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An Internship Report On Mobile Banking (Banking In Your Hand)-A Study On Dutch-Bangla Bank Limited, Satmosjid Road Branch
Supervised By:
Mohammed Masum Billah Assistant Professor Faculty of Business Administration Northern University Bangladesh
Prepared By:
Dipock Mondal ID:BBA070360590
Major: Finance
Declaration
I do hereby declare that this Internship report entitled Mobile Banking (Banking in your Hand) is submitted by me to Northern University Bangladesh for the degree of Bachelor of Business Administration is an original work. It has not been submitted earlier, either partly or wholly, to any other University or Institution for any Degree, Diploma, Studentship, Fellowship or Prize.
Dipock Mondal BBA 070360590 Major: Finance Minor: Management Information System (MIS) Faculty of Business Administration Northern University
Certificate of Acceptance
This is to certify that Dipock Mondal, bearing ID No BBA 070360590, student of Department of Business Administrative, Northern University Bangladesh has done the internship report title Mobile Banking (Banking in your Hand) of Dutch-Bangla Bank Ltd -At Satmosjid Road Branch, under my supervision and guidance. I am approving his internship report and accepting it in quality form. Mr. Dipock Mondal is intelligent, sincere and hardworking. He has put in lot of work and has also brought forth his views and ideas which are being studied for implementation at appropriate time. I wish him every success in his future Endeavour.
Signature
Signature
Letter of Transmital
10th September, 2011 Mohammed Masum Billah Assistant Professor Faculty of Business Administration Northern University Bangladesh Sub: Submission of the Report on Mobile Banking (Banking in your Hand) Dear Sir, I am a student of BBA program of NUB. Im happy and delighting to submit here with a copy of internship report for your kind evaluation and appreciation. I would be honored if you go thought my report and find it worthwhile as really put in a lot of effort while preparing it. My internship period was from 12.05.2011 to 11.08.2011. I have immense pleasure to have the opportunity to study on Mobile Banking of Dutch-Bangla Bank Ltd Satmosjid Road Branch. I believe that this report has enriched my knowledge. If you have further queries regarding the report, please let me know. I would be obliged to avail at your convenience.
Yours sincerely, Dipock Mondal ID: BBA 070360590 Faculty of Business Administration Northern University Bangladesh
Acknowledgement
The successful completion of this report is the outcome of the contribution of a number of people to whom Im grateful and thank them from the very deep of my heart. So, I would like to take this opportunity to thank all those people who helped me in preparing this report on Mobile Banking (Banking your Hand)-A study on Dutch-Bangla Bank Ltd Satmosjid Road Branch. First of all I would like to express my great respect to almighty for providing me the strength and energy to prepare this report. I would like to convey my sincere gratitude to my honorable teacher Mr. Mohammad Masum Billah, Assistance professor, Department of Business Administration Northern University Bangladesh. I would like to thanks Mr. Md. Badiul Alam Badal(Senior Assistant Vice President) as well as Mr. Mohammed Zakir Hossain (Executive Officer) who help me to provide lot of information about DBBL. I heartily thank all the officials of DBBL and my friends who directly or indirectly lent me there assistance in this regard Finally, I would like to thank my parents for giving me the mental as well as the financial support for preparing the report. With warm Thanks
Abbreviations
ATM CIB EVA IT LRA DBBL SLR SSI CSR NID M-Banking E-Money STD IT LC DPS SWIFT SMS GPRS 3G : Automation Telex Machine. : Credit Information Bureau. : Economic Value Added. : Information Technology. : Liquidity Ratio Analysis. : Dutch-Bangla Bank Limited. : Statutory Liquidity Ratio. : Small Scale Industries. : Corporate Social Responsibility : National Identity : Mobile Banking : Electronic Money : Short Term Deposit : Information Technology : Letter of Credit : Deposit Plus Scheme : Society for Worldwide Interbank Financial Telecommunication : Short Message Service : General packet radio service : 3ed Generation
Table of Contents
Chapter 1: Introduction Page No
1 1 2 2-3 3 3 3 3 4
1.1 Introduction of The Report . 1.2 Background of the Study 1.3 Objectives of the study.. 1.4 Scope of the Report ... 1.5 Methodology ... 1.5.1 Source of Data 1.5.2 Primary 1.5.3 Secondary . 1.6 Limitations of the Study .
