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1.1 Introduction of the Report: Now we are living in the age of competition at anything in any places. From that tendency recently Education is also in the age of competition. So the procedures and standards of teaching are upgraded by different universities and institutions in our country. In respect to that, internship is mandatory for our BBA program offered by Northern University Bangladesh. This program is a partial fulfillment of our BBA curriculum. To do so I decided to complete my internship in Dutch-Bangla Bank Ltd. The financial system is a framework or system through which financial surpluses in the economy are mobilized from surplus economic units. There are three economic units involved in the process. * Financial Institutions * Business Concerns * Individuals 1.2 Background of the Study: We Know Bangladesh Bank play an important role of our country. The banking system of Bangladesh is composed variety of banks working as National Commercial Banks, Foreign bank, Specialize banks and Development Banks. However there are many Banks in Bangladesh at Present. Under internship program each student has to prepared a report on a particular topic relates with the organization. According to this requirement, I have already completed my Internship at DBBL Mirpur Branch. On the basis of my practical experience as well as Theoretical knowledge, I have completed the report regarding, Mobile Banking (Banking In Your Hand)-A Study on Dutch-Bangla Bank Limited. The main Focus of my study is to analysis about Mobile Banking which is new banking system in Bangladesh and its advantages and challenges. 1.3 Significance of the

The internship report is an important partial requirement of four years BBA program. This is because knowledge and learning becomes perfect when it is associated with theory and practices. By this internship program student can establishes contracts and networking. Contracts may help

to get a job in practical life. That is, student can train and prepare themselves job market. A poor country like Bangladesh has an overwhelming number of unemployed educated post graduates. It is obvious that the significance of internship is clearly justified as the crucial requirement of four year BBA program. 1.4 Scope of the Report The Report mainly focuses on the following areas: General Banking as well as Mobile Banking and Internet Banking extended by Dutch-Bangla Bank Limited. What kinds of standard documents are required for different types of account opening like Mobile account, saving account, Current Account, STD, Excel, Power, Power Plus.. How different kinds of projects are appraised and financed at Dutch-Bangla Bank Limited. The Present scenario and prospective of Dutch-Bangla Bank Ltd 1.5 Objectives of Study: 1.5.1: Broad Objective: The prime objective of the report is to describe the “Mobile Banking (Banking in your Hand)�activities & process of The Dutch-Bangla Bank Ltd. 1.5.2: Specific Objectives: To find out the functions of DBBL Banks Mobile banking units. To know the techniques those are used in mobile banking sector. To know about the customer performance in Mobile banking units of DBBL Bank Ltd. To examine the efficiency of mobile banking of DBBL. To make some findings and possible recommendation for successful mobile banking system. 1.6 Methodology: Activities to Methods followed to perform a job or conducting activities to complete a task is called methodology. In conducting the study the following methodology was adopted in collecting data & information, preparation of report etc. The methodology of report is given below: Interviewing concern bank personnel does this study. Report is developed based on the information provided by bank staffs mobile banking sector. Mostly secondary data is used in conducting the report. 1.6.1. Type of Research:

This is a descriptive research, which briefly discussed about “Mobile Banking (Banking your Hand)�-A study on Dutch-Bangla Bank Ltd. 1.6.2. Sources of data: To complete this report all the necessary information is collected from both the following sources. Primary sources & Secondary sources. Primary sources of data collection: Primary data are root level data and are collected without correction. These data were collected by Face to face conversation with customer as well as employee Secondary sources of data collection:

