The Enhanced Telephone was a telephone developed by Citibank in the late 1980s that allowed customers to do banking and financial transactions from home. The first model, the 99A, had a beige casing and monochrome screen, while the second, the P100, was manufactured by Philips and had an LCD screen. However, the Enhanced Telephone ultimately failed due to the rise of home banking via personal computers and the early World Wide Web in the 1990s.

1. Enhanced Telephone
From Wikipedia, the free encyclopedia
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The Enhanced Telephone is a telephone developed by Citibank in the late 1980s for
customers to do banking and other financial transactions from their home. The official
launch date was February 26-27, 1990.
The first version of the Enhanced Telephone, the 99A model, was beige and featured a
monochrome CRT screen. Because of its chunky appearance, several developers dubbed
it the "sawed-off ski boot."[1] The physical hardware was manufactured by Transaction
Technologies Incorporated (TTI).
The second version of the Enhanced Telephone, the P100 model, was manufactured by
Philips Electronics and featured an LCD screen and more sleek styling. The font was
developed by Bitstream Inc..
Software for the Enhanced Telephone was written in a proprietary language called HAL
(Home Application Language).
The Enhanced Telephone ultimately failed to become a viable product because by the
time it was introduced, home banking via PCs was becoming more common. As the
World Wide Web became popular in the early 1990s, the Enhanced Telephone was
rendered obsolete.
The Philips P100 phone lived on and to this day variations of it are used for other
applications.
Transactional account
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(Redirected from Current account (banking))
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The cheque is the traditional mode of payment for a transactional account.

2. A transactional account (North America: checking account or chequing account,[1]
United Kingdom and some other countries: current account or cheque account) is a
deposit account held at a bank or other financial institution, for the purpose of securely
and quickly providing frequent access to funds on demand, through a variety of different
channels. Because money is available on demand these accounts are also referred to as
demand accounts or demand deposit accounts.
Transactional accounts are meant neither for the purpose of earning interest nor for the
purpose of savings, but for convenience of the business or personal client; hence they
tend not to bear interest. Instead, a customer can deposit or withdraw any amount of
money any number of times, subject to availability of funds.
Features and access
All transactional accounts offer itemized lists of all financial transactions, either through
a bank statement or a passbook. A transactional account allows the account holder to
make or receive payments by:
• cash money (coins and banknotes)
• cheque and money order (paper instruction to pay)
• giro (funds transfer, direct deposit)
• direct debit (pre-authorized debit)
• standing order (automatic funds transfer)
• ATM card or debit card (cashless direct payment at a store or merchant)
• SWIFT: International account to account transfer.
[edit] Country specific
Certain modes of payment are country-specific:
• In the United Kingdom, BACS offers giros that clear in a matter of days while
CHAPS is done on the same day.
• Canada has an Email Money Transfer service
• The United States offers e-checks.
• In India, NEFT service is available to clear funds in a day.

3. [edit] Access
An NCR Automated Teller Machine (ATM)
[edit] Branch networks
Main article: Branch banking
This refers to the practice of maintaining physical locations where customers can receive
a wide array of banking and financial services, such locations are described as branches.
They may provide access to a combination of cash machines, telephone banking, counter
services and financial advice.
[edit] Cash machines
Main article: Automated teller machine
Cash machines are electronic devices that allow bank customers to make cash
withdrawals and check their account balances without the need for a human teller. Many
also allow people to deposit cash or cheques, transfer money between their bank
accounts, top up their mobile phones' pre-paid accounts or even buy postage stamps.
[edit] Internet banking
Main article: Online banking