2.3.2 Financial Objectives . 7 2.3.3 Vision 7 2.3.4 Mission . 2.4 Functions of DBBL 2.5 Corporate Strategy .. 2.6 Organizational Goals .. 2.7 Different Operations of Dutch-Bangla Bank Limited 2.7.1 Deposit Collection 2.7.2 Life line Disbursement. 2.7.3. Foreign Trade 2.7.4 Foreign Currency Endorsement. 7 7-8 8 9 9 9 9 9 10 2.3.5 Core values. 7
2.7.5 Investment... 2.7.6. Social Responsibility.. 2.8 Overall Standings of Dutch-Bangla Bank Limited.. 2.9 Corporate Profile 2.10 Organizational Structure.
10 10 10 11 12
4.11.5 Mobile Account opening procedure in a flow chart .. 4.11.6 Why PIN is required? ............................................ 4.11.7 Why PIN is strictly confidential?. 4.11. 8 Why Check digit? ................................................ 4.11.9 Which Telcos Mobile can be registered? .............. 4.11.10 What type of Mobile set is required? .................... 4.11.11 How much initial deposit is required?................, 4.11.12 Can I deposit and withdraw money immediately After registration? ............................................... 4.11.13 How is DBBL Mobile Banking secured? ......... 4.11.14 Where to cash-out (cash withdrawal)? ................ 4.11.15Mobile A How does it work? ............................... 4.11.16 Where to cash-in (cash deposit)? ........................ 4.11.17 How does it work? ............................................... 4.11.18 What is transaction limit? .................................. 4.11.19 How to check your account balance? ................. 4.11.20 How to change PIN? .......................................... 4.11.21 What is Salary/Allowance Disbursement? .......... 4.11.22 How it works? ................................................... 4.11.23 Benefits of Corporate Office/Government? ........... 4.11.24 Benefits of employee/beneficiary? .................. 4.11.25 How foreign remittance can be sent to Mobile Account? ............................................... 4.11.26 Fees & Service Charges. 4.11.27 Mobile Banking Services in DBBL. 4.11.28 Account Information 4.11.29 Payments & Transfers.. 4.11.30 Transaction 4.12 Advantages of Mobile Banking 4.13 Limitation of Mobile Banking 4.14 Challenges before Mobile Banking..
4.15 Prospective.
39
SWOT ANALYSIS
5.1.7 SWOT Analysis 55 Strengths.. Weaknesses. Opportunities Threats. 55 55 56 56
References Appendix
Executive Summary
Importance of banking system in a country is increasing day by day. It is quite impossible for any country to develop in industrial and commercial sector without sound banking system in modern economic era. General Banking and Mobile Banking is one of the significant functions of the bank. It plays a vital role in overall economy of the country. Bank collects information from numerous sources relating to cost and revenue from Customer Management. Globalization of national economies has given a boost to international trade. The seller and the buyer in an international trading transaction must agree for a product or its quality, price etc. enter into a sales contract, spelling out precisely shipping and delivery details, terms of payment, required documentation and other related issues including dispute settlement procedure and legal framework available.
This internship report has been prepared to fulfill the requirement for getting BBA degree. As a part of my course, it is mandatory to get involved with an organization for a certain period of time to acquire the practical knowledge. The placement committee of Department of Business Administration, Northern University Bangladesh places me at Dutch-Bangla Bank Ltd for doing my Report. The report covers organizational aspects of Dutch-Bangla Bank Ltd and a project title Mobile Banking (Banking in your Door). All the discussions are presented in detail in the project part of the report. Hope it will help the reader to have a distinct picture of the whole project work. Any kind of criticism is welcome for the betterment of the project.
Now a day the world is denoted as Global village. The whole world is consider as a potential market as a every single product and service. The economical prospective of a country largely depends on the international trade. With that view the volume of international business increase day by day. The banking sector of the operations are considered as a key factor of the economy of a countrys economic development. As a student of BBA another objective is to get sound knowledge about Banking
To fulfill academic requirement. To gain practical knowledge in banking sector of our country To learn different activities of DBBL To explain the procedures of the General Banking and Mobile Banking of Dutch-Bangla To inspect the mobile Banking services by Dutch-Bangla Bank. To measure the actual position in classified Loan and provisions maintained by the To get acquainted with the new investment, size, profile of sector wise outstanding To identify major strength and weakness of Dutch-Bangla Bank Limited in respect to To assess and evaluate the growth trends on Dutch-Bangla Bank Limited among other To recommend ways and means to solve problems regarding Banking.
