RESEARCH REPORT ON

CUSTOMER ATTITUDE TOWARDS ADOPTION OF

MOBILE BANKING SERVICES
LUCKNOW

Session- 2014-2015
SCHOOL OF MANAGEMENT

BABU BANASRI DAS UNIVERSITY, LUCKNOW

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Acknowledgement
A research cannot be said to be work of an individual. A research is a combination of views and ideas,
suggestions and contributions of many people.
We take this opportunity to thank all the people whose cooperation and encouragement made the
completion of this research project a possibility.
First of all we wish to express my sincere gratitude and for all the support throughout the
project study to my research guide Mr._________________ under whose guidance the Research was
undertaken. Without her supervision at each stage of research, the task would not have been
accomplished.
Last but not the least I wish to thank all the respondents who gave me some of their valuable
time to fill up the questionnaires, without which the Research wouldnt have been a success.

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INDEX

Certificate from the guide of the Institute

Acknowledgement

Preface

Executive Summary

Sr. No.

Table of content
Introduction
Company profile
Organization chart*
Aims and objectives
Objectives of the study
Research Methodology
o Method of data collection.
o Data Source
o Sample design
o Universe
o Sample type
o Sample size
o Sample Unit
o Hypothesis (if any)
o Statistical tools to be used
Problems and limitations
Findings, Analysis & Interpretations
SWOT/ETOP analysis*
Suggestions/Recommendations
Conclusion
Appendix
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Page No.

Bibliography

INTRODUCTION
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Introduction
Customer attitude towards adoption of Mobile banking, a business term, is a
measure of how products and services supplied by a company meet or surpass customer
expectation. It is seen as a key performance indicator within business and is part of
a balanced scorecard.
In a competitive marketplace where businesses compete for customers, Customer
attitude towards adoption of Mobile banking is seen as a key differentiator and
increasingly has become a key element of business strategy.
Organizations need to retain existing customers while targeting non-customers;
Measuring Customer attitude towards adoption of Mobile banking provides an
indication of how successful the organization is at providing products and/or services to
the marketplace.
Customer attitude towards adoption of Mobile banking is an abstract concept and
the actual manifestation of the state of satisfaction will vary from person to person and
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product/service to product/service. The state of satisfaction depends on a number of both

psychological and physical variables which correlate with satisfaction behaviours such
as return and recommend rate. The level of satisfaction can also vary depending on other
factors the customer, such as other products against which the customer can compare the
organization's products.
The measures of Customer attitude towards adoption of Mobile banking involve
a survey with a set of statements using a scale. The customer is asked to evaluate each
statement in terms of their perception and expectation of performance of the service
being measured.
The tremendous advances in technology and the aggressive infusion of
information technology had brought in a paradigm shift in banking operations. Internet
banking that has revolutionized the banking industry worldwide has turned out to be the
nucleus issue of various studies all over the world. However there has constantly been a
significant gap between bankers and customers with regard to mobile banking in India.
The purpose of this project is to help fill significant gaps in knowledge about the mobile
banking landscape in India. The project presents data, drawn from a survey of opinion of
mobile banking users and their satisfaction level. It investigates the extent of usage, the
profile of customers and response towards mobile banking using univariate statistical
analysis. It was also found that there is significant gap between the perception of the
customers and the service providers i.e. the bankers.
After Internet Banking, Mobile Banking or M-Banking has become the buzz word in the
industry. Its a fact that Internet Banking has given a boost and has shown a successful
way to consider it as a good alternative procedure against physical branch banking. Now
where ever you are, you can access your bank account and you can do lot more things
like checking your account balance, transfer to some other account, pay your utility bills
online and so on, just by comfortably sitting at your home or office. But, the technical
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disadvantage of Internet Banking is, you have to have internet connectivity and a
computer.
And here Mobile Banking comes into the picture to address the basic limitation of
Internet Banking.
If we only consider Asian developing countries, the availability of mobile connectivity is
really huge. Where one may not find out a landline telephone or an internet connection,
but still in those remote places getting mobile connectivity is not difficult at all with
technology

advancements.

So, Mobile Banking has given the traditional banking a newer look Anywhere
Banking. Now you dont need a PC or a laptop with internet connectivity, just you need
your cell phone with you. Considering the Asian economy countries like China, India
and Korea have seen the mobile boom in last one decade .In Korea, more than 70% of
the

entire

population

is

carrying

mobile.

There are over 200 million mobile phone subscribers in India and the number continues
to explode. Financial services companies are now working with mobile payment players
like mChek to offer innovative mobile phone solutions to urban and rural Indian
population.
Mobile banking has the potential to bring a whole host of people that have no/little
access to land lines/internet connections onto the electronic platform an innovative
way to generate financial inclusion. To do so successfully will require customer training,
technology stabilization and managing carefully the know your customer issues.

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LITERATURE REVIEW

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Literature review:Mobile Banking, also known as M-Banking, can

perform various functions like mini statement, checking of account history,
SMS alerts, access to card statement, balance check, mobile recharge etc. via
mobile phones (Vinayagamoorthy and Sankar, 2012). Banks are constantly
updating their technology and want to increase their customer base by reaching
to each and every customer. There are many advantages of using mobile
banking, such as people in the rural or remote areas can also get an easy access
to mobile banking whenever required. Vinayagamoorthy and Sankar, (2012)
have discussed about the mobile banking and according to them it is a term that
is used for performing various banking transactions like fund transfer, balance
check, payments etc. via mobile phones.
First
mobile banking transaction services in India were offered by ICICI bank in
January 2008 (Mr. V. Vaidyanathan, 2008) but SMS alerts started in 2005-06
(Alpesh Patel, 2013). Wireless phone subscribers in India crossed 867.8 Million
in 2013, as per TRAI (Telecom Regulatory Authority of India Act, 1997) as
compared to 261.07 in March 2008. So there is approximately 4 times increase
in the number of subscribers. However, according to this report, subscribers
who access the internet through wireless phones are 143.2 Million. Almost
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16.5% of wireless mobile phone subscribers are using the Internet over their
mobile phones. According to a Mobile banking report by Deloitte (Alpesh Patel,
2013), 17 Million Indians are using mobile phones for banking transactions.
So, approximately 2% of wireless phone subscribers are using banking services
on their mobile phones. Mobile banking is still in its nascent stage in India.
Therefore, identifying and understanding the factors influencing the behaviour
of mobile phone subscribers is one of the fundamental requisite for
development of mobile banking services in India.
. According to RBI report, there are 82 banks that are permitted by RBI to
provide mobile banking services throughout the India (Reserve bank of India,
2014) as compared to 21 Banks in the year 2010.
During the last four years, the numbers of banks providing mobile
banking services in India have increased four times. But numbers of mobile
banking users have not increased at the same pace. There are many challenges
that Indian banks are facing for increasing the mobile banking user database like
Handset operability, Security, Scalability and Reliability, Application
Distribution etc. Acceptance and adoption of this innovative technology is very
complex and this complexity attribute is studied by various researchers and
they have suggested that banks should make these services easy to use by the

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Indian population because Indian population is not very well versed with this
upcoming technology (Chaipoopirutana, Combs, Chatchawanwan and Vij
(2009); Lin (2010); Sahin (2006).