4. Internet or Online banking describes the use of a bank's secure website to view balances
and statements, perform transactions and payments, and various other facilities. This can
be very useful, especially for banking outside bank hours and banking from anywhere
where internet access is available. Since the internet revolution most retail banking
institutions offer access to current accounts via online banking.
[edit] Telephone banking
Main article: Telephone banking
Telephone banking is the term applied to specific provision of banking services over the
telephone. In many cases such calls are to a call centre or automated service, although
some institutions continue to answer such calls in their branches. Often call centre
opening times are considerably longer than branches, and some firms provide these
services on a 24 hour basis.
[edit] Mail banking
Mail banking is a service provided by a financial institution which allows its customers
to deposit cheques into their account by mail. It is primarily used by virtual banks (as
they may not offer branches or ATMs that accept deposits) and by customers who live
too far from a branch. Typically, the institution that advertises such a service will provide
its own self-addressed stamped envelopes as a courtesy.
Debit card
A debit card (also known as a bank card or check card) is a plastic card that provides
an alternative payment method to cash when making purchases. Functionally, it can be
called an electronic cheque, as the funds are withdrawn directly from either the bank
account, or from the remaining balance on the card. In some cases, the cards are designed
exclusively for use on the Internet, and so there is no physical card.[1][2]
The use of debit cards has become widespread in many countries and has overtaken the
cheque, and in some instances cash transactions by volume. Like credit cards, debit cards
are used widely for telephone and Internet purchases, and unlike credit cards the funds
are transferred from the bearer's bank account instead of having the bearer to pay back on
a later date.
Debit cards may also allow for instant withdrawal of cash, acting as the ATM card for
withdrawing cash and as a cheque guarantee card. Merchants may also offer
"cashback"/"cashout" facilities to customers, where a customer can withdraw cash along
with their purchase.

5. Overdrafts
Main article: Overdraft
An overdraft occurs when withdrawals from a bank account exceed the available balance.
This gives the account a negative balance and in effect means the account provider is
providing credit. If there is a prior agreement with the account provider for an overdraft
facility, and the amount overdrawn is within this authorised overdraft, then interest is
normally charged at the agreed rate. If the balance exceeds the agreed facility then fees
may be charged and a higher interest rate might apply.
[edit] Cost
The policy of charging a fee for doing financial transactions depends on a variety of
factors, including the country and its overall interest rates for lending and for saving, as
well as the size of the financial institution and the number of channels of access it offers.
This is why operating few or no branches can afford to offer low-cost or free banking,
and why, in some countries, transaction fees do not exist, but extremely high lending
rates are the normal.
Financial transaction fees may be charged either per item or for a flat rate covering a
certain number of transactions. Often, youths, students, senior citizens or high-valued
customers do not pay fees for basic financial transactions. Some will offer free
transactions for maintaining a very high average balance in their account. Other service
charges are applicable for overdraft, non-sufficient funds, the use of an external interbank
network, etc. In countries where there are no service charges for transaction fees, there
are, on the other hand, other recurring service charges such as a debit card annual fee.
[edit] Interest
Main article: Interest
Unlike savings accounts, for which the primary reason for depositing money is to
generate interest, the main function of a transactional account is transactional. Therefore,
most providers either pay no interest or pay a low level of interest on credit balances.
[edit] Chequing accounts
Chequing account is the name given in North America to a transactional account.
[edit] Overdrafts
Main article: Overdraft
In North America, overdraft protection is an optional feature of a savings account. An
account holder may either apply for a permanent one, or the financial institution may, at
its sole discretion, provide a temporary overdraft on an ad-hoc basis.

6. [edit] Interest
Main article: Interest
In the United States, Regulation Q (12 CFR 217) and the Banking Acts of 1933 and 1935
(12 USC 371a) prohibit a member of the Federal Reserve system from paying interest on
chequing accounts. This restriction can be circumvented by either creating an account
type such as a Negotiable Order of Withdrawal account (NOW account) which is legally
not a chequing account or by offering interest paying chequing through a bank which is
not a member of the Federal Reserve system.
[edit] High-yield chequing accounts
High-interest NOW accounts have become prevalent throughout the industry. They pay a
higher interest rate than typical NOW accounts and frequently function as loss-leaders to
drive relationship banking.
In 2003, banks and credit unions began to establish maximum balance accounts, which
pay a premium rate up to a specified cap and a lower rate on balances above the cap. This
counter-traditional trend (banks had typically established minimum account balances
rather than maximum account balances) developed as a way to allow financial institutions
to attract multiple customer relationships while limiting the interest expense associated
with each account.
The first maximum balance, high-interest chequing account was offered in 2003 by a
small community bank in New Mexico, Pioneer Bank. In 2004 and 2005, several
community banks in West Texas expanded the idea, and a 3rd party vendor, BancVue,
combined the maximum-balance concept with the idea of a higher yield for specific b
[edit] Current accounts
Current account is the name given to a transactional account in the United Kingdom and
countries with a UK banking heritage, offering various flexible payment methods to
allow customers to distribute money directly to others. Most current accounts come with
a cheque book and offer the facility to arrange standing orders, direct debits and payment
via a debit card. Current accounts may also allow borrowing via an overdraft facility.
[edit] Lending
Current accounts have two different ways in which money can be lent: overdraft and
offset mortgage.
[edit] Overdraft
Main article: Overdraft

