Introduction

Introduction

Origin of the Report

Objectives of the Report

Importance of the topic

Methodology

Source of Data

Scope of The Report

Limitation

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1.1 Introduction

Generally by the word “Bank” we can easily understand that the financial institution deals

with money. But there are different types of banks like; Central Banks, Commercial Banks,

Savings Banks, Investment Banks, Industrial Banks, Co-operative Banks, Mobile Banks etc.

The latest banking technology is introduced mobile banking. Mobile banking stocks indicates

that you can do with your mobile. This technology is more attractive as bank shares are held

within walking distance of the fingers of users. Also referred to as M-banking and SMS

banking.

The amount of the bank or transfer amount varies by bank. The most common type of M-

banking is the act of SMS alerts sent by the bank when deposits or withdrawals are made.

Some banking stocks including M-money deposits, transfers, checks bank account and much

more. This service is offered only by selected banks. As mobile banking has made bank

stocks easy expert tips for not making payments or large transactions through mobile

banking. Keep the pin and change the password is often a good idea. Use the user of banking

technology and suitable to be cautious in their transactions through mobile.

Dutch-Bangla Bank Limited (DBBL) is Bangladesh's most innovative and technologically

advanced bank. DBBL stands to give the most innovative and affordable banking products to

Bangladesh. Dutch-Bangla Bank Limited (DBBL) has for the first time introduced its mobile

banking service expanding the banking service from cities to remote areas. Mobile Banking is

a Banking process without bank branch which provides financial services to unbanked

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.

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1.2 Origin of the Report

This is the last part of MBA program. As a professional degree it is essential to fulfill all, the

requirements the program demand. According to the requirements of the internship, I am

assigned with a selected topic “Mobile Banking Practices of Dutch Bangla Bank Limited”.

I prepare this report from my practical experience, I earned at the time of my internship (14 th

March 2010 to 10th June) in DBBL at Rampura Branch, which should be submitted on 2011.

1.3 Objectives

To fulfill the requirement of the Internship Program.

To acquaint with mobile banking functions.

To know the new terms in mobile banking of DBBL.

To explore the benefits of mobile banking.

To observe the working environment in mobile banking

To apply theoretical knowledge in the practical filed.

To study the existing overall banker customer relationship.

1.4 Importance of the Topic

The topic that has been assigned by the supervisor is “Mobile Banking Practices of Dutch

Bangla Bank Ltd”. The importance of this topic is given below:

To describe the Mobile Banking process of DBBL

To know what does DBBL mobile banking offer.

To know the operation of mobile banking in Bangladesh

To be accustom with the management policy or process of DBBL in Bangladesh

Give an idea regarding mobile banking system and financial performance.

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1.5 Methodology

Methodology includes direct observation, face to face discussion with employees of different

departments, study of files, circulars etc. and practical work. This study includes both

quantitative and qualitative data. However, this report is basically qualitative in nature. In all

the cases depending on the requirements data have been collected from different sources.

1.6 Source of Data

This report is based on both primary and secondary source of information. For theoretical

development of this report, the data has been collected from the various sources like different

publications, library sources, books, articles, internet etc. For collecting primary data, I had to

ask the respective officers. Others are like

Exposure on different desk of the bank

File study

The secondary sources are:

Annual report of Dutch Bangla Bank Ltd.

Periodicals published by Bangladesh Bank

Different publications regarding banking functions, foreign exchange operation, and

export-import policies.

1.7 Scope of the Report

This report covered the over all Mobile banking system of DBBL and also includes the

relationship of the customers with the bank as well as the principals covered by the bank as a

general banking system.

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1.8 Limitation:

The present study was not out of limitations. But as an intern it was a great opportunity for

me to know the banking activities of Bangladesh especially Dutch Bangla Bank Ltd. Some

constraints are appended bellow:

Like any other research, this report is limited to time and resource and only three month is

not enough to cover such wide area of banking as well as preparing this report which may

takes more than a year.

Lack of adequate information of banking institution for preparing this report. So this

report is based on only publicly available information.

Every organization has their own secrecy that is not revealed to others. While collecting

data i.e. interviewing the employees, they did not disclose much information for the sake

of the confidentiality of the organization

Difficulty in gaining accesses to financial sector.

Non-availability of the most recent statistical data

Since the bank personals were very busy, they could provide me very little time.

The clients were too busy to provide me much time for interview.

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Overview of the Organization

2.1 Organizational Profile

Organizational Profile

Vision

Mission

Corporate Slogan

Features of Dutch Bangla Bank Ltd.

Strategies

Aims and Objectives

Corporate Culture

Corporate Mission

Management of Dutch Bangla Bank Ltd.

Human Resources Practices in Dutch Bangla Bank

Ltd.

