AN INTERNSHIP REPORT

ON
‘‘MOBILE BANKING ACTIVITIES OF SONALI BANK, PLC STATE OF THE
CURRENT AND FUTURE CHALLENGES’’

Supervised By:
Abdul Alim Baser
Associate Professor
Department of Accounting and Information Systems,
University of Barishal.

Submitted By:

Exam Roll: AIS 048/8

Exam Session: 2020-21
(Admission Session: 2017-18)
Bachelor of Business Administration
Department of Accounting and Information Systems
University of Barishal.

Date of Submission

15th June 2023.

i
 AN INTERNSHIP REPORT
ON
‘‘MOBILE BANKING ACTIVITIES OF SONALI BANK, PLC STATE OF THE
CURRENT AND FUTURE CHALLENGES’’
Corporate Branch, Barishal.

ii
iii
iv
Letter of Transmittal

v
15/06/2023
Abdul Alim Baser
Associate Professor
Department of Accounting and Information Systems,

University of Barishal

Subject: Mobile banking activities of Sonali bank plc, state of the current and future challenges.
Dear Sir,
It is with great pleasure that I present my report on the Mobile banking activities of Sonali
bank plc, state of the current and future challenges. The Sonali Bank Limited office setting
has been fantastic for me. While writing my report under your direction and supervision, I did
my best to include all I had experienced there.
Throughout my internship, I have truly loved all of Hthe work that contains a wide range of
practical knowledge. You are being given this report, together with all the pertinent data on the
research, for evaluation. I sincerely hope that you will find my work to be worthwhile.

Sincerely Yours,
…………………
Exam ID: AIS 048/8

Student Declaration

vi
This is Exam Roll:18 AIS 048/8 and I hereby declare that I have uniquely prepared the Intern -
ship Program Report Mobile banking activities of Sonali Bank PLC, State of the current and fu-
ture challenges “after working for three months in Sonali Bank PLC, Barisal.

To confirm that; the report is made for academic purposes only and not for any other purpose. In
this report, I have included all of the information that I gathered during my internship. This re-
port was written based on my work experience and observations during the internship period. As
a result, I declare that this report is unique.

…………………….

Exam Roll: AIS 048/8

Department of Accounting & Information Systems

University of Barishal

vii
 Acknowledgement

This is my pleasure that I could complete my internship report by the grace of almighty Allah. I
want to convey my heartfelt respect and cordial thanks to my honorable supervisor Abdul Alim
Baser, Associate Professor, Department of Accounting and Information Systems, for his encour-
agement, guidance, advice, and valuable supervision. I am very lucky for getting the opportunity
to prepare this report under his supervision and guidance. Without his instruction, I couldn't
complete this report successfully.

I would moreover like to specify my earnest appreciation to, Deputy Manager of Corporate
Branch. For his cordial help, time, and co-operation with me during the internship program. I am
also grateful to all department heads and others

, Sonali Bank PLC officials for their spontaneous assistance and cordial guidance in preparing
this report.
There are shortcomings in this report due to some obligations but I have tried my level best to
bring about all the facts in a comprehensive manner.

Exam ID: AIS 048/8

Department of Accounting and Information Systems,
University of Barishal

viii
 Executive Summary

Internship program is the prerequisite for BBA. Classroom discussion alone cannot make a stu-
dent perfect in handling the real business situation; therefore, it is an opportunity for the students
to know about the real-life situation through this program. A report has to be made for the Uni-
versity of Barisal and organization requirement. The topic of the report is ‘‘Mobile banking ac-
tivities of Sonali Bank PLC, state of the current and future challenges’’. The main purpose
of the report becomes very clear from the topic of the report.
Being an individual firm, company or corporation generally dealing in the business of money
and credit is called a bank. In our country any institution that except for the purpose of lending or
investment deposits of money from public, repays on demand or transfers by checks, draft orders
& other means is called a bank. Banking is the backbone of national economy. All sorts of eco-
nomic and Electronic or Mobile Banking Activities revolve round the axis of the bank. As indus-
tries produce goods and commodities, the banks creates and controls money market and promote
formation of capital. From this point of view, banking-a technical profession- can be termed as
industry. Services to its customer are the products of banking industry besides being a pivotal
factor in promoting capital formation in the country. As all economic and fiscal activities revolve
round the important Industry, the role of banking can hardly be over emphasized.The Sonali
Bank PLC, Corporate Branch, This Branch emerges as a fast growing, leading and prominent
bank in the public sector to operate on the commercial arena of Bangladesh. The Sonali Bank
PLC has already occupied a challenging position among its competitors after achieving success
in all areas business operation. The Sonali Bank Limited is serving the market with almost full
range of services.

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Table of Contents
Chapter One : Introduction
CHAPTER ONE........................................................................................................................................10
INTRODUCTION......................................................................................................................................10
1.1 OVERVIEW....................................................................................................................................11
1.2 OBJECTIVE OF THE PROGRAM.................................................................................................12
1.3 SCOPE OF THE PROGRAM.........................................................................................................13
1.4 THE SIGNIFICANCE OF THIS PROGRAM.................................................................................13
1.5 METHODOLOGY..........................................................................................................................13
Selection of the topic:........................................................................................................................14
Identifying data sources:....................................................................................................................14
Primary Sources of Data:...................................................................................................................14
Secondary Sources of Data:...............................................................................................................14
1.6: LIMITATIONS OF THE PROGRAM...........................................................................................14
Chapter Two: Literature Review.............................................................................................................16
2.1: Mobile Banking:.............................................................................................................................17
2.3: A conceptual approach for mobile banking:...................................................................................19
2.4: Mobile banking trends....................................................................................................................19
2.5: Mobile banking business models:...................................................................................................20
Chapter Three:...........................................................................................................................................21
Overview of Sonali Bank...........................................................................................................................21
3.1: Sonali Bank Limited's Historical Background..................................................................................22
3.2: Vision.............................................................................................................................................22
3.3: Mission...........................................................................................................................................22
3.4: Principles........................................................................................................................................22
3.5 Corporate Structure..........................................................................................................................22
3.6: Strategic Goals...............................................................................................................................23
3.7: Standard Banking Operations.........................................................................................................24
3.8: General Banking Activities.............................................................................................................24