Bank.
Banks.
General procedures for general banking of Duth-Bangla Bank Ltd. What kinds of standard documents are required for different types of account opening
like Mobile account, saving account, Current Account, STD, Excel, Power, Power Plus.. How different kinds of projects are appraised and financed at Dutch-Bangla Bank Limited. Present scenario and prospective of Dutch-Bangla Bank Ltd
1.5 Methodology:
1.5.1 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. 1.3.2 Primary: Primary data are root level data and are collected without correction. These data were collected by 1) Face to face conversation with customer as well as employee 2) By observing various organizational procedures 1.3.3 Secondary:
Annual reports and PDF of Mobile Banking of Dutch-Bangla Bank Limited, Instruction circular of Head Office, Brochures of different Banks, News Paper & Magazine regarding Mobile Banking issues, Seminar papers and so on.
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. 3 months are very short time to prepare this. 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.
Chapter-2
Company Profile
Banking system occupies an important place in a nations economy. Banking institution is indispensable in a modern society and it plays a vital role in the economic development of a country. Against the background of Liberation of economic policies in Bangladesh. DutchBangla Bank Ltd. Emerged as a new commercial bank to provide efficient banking services with a view to improving the socio-economic development of the country. The Bank provides a broad range of financial services to its customers and corporate clients. The Board of Directors consists of eminent personalities from the realm of commerce and industries of the country.
Dutch-Bangla Bank Limited is a second generation bank that was established in 1995 with a dream and a vision to become a pioneer banking institution of the country and contributes significantly to the national economy and society also. The banks journey began when it was incorporated as public limited company on July 04, 1995. The registrar of Joint Stock Companies and firms issued the Certificate of Commencement of business of the bank on the same date. The banks first branch was inaugurated at the busiest commercial hub of the country at 1, Dilkusha Commercial Area, Dhaka on June 03, 1996. In its arduous journey since, Dutch-Bangla Bank Limited has succeeded in realizing the dreams of those who established it. Today is one of the leading banks in the private sector, contributing significantly to the national economy and society also. The authorized capital of the Bank is today Tk. 4000.00 million. Its Paid-Up-Capital Tk. 2000.00 million and Reserve reached to Tk. 2524.72 million as on September31, 2010. The Dutch-Bangla Bank Limited was established by the leading business personalities and eminent industrialists of the country and abroad with stakes in various segments of the national economy. They established the Bank with a vision to bring efficient and professional
banking service to the people and the business community of Bangladesh to help the national economy to grow. The incumbent chairman of the bank is Mr. Abedur Rashid Khan. The Banks operations are built upon unequivocal emphasis on effective corporate governance. The objective here is to create, promote and build long-term company value. The Banks first and highest priority is to provide effective services and maximum satisfaction to the customer. The ethos of harmony and co-operation is widely practiced in the bank. It believes that transparency in decision-making, monitoring mechanism and full disclosure to shareholders and regulatory authorities are essential aspects of banks corporate governance and that they create an intense pressure to rationalize banks services and search for new competitive advantages. It works ceaselessly within these parameters. A team of efficient professionals manages the bank. They create and generate an environment of trust and discipline that affects everybody in the bank to work together for achieving the objectives of the bank. A commitment to quality and excellence in service is the hallmark of their identity. Now, the Dutch-Bangla Bank Limited has become a synonym of quality banking products and services. It has an array of such products services tailored carefully to cater to the needs of all segments of customer. It has been achieved much of its goals but it has been performing its activities to satisfy the country people as it did before well.
2.3.1 Objective:
To achieve positive Economic Value Added (EVA) each year. To be market leader in product innovation. To be one of the top three Financial Institution in Bangladesh in terms of cost efficiency. To be one of the top five Financial Institutions in Bangladesh in terms of market share in all significant market segments we serve.
2.3.3 Vision:
Dutch-Bangla bank, as a first class pioneer banking financial institution, dreams of a better Bangladesh, where arts and letters, sports and athletics, music and entertainment, science and education, health and hygiene, clean and pollution free environment and above all a society based on morality and ethics make all our lives worth living. DBBLs essence and ethos rest on a cosmos of creativity and the marvel magic of a charmed life that abounds with spirit of life and adventures that contributes towards human development.