Recruitment

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Dutch Bangla Bank Limited (DBBL) is Banking Company registered under the Companies

Act, 1994 with its Head Office at Printers Building (2nd  & 8th Floor), 5, Rajuk Avenue,

Dhaka-1000. The Bank started its operation from 3rd June 2001. Dutch-Bangla Bank Limited

(DBBL) is Bangladesh's most innovative and technologically advanced bank. DBBL stands

to give the most innovative and affordable banking products to Bangladesh. An Amonst

bank, DBBL is the largest donor in to social causes in Bangladesh. It stands as one of the

largest private donors’ involved in improving the country. DBBL is proud to be associated

with helping Bangladesh as well as being a leader in the country's banking sector

Dutch-Bangla Bank started operation is Bangladesh's first joint venture bank. The bank was

an effort by local shareholders spearheaded by M Sahabuddin Ahmed (founder chairman) and

the Dutch company FMO.

From the onset, the focus of the bank has been financing high-growth manufacturing

industries in Bangladesh. The rationale being that the manufacturing sector exports

Bangladeshi products worldwide. Thereby financing and concentrating on this sector allows

Bangladesh to achieve the desired growth. DBBL's other focus is Corporate Social

Responsiblity (CSR). Even though CSR is now a cliche, DBBL is the pioneer in this sector

and termed the contribution simply as 'social responsibility'. Due to its investment in this

sector, DBBL has become one of the largest donors and the largest bank donor in

Bangladesh. The bank has won numerous international awards because of its unique

approach as a socially conscious bank.

DBBL was the first bank in Bangladesh to be fully automated. The Electronic-Banking

Division was established in 2002 to undertake rapid automation and bring modern banking

services into this field. Full automation was completed in 2003 and hereby introduced plastic

money to the Bangladeshi masses. DBBL also operates the nation's largest ATM fleet and in

the process drastically cut consumer costs and fees by 80%. Moreover, DBBL choosing the

low profitability route for this sector has surprised many critics. DBBL had pursued the mass

automation in Banking as a CSR activity and never intended profitability from this sector. As

a result it now provides unrivaled banking technology offerings to all its customers. Because

of this mindset, most local banks have joined DBBL's banking infrastructure instead of

pursuing their own.

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Even with a history of hefty technological investments and even larger donations, consumer

and investor confidence has never waned. Dutch-Bangla Bank stock set the record for the

highest share price in the Dhaka Stock Exchange in 2008.

The main focus of Dutch Bangla Bank Limited Credit line/Program is financing business,

trade and industrial activities and mobile banking through an effective delivery system.

2.2 Vision

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's 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.

2.2 Mission

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".

2.3 Corporate Slogan

Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs

and satisfaction and to become their first choice in banking. Taking cue from its pool

esteemed clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that

upholds and epitomizes its vaunted marques "Your Trusted Partner"

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2.4 Features of Dutch Bangla Bank Ltd

There are so many reasons behind the better performance of Dutch Bangla Bank Ltd than any

other newly established banks.

Highly qualified and efficient professionals.

Dutch Bangla Bank Ltd has established a core Research & Planning Division comprising

skilled person from the very inception of the Bank.

Dutch Bangla Bank Ltd has become a member of SWIFT system to expedite foreign

exchange transaction.

The inner environments of the all branches of Dutch Bangla Bank Ltd have been

computerized to provide the promptly & frequently customer services.

Dutch Bangla Bank Ltd provides the attractive interest rate than the other financial bank.

The bank provides loan to the customers at lower interest rate with easy and flexible

condition than the others do.

Profit earning is not the main aim of the Dutch Bangla Bank Ltd the bank is responsible

to maintain the social duties.

The bank frequent arranges customers meeting to achieve their valuable suggestions.

Letter of Credit (L/C) commission and other change are very lower than the others bank

Strategies

To strive for customer satisfaction through quality control and delivery of timely services

To identify customers' credit and other banking needs and monitor their perception

towards our performance in meeting those requirements

To manage and operate the Bank in the most efficient manner to enhance financial

performance and to control cost of fund

To review and update policies, procedures and practices to enhance the ability to extend

better service to customers.

To promote organizational effectiveness by openly communicating company plans,

policies, practices and procedures to employees in a timely fashion

To cultivate a working environment that fosters positive motivation for improved

performance

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To increase direct contact with customers in order to cultivate a closer relationship

between the bank and its customers

2.5 Aims and Objectives

DBBL is always ready to maintain the highest quality of services by upgrading banking

technology prudence in management and by applying high standard of business ethic through

its established commitment and heritage.

Dutch Bangla Bank Ltd is always ready to maintain the highest quality of services by

upgrading banking technology prudence in management and by applying high standard of

business ethic through its established commitment and heritage.

DBBL is committed to ensure its contribution to national economy by increasing its

profitability through professional and disciplined growth strategy for its customer and by

creating corporate culture in international banking area.