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Chapter Four: Analysis and Findings......................................................................................................25
4.1: Mobile Banking Services of Sonali Bank Limited..........................................................................26
Online and Internet Banking..............................................................................................................26
4.2: Billing for utilities..........................................................................................................................27
4.3: Advantages of Mobile Banking:.....................................................................................................29
4.4: Disadvantages of Mobile Banking:.................................................................................................30
4.5: Current position of Bangladesh:.....................................................................................................31
Mobile banking services of Sonali Bank Ltd.........................................................................................31
4.6: Questionnaire Analysis:..................................................................................................................32
Responses of the customers:..................................................................................................................32
4.7: Future Prospect of Mobile banking in Bangladesh:........................................................................43
4.8: Findings..........................................................................................................................................44
4.9:Problems found in Sonali Bank PLC...............................................................................................45
Chapter Five: Recommendation and Conclusion...................................................................................46
5.1: Recommendations..........................................................................................................................47
5.2: Conclusion......................................................................................................................................48
Chapter Six: Appendix..............................................................................................................................49
References...................................................................................................................................................52
REFERENCES

xi
CHAPTER ONE
INTRODUCTION

12
1.1 OVERVIEW
The goal of an internship program is to gain real-world experience by assigning students to spe-
cific fields of work. This aids students in adjusting to the workplace and experiencing the appli -
cations of the theories, policies, and strategies they studied in class. Professional academic bod-
ies develop their curricula in accordance with the importance of internship programs and include
field or internship programs as a requirement. One of the important programs in business educa-
tion, the Bachelor of Business Administration (BBA), made the internship program a require-
ment at the conclusion of the program in order to develop skilled labor. I was tasked with evalu-
ating the Mobile Banking Activities of Sonali Bank PLC , Corporate Branch in accordance with
the program's guidelines. Money is currently in constant circulation all over the world. Unimag-
inable amounts of money are moving around due to factors like globalization and technological
advancements. Financial institutions, particularly banks, are crucial in connecting borrowers and
depositors, channeling funds, and improving the economy. Although banking has a long history
in Europe dating back to the 14th century, banks are now found everywhere. In Bangladesh,
banks have a bigger impact than other financial institutions.

A bank or other financial institution's mobile banking service enables its customers to carry out
financial transactions remotely using a mobile device, like a smartphone or tablet. It uses soft-
ware, commonly referred to as an app, provided by the financial institution for the purpose, un-
like the related internet banking. Typically, mobile banking is accessible around-the-clock. Some
financial institutions place restrictions on which accounts can be accessed through mobile bank-
ing and set a dollar threshold for the value of transactions. The availability of an internet or data
connection for the mobile device is necessary for mobile banking. Mobile banking transactions
depend on the features of the app offered and typically include getting account balances and lists
of recent transactions, paying bills electronically, depositing checks remotely, making peer-to-
peer payments, and transferring money between accounts. Some apps also let users download
and occasionally print copies of their statements on-site. By integrating with the user's built-in
mobile device security mechanisms, mobile banking apps increase usability, speed, flexibility,
and security. Mobile banking eliminates the need for customers to visit a bank branch for non-
cash withdrawal and deposit transactions, which from the bank's perspective lowers the cost of
handling transactions. Cash transactions cannot be completed through mobile banking; instead,
customers must go to an ATM or bank branch to withdraw or deposit cash. Nowadays, a lot of

13
apps offer a remote deposit feature that allows users to send checks to their financial institution
digitally using the camera on their device. Mobile payments, which involve using a mobile de-
vice to make purchases of goods or services either in-person or online, much like using a debit or
credit card to make an EFTPOS payment, are distinct from mobile banking.

1.2 OBJECTIVE OF THE PROGRAM

Internship programs are significant because they provide insight into real-world employment set-
tings, which can aid in the development of professional objectives. On the other hand, this pro-
gram assists in gaining experience in the application of ideas, policies, and tactics learned in aca-
demic sessions. As a result, the primary goal of these programs is to observe and evaluate the
whole E-banking activities of Sonali Bank PLC, Corporate Branch. Other aims that are congru-
ent with the fundamental objective are as follows:

To examine the degree of mobile banking system implementation in Sonali Bank PLC,Corporate
Branch, Barishal.

Other aims that are congruent with the fundamental objective are as follows:

To examine the degree of mobile banking system implementation in Sonali Bank PLC,
Corporate Branch.

To assess customer satisfaction with Sonali Bank PLC, Corporate Branch mobile banking
services.
To write a report on the internship experience, concentrating on Sonali Bank PLCs mo-
bile banking initiatives at the Corporate Branch.

To provide pertinent observations as well as future program directions.