COMPANY PROFILE

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Industry Profile
History of Banking in India
Without a sound and effective banking system in India it cannot have a healthy
economy. The banking system in India should not only be hassle free but it should be
able to meet new challenges posed by the technology and many other external and
internal factors.
For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no longer
confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system
has reached even to the remote corners of the country. This is one of the main reasons of
India's growth process.
The government's regular policy for Indian bank since 1969 has paid rich
dividends with the nationalization of 14 major private banks of India.

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The first bank in India, though conservative, was established in 1786. From 1786
till today, the journey of Indian Banking System can be segregated into three distinct
phases. They are as mentioned below:
Early phase from 1786 to 1969 of Indian Banks.
Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.
To make this more descriptive, I prefix the scenario as Phase I, Phase II and Phase III.

Phase I
The General Bank of India was set up in the year 1786. Bank of Hindustan and
Bengal Bank came to India at later stages. The East India Company established Bank of
Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent
units and called it Presidency Banks. These three banks were amalgamated in 1920 and
Imperial Bank of India was established which started as private shareholders banks,
mostly Europeans shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indians,
Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between
1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank,
Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced
periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly
small. To streamline the functioning and activities of commercial banks, the Government
of India came up with The Banking Companies Act, 1949 which was later changed to
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Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965).
Reserve Bank of India was vested with extensive powers for the supervision of banking
in India as the Central Banking Authority.
During those days public has lesser confidence in the banks. As an aftermath
deposit mobilization was slow. Abreast of it the savings bank facility provided by the
Postal department was comparatively safer. Moreover, funds were largely given to
traders.

Phase II
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive banking
facilities on a large scale especially in rural and semi-urban areas. It formed State Bank
of India to act as the principal agent of RBI and to handle banking transactions of the
Union and State Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalized in 1960
on 19th July, 1969, major process of nationalization was carried out. It was the effort of
the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the
country were nationalized.
Second phase of nationalization Indian Banking Sector Reform was carried out in
1980 with seven more banks. This step brought 80% of the banking segment in India
under Government ownership.
The following are the steps taken by the Government of India to Regulate
Banking Institutions in the Country:
1949: Enactment of Banking Regulation Act.
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1955: Nationalisation of State Bank of India.

1959: Nationalisation of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalisation of 14 major banks.
1971: Creation of credit guarantee corporation.
1975: Creation of regional rural banks.
1980: Nationalisation of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India rose
to approximately 800% in deposits and advances took a huge jump by 11,000%.

Phase III
This phase has introduced many more products and facilities in the banking sector
in its reforms measure. In 1991, under the chairmanship of M. Narasimham, a
committee was set up by his name which worked for the liberalization of banking
practices.
The country is flooded with foreign banks and their ATM stations. Efforts are
being put to give a satisfactory service to customers. Phone banking and net banking is
introduced. The entire system became more convenient and swift. Time is given more
importance than money.
The financial system of India has shown a great deal of resilience. It is sheltered
from any crisis triggered by any external macroeconomics shock as other East Asian
Countries suffered. This is all due to a flexible exchange rate regime, the foreign
reserves are high, the capital account is not yet fully convertible, and banks and their
customers have limited foreign exchange exposure.
Nationalization of Banks in India

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The nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi
the then prime minister. It nationalized 14 banks then. These banks were mostly owned
by businessmen and even managed by them.

Central Bank of India.

Bank of Maharashtra.
Dena Bank.
Punjab National Bank.
Syndicate Bank.
Canara Bank.
Indian Bank.
Indian Overseas Bank.
Bank of Baroda.
Union Bank.
Allahabad Bank.
United Bank of India.
UCO Bank.
Bank of India.
Before the steps of nationalization of Indian banks, only State Bank of India (SBI)

was nationalized. It took place in July 1955 under the SBI Act of 1955. Nationalization
of Seven State Banks of India (formed subsidiary) took place on 19th July, 1960.
The State Bank of India is India's largest commercial bank and is ranked one of
the top five banks worldwide. It serves 90 million customers through a network of 9,000
branches and it offers -- either directly or through subsidiaries -- a wide range of banking
services.
The second phase of nationalization of Indian banks took place in the year 1980.
Seven more banks were nationalized with deposits over 200 crores. Till this year,
approximately 80% of the banking segment in India was under Government ownership.
Schedule Commercial Banks in India
The commercial banking structure in India consists of
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I.
II.

Scheduled commercial banks in India.

Unscheduled banks in India.

Scheduled Banks in India constitute those banks which have been included in the
Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only
those banks in this schedule which satisfy the criteria laid down under section 42 (6) (a)
of the Act.
As on 30th June, 1999, there were 300 scheduled banks in India having a total
network of 64,918 branches. The scheduled commercial banks in India comprise of State
bank of India and its associates (nationalized banks (19), foreign banks (45), private
sector banks (32), co-operative banks and regional rural banks.
"Scheduled banks in India" means the State Bank of India constituted under the
State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State
Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank
constituted under section 3 of the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank
being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2
of 1934), but does not include a co-operative bank".
"Non-scheduled bank in India" means a banking company as defined in clause (c)
of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled
bank".
Overview of the Banking Structure in India
The structure of the banking system in India consists of two parts
1. Unorganised Sector, and
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2. Organised Sector.
The organized sector comprises of money lenders and indigenous bankers. The
organized sector consists, of commercial banks, cooperative banks and regional rural
banks. Beside these institutions which provide short-term credit to business, there are
number of specialized terms lending institutions which provide long term requirements
of industry agriculture and foreign trade. The Reserve Bank of India, the central bank of
the country is at apex of the banking structure in India.
Cooperative Banks
The cooperative banks and societies have been playing very useful role in meeting
the requirements of people in the rural areas. The cooperative banks, originated with the
enactment of the cooperative credit societies Act of 1904. The Act provided for the
establishment of credit societies Act, 1912 provided for the establishment of cooperative central banks by a union of primary credit societies. The Maclagan committee
appointed in 1914 recommended the establishment of a state cooperative Apex bank.
Following this, central cooperative banks were established in many provinces. But the
cooperative movement to cater to the needs of agriculturists received momentum only
during the post-independence period.
The co-operative Banking Structure in India is a pyramid type of a 3 Tire structure
comprising
1. Primary agricultural cooperative credit societies, at the village level.
2. District central cooperative banks at the district level.
3. The state cooperative bank at the state level.
Primary co-operative credit societies