Annual reports and PDF of Mobile Banking of Dutch-Bangla Bank Limited, Instruction circular & unpublished data from Head Office, Brochures of different Banks, News Paper & Magazine regarding Mobile Banking issues, Seminar papers and so on. 1.6.3. Sampling Plan: Population: The target population of the study is all the existing customers of DutchBangla Bank Limited (Mirpur branch) Sampling frame: No structured sample frame was given by the organization. 1. 6.3.3 Sampling procedures: Non probability convenience sampling method was used. Sample Size: The sample size of the study is 100 customers of Dutch-Bangla Bank Limited Mirpur branch. Time period of data collection: Time period of data collection is December 10, 2012 to March 10, 2013. Data analysis & reporting: Quantitative analysis have been used to collect the data & to analyzed the gathered data & different types of computer software are used for reporting the gathered information from the analysis, such as Microsoft Word, Microsoft Excel, Microsoft Power Point etc. 1.7 Limitations of the Study:

The major limitations of this study are: Sufficient records, publications were not available as per my requirement. Lack of understanding of the respondents might be major problem that might create confusions regarding verification of conceptual question. Since the report has to be made at the same time with other office works. Due to the time limitation many aspects not are discussed in the present study. Confidentiality of data might another big barrier, faced during the conduct of this study. Up to date data are not available. Lack of opportunity to visit more than one branch as well as Mobile Banking Agent. Customers are not free to interview long time. The findings of the survey would be based on interviewees and it might differ from person to person. Chapter-02

NAME OF THE ORGANIZATION: DUTCH-BANGLA BANK LIMITED (DBBL) HEAD OFFICE: Location of Head Office: Sena Kalyan Bhaban(4th floor) 195, Motijheel C/A, Dhaka-l000 Web: www. 2.1 DBBL in Bangladesh: Banking system occupies an important place in a nation’s economy. Banking institution is indispensable in a modern society and it plays a vital role in the economic development of a country. Against the background of the Liberation of economic policies in Bangladesh. DutchBangla Bank Ltd. Emerged as a new commercial bank to provide efficient banking services with a view to improving the socio-economic development of the country. The Bank provides a broad range of financial services to its customers and corporate clients. The Board of Directors consists of eminent personalities from the realm of commerce and industry of the country. 2.2 Historical Background: Dutch-Bangla Bank Limited is a second generation bank that was established in 1995 with a dream and a vision to become a pioneer banking institution of the country and contributes significantly to the national economy and society also. The banks journey began when it was incorporated as public limited company on July 04, 1995. The registrar of Joint Stock Companies

and firms issued the Certificate of Commencement of business of the bank on the same date. The banks first branch was inaugurated at the busiest commercial hub of the country at 1, Dilkusha Commercial Area, Dhaka on June 03, 1996. In its arduous journey since, Dutch-Bangla Bank Limited has succeeded in realizing the dreams of those who established it. Today is one of the leading banks in the private sector, contributing significantly to the national economy and society also. The authorized capital of the Bank is today Tk. 4000.00 million. Its Paid-Up-Capital Tk. 2000.00 million and Reserve reached to Tk. 2524.72 million as on September31, 2010. The Dutch-Bangla Bank Limited was established by the leading business personalities and eminent industrialists of the country and abroad with stakes in various segments of the national economy. They established the Bank with a vision to bring efficient and professional banking service to the people and the business community of Bangladesh to help the national economy to grow. The incumbent chairman of the bank is Mr. Abedur Rashid Khan. The Bank’s operations are built upon unequivocal emphasis on effective corporate governance. The objective here is to create, promote and build long-term company value. The Banks first and highest priority is to provide effective services and maximum satisfaction to the customer. The ethos of harmony and co-operation is widely practiced in the bank. It believes that transparency in decision-making, monitoring mechanism and full disclosure to shareholders and regulatory authorities are essential aspects of bank’s corporate governance and that they create an intense pressure to rationalize bank’s services and search for new competitive advantages. It works ceaselessly within these parameters. A team of efficient professionals manages the bank. They create and generate an environment of trust and discipline that affects everybody in the bank to work together for achieving the objectives of the bank. A commitment to quality and excellence in service is the hallmark of their identity. Now, the Dutch-Bangla Bank Limited has become a synonym of quality banking products and services. It has an array of such products services tailored carefully to cater to the needs of all segments of customer. It has been achieved much of its goals but it has been performing its activities to satisfy the country people as it did before well. 2.3. Vision of DBBL Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and athletics, music and entertainment, science and education, health and hygiene, clean and pollution free environment and above all a society based on morality and ethics make all our lives worth living. DBBL essence and ethos rest on a cosmos of creativity and the marvel-magic of a charmed life that abounds with spirit of life and adventures that contributes towards human development. 2.4. Mission of DBBL Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a commitment to social responsibility. "Profits alone" do not hold a central focus in the Bank's operation; because "man does not live by bread and butter alone". 2.5. Objective of DBBL Core Objectives