To investigate the growth of mobile banking in Bangladesh.
To investigate the structure of Bangladeshi mobile banking.
To demonstrate the path of mobile banking development in Sonali Bank PLC. To deter-
mine the impact of mobile banking on SBL customers.

14
 To determine the relationship between mobile banking and consumer happiness.
To identify the issues and make any appropriate recommendations
Sonali Bank Public Limited Company's Mobile Banking System will be evaluated.
To determine what client want from Sonali Bank's Mobile Banking service.
To determine the level of satisfaction.
To determine the relationship between mobile banking and consumer happiness.

1.3 SCOPE OF THE PROGRAM

To identify the issues and make any appropriate recommendations. The study's major focus is the
Sonali Bank PLC ,Corporate Branch's mobile banking activities. However, I attempted to create
a visual representation of Sonali Bank PLC.

1.4 THE SIGNIFICANCE OF THIS PROGRAM

Modern period is the era of large and heavy production where technology is the key driving force
of all activities whether it is economic or non-economic, personal or professional task. Due to the
rapid change in business operations, strategies, challenges and opportunities, doing business has
become more challenging. Only skilled manpower can cope up with the rapidly changed global
phenomena. Practical program like internship help in developing such skilled manpower who get
some insights on real world happenings. Considering the importance of practical programs, I was
assigned to assess the mobile banking activities of Sonali Bank PLC., Corporate Branch a part of
my graduation program with a view to enrich my academic knowledge by experiencing the
practices and activities of banking sector.

1.5 METHODOLOGY
The study requires a systematic procedure from selection of the topic to preparation of the final
report. To perform the study, the data sources were to be identified and collected, to be classi-
fied, analyzed, interpreted and presented in a systematic manner and key points were to be found
out. The overall process of methodology has been given as below.

15
Selection of the topic: The topic of the study was assigned by the honorable teacher. While as-
signing the topic necessary recommendations and suggestions were provided by our honorable
teacher to make this report a well-organized and perfect one.

Identifying data sources: Essential data sources, both primary and secondary data sources, were
identified that would be needed to carry on the study and complete this report. Information col-
lected to furnish this report is both from primary and secondary sources. But mainly we have fo-
cused on secondary data.

Primary Sources of Data:

 Face to face conversation with the respective officers of the banks
 Practical experience gained by visiting different desks during internship Period.
 Face to face conversation with the clients
 Taking Interview.


Secondary Sources of Data:

 Annual Reports of Sonali Bank PLC.
 Relevant papers.
 Official Records of Sonali Bank PLC.
 Official website of the Sonali Bank PLC.

1.6: LIMITATIONS OF THE PROGRAM

I experience some limitations throughout my study time, just like everyone else, which
otherwise would have allowed me to make my study more appropriate and reasonable.
The restriction comes from both the bank and from myself. The following are some of
the flaws I discovered: As part of the internship program, I had to visit practically every
department at Sonali Bank PLC.'s Corporate Branch. To learn everything there is to
know about a huge organization like SBL, time is very limited. The Corporate branch of-
fice of Sonali Bank PLC. keeps a highly active schedule. Every organization has their
own secrecy that is not revealed to others. While collecting data i.e. interviewing the em-
ployees, they did not disclose much information for the sake of the confidentiality of the
organization.

16
Chapter Two: Literature Review

17
2.1: Mobile Banking:
Mobile Banking is one of the very latest services of banking business. This system has brought
some very important operations of banking in the pockets of people. People can now know their
balance, transaction history, products of the bank, transfer fund through their mobile at anytime
from anywhere. Mobile banking also prevents fraudulent activities of banking. Unmet needs lead
to new inventions and innovations and these create new economic relationship. New mutations
and new fusions take place with apparently dissimilar partners creating a need for other institu-
tional adoptions. Such a fusion is now occurring between the banking industry and the telecom-
munication industry, creating a concept called Mobile Banking (Astha, 2010). Mobile banking is
a part of new banking dimension i.e.branchless banking to make any bank digital. This branch -
less banking has great potential to extend the distribution of financial services to poor people
who are not reached by traditional bank branch network; it lowers the cost of delivery, including
cost of both to the banks of building and maintaining a delivery channel and to customers of ac-
cessing services(Ivatuary and Mas, 2008).
It has become a fusion to create financial security and more efficient infrastructure that reduces
corruption and ensures economic development. Banking business is very sensitive as it deals in
money and services. Today, the banking industry is the industry of revolution (Anyasi and
Otubu, 2009). The number of people who are outside of the banking world is large, and mobile
banking will work a lot to capture and serve them. Around 2001, banks and other financial orga-
nizations began to offer mobile banking services via SMS and the browser, ushering in the first
wave of mobile banking (Vats and Mohan).
Mobile cellular subscriber growth has been impressive since the turn of the century, with year-
over-year increase averaging 24% between 2000 and 2008. Mobile penetration topped 50% by
the beginning of 2008, up from 12% in 2000. By the end of 2008, it is anticipated to reach
roughly 61% (itu). This paper will outline the current state of mobile banking in Bangladesh, in-
cluding the services that banks are offering in this area, customer opinions of those services, and
projections for the future of mobile banking in Bangladesh.