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The primary co-operative credit societies function at the base of the cooperative
credit system. There are primary credits co-operative societies, service co-operative
societies, marketing societys etc. They are specialized institutions discharging specific
functions. These societies raise funds by way of share capital, deposits from members
non-members and loans from district central cooperative banks.
Primary agricultural credit cooperatives provide short-term loans, medium term
loans to farmers to buy seeds, fertilizers, implements etc.
The agriculture marketing societies help farmers in securing good prices for the
products produced by them, by means of marketing. The land mortgage (now called land
developed banks) banks provide long term loans to farmers to buy capital equipment and
make permanent improvements on the land. Most of the cooperative credit banks, apex
banks, commercial banks or regional rural banks. The primary agricultural credit
societies which occupy a predominant position in the cooperative structure are socioeconomic organizations established for betterment of the members in particular and the
local people in general.
Central Cooperative Banks
A central cooperative bank is a federation of primary credit societies in a specified
area. They are established in each district to serve as a refinancing agency to the primary
credit societies. The primary societies are the members of these banks. Since the
membership is open only to co-operative societies, the central cooperative banks are
called pure central banks. The central cooperative banks obtain funds from the state
cooperative apex bank. They also borrow from commercial banks and NABARD. They
carry on commercial banking activities in the concerned districts like accepting deposits
from the societies and the public, advancing loans (short and medium) to primary cooperative societies on the security of first class gilt-edged securities. They also discount
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cheques and hundies of cooperative organizations. They also act as balancing centres
making available temporary excess funds of one primary cooperative society to another
which is need of them.
State Co-operative Banks
The state co-operative banks operating at the top of cooperative credit structure
are a federation of central cooperative banks. They are also known as APEX Basks.
They act as watch dog of the co-operative banking structure in the state. They receive
deposits from the public and local boards, municipalities etc., Further, they receive loans
at call and short notice from the commercial banks and the Reserve Bank of India. The
state governments contribute a certain portions of their working capital. They lend
money to central cooperative banks which in turn lend it to primary societies. They act
as inter mediatory between the state co-operative bank and primary credit societies.
Urban co-operative Banks
Urban co-operative banks are similar to commercial banks in their operation.
Normally, person living in certain urban areas. Classes like traders, merchants,
professionals and salaried classes are members of urban co-operative banks. In some
banks, there is a provision for admitting only individuals as members. They are lending
and borrowing institutions like commercial banks. These banks generally accept current,
savings and fixed deposits. They provide loans only to their members. All major cities in
India are having a good number of co-operative banks.
Land Development Banks
Besides short term and medium term loans, agriculturists also require long term
loans for effecting permanent improvement in land, for purchase of pump sets, tractors,
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digging up of wells etc. To cater to the long term needs of agriculturists, land
development banks have been meet the long term credit requirements of the
agriculturists. It is a two tier structure with central land development banks at the state
level and primary land development banks at the taluk or district level. The banks of
Tamilnadu, Bombay, Andhra Pradesh and Karnataka are of this type. In states like
Gujarat, Uttar Pradesh, and Jammu and Kashmir, there is a unitary structure, i.e.; the
Apex land development banks operate directly through their own branches at the district
or taluk level. Today all states are having land development banks. The land
development banks obtain funds mainly by the issue of long term debentures. The
debentures are guaranteed by the state government and are subscribed by the life
insurance corporation banks and state bank of India.
They specialize in granting loans against agricultural land. They lend money at
low rates of interest. Now days the land development banks are giving long term loans
to land owners to buy agricultural machinery and equipments, digging of wells,
installation of pump sets etc. They give loans only for productive purposes.

Miscellaneous Functional Societies

In recent years, co-operative societies have been set up to serve a number of
useful purposes. Housing co-operatives have been organized on federal structure. At the
state level, there are central co-operative societies and at the local level there are primary
house building co-operative societies the central co-operative housing corporation
obtains funds through the issue of debentures guaranteed by the state government. All
the primary housing societies are the members of the central housing corporation.

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There are consumer co-operative societies which are employees of a particular

organization and consumers in a locality from either a credit or non-credit society. Noncredit societies are formed with a view to sell consumer products at reasonable prices.

Regional Rural Banks (RRBs)

The limited role played by commercial banks in providing rural credit and the
weakness and deficiencies of co-operative banks in providing credit to small and
marginal farmers, rural artisans and the weaker sections of the society, led to the
appointment of a working group. In July, 1975, the government of India appointed a
working group under chairmanship of Sri M. Narasimhan to review the position of rural
lending to targeted groups. The working group identified various weaknesses of the
commercial banks and co-operative credit agencies and felt that these institutions would
not be able to fill the regional and functional gaps in the rural credit system and
therefore, recommended a new type of institution. Accepting the recommendations the
government promulgated it the regional rural banks act, 1976. The object of setting up
the regional rural banks was to develop the rural economy by providing for the
development of agriculture, trade, commerce, industry and other productive activities in
rural areas, credit and other facilities, particularly to small and marginal farmers,
agriculture labourers artisans and small entrepreneurs.

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The regional rural banks are generally sponsored by major commercial banks with
the participation of state and central governments. To start with, 5 regional rural banks
were set up on 2nd October 1975. The share capital of the regional rural banks is
provided by the central government up to 50 percent, state governments, up to 15
percent, and the balance is subscribed by the sponsored commercial bank. The
management of the regional rural bank is vested in 9 member board of directories
headed by a chairman appointed by the government of India. The central government
and the sponsoring bank nominate 3 members each to the board, and the state
government nominates 2 members. The sponsor bank, besides subscribing to the capital,
provides assistance to it in several ways, such as, financial accommodation, deputation
of managerial and other staff and arranging the recruitment of staff and their training.
They are required to provide credit adequately to the development of agriculture, to
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small and marginal farmers, agricultural labourers, and meet the credit needs of rural
poor who are taking up self-employment activities.