7. In the UK, virtually all current accounts offer a pre-agreed overdraft facility the size of
which is based upon affordability and credit history. This overdraft facility can be used at
any time without consulting the bank and can be maintained indefinitely (subject to ad-
hoc reviews). Although an overdraft facility may be authorised, technically the money is
repayable on demand by the bank. In reality this is a rare occurrence as the overdrafts are
profitable for the bank and expensive for the customer.
[edit] Offset mortgage
Main article: Offset mortgage
An offset mortgage is a type of mortgage common in the United Kingdom used for the
purchase of domestic property, the key principle is the reduction of interest charged by
"offsetting" a credit balance against the mortgage debt. This can be achieved via one of
two methods either lenders provide a single account for all transactions (often referred to
as a current account mortgage) or they make multiple accounts available which allow the
borrowers to notionally split their money according to purpose whilst all accounts are
offset each day against the mortgage debt.
[edit] Interest
Main article: Interest
In the UK some online banks offer rates as high as many savings accounts along with free
banking (no charges for transactions) as institutions which offer centralised services
(telephone, internet or postal based) tend to pay higher levels of interest. The same holds
true for banks within the EURO currency zone.
Online and offline
From Wikipedia, the free encyclopedia
(Redirected from On-line and off-line)
Jump to: navigation, search
"Online" redirects here. For the Brad Paisley song of the same name, see Online (song).
For the magazine, see ONLINE. For the feature film, see On line.
The terms "online" and "offline" (also stylized as "on-line" and "off-line") have specific
meanings in regards to computer technology and telecommunications. In general,
"online" indicates a state of connectivity, while "offline" indicates a disconnected state.
In common usage, "online" often refers to the Internet or the World Wide Web.
The concepts have however been extended from their computing and telecommunication
meanings into the area of human interaction and conversation, such that even offline can
be used in contrast to the common usage of online (e.g., "I bought those Marcus Fenix
figurines offline").

8. Standard definitions
In computer technology and telecommunication, online and offline are defined by
Federal Standard 1037C. They are states or conditions of a "device or equipment" or of a
"functional unit". To be considered online, one of the following must apply to a device:
• Under the direct control of another device
• Under the direct control of the system with which it is associated
• Available for immediate use on demand by the system without human
intervention
• Connected to a system, and is in operation
• Functional and ready for service
In contrast, a device that is offline meets none of these criteria (e.g., its main power
source is disconnected or turned off, or it is off-power).
[edit] Offline mail
One example of a common use of these concepts is a Mail User Agent that can be
instructed to be in either online or offline states. One such MUA is Microsoft Outlook.
When online it will attempt to connect to mail servers (to check for new mail at regular
intervals, for example), and when off-line it will not attempt to make any such
connection. The online or offline state of the MUA does not necessarily reflect the
connection status between the computer on which it is running and the Internet. That is,
the computer itself may be online—connected to Internet via a cable modem or other
means—while Outlook is kept offline by the user, so that it makes no attempt to send or
to receive messages. Similarly, a computer may be configured to employ a dial-up
connection on demand (as when an application such as Outlook attempts to make
connection to a server), but the user may not wish for Outlook to trigger that call
whenever it is configured to check for mail.[1]
[edit] Offline media playing
Another example of the use of these concepts is in the world of digital audio technology.
A tape recorder, digital editor, or other device that is online is one whose clock is under
the control of the clock of a synchronization master device. When the sync master
commences playback, the online device automatically synchronizes itself to the master
and commences playing from the same point in the recording. A device that is offline
uses no external clock reference and relies upon its own internal clock. When a large
number of devices are connected to a sync master it is often convenient, if one wants to
hear just the output of one single device, to take it offline because, if the device is played
back online, all synchronized devices have to locate the playback point and wait for each
other device to be in synchronization.[2] (For related discussion, see MIDI timecode, word
sync, and recording system synchronization.)
[edit] Offline browsing

