. Hello by Bank Asia Limited
3.15 Current Competitive Landscape

bKash currently dominates the MFS space accounting for more than half of the
market followed by DBBL with about one-sixth of subscribers. The remaining eight
providers with live services currently account for around a quarter of the total market
share. The focus of these key players have been on expanding their outreach through
utilization of existing resources (i.e. ATMs, branch offices) and the acquisition of
agents across the country. The main population target of providers has been the
unbanked and under banked. bKash has played a significant role in creating the
market and building awareness to the extent that some people refer to bKash to mean
all mobile financial services. The growth of the market has largely benefited from
domestic remittances. The most popular transaction types are cashin (42% of total
Page | 34
transactions), cash-out (37%) and person to person (P2P) transaction (19%).16 As of

February 2015, cash-in transactions totaled US$ 595 million, cash-out transactions
totaled US$ 523 million and P2P transaction accounted for US$ 265 million.
3.16 Market Trends

Pricing: The table on the following page provides a comparison of the prices of the
main services from the nine MFS providers for which data was available (either
publicly or through interviews). While the available services are mostly similar, in
some cases the providers have taken a different pricing strategy. At the moment, there
is no cost for opening a mobile account with any of these providers. Five of the nine
are providing cash-in at either an agent or bank branch for free; for those providers
that charge for cash-in the fees range from 0.5 1%. Cash-out fees at agent points
range from 0.8% to 1.85% of the total amount. Among those providers that offer cash-
out at their ATMs, two of them offer the service free of charge, while two charge a
fee, whereas pricing strategies for cashing out at bank branches range from free, to a
flat fee, to a percentage charge. Unlike other markets where P2P transfer fees often
vary based on the size of the transaction, all of the providers surveyed in Bangladesh
charge a flat fee ranging from BDT 3 to BDT 5 (equivalent to US$0.03- 0.06). For
comparison sake, in Kenya any P2P transfers over about US$1 made on M-PESA, the
worlds most successful MFS deployment to date, the minimum cost is around
US$0.11 and can go up to as high as
Page | 35
US$1.17 for larger transactions Bill and merchant payments are free to the customer
across the providers highlighted, although the collection settlement fee paid by
business receiving these payments
ranges from 0.25% to 2%. In a move to counter-balance bKashs dominance in the
P2P and gain corporate users, a majority of providers are now offering free
disbursements for business to person (B2P) payments, compared to bKashs standard
charge of 0.5%.
3.17 Comparison of Service Charges between MFS Providers
Page | 36
Mobile banking is not simply another delivery channel but represents a fundamental
shift in the paradigm of consumer banking.
3.18 Reason of Genesis of M-Banking:

Introduction of new technologies
Control costs, removal of cost duplication
To increase online channel customers
Personalize customer interactions
Unparalleled convenience & proactive customer service
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3.19 Mobile Banking A New Business Models For Banking: Sector:

A wide spectrum of Mobile/branchless banking models is evolving. These models
differ primarily on the question that who will establish the relationship (account
opening, deposit taking, lending etc.) With the end customer, the Bank or the Non-
Bank/Telecommunication Company (Telco). Models of branchless banking can be
classified into three broad categories - Bank Focused, Bank-Led and Non Bank-Led.
The bank-focused model emerges when a traditional bank uses non-traditional low
cost delivery channels to provide banking services to its existing customers and new
customers in rural area where commercial bank can not reach till now
3.20 Limitation of Mobile Banking
Uncertainties over the speed and nature of customer adoption:

This is to be expected with any new offering, although the uncertainty is compounded
by the relative lack of knowledge of the needs of un-banked people in many places,
and the market potential. Consumer education may speed adoption; but more likely,
adoption on scale will happen as it has happened with mobile phones: by forced to
adapt their offerings as they encounter feedback in The market place. Therefore, it is
necessary to have sufficient providers in the market who Can remain in the market
long enough to ensure that to identify the elements of a successful model. Hence,
support to providers may assist in overcoming this barrier. Generally available
research into the patterns and needs of the un-banked target market may also help.
Lack of interoperability with existing systems: Interoperability of different

payment systems is primarily a question of market structure and regulation. It arises
initially only in markets where there is an existing payment infrastructure with which
new providers can inter-operate (and later on, once new infrastructure becomes the
standard). Without inter-operability, the fixed costs of deploying financial
infrastructure may be much harder to recover, since usage per item of proprietary
infrastructure will fall. Clearly, one solution may be to give regulators the power to
require interoperability; however, it may be sufficient to encourage the identification
of appropriate standard upfront. This could take place via support to regulators or
industry bodies, where these exist.
Page | 38
Regulatory barriers: Specific regulatory impediments vary by market; but in