Mobile Banking
Mobile banking (also known as M-Banking, SMS Banking etc.) is a term used for
performing balance checks, account transactions, payments etc. via a mobile device such
as a mobile phone. Mobile banking today is most often performed via SMS or the
Mobile Internet but can also use special programs called clients downloaded to the
mobile device.
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The advent of the Internet has revolutionized the way the financial services industry
conducts business, empowering organizations with new business models and new ways
to offer 24x7 accessibility to their customers.
The ability to offer financial transactions online has also created new players in the
financial services industry, such as online banks, online brokers and wealth managers
who offer personalized services, although such players still account for a tiny percentage
of the industry.
Over the last few years, the mobile and wireless market has been one of the fastest
growing markets in the world and it is still growing at a rapid pace.
According to a study by financial consultancy Celent, 35% of online banking
households will be using mobile banking by 2011, up from less than 20% today.
Upwards of 70% of bank center call volume is projected to come from mobile phones.
Mobile banking will eventually allow users to make payments at the physical point of
sale. "Mobile contactless payments will make up 10% of the contactless market by
2011.
Many believe that mobile users have just started to fully utilize the data capabilities in
their mobile phones. In Asian countries like India, China, Bangladesh, Indonesia and
Philippines, where mobile infrastructure is comparatively better than the fixed-line
infrastructure, and in European countries, where mobile phone penetration is very high
(at least 80% of consumers use a mobile phone), mobile banking is likely to appeal even
more.
This opens up huge markets for financial institutions interested in offering value added
services. With mobile technology, banks can offer a wide range of services to their
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customers such as doing funds transfer while travelling, receiving online updates of
stock price or even performing stock trading while being stuck in traffic. According to
the German mobile operator Mobilcom, mobile banking will be the "killer application"
for the next generation of mobile technology.
Mobile devices, especially smart phones, are the most promising way to reach the
masses and to create stickiness among current customers, due to their ability to
provide services anytime, anywhere, high rate of penetration and potential to grow.
According to Gartner, shipment of smartphones is growing fast, and should top 20
million units (of over 800 million sold) in 2009 alone.
In the last 4 years, banks across the globe have invested billions of dollars to build
sophisticated internet banking capabilities. As the trend is shifting to mobile banking,
there is a challenge for CIOs and CTOs of these banks to decide on how to leverage
their investment in internet banking and offer mobile banking, in the shortest possible
time.
The proliferation of the 3G (third generation of wireless) and widespread
implementation expected for 20052010 will generate the development of more
sophisticated services such as multimedia and links to m-commerce services.

Mobile banking business models

A wide spectrum of Mobile/branchless banking models is evolving. However, no matter
what business model, if mobile banking is being used to attract low-income 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 telecom companies or banks.
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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
telecom companies will work through their local airtime resellers. However, banks in
Colombia, Brazil, Peru, and other markets use pharmacies, bakeries, etc.
These models differ primarily on the question that who will establish the relationship
(account opening, deposit taking, lending etc.) to the end customer, the Bank or the NonBank/Telecommunication Company (Telco). Another difference lies in the nature of
agency agreement between bank and the Non-Bank. Models of branchless banking can
be classified into three broad categories - Bank Focused, Bank-Led and Nonbank-Led.
Bank-focused model
The bank-focused model emerges when a traditional bank uses non-traditional low-cost
delivery channels to provide banking services to its existing customers. Examples range
from use of automatic teller machines (ATMs) to internet banking or mobile phone
banking to provide certain limited banking services to banks customers. This model is
additive in nature and may be seen as a modest extension of conventional branch-based
banking.

Bank-led model
The bank-led model offers a distinct alternative to conventional branch-based banking in
that customer conducts financial transactions at a whole range of retail agents (or
through mobile phone) instead of at bank branches or through bank employees. This
model promises the potential to substantially increase the financial services outreach by
using a different delivery channel (retailers/ mobile phones), a different trade partner
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(telco / chain store) having experience and target market distinct from traditional banks,
and may be significantly cheaper than the bank-based alternatives. The bank-led model
may be implemented by either using correspondent arrangements or by creating a JV
between Bank and Telco/non-bank. In this model customer account relationship rests
with the bank
Non-bank-led model
The non-bank-led model is where a bank does not come into the picture (except possibly
as a safe-keeper of surplus funds) and the non-bank (e.g telco) performs all the
functions.
Mobile Banking Services
Mobile banking can offer services such as the following:
Account Information
1. Mini-statements and checking of account history
2. Alerts on account activity or passing of set thresholds
3. Monitoring of term deposits
4. Access to loan statements
5. Access to card statements
6. Mutual funds / equity statements
7. Insurance policy management
8. Pension plan management
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9. Status on cheque, stop payment on cheque

10. Ordering check books
11. Balance checking in the account
12. Recent transactions
13. Due date of payment (functionality for stop, change and deleting of payments)
14. PIN provision, Change of PIN and reminder over the Internet
15. Blocking of (lost, stolen) cards
Payments, Deposits, Withdrawals, and Transfers
1. Domestic and international fund transfers
2. Micro-payment handling
3. Mobile recharging
4. Commercial payment processing
5. Bill payment processing
6. Peer to Peer payments
7. Withdrawal at banking agent
8. Deposit at banking agent

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Especially for clients in remote locations, it will be important to help them deposit and
withdraw funds at banking agents, i.e., retail and postal outlets that turn cash into
electronic funds and vice versa. The feasibility of such banking agents depends on local
regulation which enables retail outlets to take deposits or not.
A specific sequence of SMS messages will enable the system to verify if the client has
sufficient funds in his or her wallet and authorize a deposit or withdrawal transaction at
the agent. When depositing money, the merchant receives cash and the system credits
the client's bank account or mobile wallet. In the same way the client can also withdraw
money at the merchant: through exchanging sms to provide authorization, the merchant
hands the client cash and debits the client's account.
Investments
1. Portfolio management services
2. Real-time stock quotes
3. Personalized alerts and notifications on security prices
Support
1. Status of requests for credit, including mortgage approval, and insurance coverage
2. Check (cheque) book and card requests
3. Exchange of data messages and email, including complaint submission and
tracking
4. ATM Location
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Content Services
1. General information such as weather updates, news
2. Loyalty-related offers
3. Location-based services
Based on a survey conducted by Forrester, mobile banking will be attractive mainly to
the younger, more "tech-savvy" customer segment. A third of mobile phone users say
that they may consider performing some kind of financial transaction through their
mobile phone. But most of the users are interested in performing basic transactions such
as querying for account balance and making bill payment.
Challenges for a Mobile Banking Solution

Key challenges in developing a sophisticated mobile banking application are:

Interoperability
There is a lack of common technology standards for mobile banking. Many protocols are
being used for mobile banking HTML, WAP, SOAP, XML to name a few. 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. Some of these devices
support J2ME and others support WAP browser or only SMS.
Overcoming interoperability issues however have been localized, with countries like
India using portals like R-World to enable the limitations of low end java based phones,
Page 31

while focus on areas such as South Africa have defaulted to the USSD as a basis of
communication achievable with any phone.
The desire for interoperability is largely dependent on the banks themselves, where
installed applications (Java based or native) provide better security, are easier to use and
allow development of more complex capabilities similar to those of internet banking
while SMS can provide the basics but becomes difficult to operate with more complex
transactions.
Security
Security of financial transactions, 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 banks' IT departments.
The following aspects need to be addressed to offer a secure infrastructure for financial
transaction over wireless network:
1. Physical part of the hand-held device. If the bank is offering smart-card based
security, the physical security of the device is more important.
2. Security of any thick-client application running on the device. In case the device
is stolen, the hacker should require at least an ID/Password to access the
application.
3. Authentication of the device with service provider before initiating a transaction.
This would ensure that unauthorized devices are not connected to perform
financial transactions.

