Chapter-1

Introduction

1.1 Introduction of the Report:

Now we are living in the age of competition at anything in any places. From that
tendency recently Education is also in the age of competition. So the procedures and
standards of teaching are upgraded by different universities and institutions in our
country. In respect to that, internship is mandatory for our BBA program offered by
Sylhet International University. This program is a partial fulfillment of our BBA
curriculum. To do so I decided to complete my internship in Dutch-Bangla Bank Ltd. The
financial system is a framework or system through which financial surpluses in the
economy are mobilized from surplus economic units. There are three economic units
involved in the process.

Financial Institutions

Business Concerns

Individuals

1.2 Background of the Study:

We Know Bangladesh Bank play an important role of our country. The banking system
of Bangladesh is composed variety of banks working as National Commercial Banks,
Foreign bank, Specialize banks and Development Banks. However there are many Banks
in Bangladesh at

Present. Under internship program each student has to prepare a report on a particular
topic relates with the organization. According to this requirement, I have already
completed my Internship at DBBL Amberkhana Branch. On the basis of my practical
experience as well as Theoretical knowledge, I have completed the report
regarding, “Contribution of Mobile Banking Banking on the Performance in Dutch-
Bangla Bank Ltd -A study on Amberkhana Branch.”
The main Focus of my study is to analysis about Mobile Banking which is new banking
system in Bangladesh and its advantages and challenges.

1.3 Significance of the

The internship report is an important partial requirement of four years BBA program.
This is because knowledge and learning becomes perfect when it is associated with
theory and practices. By this internship program student can establishes contracts and
networking. Contracts may help to get a job in practical life. That is, student can train
and prepare themselves job market. A poor country like Bangladesh has an
overwhelming number of unemployed educated post graduates. It is obvious that the
significance of internship is clearly justified as the crucial requirement of four year BBA
program.

1.4 Scope of the Report

The Report mainly focuses on the following areas:

General Banking as well as Mobile Banking and Internet Banking extended by Dutch-
Bangla Bank Limited. 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.

The Present scenario and prospective of Dutch-Bangla Bank Ltd

1.5 Objectives of Study:

1.5.1: Broad Objective:

The prime objective of the report is to describe the “Contribution of Mobile

Banking Banking on the Performance in Dutch-Bangla Bank Ltd -A study on
Amberkhana Branch.”

1.5.2: Specific Objectives:

To find out the functions of DBBL Banks Mobile banking units.

To know the techniques those are used in mobile banking sector.

 To know about the customer performance in Mobile banking units of DBBL Bank
Ltd.

To examine the efficiency of mobile banking of DBBL.

To make some findings and possible recommendation for successful mobile

banking system.

1.6 Methodology:

Activities to Methods followed to perform a job or conducting activities to complete a

task is called methodology. In conducting the study the following methodology was
adopted in collecting data & information, preparation of report etc. The methodology of
report is given below:

Interviewing concern bank personnel does this study. Report is developed based on the
information provided by bank staffs mobile banking sector. Mostly secondary data is
used in conducting the report.

1.6.1. Type of Research:

This is a descriptive research, which briefly discussed about “Contribution of Mobile

Banking Banking on the Performance in Dutch-Bangla Bank Ltd -A study on
Amberkhana Branch.”

1.6.2. Sources of data:

To complete this report all the necessary information is collected from both the
following sources.

Primary sources

Secondary sources.

Primary sources of data collection:

Primary data are root level data and are collected without correction. These data were
collected by

Face to face conversation with customer as well as employee

 Secondary sources of data collection:

Annual reports and PDF of Mobile Banking of Dutch-Bangla Bank Limited,

Instruction circular & unpublished data from Head Office,

Brochures of different Banks,

News Paper & Magazine regarding Mobile Banking issues,

Seminar papers and so on.

1.6.3. Sampling Plan:

1.6.3.1 Population: The target population of the study is all the existing customers of
Dutch-Bangla Bank Limited (Amberkhana branch)

1.6.3.2 Sampling frame: No structured sample frame was given by the organization.

1. 6.3.3 Sampling procedures: Non probability convenience sampling method was

used.