9. A third example of a common use of these concepts is a web browser that can be
instructed to be in either online or offline states. The browser only attempts to fetch pages
from servers whilst in the online state. In the off-line state, users can perform offline
browsing, where pages can be browsed using local copies of those pages that have
previously been downloaded whilst in the on-line state. This can be useful when the
computer is offline and connection to the Internet is impossible or undesirable. The pages
are either downloaded implicitly into the web browser's own cache as a result of prior
online browsing by the user, or explicitly by a browser configured to keep local copies of
certain web pages, which are updated when the browser is in the online state, either by
checking that the local copies are up-to-date at regular intervals or by checking that the
local copies are up-to-date whenever the browser is switched to the on-line state. One
such web browser capable of being explicitly configured to download pages for offline
browsing is Internet Explorer. When pages are added to the Favourites list, they can be
marked to be "available for offline browsing". Internet Explorer will download to local
copies both the marked page and, optionally, all of the pages that it links to. In Internet
Explorer version 6, the level of direct and indirect links, the maximum amount of local
disc space allowed to be consumed, and the schedule on which local copies are checked
to see whether they are up-to-date, are configurable for each individual Favourites entry.
[3][4][5][6]
Offline browsing known as "Offline favourites" was removed as a feature in Internet
Explorer 7, which now only supports saving single web pages, but not an entire site.[citation
needed]
[edit] Others
Similarly, offline storage is computer data storage that is not "available for immediate use
on demand by the system without human intervention."[citation needed]
[edit] Generalizations
Online and offline distinctions have been generalized from computing and
telecommunication into the field of human interpersonal relationships. The distinction
between what is considered online and what is considered offline has become a subject of
study in the field of sociology.[7]
The distinction between online and offline is conventionally seen as the distinction
between computer-mediated communication and face-to-face communication (e.g. face
time), respectively. Online is virtuality or cyberspace, and offline is reality (i.e., Real life
or meatspace). Slater states that this distinction is "obviously far too simple".[7] To
support his argument that the distinctions in relationships are more complex than a simple
online/offline dichotomy, he observes that some people draw no distinction between an
on-line relationship, such as indulging in cybersex, and an offline relationship, such as
being pen pals. He also argues that even the telephone can be regarded as an online
experience in some circumstances, and that the blurring of the distinctions between the
uses of various technologies (such as PDA and mobile phone, television and Internet, and

10. telephone and Voice over Internet Protocol) has made it "impossible to use the term on-
line meaningfully in the sense that was employed by the first generation of Internet
research".[7]
Slater asserts that there are legal and regulatory pressures to reduce the distinction
between online and offline, with a "general tendency to assimilate online to offline and
erase the distinction," stressing, however, that this does not mean that online relationships
are being reduced to pre-existing offline relationships. He conjectures that greater legal
status may be assigned to online relationships (pointing out that contractual relationships,
such as business transactions, online are already seen as just as "real" as their offline
counterparts), although he states it to be hard to imagine courts awarding palimony to
people who have had a purely online sexual relationship. He also conjectures that an
online/offline distinction may be seen by people as "rather quaint and not quite
comprehensible" within 10 years.[7]
This distinction between online and offline is sometimes inverted, with online concepts
being used to define and to explain offline activities, rather than (as per the conventions
of the desktop metaphor with its desktops, trash cans, folders, and so forth) the other way
around. Several cartoons appearing in The New Yorker have satirized this. One includes
Saint Peter asking for a username and a password before admitting a man into Heaven.
Another illustrates "the off-line store" where "All items are actual size!", shoppers may
"Take it home as soon as you pay for it!", and "Merchandise may be handled prior to
purchase!".[8] [9]
Mobile banking
From Wikipedia, the free encyclopedia
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It has been suggested that SMS banking be merged into this article or section.
(Discuss)
Mobile banking (also known as M-Banking, mbanking, SMS Banking etc.) is a term
used for performing balance checks, account transactions, payments etc. via a mobile
device such as a mobile phone. Mobile banking today (2007) is most often performed via
SMS or the Mobile Internet but can also use special programs called clients downloaded
to the mobile devic
A mobile banking conceptual model
In one academic model,[1] mobile banking is defined as:
"Mobile Banking refers to provision and availment of banking- and financial services
with the help of mobile telecommunication devices.The scope of offered services may