To achieve positive Economic Value Added (EVA) each year. To be market leader in the product innovation. To be one of the top of three Financial Institution in Bangladesh in terms of cost efficiency. To be one of the top five Financial Institutions in Bangladesh in terms of market share in all significant market segments we serve. Financial objectives To achieve a return on shareholders’ equity of 20% or more on average. 2.6 Organizational Goals: To employ funds for profitable purposes in various fields with special emphasis on small scale industries. To undertake project promotion on identify profitable areas of investment. To search for newer avenues for investment and develop new products to suit such needs. To establish linkage with other institutions which are engaged in financing micro enterprises. To cooperate and collaborate with institutions entrusted with the responsibility of promoting 2.7. Core values of DBBL

The Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer’s needs and satisfaction and to become their first choice in banking. Taking cue from its pool of esteemed clientele, the bank intends to pave the way for a new era for a banking that upholds and epitomizes its vaunted marques “Your trusted partner.” For the community strengthening the corporate values and taking environment and social risks and reward into account. 2.8 Corporate Strategy: Financing establishment of small units of industries and business and facilitate their growth. Small Balance Sheet size composed of quality assets. Steady and sustainable growth. Investment in a cautious way. Adoption of new banking technology. 2.9. Functions of DBBL: Dutch-Bangla Bank is one of the well known second generation private bank in Bangladesh. It has much better reputation, position in, and contribution to the economic sector of Bangladesh only for its better quality services and efficient team of performers. But it has not reached here over night. It has some distinction features so that it is now very close of the peak of success. Those distinctive features are as stated: The Dutch-Bangla bank provides service with high degree of experienced & expert & use of modern technology.

The bank has the biggest IT investment as a bank in the country. The institution creates long term relationship based on mutual trust. It responses to customers’ needs with speed & accuracy. It shares its values & beliefs with the clients. It provides products & services at competitive pricing. It ensures safely & security of customers valuables in trust with us. It introduces diversified & dynamic banking system. It targets every income level person for its banking service. The financial institution ensures higher level of transparency and accountability at all level of doing business for having efficient and effective business operation. It is the pioneer in maintaining Corporate Social Responsibility (CSR) as a banking financial institution all over the country. It holds the biggest ATM (Automated Teller Machine) network. 2.10. Different Operations of Dutch-Bangla Bank Limited:

As one of the leader of banking financial institutions of the country, the Dutch-Bangla Bank Limited has a wide variety of operations. It earns a lot of profit from those operations. The important thing is that the operations are little unique from the competitors. The different operations are as stated shortly here: 2.10.1 Deposit Collection: As a leading commercial bank of the country, Dutch-Bangla Bank Limited collects huge amount of idle money from the country people as deposit in against of paying interest depending upon the account features. It pays different percentage of interest for different maturity of fixed deposits. It disburses flat 4% interest for savings account. As usual, it does not pay any interest for the current account 2.10.2 Life line Disbursement: The bank has a wide variety of life line. The collected idle money is distributed among the applicants after judging their possibility. Life line can be for commercial, personal, business, home, car, health, children, education, marriage etc. It takes interest based on the maturity period of the life line. It earns almost 85% of its income from this operation 2.10.3. Foreign Trade: Foreign trade is another source of income for the bank. It is involved in both export and import business. It earns little from this sector but it contributes a lot to the national economy. Here, L/C (Letter of Credit) is the main source of income. 2.10.4 Foreign Currency Endorsement: Foreign currency endorsement is another source of income for the bank. It supplies money of the different recognized foreign currency like US Dollar, British Pound, Japanese Yean, Saudi Real etc to the immigrants after having their passports and visa. 2.10.5 Investment: Investment is an important operation of the bank. It can be of long and short term. It contributes significantly in the profit earning of the bank that goes to the stockholders ultimately. This investment improves the infrastructural, national development. 2.10.6. Social Responsibility: Social Responsibility is a very important operation for the bank. Though it is not a major operation from the view of profit earning but it has generated a very