1.6.3.4 Sample Size: The sample size of the study is 100 customers of Dutch-Bangla
Bank Limited Amberkhana branch.

1.6.3.5 Time period of data collection: Time period of data collection is December 10,
2014 to March 10, 2017.

1.6.3.6 Data analysis & reporting: Quantitative analysis have been used to collect the
data & to analyzed the gathered data & different types of computer software are used
for reporting the gathered information from the analysis, such as Microsoft Word,
Microsoft Excel, Microsoft Power Point etc.

1.7 Limitations of the Study:

The major limitations of this study are:

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

Lack of understanding of the respondents might be major problem that might

create confusions regarding verification of conceptual question.
Since the report has to be made at the same time with other office works. Due to
the time limitation many aspects not are discussed in the present study.

Confidentiality of data might another big barrier, faced during the conduct of this
study.

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.

The findings of the survey would be based on interviewees and it might differ
from person to person.
Chapter-02

NAME OF THE ORGANIZATION:

DUTCH-BANGLA BANK LIMITED (DBBL)

HEAD OFFICE:

Location of Head Office:

Sena Kalyan Bhaban(4th floor)

195, Motijheel C/A, Dhaka-l000

Web: www.

2.1 DBBL in Bangladesh:

Banking system occupies an important place in a nation’s 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 the Liberation of economic
policies in Bangladesh. Dutch-Bangla 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 industry of the country.

2.2 Historical Background:

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, 2017.

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 Bank’s 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
bank’s corporate governance and that they create an intense pressure to rationalize
bank’s 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. Vision of DBBL

Dutch-Bangla Bank dreams of 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. DBBL 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.

2.4. Mission of DBBL

Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a

Commitment to social responsibility. "Profits alone" do not hold a central focus in the
Bank's operation; because "man does not live by bread and butter alone".

2.5. Objective of DBBL

Core Objectives

To achieve positive Economic Value Added (EVA) each year.

To be market leader in the product innovation.
To be one of the top of 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.
Financial objectives
To achieve a return on shareholders’ equity of 20% or more on average.

2.6 Organizational Goals:

To employ funds for profitable purposes in various fields with special emphasis on
small scale industries.

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.
To cooperate and collaborate with institutions entrusted with the responsibility
of promoting

2.7. Core values of DBBL

The Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its

customer’s needs and satisfaction and to become their first choice in banking. Taking
cue from its pool of esteemed clientele, the bank intends to pave the way for a new era
for a banking that upholds and epitomizes its vaunted marques “Your trusted
partner.”

For the community strengthening the corporate values and taking environment and
social risks and reward into account.

2.8 Corporate Strategy:

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.

2.9. Functions of DBBL:

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.

2.10. Different Operations of Dutch-Bangla Bank Limited:

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:

2.10.1 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

2.10.2 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
2.10.3. 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.

2.10.4 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.

2.10.5 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.

2.10.6. 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 checkup, various
natural calamities, social awareness against of dowry system, early marriage,
Scholarship of different level and other social problems .

2.11. Corporate Profile:

Name of the Bank Dutch Bangla Bank Limited

Status Private Limited company

Corporate Slogan Your Trust Partner

Commencement of April 1995.

operation

Authorized capital Tk.4000 million.

Paid up capital Tk.2000 million.

Industry Banking industry of Bangladesh

Nature of Business Banking Business with different financial

services/products.

Target customers Individuals and corporate customers

Number of ATM 1351

Number of Branches 101

Number of employees Around 4000

SWIFT DBBL BD DH

Corporate Profile of Dutch-Bangla Bank Ltd

2.12. Organizational Structure:

Chairman

Managing
Director
Deputy
Managing
Director
Executive Vice
President
Senior Vice
President

Vice President

Assistance Vice President

Senior Principle Officer

Principle Officer

Senior Officer

Officer

Assistance Officer Grade-I

Assistance Officer Grade-II

Figure: Management Hierarchy

Chapter-03

Theoretical Background of Mobail Banking (Bank in hand)