general, a lack of openness to new models of provision and a lack of policy certainty
limit the potential of new models. Increasing openness and certainty may require
support to regulators to outline high level policy, as well as to amend existing
regulations or draft new ones where and when required.
The case for donor support therefore rests on removing barriers such as these, thereby
making it more likely that transformational models of m-banking will emerge at all, or
at least, sooner; and that they will develop more rapidly than otherwise would be the
case.
3.21 Challenges before Mobile Banking:

Reaching deeper into rural areas without costly investment in infrastructure.
Reducing the costs of servicing.
Interoperability
Security risks from robbery & holdup.
Scalability & reliability
Personalization
Customer education
Reduce cost of clients
High transecting cost
Lac of cash out late
Cost of cash in and out is high compare to interest rate on bank deposit
Marketing to convince more people
Merchants and Shops to accept M-cash in payment for goods and services.
Overcome initial security of customer money.
Interoperability:
There is a lack of common technology standards for mobile banking. Many protocols
are being used for mobile banking. It would be a wise idea for the vendor to develop a
mobile banking application that can connect multiple banks. It would require either
the application to support multiple protocols or use of a common and widely
acceptable set of protocols for data exchange. There are a large number of different
Page | 39
mobile phone devices and it is a big challenge for banks to offer mobile banking
solution on any type of device.
Security
Security of financial transaction, being executed from some remote location and
transmission of financial information over the air, are the most complicated
challenges that need to be addressed jointly by mobile application developers,
wireless network service providers and the bank's IT department.
The following aspects need to be addressed to offer a secure infrastructure for
financial transaction over wireless network:
* Physical security of the handheld device. If the bank is offering smart-card based
security, the physical security of the device is more important.
* Security of the thick-client application running on the device. In case the device is
stolen, the hacker should require ID/Password to access the application.
* Authentication of the device with service provider before initiating a transaction.
This would ensure that unauthorized devices are not connected to perform financial
transactions.
* User ID / Password authentication of bank's customer.
* Encryption of the data being transmitted over the air.
* Encryption of the data that will be stored in device for later / off-line analysis by the
customer.
Scalability & Reliability
Another challenge for the banks is to scale-up the mobile banking infrastructure to
handle exponential growth of the customer base. With mobile banking, the customer
may be sitting in any part of the world (a true anytime, anywhere banking) and hence
banks need to ensure that the systems are up and running in a true 24 x 7 fashion. As
customers will find mobile banking more and more useful, their expectations from the
solution will increase. Banks unable to meet the performance and reliability
expectations may lose customer confidence.
Page | 40
Application Distribution
Due to the nature of the connectivity between bank and its customers, it would be
impractical to expect customers to regularly visit banks or connect to a web site for
regular upgrade of their mobile banking application. It will be expected that the
mobile application itself check the upgrades and updates and download necessary
patches. However, there could be many issues to implement this approach such as
upgrade / synchronization of other dependent components.
Personalization
It would be expected from the mobile application to support personalization such as:
1. Preferred Language
2. Date / Time format
3. Amount format
4. Default transactions
5. Standard Beneficiary list
6. Alerts
Page | 41
CHAPTER: 4
Analysis and Findings
4.1 Demographic information analysis of the respondents
Page | 42
4.1.1 Table: Monthly Transaction status of Mobile Banking :
Month Transaction Total

SL Name Taka Customer Distrubition Agent
1 16-Jan 2900000000 850 85 250
2 16-Feb 2850000000 1200 82 210
3 16-Mar 3976000000 900 86 280
4 16-Apr 5200000000 1230 85 220