The objective of DBBL is not only to earn profit but also to keep the social commitment

and to ensure its co-operation to the person of all level, to the businessman, industrialist

specially who are engaged in establishing large scale industry by consortium and the

agro-based export oriented medium & small scale industries by self inspiration.

DBBL is committed to continue its activities in the new horizon of business with a view

to developing service oriented industry and culture of morality and its maintenance in

banking.

DBBL has been working from its very beginning to ensure the best use of its creativity,

well disciplined, well managed and perfect growth.

DBBL is always pre-occupied to encourage the inventors for purchasing its share by

creating the opportunity of long-term investment and increasing the value of share

through prosperity as developed day by day

2.6 Corporate Culture

This bank is one of the most disciplined Banks with a distinctive corporate culture. Here we

believe in shared meaning, shared understanding and shared sense making. Our people can

see and understand events, activities, objects and situation in a distinctive way. They mould

their manners and etiquette, character individually to suit the purpose of the Bank and the

needs of the customers who are of paramount importance to us. The people in the Bank see

themselves as a tight knit team/family that believes in working together for growth. The

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corporate culture we belong has not been imposed; it has rather been achieved through our

corporate conduct.

2.6 Corporate Mission

Will become most caring, focused for equitable growth based on diversified deployment of

resources, and nevertheless would remain healthy and gainfully profitable bank. Dutch

Bangla Bank Ltd aims to become one of the leading Banks in Bangladesh by prudence, flair

and quality of operations in their banking sector. The bank has some mission to achieve the

organizational goals. Some of them are:

Its aim to ensure their competitive advantages by upgrading banking technology

and information system.

DBBL intend to provide better benefits to their customers and good returns to their

shareholders.

The bank intends to meet the needs of their clients and enhance their profitability by

creating corporate culture.

Dutch Bangla Bank Ltd provides high quality financial services to strengthen the well-

being and success of individual, industries, and business communities.

The bank believes in strong capitalization.

It maintains high standard of corporate and business ethics.

Dutch Bangla Bank Ltd extends highest quality of service, which attracts the customers to

choose them first.

The bank maintains congenial atmosphere for which people are proud and eager to word

with Dutch Bangla Bank ltd.

DBBL believes in discipline growth strategy.

2.7 Management of Dutch Bangla Bank Ltd

For any financial and non-financial organization, Management is the most valuable and

important resources of any kind of organization. And, a well-organize management provides

the organization to reach its ultimate goal. Management means planning, organizing,

staffing, directing and controlling of all financial and non-financial resources of an

organization. Different aspects of management practice in Dutch Bangla Bank Ltd are

discussed below:

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Planning

Dutch Bangla Bank Ltd has done its planning within the purview of the corporate plan. The

overall planning approach in Dutch Bangla Bank Ltd is top-down. Each branch can plan

according to the goal imposed by the corporate level. It doesn’t plan independently. And,

Dutch Bangla Bank Ltd has a planning division. This department is mainly responsible for

the overall planning.

Organizing

Dutch Bangla Bank Ltd is organized as per the existing business locations. It has twelve

branches, each of which is a separate entity. Each unit is responsible for own performance

and a Senior Vice President (SVP) followed by Manager Heads each. He is directly

responsible for the performance of their unit. Within each branch it is organized functionally.

Staffing

The recruitment in Dutch Bangla Bank ltd is done in two ways. One as a “Probationary

Officer” for the management program and it has a probation period of one year. Another one

is non-management level as “Trainee Officers”. Probationary Officer is recruited in officer

category and their career path is headed towards different managerial jobs.

Directing and controlling

The management approach in Dutch Bangla Bank ltd is top-down or authoritative.

Information just seeks through lower management layer. Works are designed in such a way

that one cannot leave without clearing the tasks as he is assigned for a day. Sitting

arrangement in all office is done in a way that the superior can monitor the subordinate all

time. Budgeting, rewarding, punishing, etc. are also practiced as control mechanism.

2.7 Recruitment

The set-vice rule of Dutch Bangla Bank Ltd states the recruitment policy of the bank. In,

general the board of directors determines the recruitment policy of the bank from time to time.

The minimum entry-level qualification for any official position other than supportive

management is a Bachelors degree. However, informally the management prefers a minimum

master’s degree for the appointed of probationary officers in the Executive Officer position.

The recruitment for entry level positions begins with a formal written test which is conducted

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and supervised by the Institute of Business Administration, University of Dhaka. After

Successful completion of the written test, a personal interview is conducted for the successful

candidates by a panel of experts comprising of renowned bureaucrats and prominent bankers of

the country.

