CUSTOMER EDUCATION ON MOBILE BANKING Project Trainee: Purushottam Vishnu Bhandare MBA-Banking Technology Pondicherry University Guide: Dr. V. N. Sastry Professor IDRBT, Hyderabad Institute of Development and Research in Banking Technology (IDRBT) Road No. 1, Castle Hills, Masab Tank, Hyderabad 500 057 1
CERTIFICATE This is to certify that Mr. Purushottam Vishnu Bhandare, pursuing MBA-Banking Technology course at Pondicherry University in the Department of Banking Technology (SOM) has undertaken a project as an intern at the Institute for Development and Research in Banking Technology (IDRBT), Hyderabad from May 10 to July 6, 2012. He was assigned the project Customer Education on Mobile Banking under the guidance of the Dr. V. N. Sastry. During the course of the project he has undertaken a study of the Mobile Technologies for customer education on mobile banking and also has done excellent work. I wish him all the best in all him endeavours. Dr. V. N. Sastry (Project Guide) Professor IDRBT, Hyderabad 2
ACKNOWLEDGEMENT I would like to express my sincere gratitude to the Institute for Development and Research in Banking Technology (IDRBT) and particularly Dr. V. N. Sastry, Professor, IDRBT who was my guide in this project. I would not hesitate to add that this short stint in IDRBT has added a different facet to my life as this is a unique organization being a combination of academics, research, technology, communication services, crucial applications, etc., and at the same time performing roles as an arm of regulation, spread of technology, facilitator for implementing technology in banking and non-banking systems. I am extremely grateful to Dr. V. N. Sastry for his advice, innovative suggestions and supervision. I thank him for introducing me to an excellent banking application and giving me the opportunity to approach diverse sections of people such as telecommunication service vendors. I am thankful to Pondicherry University for giving me this golden opportunity to work in a high-end research institute like IDRBT. I am thankful for IDRBT for providing such an amazing platform to work on real application oriented research. Finally, I thank one and all who made this project successful either directly or indirectly. I am very thankful to VoiceGate India for assisting me in my project Purushottam Vishnu Bhandare MBA-Banking Technology SOM, Pondicherry University Pondicherry 3
Index 1. Abstract 2. Introduction 2.1 Mobile Banking 2.2 Need for Customer Education 2.3 Technologies for Customer Education 3. Design of IVR Based Customer Education 4. Design of USSD Based Customer Education 5. Glossary 6. References 4
1. Abstract Mobile Banking is a relatively new channel in the financial services domain involving multiple entities such as banks, mobile network operators, government, regulators etc. The success of mobile banking is felt only when every mobile subscriber is able to do banking transactions through his or her mobile phone. This greatly depends upon the customer awareness about the benefits and importance of mobile banking. This demands for effective customer education in order to build confidence and trust in this ubiquitous delivery channel. We present the use of IVR and USSD technology to reach and educate the people who are already the bank customers and also those who are willing to know about mobile banking. The project consists of design prototype of IVR system for customer education on mobile banking with multiple languages support and USSD service for interactive learning on low end mobile phones. 5
2. Introduction 2.1 Mobile Banking In the fast paced technological world, Technology is creeping into regular day to day life Banks are also greatly affected by this intervention. Banks have already started with the core banking system and they are providing services through the internet as well as mobile banking system. Mobile banking - the use of mobile phones to make financial transactions. Now days most of the banks offer mobile banking service through various channels. It includes Banking transactions such as balance enquiry, fund transfer, bill payments, mobile topups etc. Using the service, one can access his/her bank accounts at their fingertips, anytime, anywhere. That is why it also known as a convenience banking. In order to use the banking services the customer should be aware of these services. Mobile banking has huge potential in a country like India where a major part of the population belongs to the unbanked category. The high penetration levels of mobile phones and low transaction costs involved in mobile banking are likely to be the potential growth drivers for these services. 