(Accordingly collect data from Mobile Banking own division)
4.1.2 Table: Pricing structure and limitations:
Corporate MM
Action type Accounts Limitations End-user Limitations
A bank account
with
Mercantile Bank
Limited
Opening an account Free is required Free Free
Cash-in only
available
at agent points
BDT 25,000/day
5 times/day
BDT
150,000/month
Cash-in Free N/A Free 20 times/month
Business to Person (B2P)
payment Free N/A N/A N/A
Collection 0.25% (negotiable) N/A N/A N/A
General: BDT 25,000/day
1.85%
Salaries: 3 times/day
Cash-out from agent N/A N/A 0.925% 10 times/month
General:
2.00%
Cash-out from ATM N/A N/A Salaries: Free Same as above
Cash-out from bank branch Free N/A 0.93% Same as above
BDT 10,000/day
20 times/day
BDT
Person to Person (P2P) BDT 5 per 25,000/month
transfer N/A N/A transaction 70 times/month
Merchant payment 1.50% N/A Free N/A
BDT 10 BDT
payment 1.50% N/A Free 10,000
N/A Mobile top-up N/A N/A Free per transaction
Page | 43
Free with the

exception
of
Grameenphone
customers,
who
MM account statement Free As per agreement pay BDT 2.
(Accordingly collect data from Mobile Banking own division)
4.1.3 Ages of the respondents:
Page | 44
Age No. of Respondents Percentage

20-30 44 44%
31-40 26 26%
41-50 17 17%
50> 13 13%
Total 100 100%
Table: 01 Age of the respondent
Figure: 01 Age of the respondents
Analysis: From the figure 01, it is evident that, among 100 respondents, 44% ( the
height portion) of the respondents belongs to the age group of 20-30. The lowest
portion 13% belongs to the age group of 50+. The second height 26% respondents
belong to the age between 31-40.
4.1.4 Genders of the respondents:
Page | 45
Gender No. of Respondents Percentage
Male 68 68%
Female 32 32%
Total 100 100%
Table: 02 Age of the respondents
Analysis: The total respondents were 100 in number and from the figure 02 it is evident
That, among 100 respondents 68 respondents were male and 32 were female.
4.1.5 Professions of the respondents:
Page | 46
Reason of A/C opening No. of Respondents Percentage
Required 53 53%
Attractiveness 14 14%
Facilities 21 21%
Near from my place 12 12%
Total 100 100%
Table: 03 Qualification of the respondent
Analysis: From the figure 03, it is evident that, among 100 respondents, 35%(the height
Page | 47
Portion) of the respondents belongs to the other professional like student. The lowest portion
10% belongs to Professional The second height 25% respondents belong to the Service
Holder
4.1.6 Reason for opening A/C:
Reason of A/C No. of Respondents Percentage

opening
Required 53 53%
Attractiveness 14 14%
Facilities 21 21%
Near from my 12 12%

place
Total 100 100%
Table: 04 Reason of Account opening of the respondents
Page | 48
portion) of the respondents belongs that they have require Mobile A/C. The lowest portion
12% belongs to the near from my place. The second height 21% respondents belong to the
Facility.
4.1.7 Education Level of respondents:
Education Level No. of Respondents Percentage
No Formal Education 9 9%
SSC 25 25%
HSC 38 38%
Graduate 12 12%
Post Graduate 16 16%
Total 100 100%
Table: 05 Education Level of the respondent
Figure: 05 Education Level of the respondents
Page | 49
portion) of the respondents belongs that they are HSC level. The lowest portion 9% belongs
that havent no formal education. The second height 25% respondents belong to the SSC
Level.
4.2. Responses analysis from the survey questionnaire:
Mobile Banking is new but modern:
Figure: 06 M-Banking new but modern of the respondents
Analysis: From the figure 9, it is evident that among 100 respondents, the highest
respondents 61 agreed with the statement that Mobile Banking is new but modern. The
second highest, 25 respondents also strongly believes that statements. For the data tables of
this analysis.
4.2.1 You feel safe in your transaction through mobile
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Figure: 07 seem safe trangection of the respondents
respondents41 agreed with the statement that You feel safe in your transaction through
mobile. The second highest,29 respondents also strongly believes that statements. For the data
tables of this analysis.
4.2.2 Call center services are always available when you require
Figure: 08 cell center service availability of the respondents
respondents 52 agreed with the statement that Call center services are always available when
you require. The second highest, 27 respondents disagree believes that statements. For the
data tables of this analysis.
Page | 51
4.2.3 The Cost of cash In and out is affordable in case of Mobile Banking.
Figure: 09 cost effective of the respondents
Analysis: From the figure 9, it is evident that among 100 respondents, the highest respondents
59 Strongly Disagreed with the statement that The Cost of cash In and out is affordable in
case of Mobile Banking. The second highest, 21 respondents also strongly Agree believes that
statements. For the data tables of this analysis.
4.2.4 Available agent and branch for m-banking
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Figure: 10 Available Agent of M-Banking
respondents 36 agreed with the statement that Available agent and branch for m-banking. The
this analysis.
4.2.5 M-banking is save your time
Figure: 11Save time of M-Banking
respondents 31 agreed with the statement that M-banking is save your time.The second
highest, 29 respondents also strongly believes that statements. For the data tables of this
analysis.
Page | 53
4.2.6 I feel safe in my transactions with this bank.
Figure: 12 Feel safe in Trangection of the respondents