11. include facilities to conduct bank and stock market transactions, to administer accounts
and to access customised information."
According to this model Mobile Banking can be said to consist of three inter-related
concepts:
• Mobile Accounting
• Mobile Brokerage
• Mobile Financial Information Services
Most services in the categories designated Accounting and Brokerage are transaction-
based. The non-transaction-based services of an informational nature are however
essential for conducting transactions - for instance, balance inquiries might be needed
before committing a money remittance. The accounting and brokerage services are
therefore offered invariably in combination with information services. Information
services, on the other hand, may be offered as an independent module.
Mobile phone banking may also be used to help in business situations
[edit] Trends in mobile banking
The advent of the Internet has enabled new ways to conduct banking business, resulting
in the creation of new institutions, such as online banks, online brokers and wealth
managers. Such institutions still account for a tiny percentage of the industry.[citation needed]
Over the last few years, the mobile and wireless market has been one of the fastest
growing markets in the world and it is still growing at a rapid pace. According to the
GSM Association and Ovum, the number of mobile subscribers exceeded 2 billion in
September 2005, and now[when?] exceeds 2.5 billion (of which more than 2 billion are
GSM).[citation needed]
With mobile technology, banks can offer services to their customers such as doing funds
transfer while travelling, receiving online updates of stock price or even performing stock
trading while being stuck in traffic. Smartphones and 3G connectivity provide some
capabilities that older text message-only phones do not.
This article appears to contain speculation and unjustified claims. Information
must be verifiable and based on reliable published sources. Please remove
speculation from the article.
According to a study by financial consultancy Celent, 35% of online banking households
will be using mobile banking by 2010, up from less than 1% today. Upwards of 70% of
bank center call volume is projected to come from mobile phones. Mobile banking will
eventually allow users to make payments at the physical point of sale. "Mobile
contactless payments” will make up 10% of the contactless market by 2010.[2] Another
study from 2010 by Berg Insight forecasts that the number of mobile banking users in the

12. US will grow from 12 million in 2009 to 98 million in 2015. The same study also predicts
that the European market will grow from 7 million mobile banking users in 2009 to 131
million users in 2015.[3]
Many believe that mobile users have just started to fully utilize the data capabilities in
their mobile phones. In Asian countries like India, China, Bangladesh, Indonesia and
Philippines, where mobile infrastructure is comparatively better than the fixed-line
infrastructure, and in European countries, where mobile phone penetration is very high
(at least 80% of consumers use a mobile phone), mobile banking is likely to appeal even
more.
[edit] Mobile banking business models
A wide spectrum of Mobile/branchless banking models is evolving. However, no matter
what business model, if mobile banking is being used to attract low-income populations
in often rural locations, the business model will depend on banking agents, i.e., retail or
postal outlets that process financial transactions on behalf telcos or banks. The banking
agent is an important part of the mobile banking business model since customer care,
service quality, and cash management will depend on them. Many telcos will work
through their local airtime resellers. However, banks in Colombia, Brazil, Peru, and other
markets use pharmacies, bakeries, etc.
These models differ primarily on the question that who will establish the relationship
(account opening, deposit taking, lending etc.) to the end customer, the Bank or the Non-
Bank/Telecommunication Company (Telco). Another difference lies in the nature of
agency agreement between bank and the Non-Bank. Models of branchless banking can be
classified into three broad categories - Bank Focused, Bank-Led and Nonbank-Led.
[edit] 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.
[edit] 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