3.1 Definition of Bank:

According to R. S. Sayers “A bank is an institution whose debts are commonly accepted

in final settlement of other people’s debts”

According to A. C. Day “A bank is an organization whose main function is moving for

capital formation”

3.2 Definition of Dutch Bangla Bank Ltd.

Dutch Bangla Bank is a financial and joint venture institution whose objectives and
operations as well as principles and practices must conforms to the principles of
people’s mission, and which must avoid the use of misconduct in any of its operations.
The organization of Dutch Bangla Bank defined as “a financial institution whose status,
rules and procedures expressly state its commitment to the principles of people’s
mission and to the banning of the receipt and payment of interest on any of its
operation.”

3.3. Definition of Mobile Banking:

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 client’s 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 haven’t banking facilities,
Service holders can get there salary by the mobile banking.

3.4 Reason of Genesis of M-Banking:

Introduction of new technologies

Control costs, removal of cost duplication

To increase online channel customers

Personalize customer interactions

Unparalleled convenience & proactive customer service

3.5. Payments & Transfers

• Domestic fund transfers

• Micro-payment handling

• Mobile recharging

• Bill payment processing

3.6. Transaction

• Fund Transfer

• Bill Payment
• Other financial services like

3.7. Benefits of Mobile Banking:

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

? It’s 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

3.8. Necessity of Mobile Banking:

• In low income people, m-banking may enable to use such kind of Banking where
Banking facilities can’t reach till now the cost and safety of using m-banking is
comparatively low.

• M-banking potentially brings new Customer where banking sector is running as like as
dog for there product marketing; these may be stronger than retail banks and better
placed to reach out to un-banked customers.

• M-banking is still very new, whereas other forms of e-banking are quite well
established; the potential to influence and adapted to the customer may be higher
compare to former banking because a lot of people use mobile phone in our country

Chapter-04

About Mobile Banking (Banking in your hand) of DBBL

“Mobile banking” is not simply another delivery channel but represents a fundamental
shift in the paradigm of consumer banking.”

4.1 Introduction to Mobile 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.

A wide spectrum of Mobile/branchless banking models is evolving. These models differ

primarily on the question that who will establish the relationship (account opening,
deposit taking, lending etc.) with the end customer, the Bank or the Non-
Bank/Telecommunication Company (Telco). Models of branchless banking can be
classified into three broad categories:

Bank Focused,

Bank-Led and

Non Bank-Led.

The bank-focused model emerges when a traditional bank uses non-traditional low cost
delivery channels to provide banking services to its existing customers and new
customers in rural area where commercial bank cannot reach till now.
4.3 Objective of 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

4.4 Some other purpose of Mobile Banking:

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 M-banking 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.

4.5 Why DBBL chose Mobile Banking?

Rapid expansion of Mobile Phone

Nationwide 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 safe and secure & recognized by
Bangladesh Bank

4.6 Partner of Mobile Banking:

Banglalink & city cell are two Leading mobile phone operator in Bangladesh, around
152 outlets. It is reliable as Telecom Company that turns a mobile phone into an
electronic wallet.
4.7 Where DBBL M-Banking is available?

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 City cell 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.

4.7.2 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

4.7.2 How does it work?

Customer fills up the KYC Form and submit to agent along with his photograph &
National ID (NID).
Agent checks the Application Form, photograph & NID.
Agent goes to Customer Registration Menu in his/her mobile and insert
customer’s mobile number.
Customer receives a call and in reply, s/he gives a 4-digit PIN number of his/her
choice (please remember your PIN).
 A Mobile Account is created in the DBBL system which is his/her mobile number
+ one check digit.
Customer receives an SMS which contains his/her Mobile Account number
(please remember your check digit).

According to the Law and Practice the Banker – Customer relation arises only from
contract between the two. And opening of Mobile Account is the contract that
establishes the relationship between a banker and a customer. So this section pays very
important role in attracting customer and therefore be handled with extra care

4.7.3 Necessity to open an account:

A person who wants to open an account he/she should have some documents to open
an account, these are-

2 copies PP size photo of Applicant

Photocopy of National ID Card

100 take as account opening charge.

