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Presented by: Muhammad Talha Rubbani

Mobile Banking Services

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SMS alerts on transaction and account balance updates
View account activity on the primary account
View credit card payment information
Obtain bank contact information/banking tips


SMS Banking PLUS
Transfer money between accounts
Pay bills with Bill Pay
Transfer money to another bank customer
Transaction made by using USSD


SMS / USSD Banking PLUS
Transaction Scheduler
Locate the nearest ATM
More User Friendly than USSD


Web Banking PLUS


SMS Banking PLUS

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Objectives for Offering Mobile Banking
Today, financial institutions offering mobile banking services typically do so
to satisfy one or more of these three key objectives:
Attract or grow a customer segment -- deliver new and existing
services via mobile devices to new and existing customer segments
who value more convenient ways to access their accounts
Capture economic benefits -- reduce the cost of delivering customer
service over more expensive channels that involve personnel, such as
those in branches and call centers
Increase retention -- personalize marketing messages and
communications that enhance the brand and increase loyalty and
retention

Challenge
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Mobile Banking Business Model
Two business models exist for mobile banking as it relates to channels: 1)
treating mobile banking as a separate channel; 2) integrating it with other
channels. The chart in Figure 2 reflects the transaction cost differentials
between the different forms of servicing customers. However, that chart
does not reflect the potential benefits of having both a common, consistent
customer experience across all channels/contact points and information that
is consistent and synchronized regardless of access method. For example,
if a customer were to open an account, make a deposit in a branch and be
able to make a transfer later that day using a mobile phone, that customer
would perceive tremendous value. Implementing this would require the
account opening and deposit processes to be synchronized with the mobile
banking channel. Wells Fargo was one of the first large banks to introduce
this capability. This integrated model provides a potentially superior
business model for banks that treating mobile banking as a separate
channel.

• Financial institutions need to understand their target consumers and
how they want to have their banking services provided.
Implementation of mobile banking may take a path similar to that of
ATMs which, when first introduced, had limited functionality and
required a tremendous amount of education to gain adoption.
Pursuing a phased implementation may limit initial investments and
would allow for providing additional value-added services as
consumers become more familiar with mobile banking.

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However, the present regulatory framework available under Electronic Transfer Act
(2005) and Branchless Banking Regulations (2008) promulgated by State Bank of
Pakistan is based on 1‐to‐1 relationship.
This offers a close system between a single bank and a single mobile operator required
to develop their own payment solutions with low outreach possibility in terms of
subscriber’s facilitation
The requirement gave birth to an idea A model gathering Mobile Operators (Providing
mcommerce application interface), Financial Banks (Providing Financial services),
Consumer (End‐user utilizing m‐commerce services) and a TPS (A third party vendor
performing integration of all entities).
primary approach is to encourage Many‐to‐Many service delivery mechanism as
opposed to One‐to‐One payment system
Consumers belonging to any bank and mobile operator would have the freedom of
managing their finances when and where they want. This means that all banks and
mobile operators would be able to connect with each other resulting in a situation
where any bank customer can access their accounts, transfer funds, and interact
with all other bank customer using mobile connection.

Smart Phone requirement
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Global smartphone shipments were above 450 million in 2011, and are expected to
reach one billion in 2016.
Though smartphones adoption rates are soaring in the developed markets, the future
growth in smartphone volumes is expected to be driven by the emerging markets.

Smart Phone in PAK
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future growth in smartphone volumes is expected to be driven by the emerging markets
Pakistani market where varying estimates converge between five to six million
smartphone users
estimate is cast by Ericsson Pakistan which anticipates some 50 million smartphone
users in Pakistan by 2016
Current mobile internet usage, which is reportedly growing despite high tariffs and
laggard speeds on GPRS/EDGE networks
According to PTA Chairman, mobile internet users crossed 15 million in June 2011
BR Research that every fourth Telenor customer is a mobile internet user Rural and
semi-urban areas in the North are reported to have surprisingly high usage.

Internet usage on Mobile
• According to a recent study conducted by the Boston Consulting
Group (BCG) for Telenor group, wide-scale adoption of MFS by
Pakistanis would decrease financial exclusion by 20 percent in 2020
(from 84 percent in 2011), thereby improving the financial inclusion
to 41 percent by the year 2020, compared to 16 percent in 2011.
• Boston Consulting Group (BCG) for Telenor group, highlighted that
by 2020, 27 million Pakistani adults will hold saving accounts, 17
million additional customers will pay the utility bills through their
mobiles

Benefit for business
Your Internet offerings are easier and
more convenient to access
You get considerable flexibility while
conducting business
Transaction and personnel costs are
reduced due to widespread automation
of
back-office operations
Field staff is more effective as they have
flexible access to back-office data
Improving productivity

Advantage
Offers many payment options
Push advertising, direct marketing
More efficient and extensive service
offered
The Internet is going mobile

Conclusion
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The core of m-commerce is the
use of a terminal telephone, PDA, PC
device and public mobile network to
access information and conduct
transactions that result in the transfer of
value in exchange for information, services
or goods Mobile Commerce refers to any
transaction with monetary value that is
conducted via a mobile
telecommunications network.

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