Mobile
banking refers to a system that
enables bank clients to access accounts and general information on bank
products and services through his/her Mobile device.
Mobile Banking is a process of no branch banking which provides financial
services to unbanked communities in both urban and rural area at affordable
cost. The aim of the service is to bring those people under the umbrella of
banking service that is away from banking facilities.
There
are around 160 million people in Bangladesh, of which only 13 percent have bank accounts
where as more than 95 percent are mobile phone users. Banks can now offer the
banking services to rural and unbanked population through mobile phone.
This
system is less costly and time saving. it is easier to access
but this service is not available for inter bank transaction, as well as the
absence of regulatory framework may lead to money laundering activities.
Through
M-banking one can avail various services i.e;
Ø
Utility bill
payment,
Ø
Fund Transfer,
Ø
Shopping,
Ø
Cash Withdrawn from selected ATM or Cash point
Ø
Fexi Load
Ø
Remittance
Collection And
Ø
Exciting
facilities.
Mobile
banking is a new technology in Bangladesh, started from 31st March
2011. Dutch Bangla Bank Limited pioneered in mobile
banking services in Bangladesh.
Amenities:
ü
Time saving: Mobile banking, a real time on-line banking serviceis available anytime,
anywhere throughout the country. So it can save one’s time. People have not to
wait by standing in a long line so it takes less time than traditional banking.
ü Cost Minimize: Mobile banking is allowed to access banking facilities at affordable cost. A
positive aspect of mobile phones is that mobile networks can reach remote areas
at lowest cost.
ü
Trust worthy:
One can trust mobile banking as traditional
banking system. It has secured PIN (Personal Identification Number) code which
is known by the user, and also has a check digit. But in Bangladesh traditional branch based banking remains the most
widely adopted method of conducting banking transaction. The poor often have
greater familiarity and trust with mobile phone companies than formal banking
institutions. Furthermore a mobile handset can easily be adapted to handle
banking transactions. But it is not commonly known by all.
ü
Convenience: Mobile banking using
system is very easy to use. Poor people are often not considered valuable
customers by the formal financial sector as their transaction sizes are small,
and many live in remote areas beyond the reach of banks branch networks.
Informal banking services such as microfinance and village savings and loan
associations remain limited in their reach. So, mobile banking system develops
to bring poor people into banking system.
Limitations:
Absence of supportive policies, guidelines, rules and
regulations relating to e-transactions are barrier to development in m-banking.
Recently Dutch-Bangla Bank Ltd. (DBBL) and Trust Bank Ltd. (TBL) introduced
mobile banking. On the other side Brac Bank Ltd. introduced another mobile
banking product named bkash. But till now no interbank transaction guideline or
regulation policy established among those. So, it’s not possible to avail the
m-banking facilities of bkash through DBBL or TBL. As no supportive
m-transaction policy is available it’s very easy to involve in money laundering
activities.
ü
Infrastructure
support: M-banking is beset with
several infrastructural and institutional constraints such as inadequate
availability of reliable and secure telecommunication infrastructure, absence
of a backbone network, poor ICT penetration in the banking sector, lack of
skilled manpower and training facilities.
ü
Security:
The growth in m-banking services not only
depends on technological advances, but also on consumer confidence in the
provided services; therefore, legal certainty must be established. On the other
hand as people carry the mobile device with them, it is very easy to hijack and
transfer the deposited amount to hijacker mobile account. So, in the current
legal environment most of the people do not feel comfort and secure to deposit
enough in mobile account.
It has been elaborated that the acceptance and use of
mobile phones is product of a social process, embedded in social practice.
Nowadays millions of inhabitants of Bangladesh are within a network through mobile network
coverage. M-banking technology, the most modern generation of electronic
banking transactions has become one of the most familiar banking features,
opened up new window of opportunity to the existing banks and financial
institutions. So in the commercial sectors like banking, m-banking technology
will bring banking facilities in hand’s grip which will make life easier,
robust and flexible. It is an urgent need to set policies and strategies to
reverse gaps in terms of regulatory and legal issues.