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2.2: History of Mobile Banking in Bangladesh
In Bangladesh, mobile banking is a recent innovation that debuted on March 31, 2011. Dutch
Bangla Bank Limited introduced Mobile Banking Services (MBS) as a concept in Bangladesh.
The central bank previously authorized a number of mobile financial services, including inbound
international remittance, cash in/out via m-wallets, private to private (P2P), business to private
(B2P), government to private (G2P), and many more. (Dutch Bangla Bank Ltd., web source) The
next bank to join this market was Brac Bank Limited. After that, every other bank opens with the
same concept.
List of some Bangladeshi mobile banking service providers.
A few examples include: Ucash by United Commercial Bank Ltd., MyCash by Mercantile Bank
Ltd., Rocket by Dutch Bangla Bank Ltd., bkash by Brac Bank Ltd., mCash by Islami Bank
Bangladesh Ltd., and many more.

19
The fundamental tenet of mobile banking is A client-server system that is designed for mobile
devices and used through SMS, WAP, or App services to access accounts, pay bills, authorize fi-
nancial transfers, and carry out other tasks.
Mobile banking, in its broadest meaning, refers to a service offered by banks that enables clients
to complete financial transactions via mobile devices. How people interact with their financial
institutions is being revolutionized by it. SMS banking is a term used to describe the initial mo-
bile banking services, which were provided by SMS. The first European banks began to offer
mobile banking to their customers on this platform in 1999, when cellphones and WAP technol-
ogy made it possible to use mobile web.
bKash presently dominates the Mobile Banking Services (MBS) area, controlling more than half
of the market. On the other side, Rocket is capturing the market in second place. It offers ATM
withdrawal services and money transfer capabilities between Dutch Bangla Bank Account and
Mobile Account.
2.3: A conceptual approach for mobile banking: According to one academic approach,
mobile banking is defined as follows:
Mobile banking is the supply and management of banking and financial services using mobile
telecommunication devices. The range of services provided may include the ability to execute
bank and stock market transactions, manage accounts, and receive personalized information.
According to this paradigm, mobile banking is made up of three interconnected concepts:
 Accounting on the Go
 Brokerage for mobile devices
 Financial Information Services on the Go
The majority of services in the Accounting and Brokerage categories are transactional in nature.
Non-transactional informative services, on the other hand, are required for conducting transac-
tions; for example, balance inquiries may be required before committing to a money remittance.
Accounting and trading services are thus generally provided in conjunction with information ser-
vices. Information services, on the other hand, may be provided as a separate module.
Mobile phone banking can also be useful in the following business situations:

2.4: Mobile banking trends: The mobile and wireless sector has been one of the fastest grow-
ing in the globe in recent years, and it is still developing at a quick pace. According to the GSM
Association and Ovum, the number of mobile subscribers surpassed 2 billion in September 2005
and has since risen to more than 2.5 billion (of whom more than 2 billion are GSM).
According to a Client research , 35% of internet banking households will be utilizing mobile
banking by 2010, up from less than 1% today. Mobile phones are expected to account for Mobile
phones are expected to account for up to 70% of bank center call volume. Users will ultimately
be able to make payments at physical points of sale using mobile banking. By 2010, "mobile
contact less payments" will account for 10% of the contact less market. Another Berg Insight re-

20
port from 2010 predicts that the number of mobile banking users in the United States would in-
crease from 12 million in 2009 to 86 million in 2015. According to the same study, the European
market will increase from 7 million mobile banking users in 2009 to 115 million users in 2015.
Many people assume that mobile users have only recently begun to fully exploit their phones'
data capacity. Mobile banking is likely to appeal even more in Asian countries such as India,
China, Bangladesh, Indonesia, and the Philippines, where mobile infrastructure is comparatively
better than fixed-line infrastructure, and in European countries where mobile phone penetration
is very high (at least 80% of consumers use a mobile phone).
2.5: Mobile banking business models: A wide spectrum of Mobile banking models is evolv-
ing. However, no matter what business model, if mobile banking is being used to attract low-in-
come populations in often rural locations, the business model will depend on banking agents, i.e.,
retail or postal outlets that process financial transactions on behalf telcos or banks. The banking
agent is an important part of the mobile banking business model since customer care, service
quality, and cash management will depend on them. Many telcos will work through their local
airtime resellers. However, banks in Colombia, Brazil, Peru, and other markets use pharmacies,
bakeries, etc.

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 Chapter Three:
Overview of Sonali Bank

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3.1: Sonali Bank Limited's Historical Background
On March 26, 1972, Sonali Bank Ltd. was created through the merger of 3 (three) former com -
mercial banks, Muslim Commercial Bank Ltd., Australasia Bank Ltd., and Standard Bank Ltd.,
all of which had been operating in what was then Pakistan. This was done in accordance with the
Bangladesh Banks (Nationalization) Order 1972 (P.O. No. 26 of 1972), and included all of their
assets, privileges, rights, benefits, and liabilities as well as borrowings and obligations. Up to De-
cember 13, 1986, Sonali Bank operated as a nationalized commercial bank. On December 14,
1986, Sonali Bank Ltd. became the largest public limited banking company in the nation.

3.2: Vision
To "Expand our Loyal Customer Base by Being Known As The Financial Partner Of Choice
That Constantly Exceeds Customer Expectations." is to be SBL's mission.
It means the bank is dedicated to meeting the various needs of its customers at a fair price by uti -
lizing appropriate technology and offering prompt service in order to guarantee sustainable
growth, a reasonable return, and a contribution to the development of the nation with a motivated
and qualified workforce.

3.3: Mission
The SBPLC's missions are listed below.
· Establish a long-term partnership that enables our clients to prosper financially.
• Create rewarding career options and foster employee loyalty.