strong image of the bank among the national and international community also. Through this image, it has reached to the top of the success. The bank often arranges different types of social campaign like eye replacement, blood donation, free medical check up, various natural calamities, social awareness against of dowry system, early marriage, Scholarship of different level and other social problems . 2.11. Corporate Profile: Name of the Bank Status Corporate Slogan Commencement of operation Authorized capital Paid up capital Industry Nature of Business

Dutch Bangla Bank Limited Private Limited company Your Trust Partner April 1995. Tk.4000 million. Tk.2000 million. Banking industry of Bangladesh Banking Business with different financial services/products.

Target customers Number of ATM Number of Branches Number of employees SWIFT

Individuals and corporate customers 1351 101 Around 4000 DBBL BD DH

Corporate Profile of Dutch-Bangla Bank Ltd

2.12. Organizational Structure:

Chairman Managing Director Deputy Managing Director Executive Vice President Senior Vice President Vice President Assistance Vice President Senior Principle Officer Principle Officer Senior Officer Officer Assistance Officer Grade-I Assistance Officer Grade-II

Figure: Management Hierarchy

Chapter-03 Theoretical Background of Mobail Banking (Bank in hand) 3.1 Definition of Bank: According to R. S. Sayers “A bank is an institution whose debts are commonly accepted in final settlement of other people’s debts” According to A. C. Day “A bank is an organization whose main function is moving for capital formation” 3.2 Definition of Dutch Bangla Bank Ltd. Dutch Bangla Bank is a financial and joint venture institution whose objectives and operations as well as principles and practices must conforms to the principles of people’s mission, and which must avoid the use of misconduct in any of its operations. The organization of Dutch Bangla Bank defined as “a financial institution whose status, rules and procedures expressly state its commitment to the principles of people’s mission and to the banning of the receipt and payment of interest on any of its operation.” 3.3. Definition of Mobile Banking: Mobile Banking is a Banking process without bank branch which provides financial services to un-banked communities efficiently and at affordable cost. To provide banking and financial services, such as cash-in, cash out, merchant payment, utility payment, salary disbursement, foreign remittance, government allowance disbursement, ATM, money withdrawal through mobile technology devices, i.e. Mobile Phone, is called Mobile Banking. Mobile banking (m-banking) involves the use of a mobile phone or another mobile device to undertake financial transactions linked to a client’s account. M-banking is one of the newest approaches to the provision of financial services, made possible by the widespread adoption of mobile phones even in low income people. The roll out of mobile telephony has been rapid, and has extended access well beyond already connected customers in rural area. There is mounting evidence of positive social impact on poorer people and communities as a result. There are sound reasons for the hope that m-banking could have similar impact. A mobile network offers a high technology platform onto which other services can be often provided at very low cost to deliver an effective result. Mobile data channels are often under-used and therefore may be offered at low cost by the network operator. M-banking services which use channels such as text messaging/ SMS can be carried at a cost of less. The low cost of using existing infrastructure makes such channels more amenable to use by low income customers. M-banking is new in our country, and there has been limited donor support in this sector to date. This report considers the case for donors to support m-banking as a sector. Bangladesh Bank permitted 10

commercial bank to do such kind of mobile banking business that the rural people who have mobile but haven’t banking facilities, Service holders can get there salary by the mobile banking.