2.8 BOARD OF DIRECTORS

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MANAGING DIRECTOR K. Shamshi Tabrez

DIRECTORMr. Bernhard Frey

INDEPENDENT DIRECTOR Dr. Irshad Kamal Khan

:

CHAIRMAN Mr. Zaheed Hossain Khan

DIRECTOR FROM THE DEPOSITORDr. Syed Fakhrul Ameen

DIRECTOR Mr. Md. Fakhrul Islam Alhaj Md. Nurun Newaz

DIRECTORR FROM THE DEPOSITORMr. Chowdhury M. Ashraf Hossain

Mobile Banking Practices

Mobile Banking:

What is Mobile Banking

Mobile Banking Business Model

Mobile Banking Overview

Technologies behind mobile

banking

Component of Mobile Banking

Benefit of Mobile Banking

What does DBBL Mobile

Banking offer?

Process of Mobile Banking

activities.

Mobile Banking Services

Fees and other charges.

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3.1 Mobile Banking:

Dutch-Bangla Bank Limited (DBBL) has for the first time introduced its mobile banking

service expanding the banking service from cities to remote areas.

Bangladesh Bank Governor Atiur Rahman inaugurated the service in 1st April 2011 by

depositing Tk 2,000 and withdrawing Tk 1,500 through Banglalink and Citycell mobile

networks in Motijheel area.

Bangladesh Bank has already allowed 10 banks to initiate mobile banking. Of them DBBL

kicked off first.

When people are hard pressed for time, the need for "anytime anywhere" banking gains

utmost importance. Bearing this in mind, banks provide a novel service which gives retail

customers account information and real-time transaction capabilities from their cell phones.

With SMS banking the following services can be obtained:

Get account balance details

Request a cheque book

Request last three transaction details

Pay bills for electricity, mobile, insurance etc

"Mobile banking is an alternative to the traditional banking through which banking service

can be reached at the doorsteps of the deprived section of the society,” the central bank

governor said at an inaugural press briefing at Hotel Purbani.

Mobile Banking is a Banking process without bank branch which provides financial services

to unbanked 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.

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3.2 Mobile Banking Business Model:

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.

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 (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.

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3.3 Mobile Banking Overview:

In order to avail the services mentioned above, a user subscribing to a wireless carrier sends

an SMS with a predefined code to the bulk service provider’s number.

Fig 1: Mobile banking architecture

The service provider forwards this message to the bank’s mobile banking applications. The

mobile banking applications interface with the core banking servers (that contain the user

account information) that service the request made by the user. The response is then sent by

the mobile banking applications to the bulk service provider who in turn forward it to the

valid user via SMS.

There are two ways in which a bank can communicate with a customer using SMS:

1. In the first method the bank proactively sends data to customers in response to certain

transactions. For e.g. account to account transfer, salary credit and some promotional

messages. This data can be sent to the customer in two ways

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o E-mail to mobile (E2M): In this method, the bank sends an email to the

mobile banking application through a specific email address. This email may

consist of the message content together with the mobile numbers of the

customer. The mobile banking application in turn sends this message in a

specific format (for e.g. XML tags are part of a HTTP GET message query

string) to the service provider’s application server. From hereon the

information from the XML tags is extracted and sent as a SMS to the wireless

carrier which in turn forwards this message to the customer.

o Database to mobile (D2M) : Here a mobile banking application continuously

polls the banks database server and whenever a relevant event happens, for

e.g. an account to account transfer, it forwards the specific message to the

service provider’s application server. The message format may be the same as

the one used in the E2M case. This message is then forwarded to the wireless

carrier which in turn forwards this message to the customer.

2. In the second method the bank sends data in response to specific customer query such

as account balance details. The customer first sends a pre-defined request code via

SMS to the Bulk SMS service provider’s registered mobile number. Depending on the

message code, the bulk SMS provider forwards the SMS to a PULL application in the

mobile banking server. The PULL application receives the request and forwards it to

the core banking application for further processing. The core banking server then

processes this message and sends the reply to the PULL application which in turn

forwards in to the customer via the service provider. As in the above cases the request

and the response for the PULL application may be a HTTP GET message with XML

tags in the query string.

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3.4 Technologies Behind Mobile Banking

Technically speaking most of these services can be deployed using more than one channel.

Presently, Mobile Banking is being deployed using mobile applications developed on one of

the following four channels.

1. IVR (Interactive Voice Response)

2. SMS (Short Messaging Service)

3. WAP (Wireless Access Protocol)

4. Standalone Mobile Application Clients

1. IVR – Interactive Voice Response

IVR or Interactive Voice Response service operates through pre-specified numbers that banks

advertise to their customers. Customer's make a call at the IVR number and are usually

greeted by a stored electronic message followed by a menu of different options. Customers

can choose options by pressing the corresponding number in their keypads, and are then read

out the corresponding information, mostly using a text to speech program. Mobile banking

based on IVR has some major limitations that they can be used only for Enquiry based

services. Also, IVR is more expensive as compared to other channels as it involves making a

voice call which is generally more expensive than sending an SMS or making data transfer

(as in WAP or Standalone clients). One way to enable IVR is by deploying a PBX system

that can host IVR dial plans. Banks looking to go the low cost way should consider

evaluating Asterisk, which is an open source Linux PBX system

2. SMS – Short Messaging Service

SMS uses the popular text-messaging standard to enable mobile application based banking.

