Monday 1 February 2016

MOBILE BANKING TECHNOLOGY (A CASE STUDY OF SUSU MICROFINANCE BANK)



ABSTRACT
This research work designed a mobile banking system which was meant to improve the rigors of conventional banking. With this design, customers would be able to transact business via mobile devices. The programming languages used to design this program are visual basic and PHP.


CHAPTER ONE
1.0         INTRODUCTION
Mobile Banking is the provision of basic financial services via mobile devices. Advancement in the information and communication technology has simplified various and smacking operations and has made it most attractive and colorful, creating the needed trust in mind of prospective bank customers who tody find it safe to use the bank.
The last time the technology had a major impact in helping banks service their customer was with the introduction of the internet banking. Internet banking helped to give the customer anytime access to their bank details. Customers could check their account details, get bank statements, perform transactions like money transfer to other accounts and pay their bills while sitting in their convenience.
However, the biggest limitation of internet banking is the requirement of a PC with an internet connection. Mobile banking (M-Banking) addresses this fundamental limitation of internet banking as it reduces the customer’s requirement to only a mobile device (Mobile phone).
Susu savings and loans LTD, is a Micro-finance Bank involved with:
(1)Retail Banking
(2)Credit and Mortgage services etc.
With a branch network of five and customer base of over five thousand (individual/cooperate organization) of which 99% uses Mobile Phones. And wishes to respond to service requests such as:
(1)Account Balance Engaging
(2)Account statement Engaging
(3)Transaction History request
(4)Loan Statements
(5)Cheque book request etc. 
In a most convenient and cost effective manner, the above stated services can be delivered using mobile technology such as:
(a)I.V.R- Interactive voice response                                                                                                              (b)WAP- Wireless Access Protocol                                                                                                                       (c )Stand-alone mobile application clients
This work will look into details; ways these mobile technologies can be used effectively to enhance the operations of the Micro-finance Banks.

1.1         STATEMENT OF PROBLEM
As a  micro-finance bank, the case study deals directly with small and medium scale business (SMB), And individuals that require both efficient and courteous services of which the bank is willing to offer, but is faced with the under listed challenges currently, the bank spends extra money to:
a.Purchase customized and print serenity papers used in the issuance of bank statements and customer service requests.
b.Postage of bank details inducing notice of new offerings to her customers.
c.Calls to customers who opted to receive information such as notification of salary payment or when transaction has taken place.
In order to save cost, the bank is looking for solutions that will aid their customers to access their bank details at any time on their devices, avoiding the need to go to the bank or having to wait for their bank statement to see a list of their bank transactions and thus being able to act instantly, and at a much reduced rate. Allowing both sides (customer on the request side, and bank on the response side) to share the cost of each request and response, thereby maximizing profit.


1.2         OBJECTIVE OF STUDY
The aim/objective of the study is to provide a solution to meet the challenges experienced and to document the following activities of the system;
a. Balance Enquiry Details
b. Recent transactions, notification; as normal text messages.
c. To document the customers latest details about their bank accounts, or services in offerings. And commit transactions such as:
i. Fund Transfer
ii. E-payment, etc.
And finally to stop certain transactions they do not give consent to, or do regret to continue without visiting the bank.
1.3         SIGNIFICANCE OF STUDY
The major significance of this work is that it will equip the bank with the tools to face its customers request processing/handling issues.
Secondly, it will provide the customers with the basic tool that will help them perform certain bank related transactions at their convenience.
Finally, it will provide a stepping stone for the future researchers in the field of mobile banking system.
1.4         SCOPE AND LIMITATION OF THE STUDY
This work shall be restricted to the retail banking operations
a. Deposit / Savings Account Service unit
b. Loan/Credit service unit
c. Customer service unit
The request service processing and delivery platform shall be based on SMS channel of mobile system technology.
The other limitations/challenges encountered during the course of this research include:
a. Lack of cooperation with some of the staff of the bank for security reasons.
b. Time: the researcher was involved in full time academic program and had a limit time for his research.
c. Finance and other resources: this work required a lot of financial resource, some of which were not affordable, meanwhile referencing material usedin this work were downloaded from the internet since there are no adequate materials available for case in the school library.
1.5         BACKGROUND OF THE CASE STUDY
The case study of this research “Susu Microfinance Bank” was incorporated on the 29th of June, 2006 as a private sector Microfinance bank, after it received an approval in principle from CBN on 31st may 2006. Susu received its final operating license in December 2006, making it one of the first eight microfinance banks to be licensed in Nigeria at that time and has been operating since January 2007. Susu is a specialized bank licensed by the central bank of Nigeria (CBN) under the supervision of CBN. Defined by size, the bank will serve Micro, Small and Medium enterprises, entrepreneur’s employees and the self- employed. The bank is adequately capitalized.
1.6         DEFINITION OF TERMS
Short messaging service (SMS): a service offered by mobile network operators and users with mobile phones (GSM, CDMA, TDMA, etc.)
Interactive voice response (I.V.R): this is a stored message on a particular number line of which a user can call and listen, it also provides option memo the user can use to make request or access information.
Wireless Access Protocol (WAP): a mobile technology one can use to browse the internet using a mobile device such as a mobile phone. Bank: An institution that provides financial services such as cash deposit, savings and funds transfer etc.
Mobile: Ability to use on the go.
Service Oriented Application Protocol:  this is a mobile application provided by mobile network operators which enables users of the network to gain access to bank details via the se of mobile devices (phones).
Bank Cheque: A statutory mode of settlement used in the payment of bills. It is also called a promissory note. It is issued in place of cash.
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