respondents 50 agreed with the statement that I feel safe in my transactions with this bank.
The second highest, 21 respondents also strongly believes that statements. For the data tables
of this analysis.
Page | 54
4.2.7 Time taken to process of Mobile transaction of this bank is acceptable
Figure: 14 Trangection Time acceptance of the respondents
respondents 58 agreed with the statement that Mobile Banking is new but modern. The
this analysis.
4.2.8 In your experience, the approximate waiting time for cash in is
Page | 55
Figure: 15 waiting time of the respondent
Analysis: From the figure 25, it is evident that, among 100 respondent , the highest 38% waits
15 min, for deposit., 28% needs to below 10 min., 18% waits for 30 min. and 16% waits for
above 30 min.
4.2.9 In your experience, the approximate waiting time for cash out is
Waiting for Cash Out
60
50
40
30
50
20
10 18 20
12
0
Belo 10Min 15 Min 30 Min Above 30 Min
Figure: 16Waiting for cash out of the respondents
Analysis: From the figure 25, it is evident that, among 100 respondent , the highest 50%
waits 15 min, for deposit., 18% needs to below 10 min., 12% waits for 30 min. and 20% waits
for above 30 min.
4.2.10 Are you regular customer?
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Figure: 17 types of the respondents
Analysis: From the figure 21, it is evident that, among 100 respondent , the highest 76% are
regular customer and 24% are irregular customers.
4.2.11 How often do you use this facility?
Figure: 18 How Often Use this facilities
Page | 57
Analysis: From the figure 9, it is evident that among 100 respondents, the highest respondents
55 use this facility once a week. The second highest, 24 respondents also use this facility
more than once a week. For the data tables of this analysis.
4.3 Overall Responses of the Respondent:
Figure: 19 Overall respondents in pie chart
Page | 58
4.4 SWOT Analysis of Mobile Banking
Strengths:
1. Mobile as a technology provides all the support required to leverage Banking
transactions.
2. Ease of availability* any time, any where,
3. Rapid growth of Mobile and wireless market.
Weakness:
1. Lack of awareness .about the new channel among the mobile users.
2.. Security concerns about the new channel
3. Mobile Handset operatability
4.Application distribution
Opportunity:
1. Rapid increase in the Mobile user base and acceptance of the Mobile
technology even in Rural areas makes a bigger market available for mobile
banking to expand,
2. With technology advancements in Mobile handsets rich featusei can be
embedded in the application,
3. Lowering of Mobile Tarrifrates - GPRS, SMS
Page | 59
Threats:;
1. Regulatory restrictions by "Bangladesh Bank to launch Mobile banking as a
separate channel.
2, Acceptance of new technology by users.
3 Customer misuse of products and services
4. Traditional banking risks such as credit risk, liquidity risk and market risk are
also present in e-banking sectors.
4.5 Findings of the Study:
Despite many advantages of Mobile banking in Bangladesh have some disadvantages

which I did noticed while I served Mobile banking in Bangladesh and I would like to
mention those recommendation. I believe it may improve better customer Satisfaction
for Mobile banking in Bangladesh
1. Dont enough to customer for transaction
2. Present management are not capable to lead market
3. Communication gap to between market and management
4. No Advertisement for knowing customer and agent
5. Lack of Manpower for improve market
6. Mobile phone Banking should increase its outlet.
7. Portable Banking and concern partner should advertise more for attracting all
level of customers.
8. All activities are conducted are per customers necessary.
9. Limited number of Invest mode practices.
10. Number of employee is not sufficient.
11. FDR rate is low compare to other Bank
12. Shorter bank space
13. Some department are very slow to deal with customer
14 Poor security system
Page | 60
15. Shortage of ISP as well as capacity of generator is not high as necessary.