The way this works is that the customer requests for information by sending an SMS

containing a service command to a pre-specified number. The bank responds with a reply

SMS containing the specific information.

For example, customers of the HDFC Bank in India can get their account balance details by

sending the keyword ‘HDFCBAL' and receive their balance information again by SMS.

However there have been few instances where even transaction-based services have been

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made available to customer using SMS. For instance, customers of the Centurian Bank of

Punjab can make fund transfer by sending the SMS ‘TRN (A/c No) (PIN No) (Amount)'.

One of the major reasons that transaction based services have not taken of on SMS is because

of concerns about security. The main advantage of deploying mobile applications over SMS

is that almost all mobile phones are SMS enabled. An SMS based service is hosted on a SMS

gateway that further connects to the Mobile service providers SMS Centre. There are a

couple of hosted IP based SMS gateways available in the market and also some open source

ones like Kannel.

3. WAP – Wireless Access Protocol

WAP uses a concept similar to that used in Internet banking. Banks maintain WAP sites

which customer's access using a WAP compatible browser on their mobile phones. WAP

sites offer the familiar form based interface and can also implement security quite effectively.

Bank of America offers a WAP based service channel to its customers in Hong Kong.

The banks customers can now have an anytime, anywhere access to a secure reliable service

that allows them to access all enquiry and transaction based services and also more complex

transaction like trade in securities through their phone.

A WAP based service requires hosting a WAP gateway. Mobile Application users access the

bank's site through the WAP gateway to carry out transactions, much like internet users

access a web portal for accessing the banks services. The following figure demonstrates the

framework for enabling mobile applications over WAP. The actually forms that go into a

mobile application are stored on a WAP server, and served on demand. The WAP Gateway

forms an access point to the internet from the mobile network.

4. Standalone Mobile Application Clients

Standalone mobile applications are the ones that hold out the most promise as they are most

suitable to implement complex banking transactions like trading in securities. They can be

easily customized according to the user interface complexity supported by the mobile. In

addition, mobile applications enable the implementation of a very secure and reliable channel

of communication.

One requirement of mobile applications clients is that they require to be downloaded on the

client device before they can be used, which further requires the mobile device to support one

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of the many development environments like J2ME or Qualcomm's BREW. J2ME is fast

becoming an industry standard to deploy mobile applications and requires the mobile phone

to support Java.

The major disadvantage of mobile application clients is that the applications needs to be

customized to each mobile phone on which it might finally run. J2ME ties together the API

for mobile phones which have the similar functionality in what it calls 'profiles'.

Out of J2ME and BREW, J2ME seems to have an edge right now as Nokia has made the

development tools open to developers which has further fostered a huge online community

focused in developing applications based on J2ME. Nokia has gone an additional mile by

providing an open online market place for developers where they can sell their applications to

major cellular operators around the world.

Quite a few mobile software product companies have rolled out solutions, which enable

J2ME mobile applications based banking. One such product is Wireless Ibanco. The mobile

user downloads and installs the wireless I-banco application on their J2ME pone. The J2ME

client connects to the wireless I-banco server through the service providers GSM network to

enable users to access information about their accounts and perform transactions. One of the

other big advantages of using a mobile application client is that it can implement a very

secure channel with end-to-end encryption.

However countries like India face a serious obstacle in the proliferation of such clients as few

users have mobiles, which support J2ME or BREW. However, one of the biggest CDMA

players in the Indian telecom industry, Reliance Infocomm has about 7.01 million users all of

which have handsets, which support J2ME. Reliance has unveiled one of the most ambitious

data services deployment program in the country. On the other hand a country likes South

Korea with its tech-savvy population has a widespread adoption of the higher-end mobiles,

which support application development

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3.4.1 Component of Mobile Banking:

The following diagram shows the recommended placement of the Mobile banking

components in the banking infrastructure.

In the above diagram, the E2M component is placed in the mail server which is present in the

Internet Banking DMZ. It receives the email message from the mail server which is then

forwarded to the service provider in the specified format over the SSL link. The D2M

component in placed in the inner core-banking segment as it continuously polls the banking

database for event related triggers as explained above. Finally the PULL component in placed

in the Internet Banking server as it receives the message from the bulk service provider

through a SSL link over the internet.

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3.5 Benefits of Mobile Banking:

Mobile banking through cell phone offers many advantages for customers as well as banks.

Some of them are as follows

Real time on-line banking

Available anytime, anywhere throughout the country

It is 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 transactions.

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.

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. Various banks 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.

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Banking through cell phone benefits the banks too. It cuts down on the cost of tele-

banking and is more economical.

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

guide in order to help the banks improve their customer care services.