2.2 Need for Customer Education: Mobile Banking is a relatively new channel in the financial services domain involving multiple entities such as banks, mobile network operators, government, regulators etc. The success of mobile banking is felt only when every mobile subscriber is able to do banking transactions through his or her mobile phone. This greatly depends upon the customer awareness about the benefits and importance of mobile banking. The major impediments for mobile banking are.. 1. Low Awareness 2. Low comfort level of users due to poor literacy levels, language barriers, etc. 6
3. Concerns with respect to security of mobile banking transactions This demands for effective customer education in order to build confidence and trust in this ubiquitous delivery channel. 2.3 Technologies for Customer Education: There are ample of channels like TV, Radio, Internet, Social media, email, mobiles, BFs, BCs etc. are available to reach to the customers to make them aware of particular service but learning with mobile phones is much more effective than that of other channels. With respect to educate the customers using the mobile phones various mobile technologies come into picture such as SMS, IVR, WAP, J2ME, USSD and S@T etc. Considering the reach and the effectiveness the IVR and USSD technologies ahead of all the other. SSMS IVR USSD2 WAP J2ME S@T All Handsets All Handsets 95% Handsets Only Java Enabled Almost all GPRS/3G Phones SIM cards Figure 2.1: Mobile Channels and Reach 7
Education through IVR will be very effective as the person from any region in India can learn mobile banking in his/her own language. We have designed a IVR system that can support all the 22 Indian Regional Languages. USSD provides the Interactive way of learning even on low end mobile phones. 8
3. Design of IVR based Customer Education IVR- Interactive Voice Response Interactive voice response (IVR) is a technology that allows a computer to interact with humans through the use of voice and DTMF tones input via keypad. IVR allows customers to interact with a host system via a telephone keypad recognition, after which they can service their own inquiries by following the IVR dialogue. IVR systems can respond with prerecorded or dynamically generated audio to further direct users on how to proceed. IVR applications can be used to control almost any function where the interface can be broken down into a series of simple interactions. IVR systems deployed in the network are sized to handle large call volumes. 3.1 IVR Call Flow Figure 3.1: IVRS Call Flow 9
3.2 Use Case Diagram: 3.3 Activity Diagram: Figure 3.2: Use Case Diagram for IVRS Figure 3.3: Activity Diagram for IVRS 10
3.4 Sequence Diagram: 3.5 Deployment Diagram: Figure 3.4: Sequence Diagram for IVRS Figure 3.5: Deployment Diagram for IVRS 11
3.6 Content for IVR Application(Script): Call IVR System Number.. Namaskar. Welcome to Mobile Banking Security Lab of IDRBT, Hyderabad to learn about Mobile Banking. Mobile Banking is a service offered by various banks in India. An individual needs to have a mobile phone, an account in a bank and should have registered for a mobile banking with bank. This service of education through Interactive Voice Response System is available in all major Regional Languages of India. Here you learn about the types of mobile banking services, basic requirements of mobile phone, different channels of communication through a mobile phone, how to register for mobile banking, mobile application download, safety and security tips, complaints and redressal mechanisms and important dos and don ts. To listen again press 1, for language options press 2 and to continue in English press 3. For Mobile banking services press 1 For basic requirements of mobile phone press 2 For different channels of communication press 3 For Registration press 4 For application download Press 5 For Security press 6 For Complaints redressal press 7 For Dos and Don ts press 8 Press 9 for going back 12
