CONTENTS

1. INTRODUCTION PAGE 4- 6 2. RESEARCH METHODOLOGY PAGE -7 3. RESEARCH DESIGN PAGE -7 4. LITERATURE REVIEW PAGE -8-9 5. DATA ANALYSIS PAGE-10- 13 6. DISCUSSIONS & RECOMMENDATIONS PAGE-13-14 7. CONCLUSIONS PAGE-15 8. REFERENCES PAGE-16-17

INTRODUCTION :

Themobilebanking isdefinedas“theprovisionofbanking servicestocustomersontheir mobile devices”: specificallytheoperation ofbank currentand deposit or savings accounts.

According torecentresearchfindingsandforecastsinbusiness,mediaandacademia,mobile phonesandhandhelddevicesshouldhavebeenfirmly establishedasanalternativeformof paymentinmosttechnologicallyadvancedsocieties[16].Despiteongoingefforts by key playerssuchas banks, mobilenetworkoperatorsandmobilepayment serviceproviders (MPSP)inpromoting andoffering mobilepaymentoptions,absenceofwidespreadcustomer acceptanceofthisinnovationhaveresultedinalag intheadoptionofmobilepaymentsasan alternativeformofpaymentmechanism[17].Whileeachoftheseplayers approachthe marketwithdifferentexpectations,severalstudieshave shownthatmerchant/consumer adoptioniskey tothesuccessofmobilepayments[16,17].„Mobilepaymentsaredefined as theuseofamobile devicetoconductapaymenttransactionin whichmoney orfundsare transferredfromapayertoareceiverviaanintermediaryordirectly withoutanintermediary‟ [18].Duetotheall-encompassing natureofthisdefinition,itshould bemadeclearthata distinctionexists betweenmobilepaymentsandmobilebanking.Thelatterreferstomobile paymenttransactionsthatare exclusivetotheir respectivecustomerswhilsttheformerisa modeofpaymentthatiswidely availabletoallpartiesinaretailenvironment[18].Mobile paymentshavebeensuggestedasa solutiontofacilitatemicropaymentsinelectronic and mobile commerce transactions and to encourage reduced use of cash at point-of-sales terminals[18,19].If effortsinpromoting theuseofmobilepaymentssucceed,itwillboost bothecommerceandm-commerceadoptionandmay bethekillerservicein2.5G,3G 4Gand beyond[17].Theearlydevelopmentofmobilepaymentwaslargely triggeredby thehigh penetrationrateofmobilephonesandhandhelddevicesinmostmarkets.Mobilephones todayclearlyoutnumbereveryother mobiledevice.In , theGartner Grouppredicted that by 2008therewillbe moremobilephonesworldwidethantelevisions,fixedlinephonesand personalcomputers(Gartner,2004).Juniper Researchprovidessixyearforecasts for mobile banking,acrosseightregionsof the world:North America, SouthAmerica, WesternEurope, EasternEurope,Far East&China,IndianSubContinent,Restof AsiaPacific andAfrica& MiddleEast.Forecastsinclude subscriber take up,traffic,transactionsizesandvalues.In comparison tomobile banking informationservices,transactionalmobilebankingwillhave lower levels of usage adoption bymobile phoneusers.

Banking today is a flourishing industry, focused on technological innovation. Internet banking has emerged as the biggest focus area in the “Digital Transformation” agenda of banks.
In 2012-13, Indian banks deployed technology-intensive solutions to increase revenue, enhance customer experience, optimize cost structure and manage enterprise risk. However, there is a wide variation in the technology agendas and implementation capability across different players of the banking industry:

Internet banking:
The shift towards internet banking is fuelled by the changing dynamics in India. By 2020 the average age of India will be 29 years and this young consumer base is internet savvy and wants real time online information. Indian banks therefore need to aspire high and move toward implementing a world class internet banking capability
Business intelligence
India’s banking industry is on the cusp of a major transformation, with new banking licenses expected to bring in more players in an already competitive environment. In such an environment, banks across India are increasingly adopting business intelligence (BI) and analytics to drive their overall profitability
BI has also encouraged banks to adopt BI to increase transparency and control over the banking business. The Automated Data Flow (ADF) initiative has been a strategic step in this direction, seeking to ensure submission of correct and consistent data from banks’ systems to the RBI without any manual intervention.
Mobile banking
Mobile banking continues to be a focus area for all banks in India. Our survey indicates that they are not only looking at this channel as a way to increase their customer engagement in urban areas, but also to reach out to new ones in rural regions, and thereby significantly further their financial inclusion agenda.