16. Behavior of some employee is not good.
17. Card and cheque division are not well arrange as necessary.
18.Customer available but employee are shortage.
19. Customer are inspire to open account but lone or FDR is discrete.
20. Network Problem as a result customer are sufferer a lot.
21.One employee are not able to other desk in case of gathering of customer
because of unable to do most type of work.
22A lot of missing is being held when customer open a account as like spelling of
name, card types, cheque.
CHAPTER: 5
Recommendation & Conclusion
Page | 61
5.1 Recommendation:
Continue Mobile Banking in the rural areas to increase the use of E-Money especially
in commercial applications. Continuous pilot testing of the other M-Banking services
to model cost effective ways of reaching more and more people in areas farther away
from bank. Develop a mobile banking website as information portal particularly for
M-Banking.
Continuous support and training workshop on Mobile Banking. Procedures develops

on going Developed M-banking system to automated transecting.
Increase customer by offering agent

New Required should be mobile banking related experience
Major problems in a business arises when its new. The officer should observe
that whether there is loss of the top executive, demand, or any other most
important new one has entered and often the change may be worse.
Mobile Banking and concern partner should advertise more for attracting all
level of customers.
Mobile Banking should increase facility to fulfillment customers need.
Bank should also be aware of significant changes in the training of M-Banking
officer and concern Partners employee.
Changes in industry trends may directly affect business so that it can no longer
completely profitable. Therefore, the Bank should keep information about the
environment of each industry in which its customers operate
Real value of business can come from making regular visits to the customers
place of business rather than holding all meetings in the Bank.
Against big willful defaulters legal action should be taken promptly for
customer M-Money Security.
Should arrange more and more campaign in public place to increase M-
Banking customer.
The cost of cash in and out should decrease.
Try to involve small business to raise customers.
Advertisement should increase through Radio, Newspaper, Poster, Banner.
Page | 62
5.2 Conclusion
For service providers, Mobile banking offers the next surest way to achieve growth.
Countries like Bangladesh where mobile penetration is nearing saturation, mobile
banking is helping service providers increase revenues from the now static subscriber
base. Also service providers are increasingly using the complexity of their supported
mobile banking services to attract new customers and retain old ones. For the fact is
that one day, in most of the world emerging markets, more people will use mobile
telephones than use fixed telephone lines. Businesses that are based on mobile
financial serviced will thus be a natural fit for these economies. What is more, there is
no need to wait for the next generation mobile networks; these businesses can be built
using today's technology. But to capture this significant opportunity, financial firms
and telecommunications companies will have to partnerships with one another and,
possibly, with merchants and retail chains as well. Mobile Banking in Bangladesh is
pioneer of Mobile Banking in Bangladesh and it has a lot of possibility to reach
customers door as well as banking in the hand of customers.
Page | 63
References
Books/ JOURNAL
1. Ahmed, S, M. Sohel, and Asaduzzaman, Md, (201J), "Consumer Choice

Behavior towards Mobile Phone Operators in Bangladesh" -Journal of Arts,
Science & Commerce, Vol. - I, pp. 30-39.
2. Bringham, Eugene F, Essential of Managerial Finance Twelfth Edition.
3. Syed Ashrf Ali & R.A Howlader Banking Low & Practice First Edition
November 2009
Web Site:
www.Google.com
www.scribd.com/Dipu01718(Dipock Mondal Dipu)
www.theprofriton.com
www.linkedin.com
www.blog.com
www.bb.org.bd
www.finclusion.org
www.cashlearning
www.bkash.com
www.Mobile Bankingmbl.com
http://www.usaid.gov/sites/default/files/documents/1860/Digitizing_Payments_for_U
SAID%29Beneficiaries_in_Uganda.pdf
Others:
Annual survey reports of UASID or mSTAR
Page | 64
Appendix
Sample of Questionnaire
STAMFORD UNIVERSITY BANGLADESH
Questionnaire
Subject: Internship Report (Prospect of Mobile Banking in Bangladesh")
Dear Respondent,
I am a student of Stamford University Bangladesh. I would like to know your Prospect of