1. Mobile Banking Services Press 1 for Balance enquiry 2 for Mini Statement 3 for Fund Transfer 4 for Mobile Top-up 5 for Bill Payments 6 for Merchant Payments 9 back 1. Balance Enquiry 1 for Application Based 2 for SMS Based 3 for USSD Based 9 back 1. Application Based Select Balance Enquiry option in mobile banking application Enter m-pin Get the message showing account balance. 2. SMS Based Send sms <BAL> <A/C No.> <MPIN> to 12345 3. USSD Based This service is currently not available. 2. Mini Statement 1 for Application Based 13
2 for SMS Based 3 for USSD Based 9 back 1. Application Based Select Mini Statement Option in mobile banking application Enter m-pin. Get the message consisting of mini statement of last 5 transactions 2. SMS Based Send sms <LATRAN> <A/C. No> <MPIN> to 12345 3. USSD Based This service is currently not available 3. Fund Transfer 1 for Registering Payee 2 for Same Bank 3 for Other Bank 4 for IMPS 9 back 1. Register Payee 1 for Same Bank 2 for Other Bank 9 back 1. Same Bank Payee Enter Payees Ac Number Give nickname Amount limit (MAX 50000) Register 14
2. Other Bank Payee Enter Payees Ac Number IFSC code of payees Branch Give a nickname Amount Limit (Max 50000) Register 2. Same Bank Select Payee s type (Same Bank account/ Other Bank account) Select Payee Nickname from the drop down Enter amount to be transferred ( up to the assigned max. limit) Select account to be debited Press OK Enter MPIN Confirm 3. Other Bank Select Payee s type (Same Bank account/ Other Bank account) Select Payee Nickname from the drop down Enter amount to be transferred ( up to the assigned max. limit) Select account to be debited Enter MPIN Confirm 4. IMPS Enter the Mobile number of the payee Enter the MMID of payee Purpose ( Optional) 15
Enter the Amount ( Max Rs50000/-) Select the account to be debited Enter the MPIN and CONFIRM 4. Mobile Top-up Select Mobile Top-up Enter service Provider Enter 10 digit Mobile Number Enter Amount Select account for debit Enter the m-pin Confirm 5. Bill Payments 1 for Adding Biller 2 for View Bill 3 for Pay Bill 9 back 1 Add Biller Enter the Company ID that you got from Get List in the Company ID (e.g. Company ID for SBICards is SBICARD, for Airtel Mumbai it is airtmu) Enter a nick name for this biller for your own identification (Min two characters) 16
Enter the consumer details as per the format required, i.e. CARD No in the above example for payment of SBI card dues. Enter your MPIN Add 2 View Bill Select the Biller View the Bill 3 Pay Bill Select the biller nickname from the list of registered billers Enter the Bill ID that you got in SMS when you viewed the bill Enter the bill amount that you got in the SMS Select the account to debit Enter MPIN Confirm 6 Merchant Payment Enter Merchant Name Enter Merchant Data Enter Amount Enter m-pin and Submit 2. Device Requirements Mobile phone with java support GPRS/EDGE/3G Facility Memory of around 1MB free 17
3. Channels 1 for SMS 2 for WAP/GPRS 3 for USSD 4 IVRS 1. SMS User can access mobile banking by sending SMS <Service Code> <AC no> <MMID> to 12345 2. GPRS User can access mobile banking through browser using the URL of bank web site or by using an web based application 3. USSD Mobile Banking through this channel will be available shortly 4. IVRS The Banking can done through IVRS by dialing the number 4.Registration 1 Registration at ATM 2 Registration at Branch 3 Registration through Internet 18
1 Registration at ATM Insert Debit card into ATM of same bank. Enter PIN. Select Option Mobile Registration. Enter 10 digits mobile number. Re-enter and confirm the mobile number. ATM displays confirmation message. Confirmation SMS will be received on mobile phone with mpin and application download link. 2 Registration at Bank Branch Visit Branch. Submit the filled application form for mobile banking service. Confirmation SMS will be received on activation of mobile banking service with mpin and Application Download Link on Mobile Phone. 3 Registration through Internet Log in to your Internet Banking account on the internet banking site. Go to option Mobile Registration. Enter your 10 digits mobile number. Confirmation SMS with mpin and Application Download Link will be received on mobile phone. 19