Financial inclusion
The spread of digital connectivity and mobile phones have created attractive opportunities in the Indian financial inclusion landscape. In particular, technology promises to enable hundreds of millions of people to access financial services for the first time due to its wide reach, convenience and low cost of delivery.
India is experimenting with several new ideas in financial inclusion in almost all areas requiring immediate focus — banking and payment channels, technology platforms, regulatory. Significant progress is required in financial inclusion, as indicated clearly by the World Bank Findex Survey 2012

FIGURE 1: MOBILE BANKING: TRANSACTIONAL USERS – 2015 REGIONAL FORECAST (%)

MOBILE BANKING ADOPTION IN INDIA

In India, the situation of the banks is quite different from the banks overseas particularly in developed markets. Indian banks are not facing huge write downs or losses and are still quite well capitalized. Globally, the IT spends of financial institutions are expected to go up drastically in 2014-15 In India, however, this could be an opportune moment for banks to focus on the internal processes and consolidate their IT platforms across functionalities to use technology as an effective strategic tool. The use of technology in India has undergone rapid transformation. The last two decades have witnessed a sea change in the nature of services offered by not only banks but also the financial sector and even the Government - all of which have had a positive impact on the customers of these organizations and the general public at large.

Financial Services are generally complex and need a lot of trust for the consumer to use technology. Banks have changed from paper-based banking solutions provider to the latest of the technologies like online-banking, mobile-banking, etc. It is surprising to know as to why most of the Indian customers have not welcomed this up gradation. Customers across the world, even technologically optimists, have refrained from using technology aided solutions. There are many reasons why technology has not been able to ride the acceptance wave and cross the hurdle and become an acceptable feature in banking. As today‟s banking has

Presently Scenario Has been changed Digital India New Gov. More Focus on digital the thing.

RBI also working on that , he is issue new Banking guideline also.

withtheservicesbeingprovided.Unfortunately,theacceptance andadoptionratesare very loweveninthecaseofeducatedcustomers. Thepaper looksatvarious factorswhichexplain whyconsumersarenotusingmobilebankingandothertechnologiesinbanking.Itwould alsotry tosuggestwhy peoplearenotcurrently usingmobilebankingandtrytosuggesthow to overcome this problem and increasethe acceptancelevels.

2. RESEARCHMETHODOLOGY

Forthepresentresearch,thepaperisbasedonExploratoryResearch.Themajoremphasisof ExploratoryResearch is on thediscoveryofideas. Through Exploration, theresearcher develops concepts more clearly, establish priorities, develop operational definitions, and improvethefinalresearch design.Thisresearchisbothquantitativeandqualitative.This researchisbasedonthedatacollectedthrough“Questionnaire”withMobilebankingUser and Non-user.

3. RESEARCH DESIGN | Thedatahavebeengroupedintotwomaincategories-primaryandsecondarydata.The | Secondarydatahavebeencompiledfromnewspaper,journals,magazines,andweblinksand | alsoresearchpapers.Theprimary datahavebeencollectedthroughanexploratory research– | Questionnairewithuserandnon-userofmobilebankingbasicallyBusinessmen,servicemen, | professionals, students etc. | 4. LITERATURE REVIEW | | Adoptionoftele-banking[1]aswellasInternetbanking [2]hasreceivedresearchattentionin | | Muchoftheexistingresearchinelectronicbankingserviceshasadoptedan | | Organizationalperspective[3]oradistributionchannelperspective[4].Consumersusing | | theseserviceshavebeenfocusinalargebodyofcurrentresearch,neverthelesscustomer | | Behaviorinmobilebanking contexthave remainedratherunchartedterritory.Thispaperaims | | atfillingthatgapbysheddinglightonthegeneralusageofmobileservicesandinparticular | | oninfluenceofdemographiccharacteristicsonusage.Thesurveywasconductedamong | | Ghaziabadbankcustomers.Theparadigmshift,fromtraditionalbranchbankingtoelectronic | | banking;thenewlyemergedchannels;rapidlyincreasingpenetrationratesofmobilephones | | are among other the motivators of this study. The approach employed is practical and | | provides insights drawn from the quantitative empirical survey. | | | | | | Thus, concepts of innovation and diffusion of innovation are even more intricate as | | technology and service aspects have an effect on the characteristics of mobile banking | | services[5].Traditionallyresearchrelatingtothecustomeradoptionofinnovationhastended | | toconcentrateonsocio-demographicandpsychographicattributesofpotentialadopters.Even | | thoughthesekindofpersonalcharacteristicsofaconsumerhavefoundtobepredictorsof | | adoption [1], an increasing body of research has demonstrated that it is the perceived | | attributesofinnovationitselfratherthanthepersonalcharacteristicsthatarethestronger | | predictorsoftheadoptiondecision[6].innovation,andwhereresearchhasfocusedontheconsumerperspective,Rogers'diffusion | | Withinfinancial services innovation research [7], [9,10], have applied Rogers'model toInternet banking. | | | | AccordingtoRogers[11]theperceivedinnovationcharacteristicsaresupposedto | | providetheframeworkhowpotentialadoptersperceiveaninnovation.Researchthathas | | investigatedtheproductcharacteristicsofinnovationhasgenerallyendorsedevaluatingthe | | innovationalongtheproductcharacteristicsthatinvolvefiveconstructs;relativeadvantage, | | compatibility,complexity,trialabilityandobservability[12].Conceptofperceivedriskis | | often included as augmented by Bauer [13]. Particularly in banking services the | | perceivedriskassociatedwiththefinancialproductitselfaswellaswithelectronicdelivery | | channelishigherthaninbasicconsumergoods,andhenceincreasingtheimportanceofthis | | attribute of innovation[14]. Ensuring security and confidentiality are the fundamental | | prerequisitesbeforeanybankingactivityinvolvingsensitiveinformationcantakeplace[15]. | |