4.7.4 Mobile Account opening procedure in a flow chart

After registration of DBBL Mobile Banking DBBL cell center call customer for choosing
the password. Customer chose four digit numbers what they like. The mobile banking
number will be like mobile number with one cheque digit. It will be active within 1-2
working days.

4.7.5 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.

4.7.6 Why PIN is strictly confidential?

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.
4.7.7 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.

4.7.8 Which Telco’s Mobile can be registered?

Customer has any mobile from any Mobile Operator can be registered for DBBL Mobile
Banking at any agent point of Banglalink and City Cell. 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 City Cell will not be able to
initiate many self-initiated services like Balance checking, fund transfer, utility payment,
Air-time top up, PIN Change etc Customers having mobile from Banglalink and City Cell
will be able to enjoy all the services – agent-initiated as well as self-initiated.

4.7.9 What type of Mobile set is required?

Any type of mobile set can be used for DBBL mobile banking.

4.7.10 How much initial deposit is required?

Customers can open a DBBL Mobile Account with an initial deposit of Taka 50/- (taka
fifty) only.

4.7.12 Can I deposit and withdraw money immediately after registration?

You can deposit money immediately after registration. However, you can withdraw
after your account is fully registered. Bank officer verifies the information on the
registration form (KYC form) and authorizes the account for full registration. Normally
1-2 working days are required for full registration. After your account is fully registered,
you will get an SMS notification.

4.7.13. How is DBBL Mobile Banking secured?

DBBL Mobile Banking is highly secured as it uses 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
Customer’s 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).

4.7.14. Where to cash-out (cash withdrawal)?

Customer can cash-out (withdraw) at any authorized agent of DBBL (at present City cell
& Banglalink agents), DBBL ATMs and DBBL Branch.

4.7.15 Mobile A How does it work?

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 customer’s mobile account
number (including check digit) and amount to withdraw
DBBL system sends prompt menu to the customer’s 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 customer’s account and send an SMS to the customer’s mobile
Agent hands over money to the customer

4.7.16 Where to cash-in (cash deposit)

Customer can cash-in (deposit) at any authorized agent of DBBL (at present City cell &
Banglalink agents) or DBBL Branch.

4.7.17. What is transaction limit?

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

4.7.18 How to check your account balance?

? Customer initiates the transaction from his/her own mobile

? DBBL system sends prompt menu to the customer’s mobile (or IVR Call): “Please enter
your 4-digit PIN to know your balance or press Cancel button to cancel the request”

? Customer enters his/her PIN

? System sends the balance into his/her mobile

4.7.19 How to change PIN?

? Customer initiates the process from his/her own mobile.

? DBBL system sends prompt menu to the customer’s 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

4.7.20. What is Salary/Allowance Disbursement?

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.

4.7.20.1. How it works?

? Corporate Office/ Government will send the list of mobile account numbers (including
check digit) and monthly salary/allowance to DBBL

? DBBL will credit all the individual accounts by debiting corporate account centrally by
a batch process system

? the employee/beneficiary will get an SMS regarding the transaction

? the employee/beneficiary can go to any agent or DBBL ATM or DBBL Branch for
withdrawal of money.

4.7.20.2. Benefits of Corporate Office/ the Government?

? Time savings

? Cost savings

? No need of extra manpower

? Probability of error is very low

? Instant service is ensured

4.7.2o.3 Benefits of employee/beneficiary?

? Instant credit to the account

? No hassle to collect salary/allowance

? No queue

? Money can be withdrawn from any agent or DBBL ATM or DBBL Branch

4.7.21. How foreign remittance can be sent to Mobile Account?

? Exchange houses at abroad receive remittance against beneficiary’s mobile account

number

? Exchange houses send the mobile account number and the amount to DBBL

? DBBL will centrally credit the amount against respective mobile account

? The beneficiary will get an SMS regarding such transaction.

? The beneficiary can go to any agent or DBBL ATM or DBBL Branch for withdrawal of
money

4.7.22. Fees & Service Charges

Registration Fee: Free

Cash-in Charges: 1% of the transaction amount or

Tk.5/-, whichever is higher

Cash-out Charges: 2% of the transaction amount or

Tk.10/-, whichever is higher.