3.4: Principles
Sonali Bank PLC was a wise choice.
We take care of and give back to our communities out of social responsibility. We also monitor
performance and honor accomplishments.
Integrity: We support truthfulness and ethical business practices; Respect: We value each indi-
vidual; Innovation: We foster creativity; Teamwork: We cooperate to achieve success.
Equal weight is given to the initial letters of the word "SPIRIT" and.

3.5 Corporate Structure

Every bank operates according to a hierarchy level of organization to maintain a chain of com-
mand. Below is a list of Sonali Bank Limited's organizational structure.
Organizational design

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 Organizational structure

3.6: Strategic Goals

Establish a culture of client-centered service with a focus on convenience and concern for
the customer.
Expand our market share by implementing a deliberate expansion plan.
Acquire a sizable portion of deposits and credits from existing and specialized market-
places.
Make use of our technological foundation and our scalable systems to accomplish cost-
effective operations, effective MIS, enhanced delivery capabilities, and high service stan-
dards.
Create cutting-edge goods and services that appeal to our niche markets and consumer
base.
Maintain a portfolio of high-quality assets to generate robust and sustainable returns and
steadily increase shareholders' value.
Increase consumer awareness of the bank's brand.
Look for new opportunities for growth and profitability, especially by expanding the re-
tail and SME sectors and structuring the loan portfolio financing.

24
3.7: Standard Banking Operations

The general banking division is regarded as the hub of all banking operations. Due to the fact
that funds are mobilized and cash is handled, this is one of the busiest and most crucial sections
of a branch. Here, transactions are carried out, as well as clearing, remittance, and accounting
tasks. Daily general banking is also referred to as "retail banking" because banks are only al-
lowed to provide the services. Under the general banking sector in Sonali Bank Ltd.'s main
branch are the following departments:

• Section for opening accounts

• Cash section; Deposit section

Accounts and the Clearing sections

3.8: General Banking Activities

General banking department is known as the heart of all banking activities. This is the busiest
and one of the most important departments of a branch because funds are mobilized; cash
Transactions are made; clearing, remittance and accounting activities are done here. Since bank
is confined to provide the services, everyday general banking is also known as ‘retail banking’.
In the principal branch of Sonali Bank ltd, the following departments are under general banking
section:
 Account opening section
 Deposit section
 Cash section
 Clearing section
 Accounts section

25
Chapter Four: Analysis and Findings

26
4.1: Mobile Banking Services of Sonali Bank Limited

In order to provide its customers, par-

ticularly Bangladeshi expatriates living anywhere in the world, with technology-based modern fi-
nancial services, Sonali Bank has launched new digital banking services. Expats can open a bank
account and conduct transactions with ease in their host country by using the mobile apps Sonali
e Sheba and Sonali e-Wallet as well as the iOS version.
The largest state-owned commercial bank in Bangladesh, Sonali Bank PLC, offers a mobile wal -
let app by the name of Sonali e-Wallet. This dynamic is and safe wallet applications that meet
your daily transaction demands, such as money transfers, bill payments, and mobile airtime
recharges, etc. You will receive updates regarding your most recent activity and be able to view
your transaction history, summary, etc. You will receive updates regarding your most recent ac-
tivity and be able to view your transaction history, summary, etc. Additionally, Sonali e-wallet
will soon introduce some really intriguing and cutting-edge services to the market in order to sat-
isfy client wants and desires.

Online and Internet Banking

All parts of Sonali Bank Restricted (SLB) have been brought under online organization. From
now into the foreseeable future all customers of SBL will actually want to profit exchange
administrations of the bank through web based banking from any piece of Bangladesh. Director
of Sonali Bank Restricted, Manzur Hossain introduced the online assistance for all branches
through cutting a cake at the Corporate Office of the bank in Dilkusha, Dhaka on Tuesday while
the bank\'s Overseeing Chief and CEO (President) Ataur Rahman Prodhan was additionally
present at the function. Sonali Bank Limited\'s Executive Manzur Hossain said, \"All

27
administrations of all parts of our bank have been brought under online availability. Indeed, even
customers from distant regions currently additionally can approach all our online
administrations. Additionally, we are taking up solid activities to guarantee security for online
banking.\" He likewise expressed gratitude toward the IT authorities of the bank for their
committed endeavors. In addition Manzur Hossain underlined on improving reconnaissance and
abilities of all workers of the bank.

Online banking system is an awesome method to decrease paper utilization. All the branches of
Sonali Bank Limited are providing online banking facilities through its core banking system
namely “Sonali Intellect”. Fund Transfer to Other bank’s Accounts through BEFTN has been
made available through Online Banking for the Customers. Sonali Bank Limited has offered 24/7
accessible Internet Banking service. By using real-time internet banking our customers can avail
the services Sonali Bank Ltd Corporate Branch, like:

View A/C
Statement

Credit Card Balance Utility

Payment Enquery Payment

Fund
Transfer

4.2: Billing for utilities

Sonali Bank Ltd. provides several special services to customers in addition to its regular finan-
cial operations. One of them is a mix of various service invoices. By collecting the client's vari -