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

Banks can also promote and sell their products and services like credit cards, loans

etc. to a specific group of customers.

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

Payment Alerts, Transaction History, Fund Transfer Facilities, Minimum Balance

Alerts etc. can be accessed from your mobile.

You can transfer money instantly to another account in the same bank using mobile

banking.

3.6 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

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3.7 Process of Mobile Banking Activities

Customer Registration Process:

Customer can register at any authorized agent point of DBBL – at Present these are the

retailers of Citycell & Banglalink throughout the Country who can display ‘DBBL Agent

Certificate’ and ‘DBBL Mobile Banking Banner’.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 through IVR or USSD

prompt 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).

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 transactions.

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.

Why check digit?

Mobile number is public and known to many people. Without knowing your check digit,

none will be able to deposit money at your account, thus it helps to keep your mobile account

confidential. On the other hand, a check digit eliminates typing error, thus protects sending or

depositing money to a wrong account.

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Which Telco’s Mobile can be registered?

Customer having any mobile from any Mobile Operator can be registered for DBBL Mobile

Banking at any agent point of Banglalink and Citycell. All these Mobile Account holders will

be able to deposit and withdraw money from the Agents. However the customers having

mobile from operators other than Banglalink and Citycell will not be able to initiate many

self-initiated services like Balance checking, fund transfer, utility payment, and Air-time top

up, PIN Change etc. Customers having mobile from Banglalink and Citycell will be able to

enjoy all the services – agent-initiated as well as self-initiated.

Cash In (Cash Deposit) Process:

Customers can open a DBBL Mobile Account with an initial deposit of Taka 10/- (taka ten)

only. Customer can cash-in (deposit) at any authorized agent of DBBL (at present Citycell &

Banglalink agents) or DBBL Branch. Customer hands over cash to the Agent. 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. Agent enters his/her

PIN. System credits customer’s account for the same amount. Agent issues a receipt to the

customer. System sends an SMS to the customer’s mobile for security reason; customer needs

to check the sending number of SMS and the amount. SMS will be sent from 16216.

Cash Out (cash withdrawal) Process:

Customer can cash-out (withdraw) at any authorized agent of DBBL (at present Citycell &

Banglalink agents), DBBL ATMs and DBBL Branch. 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

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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.

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:

1. Cash-in frequency per day = 5 times

2. Cash-out frequency per day = 5 times

3. Cash-in / cash-out amount per transaction = 5,000/-

4. Cash-in frequency per month = 20 times

5. Cash-out frequency per month = 20 times

How to check 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.

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.

Everybody can deposit money immediately after registration. However, he/she can withdraw

after his/her 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 his/her account is fully registered, he/she

will get an SMS notification.

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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).

The following is a diagram shows a structural design for the mobile banking security.

In the above diagram the 2-way SSL link between the service provider and between the

mobile banking application and the service provider and also between the service provider

and the wireless carrier ensures confidentiality of data. The email message sent by the bank is

PGP encrypted and signed in order to ensure confidentiality and integrity of data.

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Salary Disbursement Process:

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. The salary disbursement

processes are following way:

1. Corporate Office/ Government will send the list of mobile account numbers

(including check digit) and monthly salary/allowance to DBBL

2. DBBL will credit all the individual accounts by debiting corporate account

centrally by a batch process system

3. The employee/beneficiary will get an SMS regarding the transaction

4. The employee/beneficiary can go to any agent or DBBL ATM or DBBL

Branch for withdrawal of money

Benefits of Corporate Office/Government:

Time savings

Cost savings

No need of extra manpower

Probability of error is very low

Instant service is ensured

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

Foreign Remittance:

Most of the people of our country are living in abroad to earn money. They sent their

remittance in various ways. But they always scared about their money. So DBBL get a

golden opportunity to send their foreign remittance very easily and cheaply.

How foreign remittance can be sent to Mobile Account?

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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

3.8 Mobile Banking Services:

Banks offering mobile access are mostly supporting some or all of the following services:

Account Information

Mini-statements and checking of account history

Alerts on account activity or passing of set thresholds

Monitoring of term deposits

Access to loan statements

Access to card statements

Mutual funds / equity statements

Insurance policy management

Pension plan management

Payments & Transfers

Domestic and international fund transfers

Micro-payment handling

Mobile recharging

Commercial payment processing

Bill payment processing

Investments

Portfolio management services

Real-time stock quotes

Personalized alerts and notifications on security prices

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Support

Status of requests for credit, including mortgage approval, and insurance coverage

Check (cheque) book and card requests

Exchange of data messages and email, including complaint submission and tracking

Content Services

General information such as weather updates, news

Loyalty-related offers

Location-based services

One way to classify these services depending on the originator of a service session is the

‘Push/Pull' nature. ‘Push' is when the bank sends out information based upon an agreed set of

rules, for example your banks sends out an alert when your account balance goes below a

threshold level. ‘Pull' is when the customer explicitly requests a service or information from

the bank, so a request for your last five transactions statement is a Pull based offering. The

other way to categorize the mobile banking services, gives us two kind of services –

Transaction based and Enquiry Based. So a request for your bank statement is an enquiry

based service and a request for your fund's transfer to some other account is a transaction-

based service. Transfer based services are also differentiated from enquiry based services in

the sense that they require additional security across the channel from the mobile phone to the

banks data servers. Based upon the above classifications, we arrive at the following

taxonomy of the services listed before.