2.3.4 Mission:
The Dutch-Bangla Bank engineers enterprises and creativity in the business and industry with a commitment to social responsibility. Profits alone does not hold a central focus in the banks operation; because man does not live by bread & butter alone.
Dutch-Bangla Bank is one of the well known second generation private bank in Bangladesh. It has much better reputation, position in, and contribution to the economic sector of Bangladesh
only for its better quality services and efficient team of performers. But it has not reached here over night. It has some distinction features so that it is now very close of the peak of success. Those distinctive features are as stated: The Dutch-Bangla bank provides service with high degree of experienced & expert & use of modern technology. The bank has the biggest IT investment as a bank in the country. The institution creates long term relationship based on mutual trust. It responses to customers needs with speed & accuracy. It shares its values & beliefs with the clients. It provides products & services at competitive pricing. It ensures safely & security of customers valuables in trust with us. It introduces diversified & dynamic banking system. It targets every income level person for its banking service. The financial institution ensures higher level of transparency and accountability at all level of doing business for having efficient and effective business operation. It is the pioneer in maintaining Corporate Social Responsibility (CSR) as a banking financial institution all over the country. It holds the biggest ATM (Automated Teller Machine) network.
Financing establishment of small units of industries and business and facilitate their
growth Small Balance Sheet size composed of quality assets. Steady and sustainable growth. Investment in a cautious way. Adoption of new banking technology.
To employ funds for profitable purposes in various fields with special emphasis on
To undertake project promotion on identify profitable areas of investment. To search for newer avenues for investment and develop new products to suit such needs. To establish linkage with other institutions which are engaged in financing micro
enterprises.
promoting
As one of the leader of banking financial institutions of the country, the Dutch-Bangla Bank Limited has a wide variety of operations. It earns a lot of profit from those operations. The important thing is that the operations are little unique from the competitors. The different operations are as stated shortly here: 2.7.1 Deposit Collection: As a leading commercial bank of the country, Dutch-Bangla Bank Limited collects huge amount of idle money from the country people as deposit in against of paying interest depending upon the account features. It pays different percentage of interest for different maturity of fixed deposits. It disburses flat 4% interest for savings account. As usual, it does not pay any interest for the current account 2.7.2 Life line Disbursement: The bank has a wide variety of life line. The collected idle money is distributed among the applicants after judging their possibility. Life line can be for commercial, personal, business, home, car, health, children, education, marriage etc. It takes
interest based on the maturity period of the life line. It earns almost 85% of its income from this operation 2.7.3. Foreign Trade: Foreign trade is another source of income for the bank. It is involved in both export and import business. It earns little from this sector but it contributes a lot to the national economy. Here, L/C (Letter of Credit) is the main source of income. 2.7.4 Foreign Currency Endorsement: Foreign currency endorsement is another source of income for the bank. It supplies money of the different recognized foreign currency like US Dollar, British Pound, Japanese Yean, Saudi Real etc to the immigrants after having their passports and visa. 2.7.5 Investment: Investment is an important operation of the bank. It can be of long and short term. It contributes significantly in the profit earning of the bank that goes to the stockholders ultimately. This investment improves the infrastructural, national development. 2.7.6. Social Responsibility: Social Responsibility is a very important operation for the bank. Though it is not a major operation from the view of profit earning but it has generated a very strong image of the bank among the national and international community also. Through this image, it has reached to the top of the success. The bank often arranges different types of social campaign like eye replacement, blood donation, free medical check up, various natural calamities, social awareness against of dowry system, early marriage, Scholarship of different level and other social problems .