28
ous service charges, such as the phone bill, water and sewerage bill, power bill, and so on, free of
charge, the bank benefited from providing this assistance.
Bill collection
1. The Bangladesh Phone and Transmit Board (BTTB) phone bill.
2. The Water and Sewerage Authority's (WASA) water and sewerage bill.
3. The power bill for the Provincial Zap Board (REB), the Force Advancement Board (PDB),
and other boards.
Website Sonali Bank Limited offers a useful website that describes its numerous products, ser-
vices, yearly account, citizen's charter, and other current information about the bank.
General Features/Mobile Banking Services: Mobile banking can provide the following services:
1) Account Information: Mini-statements, account history checks, and alerts for account activity
or threshold crossings Monitoring of term deposits; access to loan and card statements; monitor-
ing of mutual funds and equity statements; and access to loan statements. Management of pen-
sion plans and insurance policies 2) Payment, Deposits, Withdrawals & Transfers: • Domestic
and international financial transfers • Handling of micropayments • Recharging of mobile de-
vices • Commercial payment processing • Bill payment processing. The system will be able to
confirm whether the customer has enough money in his or her wallet and approve a deposit or
withdrawal transaction at the agent with the help of a certain sequence of SMS messages. When
a customer makes a deposit, the system credits their bank account or mobile wallet once the re-
tailer receives the cash. The client can withdraw money from the merchant in the same way: after
exchanging SMSs to confirm authorization, the merchant gives the client cash and charges the
client's account. 3) Investments: Services for portfolio management Real-time stock quotations;
custom alerts and notifications for price changes in securities 4) Assistance with: Check (cheque)
book and card inquiries; Status of Credit inquiries, including Mortgage Approval and Insurance
Coverage; Email and Data Message Exchange, including Complaint Submission and Tracking 5)
Content Services: General knowledge, such as news and weather reports Loyalty-related deals
Services based on location Using data from a Forrester poll, The general public will find mobile
banking appealing primarily due to the following features and services: The following services
are available through mobile banking: 1) Account Information: Mini-statements, history checks
of the account, and notifications of account activity or threshold crossings Term deposit monitor-
ing, access to loan and credit card statements, mutual fund and equity statement monitoring, and
loan statement access. Administration of insurance and pension plans 2) Transfers, Payment, De-
posits, and Withdrawals: • Handling micropayments; • Domestic and international financial
transfers; • Mobile device recharging • Processing of commercial payments • Processing pay-
ments for bills with the aid of a certain series of SMS messages, the system will be able to verify
whether the customer has enough money in his or her wallet and allow a deposit or withdrawal
transaction at the agent. Once the store gets the cash from a deposit, the system refunds the cus-
tomer's bank account or mobile wallet. Younger, "tech-savvy" market niche. One-third of mobile
phone users said they might think about conducting a financial transaction using their device.

29
However, the majority of users are just concerned with carrying out simple tasks like checking
their account balance and paying their bills.

4.3: Advantages of Mobile Banking:

The largest benefit that mobile banking provides to banks is a significant reduction in the price of
client service. For instance, a typical teller or phone transaction costs $2.36 per transaction,
whereas an electronic transaction only costs roughly $0.10. Additionally, this new channel en-
ables the bank to cross-sell, up-sell, and otherwise market its other complicated banking services
and products, such as credit cards, auto loans, and so on.
Mobile banking is the next most reliable path to growth for service providers.
cell banking is assisting service providers in boosting earnings from the currently static sub-
scriber base in nations like Korea where cell penetration is close to saturation. Service providers
are increasingly utilizing the intricacy of the mobile banking services they enable to draw in new
clients and keep existing ones.
Better educating clients might be a very efficient strategy to enhance customer service.
One such area is credit card fraud. Using mobile technology, a bank could alert cardholders each
time a purchase was made on their card that exceeded a specified threshold.
As a result, the cardholder is always alerted whenever their card is used and how much money
was deducted from it during each transaction.
Similar to this, the bank could inform clients of upcoming loan repayment deadlines, installment
payment deadlines, or just that a bill has been given and needs to be paid.

30
4.4: Disadvantages of Mobile Banking:
Security: According to most security experts, mobile banking is safer than computer banking be-
cause there are so few viruses and Trojan horses specifically designed for smartphones. How-
ever, this does not imply that security risks are unaffected by mobile banking.
Mobile users are particularly vulnerable to "smishing," a phishing-like fraud. It occurs when a
hacker posing as a financial organization sends a phony text message to a mobile banking user
requesting for bank account information. This ruse has been used to defraud many individuals
out of their money.
Online banking often uses an encrypted connection to prevent hackers from reading sent data,
but think about the repercussions if your mobile device is lost or stolen.
All banking applications demand us to enter a password or PIN, but a lot of individuals set up
their mobile devices to remember passwords or use PINs and passwords that are not safe or diffi -
cult to figure out.
For mobile banking to work properly, we must have a smartphone.
On some devices, mobile banking is not yet accessible. Some banks don't even offer mobile
banking. Some demand that you use a specialized mobile banking app that is only accessible on
the most well-liked smart phones, including the Apple iPhone and RIM Blackberry. Not usually
is third-party mobile banking software supported.
The forms of mobile banking we can perform are typically constrained if we don't have a smart
phone. It's not a problem to check bank account balances via text message, but "dumb phone"
customers typically lack access to more sophisticated functions like account transfers.
Cost: If we already own a compatible smartphone, the cost of mobile banking might not seem
prohibitive, but we still have to pay data and text messaging costs. Some financial institutions
impose an additional price for the use of mobile banking, and we can also be required to pay for
software. These additional fees add up rapidly, especially if we use mobile banking.

31
4.5: Current position of Bangladesh:
Mobile banking services of Sonali Bank Ltd.
Sonali Bank provides the following mobile banking services.

Branch Computerization: All branches are on live operation. Out of 169 branches, 169
branches have already been entered in the automation network.