Push Based Pull Based

Transaction based Fund Transfer

Bill Payment

Other financial services like

share trading.

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Enquiry based Credit/Debit Alerts.

Minimum Balance Alerts

Bill Payment Alerts

Credit/Debit Alerts.

Minimum Balance Alerts

Bill Payment Alerts

Account Balance Enquiry

Account Statement Enquiry

3.9 Fees and service charge:

Sl.no Particular Result

1. Registration Fee Free

2. Cash-in Charges 1% of the transaction amount orTk.5/-, whichever is higher

3. Cash-out Charges 2% of the transaction amount orTk.10/-, whichever is higher.

4. Merchant Payment Free for customer

5. Mobile Top-up Free for customer

6. Salary Disbursement Free

7. Allowance Disbursement Free

8. Remittance Disbursement Free

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Success Story of other International Mobile Bank

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Reliance Infocomm, India

ABN Ambro, India

CitiBank

4.1 Reliance Infocomm, India

When Reliance Infocomm, India rolled out its CDMA network, (at the time the mobile

market in India was still in its infancy, and data services were almost never heard off) it made

sure that all handsets supported Java.The Reliance application platform, also known as R-

World brought Java compatibility even to the lower end phones.

Reliance used a novel way to overcome the memory limitations of lower-end mobile phones,

which hampered deploying of multiple standalone J2ME based clients. Instead of storing

applications statically on their cell phones, users access a single menu based application

called R-World, which connects them to the Reliance servers. Using the menu based user

interface, mobile users select the application, which they want to run and download them

over-the-air to their cell phones. These applications are then executed locally on the mobiles.

From mid-2004 Reliance tied up with two of the popular private sector banks, HDFC and

ICICI, to provide a host of their enquiry and transaction based mobile banking services

through its R-World environment.

4.2 ABN Ambro, India

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ABN AMRO Bank brings to the convenience of mobile banking using an application called

MPOWER. It allows customers to access their account for inquiry & transactions using

simple SMS messages. One can do the following using MPOWER:

• Balance & Transaction Inquiry

• Share Holdings in Demat Account

• Funds Transfers to ABN AMRO & other banks

• Bill Presentment and Payment

• Cheque Inquiry & Stop Cheque

• Online Fixed Deposit Opening

• Request for Cheque Book & Statement

• Request for new PIN & change PIN online

Mobile Banking: The Services Bouquet

 ICIC Bank

HDFC Bank

IDBI Bank HSBC

Bank of America Citibak

ABN Amro

Balance Inquiry √ √ √ √ √ √ √Last few transaction √ √ √ √ √ √ √Cheque Payment Status     √ √ √ √ √Stop Payment of Cheque   √          Statement Request √ √ √ √ √ √  

Cheque Book Request √   √       √

4.3 Citibank

Banks are hoping to extend mobile banking as technology improves. Citibank has two

ongoing cell phone trials. The first is a partnership with MasterCard, AT&T, and Nokia that

places chips in cell phones allowing Citi debit and credit to make payments by waving the

cell phone at a participating store’s register.

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Citi’s other pilot is with Obopay that lets debit and credit customers transfer money between

mobile phones. Analysts say even more revenue is possible in the coming years when more

functions are added to cell phones like international transfers, and booking travel

arrangements. While mobile banking is relatively new, the service has shown some traction

with customers. Citi Mobile says it had more subscribers than expected while the service was

being piloted around the country in the spring.

Wachovia Mobile says their service has been getting about 50,000 unique visitors a week

since its launch. Celent predicts that by the end of 2010, 35% of all online banking

households will be using mobile banking.

4.4 Mobile Banking Users Exceeds 150 Million:

Though mobile banking system is completely new aspect in Bangladesh but internationally it

is very popular. In 14th January, 2009 there are more than 150 million people are get this

service. Mobile banking transactional users’ data are given bellow:

14th January, 2009

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UK: The number of mobile phone subscribers that use their phones for mobile banking

transactions will exceed 150m globally by 2011, according to a new study by Juniper

Research. These figures refer to additive banking which is focused on developed markets

rather than transformational banking.

The Juniper Research report determined that the mobile banking market is currently most

advanced in the Far East, but that growing numbers of mobile banking services are being

offered in North America and Western Europe. The developed nations of the Far East, North

America and Western Europe are forecast to account for over 70% of the user base by 2011.