The Dutch-Bangla Bank Limited began its journey with only tk. 200 million as authorized capital. But its expansion of business has led it towards this position. Now it has tk. 4000 as authorized capital, tk. 2000 as paid up capital and a total capital of tk 6257.29 million and a capital surplus of tk, 902.15 million which is remarkable for the banking industry. In 2010, it had a net profit of tk. 1410.01 million after tax where the total operating income was 5134.67. It had a statutory reserve of tk. 2524.72 million. It earned total revenue of tk. 9887.59 million and had total expenses tk. 7054.26 million. It possessed a total asset of tk. 99,877.43 million of which
earning asset is tk. 81,566.84 million which was outstanding. statements ended Sep 30, 2010)
At first the bank had begin its operation with only 3 branches and a very few officials. Those branches are Motijheel Local Office, Agrabad branch and Banani branch. But now it has a strong network of service consisting of 97 branches and over 2000 officials over the country. [ 2.9 Corporate :
Profile:
Chairman Managing Director (MD) Additional managing Director (AMD) Deputy Managing Director (DMD) Senior Executive Vice President (SEVP) Executive vice president (EVP) Senior vice president (SVP) Vice President (VP) Senior Assistant Vice President (SAVP) Assistant Vice President (AVP) First Assistant Vice President (FAVP) First Vice President (FVP) Senior Executive Officer (SEO) Executive officer (EO) First Executive Officer (FEO) Assistance Officer (General) Trainee Officer (cash)
Chapter-3
Internship Position & Duties
Pin Delivery Card Delivery Cheque delivery Account Opening of virtual card a new product of DBBL
May-Jun W 1 W 2 W 3 W 4 W 5 W 6
Jun-July W 7 W 8 W 9
July-August W1 W1 W1 W 10 11 12 1 3
Chapter-4
Mobile Banking (Banking in your Hand)
Mobile banking is not simply another delivery channel but represents a fundamental shift in the paradigm of consumer banking.
Internet Banking helped give the customer's anytime access to their banks. Customer's could check out their account details, get their bank statements, perform transactions like transferring money to other accounts and pay their bills sitting in the comfort of their homes and offices. However the biggest limitation of Internet banking is the requirement of a PC with an Internet connection, not a big obstacle if we look at the US and the European countries, but definitely a big barrier if we consider most of the developing countries of Asia like Bangladesh. Mobile banking addresses this fundamental limitation of Internet Banking, as it reduces the customer requirement to just a mobile phone. Mobile usage has seen an explosive growth in most of the Asian economies like Bangladesh. The main reason that Mobile Banking scores over Internet Banking is that it enables Anywhere Anytime Banking'. Customers don't need access to a computer terminal to access their bank accounts, now they can do so on-the-go while waiting for the bus to work, traveling or when they are waiting for their orders to come through in a restaurant. The scale at which Mobile banking has the potential to grow can be gauged by looking at the pace users are getting mobile in Bangladesh. The mobile subscriber base in Bangladesh hit 70 million in 2011. The explosion as most analysts say, is yet to come as Bangladesh has about one of the biggest untapped markets. We see that in Korea which is now witnessing the roll-out of some of the most advanced services like using mobile phones to pay bills in shops and restaurants.
Introduction of new technologies Control costs, removal of cost duplication To increase online channel customers Personalize customer interactions Unparalleled convenience & proactive customer service
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 NonBank/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
Mobile Banking is a Banking process without bank branch which provides financial services to un-banked 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 Mobile Banking. Mobile banking (m-banking) involves the use of a mobile phone or another mobile device to undertake financial transactions linked to a clients account. M-banking is one of the newest approaches to the provision of financial services, made possible by the widespread adoption of mobile phones even in low income people. The roll out of mobile telephony has been rapid, and has extended access well beyond already connected customers in rural area. There is mounting evidence of positive social impact on poorer people and communities as a result. There are sound reasons for the hope that m-banking could have similar impact. A mobile network offers a high technology platform onto which other services can be often provided at very low cost to deliver an effective result. Mobile data channels are often under-used and therefore may be offered at low cost by the network operator. M-banking services which use channels such as text messaging/ SMS can be carried at a cost of less. The low cost of using existing infrastructure makes such channels more amenable to use by low income customers. M-banking is new in our country, and there has been limited donor support in this sector to date. This report considers the case for donors to support m-banking as a sector. Bangladesh Bank permitted 10 commercial bank to do such kind of mobile banking business that the rural people who have mobile but havent banking facilities, Service holders can get there salary by the mobile banking.
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 of DBBL Cash withdrawal from any Agent of DBBL Cash withdrawal from DBBL 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
By providing electronic access to money, it is possible to ultimately alleviate poverty, because of the following reasons. Real time on-line banking
Available anytime, anywhere throughout the country Its convenient, affordable and secure It is much more effective in developing savings habits It will make access to banking and advanced payment transactions at affordable cost It is much safer, speedy and safeguard against fraudulent transaction.