Foreign Remittance: Bank's own in-house software "Remittance Management System"

(RMS+), having, among others, the feature of paying foreign remittance instantly over the
counter is being implemented at all branches. This web-based software provides digital services
to the expatriates through its unique advantage of sending confirmation message to the mobile
phone of the remitter/beneficiary.

ATM: Sonali Bank Limited is a member of fast cash ATM network. At present the bank has 27
ATM booths. Sonali Bank's ATM cardholders enjoy the access to the ATMs. This bank provides
master debit card to its customers. By this card the customers of this bank can use the booth of
other banks under the fast cash consortium. Recently Sonali Bank have launched La Riba (Inter-
est less) credit card. Mainly three types of credit card silver, golden and platinum, that SBL is-
sues to customers.

Online and SMS Banking:. The bank is seriously working on connecting all branches in the
Real-time Mobile Banking network gradually. Branches having ABB facility are also trying to
render mobile banking services.

BEFTN: The Bangladesh Electronic Funds Transfer Network (BEFTN) will operate as a pro-
cessing and delivery Centre providing for the distribution and settlement of electronic credit and
debit instruments among all participating banks. This Network will operate in a real ‐ time batch
processing mode. Transaction Files received from the banks during the day will be proc essed as
they are received to ensure that if there are conditions that would Result in A file or batch reject
the banking company will have Sufficient Time to Fix The errors and resubmit the file. All pay -
ment transactions will be calculated into a single multilateral netting figure for each individual

32
bank. Final settlement will take place using accounts that are maintained with Bangladesh Bank.
SBL has recently introduced this service as a product of e-banking.

4.6: Questionnaire Analysis:

The survey questionnaire is prepared to capture the thoughts of customers about the quality of
services provided by Sonali Bank PLC and if the automated, mobile banking based services are
strong enough to satisfy customers.

Responses of the customers:

Biographical Information

33
34
35
Perceived Usefulness(PU)

36
37
Perceived Ease of Use(PEOU)

38
39
Perceived Trust

40
System Quality (SYSQ)

41
Satisfaction

42
43
4.7: Future Prospect of Mobile banking in Bangladesh:
Based on the 'International Review of Business Research Papers' from World business Institute,
Australia, following are the key functional trends possible in world of Mobile Banking. With the
advent of technology and increasing use of smart phone and table-based devices, the use of Mo-
bile Banking functionality would enable customer connect across entire customer life cycle much
comprehensively than before. With this scenario, current mobile banking objectives of say build-
ing relationships, reducing cost, achieving new revenue stream will transform to enable new ob-
jectives targeting higher level goals such as building brand of the banking organization. Emerg-
ing technology and functionalities would enable to create new ways of lead generation, prospect-
ing as well as developing deep customer relationship and mobile banking world would achieve
superior customer experience with bi-directional communications.
Illustration of objective based functionality enrichment In Mobile Banking Communication en-
richment: - Video Interaction with agents, advisors. Pervasive Transactions capabilities: - Com-
prehensive “Mobile wallet” Customer Education: - “Test drive” for demos of banking services
Connect with new customer segment: - Connect with Gen Y - Gen Z using games and social net -
work ambushed to surrogate bank’s offerings Content monetization: - Micro level revenue
themes such as music, e-book download Vertical positioning: - Positioning offerings over mobile
banking specific industries Horizontal positioning: - Positioning offerings over mobile banking
across all the industries Personalization of corporate banking services: - Personalization experi-
ence for multiple roles and hierarchies in corporate banking as against the vanilla based segment
based enhancements in the current context. Build Brand: - Built the bank’s brand while enhanc-
ing the “Mobile real estate.

4.8: Findings
This project includes various Findings

44
Reduced service expenses due to mobile banking significantly lowers costs to customers.
Service providers are increasingly exploiting the intricacy of the mobile banking services they
support to draw in new clients and keep hold of existing ones.
Better educating clients might be a very efficient strategy to enhance customer service. One such
area is credit card fraud.
Through automation, the banks enhance this tailored communication.
On some devices, mobile banking is not yet accessible. Some banks don't even offer mobile
banking.
If we already own a device that is compatible, the cost of mobile banking might not seem prohib-
itive, but we still have to pay data and text messaging costs.
We discover that mobile banking is an improved version of the banking system. Customers are
consciously and unconsciously requesting this service. Both clients and workers now understand
that only this service can significantly simplify their transaction. Customers and employees dis-
agreed on how fully this bank is delivering this service. Additionally, they claimed that this bank
has a fantastic potential to offer this service fully and seize the market because its rivals are not
offering their clients the entire scope of this service. Additionally, this bank has the chance to
grow its international clientele. Modern, cutting-edge technology is now accessible in
Bangladesh, and Bangladesh Bank is working to advance financial technology. Additionally, the
Bangladesh Bank has introduced and implemented a number of legislation regarding bank opera-
tions that refer to e-banking. There is an 1800 KM fiber optic network in Bangladesh Railway. In
accordance with a contract with the BR and Bangladesh Bank, this bank may utilize this net-
work. Customers believe that this service could result in a bank revaluation in 92% of cases.

4.9: Problems found in Sonali Bank PLC

Microsoft has deemed Windows XP, which is used by SBL's applications like RMS+, to be an
old operating system. Hackers are more sophisticated today, and they recently succeeded in

45
stealing approximately $100 million from Bangladesh Bank, raising serious concerns about on-
line security.
There isn't enough modern technology available.
Low pay scale compared to commercial banks causes low job satisfaction.
Running online banking through a neighborhood Internet Service Provider (ISP).
It is challenging to implement any changes in such a large corporation.
Procedures for keeping records are ineffective. Older register books and files are not maintained
carefully or securely. The staff are not all allocated equally throughout the services. Junior em-
ployees frequently experience greater job pressure from senior employees. This leads to an im-
balance at work and ultimately lengthens the time spent on average serving customers.
Peak hours see a slowdown in the central server, which lowers productivity.
Working without breaks and having insufficient room for prayer, lunch, and recreation led to a
lack of employee satisfaction and drive.