13. 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
[edit] 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.
[edit] Mobile Banking Services
Mobile banking can offer services such as the following:
[edit] Account Information
1. Mini-statements and checking of account history
2. Alerts on account activity or passing of set thresholds
3. Monitoring of term deposits
4. Access to loan statements
5. Access to card statements
6. Mutual funds / equity statements
7. Insurance policy management
8. Pension plan management
9. Status on cheque, stop payment on cheque
10. Ordering check books
11. Balance checking in the account
12. Recent transactions
13. Due date of payment (functionality for stop, change and deleting of payments)
14. PIN provision, Change of PIN and reminder over the Internet
15. Blocking of (lost, stolen) cards
[edit] Payments, Deposits, Withdrawals, and Transfers
1. Domestic and international fund transfers
2. Micro-payment handling
3. Mobile recharging
4. Commercial payment processing
5. Bill payment processing
6. Peer to Peer payments
7. Withdrawal at banking agent
8. Deposit at banking agent
Especially for clients in remote locations, it will be important to help them deposit and
withdraw funds at banking agents, i.e., retail and postal outlets that turn cash into
electronic funds and vice versa. The feasibility of such banking agents depends on local
regulation which enables retail outlets to take deposits or not.

14. A specific sequence of SMS messages will enable the system to verify if the client has
sufficient funds in his or her wallet and authorize a deposit or withdrawal transaction at
the agent. When depositing money, the merchant receives cash and the system credits the
client's bank account or mobile wallet. In the same way the client can also withdraw
money at the merchant: through exchanging sms to provide authorization, the merchant
hands the client cash and debits the merchant's account.
[edit] Investments
1. Portfolio management services
2. Real-time stock quotes
3. Personalized alerts and notifications on security prices
4. mobile banking
[edit] Support
1. Status of requests for credit, including mortgage approval, and insurance coverage
2. Check (cheque) book and card requests
3. Exchange of data messages and email, including complaint submission and
tracking
4. ATM Location
[edit] Content Services
1. General information such as weather updates, news
2. Loyalty-related offers
3. Location-based services
Based on a survey conducted by Forrester, mobile banking will be attractive mainly to
the younger, more "tech-savvy" customer segment. A third of mobile phone users say
that they may consider performing some kind of financial transaction through their
mobile phone. But most of the users are interested in performing basic transactions such
as querying for account balance and making bill payment.
[edit] Challenges for a Mobile Banking Solution
Key challenges in developing a sophisticated mobile banking application are :
[edit] Handset operability
There are a large number of different mobile phone devices and it is a big challenge for
banks to offer mobile banking solution on any type of device. Some of these devices
support Java ME and others support SIM Application Toolkit, a WAP browser, or only
SMS.

15. Initial interoperability issues however have been localized, with countries like India using
portals like R-World to enable the limitations of low end java based phones, while focus
on areas such as South Africa have defaulted to the USSD as a basis of communication
achievable with any phone.
The desire for interoperability is largely dependent on the banks themselves, where
installed applications(Java based or native) provide better security, are easier to use and
allow development of more complex capabilities similar to those of internet banking
while SMS can provide the basics but becomes difficult to operate with more complex
transactions.
There is a myth that there is a challenge of interoperability between mobile banking
applications due to perceived lack of common technology standards for mobile banking.
In practice it is too early in the service lifecycle for interoperability to be addressed
within an individual country, as very few countries have more than one mobile banking
service provider. In practice, banking interfaces are well defined and money movements
between banks follow the IS0-8583 standard. As mobile banking matures, money
movements between service providers will naturally adopt the same standards as in the
banking world.
[edit] Security
Security of financial transactions, being executed from some remote location and
transmission of financial information over the air, are the most complicated challenges
that need to be addressed jointly by mobile application developers, wireless network
service providers and the banks' IT departments.
The following aspects need to be addressed to offer a secure infrastructure for financial
transaction over wireless network :
1. Physical part of the hand-held device. If the bank is offering smart-card based
security, the physical security of the device is more important.
2. Security of any thick-client application running on the device. In case the device
is stolen, the hacker should require at least an ID/Password to access the
application.
3. Authentication of the device with service provider before initiating a transaction.
This would ensure that unauthorized devices are not connected to perform
financial transactions.
4. User ID / Password authentication of bank’s customer.
5. Encryption of the data being transmitted over the air.
6. Encryption of the data that will be stored in device for later / off-line analysis by
the customer.
[edit] Scalability & Reliability