Mobile Banking in Bangladesh" As per a requirement of my thesis report. I will appreciate
your valuable time & support in answering the questions. All the information collected will be
kept strictly confidential and shall only use for report purpose. Please read the statements,
which some people agree with, and do not. Whether you Strongly Agree (SA), Agree (A),
Neutral (N), Disagree (D), strongly Disagree (SD) with each statement.
Demographic Information:
1 Age
a) 20-30 years c) 31-40 years
d) 41-50 years e) above 50 years
2 Gender.
a) Male b) Female
3 Occupation.
a) Professionals b) Service Holder
c) Business man d) Housewife e) others
4. Reason for opening A/C.
Page | 65
a) Required b) Facility
c) Attractiveness d) Near from my place
5. Education level.
a) No formal education b) SSC
c) HSC d) Graduation
e) Post Graduation
8. Would you like to use mobile banking services?
a) Yes b) No
Please circle/mark the number you choice-
SA A N D SD
Particulars
1. Mobile Banking is new but modern 5 4 3 2 1
2. You feel safe in your transaction through mobile 5 4 3 2 1
3. Call center services are always available when you 5 4 3 2 1

require.
4. The Cost of cash In and out is affordable in case of 5 4 3 2 1

Mobile Banking.
5. Available agent and branch for m-banking. 5 4 3 2 1
6. M-banking is save your time. 5 4 3 2 1
7. I feel safe in my transactions with this bank. 5 4 3 2 1
8. MBL understands your specific needs 5 4 3 2 1
9. Time taken to process of Mobile transaction of this bank 5 4 3 2 1

is acceptable
9. MBL provides prompt services to its customers. 5 4 3 2 1
10. MBL Mobile Banking is very effective for you 5 4 3 2 1
Page | 66
Please check one best alternative-
In your experience, the approximate waiting time for cash in is
Below 10 min 15 min 30 min Above 30 min
In your experience, the approximate waiting time for cash out is
Below 10 min 15 min 30 min Above 30 min
Are you regular customer?
Yes No
How often do you use this facility?
once a week More than once a week once a month

Infrequently
Your valuable comment regarding the service:
Your precious suggestions to improve the services:
Thank you very much for sharing valuable time
Interview Guideline:
Who: Customer of Mobile Banking
What: Satisfaction level of Mobile Banking
When: 10 days within 10 Jul to 31 Jul.
Page | 67

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Prospect of Mobile Banking in Bangladesh"

1.1 Background of the Study

1.2 Objectives of the study

1.2.2 Specific Objective:

The Specific targets to be fulfilled were as follows:

1.3 Methodology of the study

Face to face conversation with customer as well as employee

Secondary data has been collected from :

1.3.2.1 Research Design

This is basically an observatory study of Mobile Banking in Bangladesh. In addition

1.3.2.1.2 Sampling Method

1.3.2.1.3 Target population:

1.4 Scope of the report

The major limitations of this study are:

Sufficient records, publications were not available as per my requirement.

Overview of Mobile Banking

2.1 Mobile Banking

Husain (1988) also highlighted the importance of IT in various sectors. Various

According to Pathrose (2001), banking throughout the world is undergoing a rapid

Janki (2002) analyzed how technology is affecting the employees productivity. He

started that there is no doubt, technology to improve operating efficiency and

2.2 History of Mobile Banking in Abroad

2.3 Mobile Banking in Bangladesh

2.4 Advantages of Mobile Banking

Mobile banking through cell phone is very advantageous to the banks as it

Banks can be in touch with their clients with mobile banking.

Various banking services like Account Balance Enquiry , Credit/Debit Alerts,

A very effective way of improving customer service could be to inform customers

2.6 Mobile banking process:

2.8 Why PIN is required?

2.8.1. Why PIN is strictly confidential?

2.9 Why check digit?

Prospect of Mobile Banking of Bangladesh

3.1 Prospect of Mobile banking in Bangladesh

3.2 Present Scenario of Mobile Banking in Bangladesh:

3.3 Objective of Mobile Banking:

Cash deposit to any Agent

3.4 Agent Networks:

Table: Status of Agent, Bank branch & ATMs

Table: Market share by subscribers as of Feb 2016:

Accordingly USAID Report wise Feb 2016.

3.5 Overview of bKash

Bill & Melinda Gates Foundation

Fundamo, a Visa company

Shore Bank International

Shore Bank International delivers a broad range of financial services to financial

3.6 Overview Rocket

communities efficiently and at affordable cost. To provide banking and financial

Real time on-line banking

Access to banking and advanced payment transactions at affordable cost

Dutch-Bangla Bank Rocket makes access to banking and advanced payment

Convenient and secure way to send money

Much more effective in developing savings habit

Dutch-Bangla Bank Rocket is much more effective in developing savings habit.

Customer Service Flow

3.7 Overview UCash:

3.8 MCash Overview:

mCash, which is operated by Islami Bank Bangladesh Limited, offers a range of

Opening an account FREE. Cash in FREE No limits FREE BDT 25,000/day 5