While poor people have little money, they are active managers of what they have. Holding cash comes at high price to poor people because of the risk of crime in many poor People, but they often have few alternatives to cash based services. In particular, appropriate financial services help poor people to access usefully large lump sums of money, which may either enable a pathway out of poverty through investment in income generating activities (such as micro enterprises) or asset creation (such as housing); or may reduce vulnerability to sudden shocks to cash flow, as a result for example of illness or climate conditions. In our country, poor people are forced to rely on informal financial services, which may be unsafe, or fringe formal financial products which may be expensive as well as unsafe. In other words, their exclusion from formal financial services has economic and social impacts which may exacerbate their poverty.
The cost efficient provision of formal financial services (payments/ remittances, savings, credit or insurance) is predicated on customers having access at least to a basic transactional account, from which electronic transfers can be made as like purchase product and pay one another by Mbanking and cash withdrawn as necessary. M-banking holds the prospect of offering a low cost, accessible transaction banking platform for currently unbaked and poorer customers. In addition, as mobile networks expand their coverage, they offer the opportunity of bringing payment and remittance services into that areas where banking services is unable able. However, not all m-banking products will be transformational in the sense of broadening access to financial services substantially at first or even at all. However, it is likely that even m-banking services which start targeted at existing banked customers may over time extend to un-banked groups.
Rapid expansion of Mobile Phone Nation wide coverage. Enhanced Mobile Phone Services Failing cost of Technology Increasing competition in Commercial Banking Ability to offer low cost banking services Affordable and secure High level of Mobile phone literacy among client Existing of Mobile payment platform which is save and secure & recognized by Bangladesh Bank
Banglalink & citycel are two Leading mobile phone operator in Bangladesh. 152 outlets. It is reliable as Telecom Company that turns a mobile phone into an electronic wallet.
Customer can register at any authorized agent point of DBBL at present these are the retailers of City cell & Banglalink throughout the country who can display DBBL Agent Certificate and DBBL Mobile Banking Banner. Banking is there. Around 152 Banglalink and Citycel agent around the country and all the DBBL branch is the Mobile Banking place. A Mobile account holder can deposit money from DBBL permitted Banglalink and City cell agent and any branch of DBBL, They also can withdrew money from DBBL Banglalink and City cell agent and Branch. They also cash out from ATM.
It is much safer, speedy and safeguard against fraudulent transactions 4.11.2 What does DBBL Mobile banking offer? Customer Registration Cash-in (cash deposit) Cash-out (cash withdrawal) Merchant Payment Utility Payment Salary Disbursement Foreign Remittance Air-time Top-up Fund Transfer
4.11.3 Necessity
A person who wants to open an account he/she should have some documents to open an account, these are1. 2 copies PP size photo of Applicant 2. Photocopy of National ID Card 3. 100 take as account opening charge.
Account is opened
After registration of DBBL Mobile Banking DBBL cell center call customer for choosing the password. Customer chose four digit number what they like. The mobile banking number will be like mobile number with one cheque digit. It will be active within 1-2 working day. 4.11.5 Why PIN is required? PIN is required to be inputted during cash withdrawal from an Agent or DBBL ATM. PIN ensures security of your money and protects fraudulent transaction.
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. 4.11.7 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. 4.11.8 Which Telcos Mobile can be registered? Customer having any mobile from any Mobile Operator can be registered for DBBL Mobile Banking at any agent point of Banglalink and Citycell. All these Mobile Account holders will be able to deposit and withdraw money from the Agents. However the customers having mobile from operators other than Banglalink and Citycell will not be able to initiate many selfinitiated services like Balance checking, fund transfer, utility payment, Air-time top up, PIN Change etc. Customers having mobile from Banglalink and Citycell will be able to enjoy all the services agent-initiated as well as self-initiated.
DBBL Mobile Banking is highly secured as it uses either USSD or SMS+IVR as its communication channel. In case of USSD, both the instructions and PIN are communicated using USSD while in case of SMS+IVR, instructions are sent via SMS and PIN via IVR (voice channel) both the USSD and IVR are secured for transmission of PIN Customers money is safe as none can withdraw his/her money without taking possession of Mobile set, PIN and Check digit together. None will be able to deposit unwanted money into a Mobile Banking Account without knowing the check digit (although the mobile number is publicly known).