Merchant Payment: Free for customer

Mobile Top-up: Free for customer

Salary Disbursement: Free

Allowance Disbursement: Free

Remittance Disbursement: Free

4.7.23. Enquiry Based

• Credit/Debit Alerts.

• Minimum Balance Alerts

• Bill Payment Alerts

• Account Balance Enquiry

• Account Statement Enquiry

• Cheque Status Enquiry.

• Cheque Book Requests.

• Recent Transaction History.

4.8. Advantages of Mobile Banking

The biggest advantage that mobile banking offers to banks is that it drastically cuts
down the costs of providing service to the customers.

? You can make transactions or pay bills anytime. It saves a lot of time.

? Mobile banking thorough cell phone is user friendly. The interface is also very simple.
You just need to follow the instructions to make the transaction. It also saves the record
of any transactions made.

? 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 tale-
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.

4.9. Limitation of Mobile Banking

Uncertainties over the speed and nature of customer adoption: This is to be

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

Lack of inter-operability with existing systems:Inter-operability of different

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

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.

4.14 Challenges before Mobile Banking:

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.

Reaching deeper into rural areas without costly investment in infrastructure.

Reducing the costs of servicing.

Chapter- 05

Analysis

5.1 Demographic information analysis of the respondents

5.1.1 Ages of the respondents:

Age No. of Respondents Percentage

20-30 44 44%

31-40 26 26%

41-50 17 17%

50> 13 13%

Total 100 100%

Table: 01 Age of the respondent

Figure: 01 Age of the respondents

Among 100 respondents, 44% of the respondents belong to the age group of 20-30,
26% respondents age is between 31 to 40 years, 17% respondents age is between 41 to
50 years, 13% respondents age is above 50 years.

Therefore, most of the respondents are age between 20 to 30 years. This percentage is
44%. The lowest portion 13% belongs to the age group of 50+.

5.1.2 Genders of the respondents:

Gender No. of Respondents Percentage

Male 68 68%

Female 32 32%

Total 100 100%

Table: 02 Age of the respondents

Figure: 02 Age of the respondents

Among 100 respondents 68 respondents were male and 32 were female.

It has been found that, the largest parts of respondents are male & that percentage is
68%.

But the male and female ratio of the respondents is much deferred.

5.1.3 Occupation of respondents:

Respondent No of respondent Respondent %

Student 35 35%

Professionals 10 10%

Business man 13 13%

Service Holder 25 25%

House Wife 17 17%

Table 3: Occupation of the respondents

Figure: 3 Professions of the respondents

Among 100 respondents, 35 % of the respondents are student, 10% belongs to
Professional, 13% business man, 25% respondents belong to the Service Holder &17%
is housewife.

Therefore, most of the respondents are age student.

5.1.4 Reason for opening A/C:

Reason of A/C opening No. of Respondents Percentage

Required 53 53%

Attractiveness 14 14%

Near from my palace 12 12%

Facilities 21 21%

Total 100 100%

Table: 4 Reasons of account opening

Figure: 4 Reasons of account opening

Among 100 respondents, 53 % of the respondents belongs that they have require
Mobile A/C that’s the highest portion. The second height 21% respondents belong to the
Facility. The lowest portion 12% belongs to the near from my place.

5.1.5 Education Level of respondents:

Education Level No of Respondents Percentage%

No formal Education 9 9%

SSC 25 25%

HSC 38 38%

Graduate 12 12%

Post graduate 16 16%

Total 100 100%

Table: 05 Education Level of the respondent

Figure: 05 Education Level of the respondents

Among 100 respondents, 38 %( the height portion) of the respondents belongs that
they are HSC level. The lowest portion 9% belongs that haven’t any formal education.
The second height 25% respondents belong to the SSC Level, 12% is Graduate & 16% is
post graduate.

Therefore, most of the respondents are HSC level.

5.1.6. You feel safe in your transaction through mobile

Respondent Opinion No of respondent Respondent%

Strongly Agree 41 41%

Agree 29 29%

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