In India, traditional banking through branches remains the most common method of conducting financial transactions; nevertheless, the use of information and communications technology (ICT) is causing significant changes in commercial banks. To meet the needs of its customers, the banking sector in India has developed a number of financial restructurings that would cause a transition from all conventional banking methods to digitalized banking services. A number of commercial banks have incorporated mobile banking through the use of ICT technology, allowing their customers to access dynamic retail banking transactions at any time and from any location in addition to basic service information. The delivery and utilization of banking and financial services using mobile telecommunications equipment is referred to as "Mobile Banking". The range of services supplied may include tools for managing accounts, conducting money transfers, and accessing personal data.
Meaning of Mobile Banking and Mobile Banking Services:
The Federal Reserve survey defines mobile banking as “using a mobile phone to access your bank account, credit card account, or other financial account. Mobile banking can be done either by accessing your bank’s web page through the web browser on your mobile phone, via text messaging, or by using an application downloaded to your mobile phone.”
According to TRAI, mobile banking involves the use of mobile phones for banking transactions like fund transfer, balance check, etc. As per the extant guidelines of RBI, banks that are licensed, supervised and have a physical presence in India, are permitted to offer mobile banking services. Mobile Banking policies in India aim to enable funds transfer from an account in any bank to any other account in the same or any other bank (interoperability) on a real time basis irrespective of the mobile network the customer has subscribed to (TRAI, 2013). The Mobile phone plays a very important role in the development of mobile commerce and mobile banking.
People always carry a mobile phone, and services that go beyond voice and text messaging are becoming increasingly popular worldwide. The primary advantage of mobile banking over internet banking is that it allows customers to access their banks from anywhere by enabling "Anywhere Banking," which eliminates the requirement for a computer terminal. Now, they may do so while on the go—when traveling, waiting for their orders to be processed at a restaurant, or while they're waiting for their bus to get to work.
Mobile banking are supported by these services
a) Account balance inquiry
b) Cheque status inquiry
c) Account statement inquiry
d) Fund transfer between Accounts
e) Cheque book requests
f) Credit/debit alerts
g) Minimum balance alerts
h) Bill payment alerts
i) Recent transaction literacy
j) Bill payment
Mobile banking's array of services has demonstrated a path to the top of the banking industry's pyramid in the era of globalization and digitization. This medium has become a platform for providing customers with banking services due to its rapid user growth and increased network penetration. Customers are gravitating toward mobile banking in increasing numbers because they are pleased with the steps banks have made to secure these transactions. Carrying cash is no longer a concern with mobile banking. Numerous individuals can utilize and carry mobile phones everywhere.
Mobile Banking & State Bank of India
State bank of India is an Indian Multinational Public sector bank and financial services statutory body. SBI is the 49th largest bank in the world by total assets and ranked 221st in the Fortune Global 500 List of the world’s biggest corporations of 2020, being the only Indian bank in the list. It is also the fifth largest employer in India with nearly 250,000 employees. SBI became the third lender (after HDFC Bank and ICICI Bank) and seventh Indian company to cross the Rs5 trillion market capitalization on the Indian stock exchanges for the first time.
SBI is taking a leading role in the field of mobile banking in India. In this case, SBI is the only bank which spreads the financial literacy norms through mobile even in rural areas also, since it strengthens the Indian economy having largest number of branches all over India. State Bank of India offers mobile banking to its users via State Bank Anywhere (earlier it was SBI Freedom), which enables its customers to enjoy anytime, anywhere banking. The Mobile Banking Service provided by SBI can be used either via an Application/WAP (Wireless Application Protocol), SMS, or via USSD (Unstructured Supplementary Service Data). Apart from the traditional mobile banking services SBI provides mobile banking through various mobile apps because SBI has the largest bouquet of apps amongst any Indian Bank. The app contains SBI Quick, Samadhan, mCash, OTP Secure, No Queue, State Bank Buddy, SBI YONO Lite etc. it has its own SBI Appkart App for all the apps.
Mobile Banking Services provided by State Bank of India:
- Mobile Banking Service over Application/ Wireless Application Protocol (WAP)
- Mobile Banking Service over SMS
- Mobile Banking Service over USSD (Unstructured Supplementary Service Data)
SBI Bank’s Mobile Banking department is the largest alternate channel in volumes. It handles various critical customer-facing mobile applications/Services like UPI, Yono Lite SBI, Yono Business, SBI Quick, and SBI Secure OTP. The above apps enjoy an excellent reputation among customers and are known for their ease of use and outstanding user experience. Yono Lite has a total user base of 1.92 crore as of 31.03.2022. SBI Quick has a total user base of 2.99 crore as of Mar 22. Following developments have been done in SBI Quick mobile banking app.Thus, mobile banking is a cost effective method and banks offer such services at lesser cost so that all customers get access to it.
Review of Literature:
- Rejikumar G, Sudharani Ravindran D (2012) the purpose of the paper to investigate the factors influencing the decisions of early adopters of mobile banking services. The study demonstrated that customers are satisfied with the quality framework of the services after selecting new technology. Amit P.Wadhe, ShamraoGhodke (2013), this paper aims to investigate Pune city residents' perceptions and levels of consumer awareness regarding mobile banking. The researcher investigates the elements that contribute to significant consumers using mobile banking. Factor analysis, chi-square testing, and cross-tabulation were performed using SPSS software. Out of the 21 original elements, including the utility of mobile banking, its simplicity of use, consumer knowledge of mobile banking, and trust in banks, seven factors were retrieved as a result of factor analysis. Simplice A.Asongu , Nicholas M Odhiambo (2017) A study that enquire into the relationship between mobile banking & inclusive development that includes quality of growth , in equality and poverty. The conclusion that can be drawn out is that mobile banking application will play a supreme role in responding to the problems of deficient growth, inequality & poverty of the developing countries. Sharma, S.K. and Sharma, M.,(2019),this study was conducted to understand users’ actual usage of m-banking .The research model was tested and validated using data collected by survey from 227 Omani residents. This study employed a two-staged analytical approach by combining structural equation modeling and neural network analysis. On the basis of research, they concluded that service quality and trust are the key determinants influencing satisfaction and intention to use and in turn influence the actual usage of the mobile banking. Sonia Bhatt (2020), the study indicates that Indian customers are willing to embrace mobile banking to a greater extent if it appears to be more dependable and trustworthy. Customers wouldn't be entirely motivated to use these solutions if there wasn't a reasonable degree of confidence. Several research works have elucidated the importance of trust, which in turn raises users' motivation to use these new technologies. Geebren Ahmed, Jabbar Abdul and Luo Ming (2021) in their paper examines the role of customer satisfaction in mobile banking services, specifically in a developing country. They used structural equation modeling with partial least squares (PLS-SEM) to analyze the data of 659 responses It investigates the impact of trust on customer satisfaction and finds that trust mediates the relationships between service quality, structural assurance, system quality, information quality, and task characteristics. Chindengwike, J., (2022) examines the contribution of mobile banking informational service on customer satisfaction in Tanzanian commercial banks. It concludes that mobile banking enhances customer satisfaction and recommends efforts to enhance mobile banking technology. Huseynli Nigar and Huseynli Bahman (2023) in their paper examine the relationship between customer experience and satisfaction, usage intention and brand loyalty in the context of mobile banking. The findings demonstrate that mobile banking usage intention and customer satisfaction affect loyalty to the bank brand, and customer satisfaction influences mobile banking usage intention.
Objectives of the Study:
- To determine the customer preference towards mobile banking services of SBI
- To examine the satisfaction level of customers towards Mobile Banking services of SBI