Customer asks the Agent for withdrawal of an amount from his/her mobile account Agent initiates the transaction from his/her mobile Agent gets prompt menu and in reply agent enters customers mobile account number (including check digit) and amount to withdraw DBBL system sends prompt menu to the customers mobile (or IVR Call): You are going to withdraw Tk. XXXX from your mobile account with DBBL. If you want to continue, please enter your 4-digit PIN Customer enters his/her PIN System debits customers account and send an SMS to the customers mobile Agent hands over money to the customer
There may be scarcity of cash at agent points. We want to serve as many customers as possible from each agent points. On the other hand, it is required to minimize fraudulent loss, if any. To arrest all the above, a transaction limit in terms of frequency and amount have been set in the system. Current limit for the customers are as under: Cash-in frequency per day = 5 times
Cash-out frequency per day = 5 times Cash-in / cash-out amount per transaction = 5,000/Cash-in frequency per month = 20 times Cash-out frequency per month = 20 times
Customer initiates the process from his/her own mobile. DBBL system sends prompt menu to the customers mobile (or IVR Call): Please enter your existing 4-digitPIN to proceed or press Cancel button to cancel the request Customer enters his/her existing PIN DBBL system asks for new 4-digit PIN Customer enters his/her new PIN The PIN is changed
It is a process by which Corporate Office can disburse the salary of their employees and Government can disburse different allowances like elderly allowance, freedom fighter allowance to the people within a few moment in a hassle free way.
No hassle to collect salary/allowance No queue Money can be withdrawn from any agent or DBBL ATM or DBBL Branch
4.11.26 Transaction
Fund Transfer Bill Payment Other financial services like
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. Cell phone banking is cost effective. DBBL provide this facility at a lower cost as compared to banking by self. 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. 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.
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.
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 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 hacker security should of require the device to is access more the important. application. * Security of the thick-client application running on the device. In case the device is stolen, the ID/Password * 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 / of Password the data authentication being of bank's over customer. the air. Encryption transmitted
* 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. 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
4.15 Prospective:
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.
Chapter-5
Findings And Analysis
5.0 Findings:
Despite many advantages of DBBL have some disadvantages which I did noticed while I served DBBL, Satmosjid Road Branch and I would like to mention those recommendation. I believe it may improve better customer Satisfaction for DBBL All activities are conducted are per customers necessary. Limited number of Invest mode practices. Number of employee is not sufficient. FDR rate is low compare to other Bank Shorter bank space Some department are very slow to deal with customer Poor security system Shortage of ISP as well as capacity of generator is not high as necessary. Behavior of some employee is not good. Card and cheque division are not well arrange as necessary. Customer available but employee are shortage. Customer are inspire to open account but lone or FDR is discrete. Network Problem as a result customer are sufferer a lot. One employee are not able to other desk in case of gathering of customer because of unable to do most type of work. A lot of missing is being held when customer open a account as like spelling of name, card types, cheque.
5.1 Demographic information analysis of the respondents 5.1.1 Ages 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.
Ag e
Gender
80 70 60 50 40 30 20 10 0
Figure: 02 Age of the respondents
M a le
F e m a le
Percentage 68% 32% 100%
Profession
40 35 30 25 20 15 10 5 0 Student Professionals Business ManServices Holder Housewife
of
5.1.4 Reason for opening A/C: Analysis: From the figure 03, it is evident that, among 100 respondents, 53%(the height
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.
R e a s o n F o r A /C o p e n in g
Reason of A/C No. of Respondents opening Required 53 Attractiveness Facilities Near from place Total 14 21 my 12 100
5.1.5 Education Level of respondents: Analysis: From the figure 05, it is evident that, among 100 respondents, 38%(the height
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.
E du catio n L evel
16% 12%
Education Level No Formal Eduction SSC HSC Graduate Post Graduate Total
27 3 strongly Disagree
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.
Cost of M -Banking
70 60 50 40 30 20 10 0 Strongly Agree Agree 21 20 0 Neutrial Disagree 0 Strongly Disagree 59 Series1
Save Time
35 30 25 20 15 10 5 0 Strongly Agree Agree 2 Neutrial Disagree Strongly Disagree 11 31 29 27 Series1
12 Dis agree
12 Neutral
Strongly Agree
Agree
Time taken to process of Mobile transaction of this bank is acceptable Analysis: From the figure 9, it is evident that among 100 respondents, the highest respondents 58 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.