16. Another challenge for the CIOs and CTOs of the banks is to scale-up the mobile banking
infrastructure to handle exponential growth of the customer base. With mobile banking,
the customer may be sitting in any part of the world (true anytime, anywhere banking)
and hence banks need to ensure that the systems are up and running in a true 24 x 7
fashion. As customers will find mobile banking more and more useful, their expectations
from the solution will increase. Banks unable to meet the performance and reliability
expectations may lose customer confidence. There are systems such as Mobile
Transaction Platform which allow quick and secure mobile enabling of various banking
services. Recently in India there has been a phenomenal growth in the use of Mobile
Banking applications, with leading banks adopting Mobile Transaction Platform and the
Central Bank publishing guidelines for mobile banking operations.
[edit] Application distribution
Due to the nature of the connectivity between bank and its customers, it would be
impractical to expect customers to regularly visit banks or connect to a web site for
regular upgrade of their mobile banking application. It will be expected that the mobile
application itself check the upgrades and updates and download necessary patches (so
called "Over The Air" updates). However, there could be many issues to implement this
approach such as upgrade / synchronization of other dependent components.
[edit] Personalization
It would be expected from the mobile application to support personalization such as :
1. Preferred Language
2. Date / Time format
3. Amount format
4. Default transactions
5. Standard Beneficiary list
6. Alerts
[edit] Mobile banking in the world
This article may require copy editing for grammar, style, cohesion, tone or
spelling. You can assist by editing it. (December 2009)
Mobile banking has come in handy in many parts of the world with little or no
Infrastructure development, especially in remote and rural areas. This part of the mobile
commerce is also very 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.
Countries like Sudan, Ghana and South Africa received this new commerce very well.
In Latin America countries like Uruguay, Paraguay, Argentina, Brazil, Venezuela,
Colombia, Guatemala and recently Mexico started with a huge success.
In Colombia was released with Redeban.

17. In Iran banks like Parsian, Tejarat, Mellat, Saderat, Sepah, edbi and bankmelli offer this
service. Guatemala have the support of Banco industrial.
Mexico released the mobile commerce with Omnilife, Bancomer and a private
company(MPower Ventures). Kenya's Safaricom (Part of the Vodafone Group) has had
the very popular M-Pesa Service - mainly used to transfer limited amounts of money, but
has been increasingly used to pay utility bills. Zain in 2009 launched their own mobile
money transfer business known as ZAP in Kenya and other African countries
Telephone banking
Telephone banking is a service provided by a financial institution, which allows its
customers to perform transactions over the telephone.
Most telephone banking services use an automated phone answering system with phone
keypad response or voice recognition capability. To guarantee security, the customer
must first authenticate through a numeric or verbal password or through security
questions asked by a live representative (see below). With the obvious exception of cash
withdrawals and deposits, it offers virtually all the features of an automated teller
machine: account balance information and list of latest transactions, electronic bill
payments, funds transfers between a customer's accounts, etc.
Usually, customers can also speak to a live representative located in a call centre or a
branch, although this feature is not always guaranteed to be offered 24/7. In addition to
the self-service transactions listed earlier, telephone banking representatives are usually
trained to do what was traditionally available only at the branch: loan applications,
investment purchases and redemptions, chequebook orders, debit card replacements,
change of address, etc.
Banks which operate mostly or exclusively by telephone are known as phone banks.