Relativeadvantage,compatibility,trialabilityandobservabilityarepositively relatedto adoptionofaninnovationandtheremainingtwo,complexity andperceivedrisk,negatively related[11].Theseinnovationattributesandtheirinfluence onadoptionofmobilebanking services aredetailed under empirical implications.

5. DATA ANALYSIS
Datahasbeencollectedfromvarioussources;thereisacombinationofbothprimary and secondarydata that has been used in this research

A)PRIMARY DA
Thedatafortheresearchisextractedfromasurvey conductedinGurgaoninHaryana.,India.A totalof125 respondentsparticipatedinthe researchofMobilebanking.The demographic profileofrespondentsineachresearchisshowninTableandchart.Thedatacollected through this method wasadequateenough to makeprojections in the research

Characteristics | Frequency | %tage | GenderMaleFemale | 7550 | 7550 | Age50 | 1682155 | 168215 5 |
B) SECONDARYDATA

•Articleshavebeensourcedfrommagazinesandjournalsdealing withcurrentissuesin mobilebankingadoption.Internet&TextbooksrelatedtoMobileBanking&Research Methodologyhavebeenamajorsecondarysourceforthe extraction oftheexpert‟sopinion

FACTORS THAT AFFECT MOBILE BANKINGADOPTION

In order to identifythe top and least five perceiveditems in affectingthe adoption intention ofMobile banking, thepercentagescoreof the respondents was computed? Table provides the result.

TABLE 2 : MOST AND LEASTPERCEIVED FACTORS IN MOBILE BANKING ADOPTION

Items | PercentageofUsingMobileBankingPopulation(%) | 1.IwoulduseMobilebankingifIcoulduseitonatrial basisfirst to seewhat it can offer | 81 | 2.IwoulduseMobile banking ifIcouldseeatrialdemo first? | 76 | 3. I would use Mobile banking if I could testMobile bankingfirst? | 75 | 4.IwoulduseorbemorelikelytouseMobilebankingifMobilebankingwascompatiblewith mylifestyle? | 45 |

5.IwoulduseorbemorelikelytouseMobilebankingifusingmyMobiletoconductbanking transactions fits into myworkingstyle? | 35 | 6.Mobilebankingisariskymodeofbankingtouse? | 54 | 7.Mobilebankingwouldallowmetomanagemyfinances more efficiently? | 44 | 8. Mobile bankingwouldbe complexto use? | 60 | 9.IwoulduseMobilebankingifMobilebankingincreased my status? | 71 | 10.Mobilebankingwouldrequirealotofmentaleffort? | 63 | 11. Mobile banking Through Mobile apps | 65 | 12. RBI Issued Payment Bank License | 70 | 13. Digital India support to Mobile banking | 80 |

13. New Bank account Opening through Mobile | 80 | 14. Government New Policy of adopt new technology | 80 | 15. Technology adoption | 70 |