Types of customers
once a week
once a month
Infrequent
O v e r a ll R e s p o n d s
7% 25% 40%
4% 24%
SWOT ANALYSIS
Strengths
Strengths 1. Potential customer in rural and urban area where branch banking is not possible. 2. Partner is available. 3. New investment like Mobile Banking where no bank in Bangladesh is not start such kind of business 4. Low cost for opening Mobile Bank Account. 5. Possible to give hand to the remote area customer of there remittance earn from abroad. 6. Mobile bill pay or recherch through Mobile Banking is possible. 7. Out let is available. 8. Tran section process is easy 9. Save money in rural area. 10. Salary/Allowance Disbursement 11. Strong network of telecom company 12. Efficient Employee of DBBL as well as Telecom Partner. 13. Cost effective
Weaknesses
Weaknesses 1. Out Let is not available as per requirement. 2. Mobile ATM booth is not available. 3. Amount of transaction is very little. 4. Advertisement is not adequate that most of the people dont know about Mobile Banking. 5. Employee are not efficient that M-Banking is new in Bangladesh. 6. Insecure out let that rubbery the money in remote area where security is not available.
7. New concept in Bangladesh is the beast weakness 8. Cash in and out cost is more than interest rate 9. Lack of Knowledge of operating Mobile transaction within customer.
Opportunities
Opportunities 1. Lot of potential customer in Bangladesh that around 7 corer people use Mobile phone. 2. It may that the shopkeeper receive there payment through Mobile transaction. 3. Salary and allowance may distribute through Mobile Banking 4. Government and other International agencies positive attitude toward low classification rate. 5. Opportunity to expand banking business. 6. Large market for bank. 7. Gain more profit through Mobile Banking. 8. To reach the modern banking facilities to the rural area where banking facilities does not reach till now.
Threats
Threats: 1) Customer may not use properly the process of M-Banking. 2) Reaching deeper into rural areas without costly investment in infrastructure. 3) Reducing the costs of servicing. 4) Interoperability 5) Security risks from robbery & holdup. 6) Scalability & reliability 7) Personalization 8) Customer education 9) Reduce cost of clients 10) Lack of out late 11) Cost of cash in and out is high compare to interest rate on bank deposit.
Chpter-7
Conclusion and Recommendation
6.1 Conclusions:
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. Dutch-Bangla Bank 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.
6.2 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. 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. DBBL and concern partner should advertise more for attracting all level of customers. DBBL should encourage students for Mobile account opening because students are a potential source for a bank. DBBL should increase facility to fulfillment customers need. DBBL should increase its outlet. 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 MMoney 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.
References: Books:
Bringham, Eugene F, Essential of Managerial Finance Twelfth Edition. Syed Ashrf Ali & R.A Howlader Banking Low & Practice First Edition November 2009 Annual Report 2010 DBBL Ross, Westerfield, Jaffe Corporate Finance Sixth Edition Gitman, J Lawrence(2003), Principal of Finance Tenth Edition
Web Site:
Official website www.dbbl.bd.com www.scribd.com/Dipu01718(Dipock Mondal Dipu) www.theprofriton.com www.linkedin.com www.blog.com
Others:
Dutch-Bangla Bank Ltd.2010 Annual Report Prospectus of DBBL Mobile Banking PDF
Appendix:
Demographic Information:
1 Age a) 20-30 years d) 41-50 years 2 3 Gender. a) Male Occupation. a) Professionals c) Business man 4. Reason for opening A/C. a) Required c) Attractiveness 5. Education level. a) No formal education c) HSC e) Post Graduation b) Service Holder d) Housewife b) Facility d) Near from my place b) SSC d) Graduation e) others b) Female c) 31-40 years e) above 50 years
Please circle/mark the number you choiceSA A Particulars 1. Mobile Banking is new but modern 2. You feel safe in your transaction through mobile 3. Call center services are always available when you require. 4. The Cost of cash In and out is affordable in case of Mobile Banking. 5. Available agent and branch for m-banking. 6. M-banking is save your time. 7. I feel safe in my transactions with this bank. 8. DBBL understands your specific needs 9. Time taken to process of Mobile transaction of this bank is acceptable 9. DBBL provides prompt services to its customers. 10. DBBL Mobile Banking is very effective for you 5 5 5 5 5 5 5 5 5 5 5 4 4 4 4 4 4 4 4 4 4 4 3 3 3 3 3 3 3 3 3 3 3 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 N D SD
Please check one best alternativeIn 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.