4.5 Mobile Banking in the World:

Mobile banking is used in many parts of the world with little or no infrastructure, especially

remote and rural areas. This aspect of mobile commerce is also popular in countries where

most of their population is unbanked. In most of these places, banks can only be found in big

cities, and customers have to travel hundreds of miles to the nearest bank.

In Iran, banks such as Parsian, Tejarat, Mellat, Saderat, Sepah, Edbi, and Bankmelli offer the

service. Banco Industrial provides the service in Guatemala. Citizens of Mexico can access

mobile banking with Omni life, Bancomer and MPower Venture. Kenya's Safaricom (part of

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the Vodafone Group) has the M-Pesa Service, which is mainly used to transfer limited

amounts of money, but increasingly used to pay utility bills as well. In 2009, Zain launched

their own mobile money transfer business, known as ZAP, in Kenya and other African

countries. In Somalia, the many telecom companies provide mobile banking, the most

prominent being Hormuud Telecom and its ZAAD service.

Telenor Pakistan has also launched a mobile banking solution, in coordination with Taameer

Bank, under the label Easy Paisa, which was begun in Q4 2009. Eko India Financial Services,

the business correspondent of State Bank of India (SBI) and ICICI Bank, provides bank

accounts, deposit, withdrawal and remittance services, micro-insurance, and micro-finance

facilities to its customers (nearly 80% of whom are migrants or the unbanked section of the

population) through mobile banking.

In a year of 2010, mobile banking users soared over 100 percent in Kenya, China, Brazil and

USA with 200 percent, 150 percent, 110 percent and 100 percent respectively

Recommendations and Conclusion

Recommendations

Conclusion

Bibliography

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Recommendations:

Though Dutch Bangla Bank Limited tries to give the best customer support, the have some

lake and linkage compare to other bank of the same generation. The recommendations for

this report are:

Mobile banking is a new concept for banking sector in Bangladesh. So it must

be campaign to the rural people.

Here only agreement with two mobile companies but it should be agreement

with other company.

Text only and limited to 140-160 characters per massages. So it could not

express all things in short massage.

Does not offer a secure environment.

Many non standard variables including handsets which is not necessary to

mobile banking services.

User needs to have a data plan which may be a barrier to adoption among

price sensitive demographics.

Some wireless operators do not support clickable WAP links in sms message.

Application and data entry must be controlled.

Mobile Banking should be more expanded in General Level of banking; they

should be adopted for depositing and withdrawal of money as well.

DBBL should set more ATM booth so that people can get their money at

shortest possible time.

As the clients are not in favor of introducing system, if possible the rule of

introducing to open an account should be changed. Because many people are

facing problem to arrange an introducer in the time of opening accounts

To make exchange process more prompt the authority should use modern

communication system. That means changing procedure should be informed

by Bank to the concerned through SMS, e-mail, fax etc.

Service campaign may arrange for letting the clients know the latest

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technology and it uses.

Conclusion

Mobile banking is poised to become the big killer mobile application arena. However, banks

going mobile the first time need to tread the path cautiously. The biggest decision that banks

need to make is the channel that they will support their services on.

Mobile banking through an SMS based service would require the lowest amount of effort, in

terms of cost and time, but will not be able to support the full breath of transaction-based

services. However, in markets like India where a bulk of the mobile population users' phones

can only support SMS based services, this might bathe only option left.

On the other hand a market heavily segmented by the type and complexity of mobile phone

usage might be good place to roll of WAP based mobile applications. A WAP based service

can let go of the need to customize usability to the profile of each mobile phone, the trade-off

being that it cannot take advantage of the full breadth of features that a mobile phone might

offer.

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Mobile application standalone clients bring along the burden of supporting multiple mobile

device profiles. According to the Gartner Group, mobile banking services will have to

support a minimum of 50 different device profiles in the near future. However, currently the

best user experience, depending on the capabilities of a mobile phone, is possible only by

using a standalone client.

Mobile banking has the potential to do to the mobile phone what E-mail did to the Internet.

Mobile Application based banking is poised to be a big m-commerce feature, and if South

Korea's foray into mass mobile banking is any indication, mobile banking could well be the

driving factor to increase sales of high-end mobile phones. Nevertheless, Bank's need to take

a hard and deep look into the mobile usage patterns among their target customers and enable

their mobile services on a technology with reaches out to the majority of their customers.

Bibliography

Annual Report of Dutch Bangla Bank Ltd.( 2010)

Several Booklets from Dutch Bangla Bank Ltd

Several Newsletters from Dutch Bangla Bank Ltd

Dutch Bangla Bank Ltd. Web site

Credit Operational Manual of Dutch Bangla Bank Ltd

Product and Services leaflet of Dutch Bangla Bank Ltd

News Paper in 1st April 2011.

Infogile.com

The juniper research report.

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