ThefindingsintableindicatethatadoptionofMobileBanking appearstobeinfluencedbyits trialibility andcompatibility.Regardingtheleastperceiveditemsthataffectmobilebanking adoption,these seemtobe relatedtocomplexity,relativeadvantageandperceivedriskof Mobile Bankingareperceived as factors least affectingits adoption

TABLE 3 SHOWSTHE INTENTION TO ADOPT THEMOBILE BANKINGAND THEFACTORSTO ADOPT THAT AFFECTSUCH INTENTION

Compactibility | 46% | Trial Ability | 59% | Risk | 64% | Complexity | 49% | Adoption Intent | 40% |

FACTOR 1: ACCESS PROBLEMS It is the most important factor, Accessing Problem statements such as `Possibility of error is higher than Internet Banking , Using key code list with mobile phone is complicated and Mobile phone is an unpractical device for banking emerge with good positive correlations. The great influence on the adopters not to have mobile banking services.
FACTOR 2: DISSATISFACTION Four variables load on to this factor. `Dissatisfaction' is the second significant factor, which accounts of the variations. The statements `Data transmission is very slow , Mobile banking services are risky and not secure, Mobile banking services are not enough versatile and Its use has been a disappointment by others signify that the non-adopters have seen the dissatisfaction among the users of mobile banking services.
FACTOR 3: INABILITY TO PROVIDE KNOWLEDGE This is another crucial factor, which is reflection of variations. The statements of insufficient guidance is there for using mobile banking and its use is complicated which reflects that consumer behavior tends to be based on how a given problem is to be solved. In this research, the non-adopters of mobile banking are afraid of being the usage of new technology due to the complications in the systems and, moreover, no proper guidance is provided to them.

DISCUSSIONS AND RECOMMENDATIONS

The banks providing mobile banking services to their customers, wishing to increase their customer share by removing all the above-discussed hurdles in the way of adoption of mobile banking services, may find relevant information from the findings. The factors appear to be defined by a mix of items that are reflections of problems in supplier side of the services and functionality of a mobile phone as delivery medium for banking services from the customer side. As the Internet banking is still in its growing stage, mobile banking has emerged as the next advance way of doing banking. Since the pace of technology advancement is not matching with the adoption rate, problems will arise if this widened gap is not going to be filled up with suitable measures. This negative effect of accelerating pace of development is manifested in services that are launched at an early stage of development process due to competitiveness and cost pressures.
As a consequence, competence of service quality, does not reach an adequate level; consumers feel that service-providers are not responding to their needs. An example of that is the support for the item services are not enough versatile. In addition, emphasizing technology in service offering may result in ignoring certain fundamental prerequisites required for acceptance. Technology is an enabler a way to build up a new delivery channel, but communicating only technological features other elements of services such as service content. Technology-based electronic delivery medium does not constitute service offering and creates value alone, but service content has to function properly and the way of usage has to be known. Another main impediment seems to be functionality of a mobile phone as delivery medium for banking services. Mobile phone, obviously is not designed for this type of services: For instance, key board is relatively small, which makes it more prone for correcting errors in keeping the figures. Results indicate that consumers get disheartened by the complicated functions while accessing the mobile banking services which lead them to the dissatisfaction level as no proper guidance is to be provided to them. The fact is that the factor risk and security are the most considerable significant factors for banking service adoption, and particularly in relation to `new' electronic environment. The result of perceived risk on the adoption of mobile banking services appears to indicate that consumers are serious about the risk of conducting banking via a wireless channel, measured in terms of overall security and trustworthiness of the services offered. On the basis of the findings, it is suggested that service providers be aware of the problems of their customer base using mobile services. This kind of data has its value when designing new services and products or implementing market communications. In addition, information gained from experience with Internet banking and other modes of electronic banking cannot be straightforward implemented to mobile banking service customers. Given the increased competition and pressures to cut expenses, financial institutions have to be able to make informed decisions on resource allocation. Thus, research of this kind is of critical importance.

CONCLUSIONS

It is well recognized that mobile phones have immense potential of conducting financial transactions thus leading the financial growth with lot of convenience and much reduced cost. For inclusive growth, the benefits of mobile banking should reach to the common man at the remotest locations in the country. For this all stakeholders like Regulators, Govt, telecom service providers and mobile device manufactures need to make efforts so that penetration of mobile banking reaches from high-end to low-end users and from metros to the middle towns and rural areas. Inclusion of non-banking population in financial main stream will benefit all. There is also need to generate awareness about the mobile banking so that more and more people use it for their benefit.

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