3.4 Reason of Genesis of M-Banking: Introduction of new technologies Control costs, removal of cost duplication To increase online channel customers Personalize customer interactions Unparalleled convenience & proactive customer service 3.5. Payments & Transfers • Domestic fund transfers • Micro-payment handling • Mobile recharging • Bill payment processing 3.6. Transaction • Fund Transfer • Bill Payment • Other financial services like 3.7. Benefits of Mobile Banking: By providing electronic access to money, it is possible to ultimately alleviate poverty, because of the following reasons.  Real time on-line banking  Available anytime, anywhere throughout the country  It’s convenient, affordable and secure  It is much more effective in developing savings habits  It will make access to banking and advanced payment transactions at affordable cost  It is much safer, speedy and safeguard against fraudulent transaction 3.8. Necessity of Mobile Banking: • In low income people, m-banking may enable to use such kind of Banking where Banking facilities can’t reach till now the cost and safety of using m-banking is comparatively low. • M-banking potentially brings new Customer where banking sector is running as like as dog for there product marketing; these may be stronger than retail banks and better placed to reach out to un-banked customers. • M-banking is still very new, whereas other forms of e-banking are quite well established; the potential to influence and adapted to the customer may be higher compare to former banking because a lot of people use mobile phone in our country


About Mobile Banking (Banking in your hand) of DBBL “Mobile banking” is not simply another delivery channel but represents a fundamental shift in the paradigm of consumer banking.” 4.1 Introduction to Mobile Banking: Internet Banking helped give the customer's anytime access to their banks. Customer's could check out their account details, get their bank statements, perform transactions like transferring money to other accounts and pay their bills sitting in the comfort of their homes and offices. However the biggest limitation of Internet banking is the requirement of a PC with an Internet connection, not a big obstacle if we look at the US and the European countries, but definitely a big barrier if we consider most of the developing countries of Asia like Bangladesh. Mobile banking addresses this fundamental limitation of Internet Banking, as it reduces the customer requirement to just a mobile phone. Mobile usage has seen an explosive growth in most of the Asian economies like Bangladesh. The main reason that Mobile Banking scores over Internet Banking is that it enables ‘Anywhere Anytime Banking'. Customers don't need access to a computer terminal to access their bank accounts, now they can do so on-the-go while waiting for the bus to work, traveling or when they are waiting for their orders to come through in a restaurant. The scale at which Mobile banking has the potential to grow can be gauged by looking at the pace users are getting mobile in Bangladesh. The mobile subscriber base in Bangladesh hit 70 million in 2011. The explosion as most analysts say, is yet to come as Bangladesh has about one of the biggest untapped markets. We see that in Korea which is now witnessing the roll-out of some of the most advanced services like using mobile phones to pay bills in shops and restaurants.

4.2 Mobile Banking a New Business Models for Banking: A wide spectrum of Mobile/branchless banking models is evolving. These models differ primarily on the question that who will establish the relationship (account opening, deposit

taking, lending etc.) with the end customer, the Bank or the Non- Bank/Telecommunication Company (Telco). Models of branchless banking can be classified into three broad categories: Bank Focused, Bank-Led and Non Bank-Led. The bank-focused model emerges when a traditional bank uses non-traditional low cost delivery channels to provide banking services to its existing customers and new customers in rural area where commercial bank cannot reach till now.