46
Chapter Five: Recommendation and
47
5.1: Recommendations
In this assignment we have some suggestion about mobile banking
 All banks should provide this opportunity than mobile banking limitation can be reduced.
 Government should provide help about mobile banking.
 Rules and Regulations must be stricken about mobile banking.
This bank is unable to fully offer mobile banking services due to a few obstacles. The following
factors need to be prioritized if this bank is to remain competitive with other banks.
In order to solve the issue, I would like to recommend the following:
Branch offices shouldn't be linked to the neighborhood internet network. In this instance, I ad-
vise the branches to make advantage of the BTCL internet service. SMS banking need additional
advancement. Time is necessary for the revival of this service.
Head office could consider creating a mobile app for smartphones to offer better services.
Mobile banking services can use better marketing and creative strategies to encourage the use of
more deposit schemes.
The mobile banking system has to be more adaptable.
The CBS software should contain every transaction-related statement.
Mobile banking should improve branch-to-branch communication.
Mobile banking services ought to meet and exceed customers' expectations.
Mobile banking services must to be able to handle every issue a consumer has with an online
transaction immediately.

48
5.2: Conclusion

The report unequivocally shows that Sonali Bank's E-banking and mobile bankings customers
are not very happy with the service. The bank should put more emphasis on the speed, user-
friendliness, safety, convenience, and quick response aspects of online banking if it wants to in-
crease the number of customers who use it. For this reason, proper web hosting is needed. Addi-
tionally, customers should be made aware of unethical techniques that hackers may employ, such
as sniffing, spoofing, phishing, pharming, and other malicious software. The encryption of the
information that is transmitted between users and the bank should also receive attention. There-
fore, the study is highly helpful for Sonali Bank and Bangladesh to learn about the relationship
between online banking and customer happiness. The big killer mobile app market is set to re-
place mobile banking. Banks that are launching mobile services for the first time must proceed
carefully. The channel on which banks will support their services is the most important selection.
The least amount of effort in terms of cost and time would be required for mobile banking via an
SMS-based service, but it would not be able to handle all transaction-based services. However,
this might be the only choice left in areas like India where the majority of mobile customers'
phones can only handle SMS-based services. However, a market that is heavily fragmented ac-
cording to the variety and complexity of mobile .The use of phones could be a useful starting
point for WAP-based mobile applications. The Gartner Group asserts that mobile banking ser-
vices must offer at least 50 different payment methods.
In the near future, many device profiles will exist.
However, at the moment, utilizing a standalone client is the only way to achieve the greatest user
experience depending on a mobile phone's capabilities. A key component of m-commerce is mo-
bile application-based banking, and if South Korea's introduction of widespread mobile banking
is any indicator, mobile banking may well be the key to boosting sales of high-end mobile de-
vices. Nevertheless, Bank's need to take a hard and deep look into the mobile usage
patterns among their target customers and enable their mobile services on a technology with
reaches out to the majority of their customers.

49
Chapter Six: Appendix

50
1 PU-01: Using the mobile banking Strongly Disagree Neutral Agre Strongly
would enable me to accomplish my disagree e agree
tasks more quickly
2 PU-02: Using the mobile banking would Strongly Disagree Neutral Agree Strongly
make it easier for me to carry out my disagree agree
tasks
3 PU-03: I would find the mobile banking Strongly Disagree Neutral Agree Strongly
useful . disagree agree
4 PU-04: Overall, I would find using the Strongly Disagree Neutral Agree Strongly
mobile banking to be advantageous. disagree agree
5 PEOU-01: Using the mobile banking Strongly Disagree Neutral Agree Strongly
service is easy for me. disagree agree

6 PEOU-02: I find my interaction with the Strongly Disagree Neutral Agree Strongly
mobile banking services is clear and un- disagree agree
derstandable.
7 PEOU-03: It is easy for me to become Strongly Disagree Neutral Agree Strongly
skillful in the use of the mobile banking disagree agree
services.
8 PEOU-04: Overall, I find the use of the Strongly Disagree Neutral Agree Strongly
mobile banking services easy. disagree agree
9 PT-01: Mobile banking is reliable. Strongly Disagree Neutral Agree Strongly
* disagree agree
10 PT-02: I trust mobile banking. Strongly Disagree Neutral Agree Strongly
* disagree agree
11 PT-03: In general, I can rely on mobile Strongly Disagree Neutral Agree Strongly
banking to do my financial transactions. disagree agree

12 SYSQ1: Mobile banking is easy to navi- Strongly Disagree Neutral Agree Strongly
gate. disagree agree
13 SYSQ2: Mobile banking allows me to Strongly Disagree Neutral Agree Strongly
easily find the information I am looking disagree agree
for
14 SAT1: I feel satisfied with using mobile Strongly Disagree Neutral Agree Strongly
banking services disagree agree

15 SAT2: Mobile banking is according to Strongly Disagree Neutral Agree Strongly

my expectations disagree agree

16 SAT3: Overall, I am satisfied with mo- Strongly

51 Disagree Neutral Agree Strongly
bile banking service disagree agree
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