Page 32

4. User ID / Password authentication of banks customer.

5. Encryption of the data being transmitted over the air.
6. Encryption of the data that will be stored in device for later / off-line analysis by
the customer.
Scalability & Reliability
Another challenge for the CIOs and CTOs of 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 (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. There are systems such as Mobile
Transaction Platform which allow quick and secure mobile enabling of various banking
services. Recently in India there has been a phenomenal growth in the use of Mobile
Banking applications, with leading banks adopting Mobile Transaction Platform and the
Central Bank publishing guidelines for mobile banking operations.
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 (so
called "Over The Air" updates). However, there could be many issues to implement this
approach such as upgrade / synchronization of other dependent components.

Page 33

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

Mobile Banking in the world

This part of the mobile commerce is very popular in countries where most of their
population is unbanked. Countries like Sudan, Ghana and South Africa received this new
commerce very well. In Latin America countries like Uruguay, Paraguay, Argentina,
Brazil, Venezuela, Colombia, Guatemala and recently in Iran banks like Persian, Tejarat,
Mellat, Saderat, Sepah, Edbi and Bankmelli offer this service. Guatemala has the
support

of

Banco

industrial.

Mexico released the mobile commerce with Omnilife, Bancomer and a private company
(MPower Ventures). Kenya's Safaricom (Part of the Vodafone Group) has had the very
popular MPESA Service - mainly used to transfer limited amounts of money, but has
been increasingly used to pay utility bills. Zain in 2009 launched their own mobile
money transfer business known as ZAP in Kenya and other African countries.
Page 34

Organization Chart

Page 35

Page 36

OBJECTIVES OF THE STUDY

Page 37

Objectives of the study

1. To know about the level of awareness of mobile banking among the people who
use this service.
2. To know the level of usage of mobile banking.
3. To analyse the gap between the perceptions of banks offering services and the
customers availing the facility.
4. To understand the usage pattern and preference of the customers with regard to
frequency, place and banks.
5. To understand the attitude of the users making banking transactions through the
mobile.

Page 38

RESEARCH METHODOLOGY

Page 39

Research Methodology

In order to learn, study, assimilate, absorb and then reasonably rationalize only
theoretical knowledge is not enough. Analysis from the theory is totally incomplete
without a practical angle. Keeping this in mind, the research has been conducted on
Customer attitude towards adoption of Mobile Banking Service The area selected is
area of Lucknow.
The aim was to gain practical knowledge about the consumer behavior. This
practical aspect is an invaluable source of knowledge in the study of this important
branch that is marketing.

Background of the study

ATM and internet banking have been around in India for a while. While both
modes have had some success, penetration and use levels have been moderate.
While ATMs offer convenience, they pose a perceived security threat in India given
instances of mugging around them. Senior citizens and women appear reluctant to use
ATMs if they have a choice to go to a branch and withdraw money in safety. The
security situation in India shows little sign of improvement and therefore a large scale
proliferation of ATMs will remain a challenge. Internet banking, on the other hand, relies
on PC and internet penetration. Estimates suggest that there are approx 40 million
Page 40

internet users which are expected to rise to 100 million soon despite this growth,
penetration and use levels remain low, especially in non-metro areas. Research also
suggests that internet banking is picking up amongst the target user group.
While internet penetration and use in India is relatively low, mobile phone penetration is
much higher and growing rapidly. There are over 200 million mobile phone subscribers
in India and the number continues to explode. Financial services companies are now
working with mobile payment players like mChek to offer innovative mobile phone
solutions to urban and rural Indian population. Reserve Bank of India has restrictions on
non-bank involvement in money transfer. Therefore, development of mobile financial
services

applications

is

being

sponsored

primarily

by

banks

in

India.

Statement of the problem

Though Lucknow has surpassed the silicon valley of USA in software exports and
technological innovations, the level of mobile banking users in the city is substantially
low. Though the citizens for checking mails, browsing, chatting etc use mobile it is not
used for banking transaction on large scale. The study is conducted to analyze the usage
of mobile for banking purpose. The study is conducted to highlight the reasons for
customers preference to mobile banking and measure their satisfaction level the study is
titled A study on Customer attitude towards adoption of Mobile Banking
Service Lucknow.

Page 41

Need and importance of the study

1. To understand the profile of the customers availing mobile banking facility.
2. To understand the attitude of users towards mobile banking contents.

Research Procedure
The process of designing a research study involves many inter-related decisions.
The most significant decision is the choice of research approach as it determines how the
information is obtained.
Selecting particular tool for data collection, the research has adopted the
Descriptive Research method. This method focus in seeking insights into the general
nature of the problem and to focus on the relevant variables that needs to be considered
to carry on the research. Through exploratory research the researcher can establish
priorities among the research questions for the learning about the practical problems of
carrying out the research.

Sampling Technique
Sample is the fraction of population. Sampling is a technique or a method of
selection of samples. According to the Random Sampling Method it is assumed that
entire population is Homogeneous and the samples are selected in such a way that each
Page 42

and every unit of population has equal chance of occurrence or equal probability of
occurrence.
Sampling Population
The population of mobile banking users in areas of . is estimated to be 1000. From
the above users, 50 respondents were selected based largely on random sampling
method.

Instrumentation Technique
Primary data generation was necessary to obtain the information pertaining to the
research problem in the study. The need for primary data requires that a questionnaire is
to be developed. Developing a suitable questionnaire is the most challenging aspect of
the research.
A questionnaire, which is also familiarly known as interview schedule with a
format consisting of questions sequentially ordered to obtain the information that are
relevant to the objectives of the study. The questions in the questionnaire can be broadly
classified into two major categories.
A. Open ended questions
B. Closed end questions.