5. Application Download Application can be downloaded following the url in the sms from bank or directly from the respective banks web site. 6. Security The mobile banking platform that uses secured HTTPS protocol for communication between the mobile client and the mobile server. It additionally activates Web server security, in the form of Secure Sockets Layer (SSL). This means that the communications between the client and the (host) Web server are encrypted. Thus, it is a highly secured environment to do mobile banking. 7.Complaints For immediate redressal contact Branch manager (submit complaint form) or for non redressal contact customer relationship centre on toll free number. 8. Dos and Don ts 1 Dos 2 Don ts 1. Dos Report the loss or theft of mobile phone to bank and carrier Have Hard to break password Always lock the device 2. Don ts Don t allow auto login Don t share any passwords 20
Don t open mail/sms from unknown sources Don t save confidential info on phone 21
4. Design of USSD Based Customer Education Unstructured Supplementary Service Data (USSD) is a protocol used by GSM cellular telephones to communicate with the service provider's computers. USSD can be used for WAP browsing, banking services, mobile-money services, location-based content services, menu-based information services, and as part of configuring the phone on the network. USSD messages are up to 182 alphanumeric characters in length. Unlike Short Message Service (SMS) messages, USSD messages create a real-time connection during a USSD session. The connection remains open, allowing a two-way exchange of a sequence of data. This makes USSD more responsive than services that use SMS 4.1 USSD Gateway: Figure 4.1: USSD Gateway 22
4.2 Proposed USSD Interaction: Figure 4.2: Proposed USSD Interaction 23
4.3 Use Case Diagram: Figure 4.3: Use Case Diagram 4.4 Activity Diagram: Figure 4.4: Activity Diagram 24
4.5 Sequence Diagram: Figure 4.5: Sequence Diagram 4.6 Deployment Diagram: Figure 4.6: Deployment Diagram 25
5. Observations and Conclusions The use of mobile technologies such as IVR- Interactive Voice Response and USSD- Unstructured Supplementary Service Data are beneficial for the effective customer education on mobile banking. IVR system allows to learn the mobile banking with multilingual support which includes English and all the 22 Indian Regional languages for all the residents of India. USSD System is designed in order to provide the interactive way of learning on mobile banking to reach to the maximum of the customers as it is compatible with even low end mobile phones. 26
Glossary IVR: Interactive Voice Response USSD: Unstructured Supplementary Service Data S@T: SIM Application Tools WAP: Wireless Application Protocol J2ME: Java 2 Micro Edition GSM: Global System for Mobile Communication DTMF: Dual Tone Multi-Frequency PRI: Primary Rate Interface VLR/HLR: Visitor Location Register/ Home Location Register MSC: Mobile Switching Centre PSSR: Process Supplementary Service Request USSN: Unstructured Supplementary Service Notify 27
References [1] USSD Specifications http://www.3gpp.org/ftp/specs/html-info/0290.htm [2] USSD Standards http://www.etsi.org/deliver/etsi_i_ets/300900.../ets_300957e01p.pdf [3] IVR System http://www.voicegateindia.com/ivr.html [3] Regional Languages http://www.india.gov.in/govt/documents/hindi/eighth- SCHEDULE.pdf [4]Mobile Banking http://www.bankofbaroda.com/mobilebanking/home.asp, http://www.indianbank.in/mobilebanking.php, [5] IMPS http://www.npci.org.in/aboutimps.aspx [6] Discussion paper on Strategies For Customer Education On Mobile Banking In India by Ajay Babu, M. Srinivas Reddy and V. N. Sastry [6] Mobile Banking and Financial Inclusion http://www.wds.worldbank.org/servlet/wdscontentserver/wdsp/ib/2011/05/18/000158349_20 110518143113/Rendered/PDF/WPS5664.pdf [7] Mobile Banking Opportunities http://www.tele.net.in/discussion-board/item/7732-mobilebanking-opportunities-and-challenges-in-the-indian-market?format=pdf 28