Actual collection of Data

Collection of original facts by the researcher forms primary data. There are two
types of data collection:
1. Primary data, and
Page 43

2. Secondary data.

Primary Data:
Information collection specifically for the purpose of investigation, as on one
hand is known as primary data or raw data. These are not readily available. This research
work mainly depends on questionnaire. With reference to these questionnaires were
distributed to the respondents to collect the required data. In case of busy respondents
the information was asked orally and filled by the researcher himself. The questionnaires
thus collected were administered to the sample and analyzed.

Secondary Data
Secondary data are those collected from interviewing party, secondary data
includes data for the study and includes appropriate materials from journals, bank
websites, text books, and information from internet has also been required wherever
necessary.
Statistical Techniques adopted
Statistical tools like bar chart, pie chart, frequency, percentages, averages and
column charts have been used to study.

Page 44

LIMITATIONS & PROBLEM

1. The sample size was restricted to hundred customers.
2. Resources like time and cost was a constraint.
3. The study was conducted in Lucknow city. So the findings and conclusion drawn
are applicable to Lucknow only.
4. The methods used for analysis and interpretation purpose may have some
limitations of their own and some errors can always creep in.
5. The sample size is small; hence the result cannot be generalised.

Page 45

ANALYSIS &
INTERPRETATION OF DATA

Page 46

Analysis and Interpretation

The findings are summarized in the following section:
Table no.1
Showing gender wise classifications of Respondents
Sl. No

Gender
Male
Female
Total

1
2

No. Of Respondents

Percentage

35
15

70
30

50

100

Analysis:
The female users represents 30 percent of the sample size while 70 percent of the
users are male.
.Chart

no.1
Graph showing gender wise classification of respondents
80%
70%

70%

60%
50%
Percentage

40%
30%

30%
20%
10%
0%
Male

Female

Interpretation:
Page 47

Majority of the mobile banking customers are men and a majority of women are
yet to adopt this technology

Table no.2
Age wise classification of respondents
Sl. No
1
2
3
4
5

Age (in Years)

20 25
26 30
31 35
36 40
Above 41
Total

No. Of Respondents
10
23
8
5
4
50

Percentage
20
46
16
10
8
100

Analysis:
From the above table it is clear that the respondents were chosen from all
the age groups. There were 21% respondents from the age group ranging between 2025 years; 46% of the respondents between 26-30 years; 19% of the respondents
between 31-40 years; 4% of the respondents falling above the age group of 41 years.
It is significant that the number of respondents in the age group of 26-30 years is
optimum.

Page 48

Chart no.2
Showing the age wise classification of the respondents

10%

8%

20%
20 - 25

16%

26 - 30
31- 35
46%

36 - 40
Above 41

Interpretation:
From the above chart it is clear that age group ranging between 20 years to
40 years and above, the respondents is not divided equally. There was least number of
people in the category of above 41 which they may be thinking that mobile banking is
not so secure. While majority of respondents belong to the age group 26-30.

Page 49

Table no.3
Education wise classifications of the respondents
Sl. No
1
2
3
4

Education
Post Graduates
Graduates
Diploma Holders
Others
Total

No. Of Respondents
25
16
5
04
50

Percentage
50
32
10
08
100

Analysis:
From the table, it is very much clear that most of the respondents were post
graduates; they constituted 50% of the total number of respondents. Out of total
respondents 32% were graduates; 10% were diploma holders; 08% of the
respondents were have completed their basic education.
Chart 3
Sowing education wise classifications of the respondents

Page 50

Others

Diploma Holders

8%

10%

Graduates

32%

Post Graduates
0%

50%
10%

20%

30%

40%

50%

60%

Percentage

Interpretation:
From the above data, we can interpret that majority of respondents were
postgraduates, who have knowledge about mobile banking and ready to transact their
bank accounts by using mobile. After the post graduates the graduates and diploma
holders were the respondents who are interacting.

Table no.4
Showing details of occupation of the respondents
Sl. No
1
2
3
4

Occupation
Self Employed
Salaried
Students
Housewives
Total

No. of Respondents
05
33
08
04
50

Percentage
10
66
16
08
100

Analysis:
From the table, it can be said that salaried respondents 66% occupy the
major portion of the total. And next are the students who are 16% occupy the second

Page 51

position and self employed, housewifes and professional people are in next
positions respectively.

Chart no.4
Graph showing the occupation of the respondents
66%

70%
60%
50%
40%
Percentage

30%
20%

16%
10%

8%

10%
0%
Self - Employed Salaried

Students

Housewives

Interpretation:
From the above data, we can interpret that the business community and
housewives is yet to avail this facility. The reasons could be attributed to difficulty in
maintaining accounts as very less transactions are involved.

Table no.5
Table showing details of income of the respondents
Sl. No
1
2
3
4

Income Group
< 10,000
10,001 20,000
20,001 30,000
>30,001
Total

No. Of Respondents
7
13
8
22
50
Page 52

Percentage
14
26
16
44
100

Analysis:
From the above table it is clear that 14% of the respondents lied in the
income group of less than Rs.10,000; 26% respondents were in the income group of
Rs.10,001 to 20,000; 16% of the respondents were from income group of Rs.20,001
to 30,000; and the rest 44% of the respondents were from income group of Rs.30,001
and above.

Chart no.5
Showing the income earned monthly by the respondents
45%

> 30,001
20,001 - 30,000

14%

Income Group

26%

10,001 - 20,000
< 10,000
0%

14%
10%

20%

30%

40%

50%

Percentage

Interpretation:
Major number of respondents was in the income group of above Rs. 30,001.
These were the respondents from salaried who had good knowledge of the mobile
banking. There were good number of respondents from the income group of
Rs.10,001 20,000 but these people transact because of the maintenance charges by
the banks.

Table no.6
Table showing awareness of mobile banking
Sl. No
1

Gender
Yes

No. Of Respondents

Percentage

38

76

Page 53

No
Total

12

24

50

100

Analysis:
It is well clear from the chart that majority of people 76% o people who use mobile
banking are well aware of it .

Chart no.6
Showing awareness of mobile banking

Respondents
24%
Yes
No
76%

Interpretation:
We can easily interpret from the chart that most of the respondents who are using mobile
banking are well aware of it and rest 24% are not because of the reason that they
recently started using the service and are new to it.

Table no.7
Table showing frequency of mobile banking usage
Page 54

Sl. No
1
2
3
4

Frequency
Daily
Weekly
Monthly
As and when needed
Total

No. Of Respondents
07
15
22
06
50

Percentage
14
30
44
12
100

Analysis:
From the above table it is clear that significant number of customers uses mobile
banking monthly and corresponds to 44% of the total. Weekly customers occupy 30% of
the total respondents. But the remaining use net only when the need arises.

Chart 7
Graph showing frequency of usage

12%

14%
Daily
Weekly
30%

Monthly
As and When needed

44%

Interpretation:
The analysis very clearly indicates that still a substantial percentage (12%) of
customers who have mobile banking use it only when required. They need to be brought
into the mainstream by their respective banks. So that the banks can see that transaction
rate increases. Most of the students and housewifes have a low frequency of
transactions because of their income level.
Page 55

Table no.8
Banks you use as your Mobile Banking service providers.
Sl. No

Banks
SBI
ICICI
HDFC
Others
Total

1
2
3
4

No. Of Respondents
23
15
13
9
50

Percentage
46
30
26
18
100

Analysis:
From the above table we can easily analyze that maximum number of respondents 23
used mobile banking service by SBI after that 15 and13 respondents used ICICI and
HDFC respectively, while 9 respondents used other banks as their service provider.

Chart no.8
Banks you use as your Mobile Banking service providers.

Respondents
15%

SBI
38%

22%

ICICI
HDFC
Others

25%

Interpretation:

Page 56

Here through this chart it can interpreted that people usually prefer public bank like SBI
over ICICI and HDFC for mobile banking .A majority of respondents 46% use SBI as
their mobile banking service provider followed by ICICI and HDFC.

Table no.9
Satisfaction from service provided by banks
Sl. No
1
2

Gender
Yes
No
Total

No. Of Respondents
28

Percentage

22

56
44

50

100

Analysis:
From table we get mixed reaction about the satisfaction from the mobile banking service
56% of respondents said they are satisfied and 44% were not satisfied.

Chart no.9
Satisfaction from service provided by banks

Respondents

44%

Yes
56%

Interpretation:
Page 57

No

From the above chart it can be interpreted that an ample amount of people 44% were not
satisfied by the services provided by their mobile banking service provider which shows
a need of creating a system for capturing responses from unsatisfied customers and
resolving their issues.

Table no.10
Showing purpose of usage
Sl. No
1
2
3
4
5
6
7
8

Purpose
A/c checking
Recent Transaction
Instruction to bankers
Operate between A/c
Ticket booking
Payment of bills
Online stock trading
Others
Total

No. Of respondents
10
06
07
10
02
06
07
02
50

Percentage
20
12
14
20
4
12
14
4
100

Analysis:
From the table it is clear that there is no significant majority. 20% of the
respondents use mobile banking for A/c balance checking and operating between A/c
such as money transfer. 14% of the respondents use mobile banking service to give
instructions for bankers and to trade online. And very few people use mobile banking for
ticket booking (4%) and 12% of them use to check recent transactions.

Page 58

Chart no.10
Showing purpose of using the mobile banking
4%
20%
14% Recent Transaction

A/c balance check

12%
Operating between A/c

Tcket booking

Instructions to bankers

Payment of Bills
12%

4%
Online Stock Trading

Others

14%

20%

Interpretation:
Majority of the customers (20%) use the mobile banking to check their account
status as it might be a free service provided by the banker unlike operating between two
accounts for money transfer. This is a positive sign for banker because he can increase
the customer database by promoting their mobile banking and also through positive
word-of-mouth.

Page 59

Table no.11
Showing the facilities provided by the banks
Sl. No

Facilities

No. Of respondents

Percentage

Free bill payment

14

28

Password reset

25

50

Security enhancement

11

22

10

20

50

100

International fund
4
transfer
Total

Analysis:
From the analysis it is clear that many of the banks provide online password reset.
Major number of customer 50% voted that their banker provide the password reset to
easily remember their passwords. 28% of the banks provide free bill payment. And 22%
of the banks provide security enhancement which is more important than others.

Page 60

Chart no.11
Showing facilities provided by the banks
50%
50%
40%
30%
20%
10%
0%

28%

22%

20%

Percentage

Facilities Provided

Interpretation:
From the analysis it is clear that most of the banks provide online password reset
to change the passwords of customers. Which help the customer to change their account
password from time to time to keep the account secure, so that the account security
details cannot be guessed. And banks also provide free bill payment to encourage usage
of internet banking and to earn goodwill for the bank.

Page 61

Table no. 12
Awareness about the services offered by service providers
Sl. No

Gender
Yes
No
Total

1
2

No. Of Respondents
19
31
50

Percentage
38
62

100

Analysis:
From the above table it is clear that a majority of respondents 62% are not aware of the
services offered by their mobile banking service providers.

Chart no. 12
Awareness about the services offered by service providers

Respondents

38%

Yes
No

62%

Interpretation:
From the above chart we can interpret that though mobile banking is a new technology
and it has a large scope in terms of usage a majority of respondents are not aware of all
the services they are offered .Only 38% people know about all the services offered.
Page 62

Table no.13
Table showing the ranking of factors considered for mobile banking
Sl. No

Factors

1
2

Rankings
3
4

Response time
Security

17
22

07
08

11
07

10
10

05
03

Complaint resolution

12

13

09

06

10

Informative

10

13

12

05

10

Easy accessibility

15

10

10

09

06

Service charges

07

18

14

10

01

Analysis:
During the survey, respondents were asked to rank the different factors that can
have influence on mobile banking such as response time, security, complaint resolution,
informative, easy accessibility, service charges. Out of 50 respondents, 22 of them had
given the first rank to the factor security, 17 of them responded for response time is
more important factor, 15 of them provided that their bank has easy accessibility.
Informative and service charges occupy the later last place in the mind of the
respondents.

Chart no.13
Showing the ranking of factors considered for mobile banking
Page 63

50%
44%

45%
40%

36%

35% 34%
30%

30%
25%

26%
24%

22%

20%
Percentage 1 15%
10%

14%

20% 20% 20%

18%

16%
14%

10%

28%

26%
24%
20%
20%

5 14%
12%

6%

5%

2%

0%

Ranking

Interpretation:
It is evident that security was the major factor that was considered by the
respondents as an important one which an account should have. Response time was the
second important factor and easy accessibility as third important factor.

Page 64

FINDINGS

Page 65

Summary of Findings
1. The survey shows that a majority of users were between the age group of 26 30.
The internet banking does not seem popular among the above 41 age group with
only 8% representing the sample size.
2. Among the mobile banking users a significant percentage i.e. 82% of the sample
are post graduates and graduates and negligent percentage are diploma holders
and others.
3. Majority of the users are the salaried class who form 66% of the sample size. The
students are the next frequent user while self employed and professional formed
the next category.
4. The top layer of the society i.e. people drawing a salary of more than Rs. 30,001
every month are the maximum users of mobile banking, the next being the
10,001 to 20,000 group. The mobile banking and the income level seem to be
directly proportional.
5. There are respondents who use mobile banking monthly (44%), weekly basis
(30%), daily basis (14%), and as and when required (12%). A substantial number
of respondents still use it only when required and the banker have to attract such
customers towards frequent usage
6. .A note worthy section of the customers use mobile banking to operate between
accounts and to check their account balance (20%) while the others used it for
giving instructions to bankers and online trading (14%), payment of bills (12%),
account statement generation (12%).
7. With respect to facilities provided by the banks online password reset with 50%
stood first in the minds of customers. Free bill payments 28% and security
enhancement 22% comes next.
8. The survey shows that 34% of the users feel response time is the most important
factor.
9. There was a highly positive response of 44% in the category of security.

Page 66

SWOT ANALYSIS

Page 67

SWOT ANALYSIS

Strengths:
1. Mobile as a technology provides all the support required to leverage Banking transactions.
2. Ease of availability- any time, any where.
3. Rapid growth of Mobile and wireless market.

Weakness:
1.
2.
3.
4.

Lack of awareness about the new channel among the mobile users.
Security concerns about the new channel
Mobile Handset Operatability
Application distribution

Opportunity:
1. Rapid increase in the Mobile user base and acceptance of the Mobile technology even in
Rural areas makes a bigger market available for mobile banking to expand.
2. With technology advancements in Mobile handsets rich features can be embedded in the
application.
3. Lowering of Mobile Tarrif rates - GPRS plans, SMS

Threats:

Regulatory restrictions by TRAI and RBI to launch Mobile banking as a separate

channel.
Acceptance of new technology by users.
Advantages to Stake holders Banks

Page 68

Creating an alternate channel for banking with a reduced operational costs.

Telecom Operator/ Aggregator

Increase in ARPU with the increase in use of SMS/WAP/GPRS channel Users/Customers
easy banking, time saving,24*7 availabilty

Page 69

RECOMMENDATION

Page 70

Suggestions and Recommendations

1. The users among the female segment are quite low as compared to their male
counterparts. The banks need to educate housewives and working ladies in order
increase their customer base and to encourage the female segment to use this
facility.
2. The mobile banking is popular among the youth. If trend continues then the banks
would be catering only to the niche market, so efforts must be made to bring in
the age group of 40 and above.
3. Only the elegant and educated classes of the country like the graduated and postgraduates do the mobile banking. The banks should also target the non-graduates
and business men.
4. The salaried part forms a majority of the population. The usage level among the
students, professionals and self-employed need to be increased to a larger extent.
5. The survey shows that a majority of the users from the top layer of the economic
society i.e. people with an annual income of more than 30,001. As the income
decreases the mobile banking habits seemed to be unpopular. Though mobile
banking is catering to the needs of the higher income group it is time that this
facility flowed on to the lower group income group also.
6. Above 40% of the users use mobile banking monthly. 15% of them use it for daily
this frequency of usage need to be increased through internet advertising,
promotional schemes, and promotional offers, value added services etc...
7. The silver lining is that 50% of the customers receive information on various
promotions schemes. The bankers can here by send mails and individual letters to
the mobile banking users as well as the customers to inform and educate the
customer about the other facilities available.

Page 71

CONCLUSION

Page 72

Conclusion
Banks can have a tie-up with other banks so that the customers can transact
between accounts of various types of banks. Banks have to eliminate the fear of security
from the customers mind, make it more user friendly. They also need to make ways for
retrieving the passwords in case the customer has forgotten. Banks need to promote this
facility at par with other products and services. The package needs to be updated quite
frequently. Till date only a few banks have adopted mobile banking into its threshold,
more banks should come up with such facilities.
If more and more banks adopt this technology then they could achieve twin
objectives:
Reduce the excess work force, and
Reduce the number of branches.
Mobile banking in India is set to explode; approximately 43 million urban Indians used
their mobile phones to access banking services during quarter ending August, 2009, a
reach of 15% among urban Indian mobile phone user.
Today, it is a known fact that a mobile phone is not just a communication tool but a
multitasking device that throws ample opportunities for businesses. The mobile banking
concept addresses the limitation of Internet banking. Still the users face many problems
right from the telecom operator to banks, the handset to software application support for
using services. Above that still there's lack of trust while using mobiles for banking, so
awareness

needs

to

be

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created

at

large.

BIBLIOGRAPHY

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Bibliography

Marketing Management
Business Research Methods

Philip Kotler
Donald. R. Cooper

Websites

www.google.co.in
www.wikipedia.com
www.hdfcbank.com
www.statebankofindia.com

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ANNEXURE

Page 76

Page 77

QUESTIONNAIRE
Title: A Study on the Customer attitude towards adoption of Mobile Banking
Service Lucknow.
I am ___________ pursuing BBA from BBD Please go through the following
questionnaire and identify the appropriate responses for each of them. There is no such
thing as a correct answer, therefore please feel free to respond.
Disclaimer: Your response via this questionnaire will be used strictly for academic
purposes. There will not be any commercial solicitation or usage of the response in any
kind / form whatsoever.
Name:
1. Sex:
2. Age Group
a. 20 -25

b. 26 30

c. 31 35

d. 36 40

e. Above 41.
3. Educational qualification
a. Post Graduate
c. Graduate
4. Occupation
a. Self Employed
c. Student
e. Professional

5. Monthly income
a. Less than 10,000
c. 20,001 30,000

b. Diploma Holder
d. Others Please Specify
b. Salaried
d. House Wife

b. 10,001 20,000
d. Above 30,001

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6. Are you well aware of mobile banking?

a. Yes
b. No
7. How frequently do you use mobile banking?
a. Daily
b. Weekly
c. Monthly
d. As and when needed
8. Which of the following banks do you use as your Mobile Banking service
providers?
a. SBI
b. ICICI
c. HDFC
d. Others
9. Are you satisfied with the services and facilities offered by your service provider?
a. Yes
b. No
10.What is your purpose of using Mobile banking?
a. Account balance check
b. Recent Transaction
c. Giving instructions to bankers d. Operate between accounts
e. Ticket booking
f. Payment of bills
g. Stock trading
h. Others specify _________
11.Does your mobile banking service provide the following features?
b. Free bill payment
c. Password reset
c. Security enhancement
d. International Fund Transfers

12. Are you aware of all the services offered by your Mobile Banking service
providers?
a. Yes
b. No
13. Please give your response on the following attributes with respect to 5 scale
rating.
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Very
good

Good

Neutral

Poor

Very
Poor

Response Time
Security
Complaint
Resolution
Informative
Easy Accessibility
Services Charges

14.Any other Suggestions

----------------------------------------------------------------------------------------------------------------------------------------------------------------.

Thank You

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