4.3 Objective of Mobile Banking:

Around 87% of the total population of Bangladesh is un-banked. To bring such a huge population into the banking channel, DBBL is implementing a system to launch mobile banking soon. The project is in its final stage now. With this facility any person having a mobile number will be able to use his number as a bank account. In this mobile account they will be able to do the following: ● Cash deposit to any Agent of DBBL ● Cash withdrawal from any Agent of DBBL ● Cash withdrawal from DBBL ATMs ● Funds transfer to another mobile account ● Utility bill payment, Tuition fee payment, Air time top-up. ● Receive remittance from home and abroad ● Salary disbursement ● Disbursement of Govt. allowances ● Merchant Payment ● Balance Inquiry 4.4 Some other purpose of Mobile Banking:

While poor people have little money, they are active managers of what they have. Holding cash comes at high price to poor people because of the risk of crime in many poor People, but they often have few alternatives to cash based services. In particular, appropriate financial services help poor people to access usefully large lump sums of money, which may either enable a pathway out of poverty through investment in income generating activities (such as micro enterprises) or asset creation (such as housing); or may reduce vulnerability to sudden shocks to cash flow, as a result for example of illness or climate conditions. In our country, poor people are forced to rely on informal financial services, which may be unsafe, or fringe formal financial products which may be expensive as well as unsafe. In other words, their exclusion from formal financial services has economic and social impacts which may exacerbate their poverty. The cost efficient provision of formal financial services (payments/ remittances, savings, credit or insurance) is predicated on customers having access at least to a basic transactional account, from which electronic transfers can be made as like purchase product and pay one another by M-banking and cash withdrawn as necessary. M-banking holds the prospect of offering a low cost, accessible transaction banking platform for currently unbaked and poorer customers. In addition, as mobile networks expand their coverage, they offer the opportunity of bringing payment and remittance services into that areas where banking services is unable able. However, not all m-banking products will be transformational in the sense of broadening access to financial services substantially at first or even at all. However, it is likely that even m-banking services which start targeted at existing banked customers may over time extend to un-banked groups.

4.5 Why DBBL chose Mobile Banking?

Rapid expansion of Mobile Phone Nationwide coverage. Enhanced Mobile Phone Services Failing cost of Technology Increasing competition in Commercial Banking Ability to offer low cost banking services Affordable and secure High level of Mobile phone literacy among client Existing of Mobile payment platform which is safe and secure & recognized by Bangladesh Bank

4.6 Partner of Mobile Banking: Banglalink & city cell are two Leading mobile phone operator in Bangladesh, around 152 outlets. It is reliable as Telecom Company that turns a mobile phone into an electronic wallet.

4.7 Where DBBL M-Banking is available? Customer can register at any authorized agent point of DBBL – at present these are the retailers of City cell & Banglalink throughout the country who can display ‘DBBL Agent Certificate’ and ‘DBBL Mobile Banking Banner’. Banking is there. Around 152 Banglalink and City cell agent around the country and all the DBBL branch is the Mobile Banking place. A Mobile account holder can deposit money from DBBL permitted Banglalink and City cell agent and any branch of DBBL, They also can withdrew money from DBBL Banglalink and City cell agent and Branch. They also cash out from ATM. 4.7.2 What does DBBL Mobile banking offer?

• • • • • • • • •

 Customer Registration  Cash-in (cash deposit)  Cash-out (cash withdrawal)  Merchant Payment  Utility Payment  Salary Disbursement  Foreign Remittance  Air-time Top-up  Fund Transfer

4.7.2 How does it work?

 Customer fills up the KYC Form and submit to agent along with his photograph & National ID (NID).  Agent checks the Application Form, photograph & NID.  Agent goes to Customer Registration Menu in his/her mobile and insert customer’s mobile number.

 Customer receives a call and in reply, s/he gives a 4-digit PIN number of his/her choice (please remember your PIN).  A Mobile Account is created in the DBBL system which is his/her mobile number + one check digit.  Customer receives an SMS which contains his/her Mobile Account number (please remember your check digit). According to the Law and Practice the Banker – Customer relation arises only from contract between the two. And opening of Mobile Account is the contract that establishes the relationship between a banker and a customer. So this section pays very important role in attracting customer and therefore be handled with extra care 4.7.3 Necessity to open an account: A person who wants to open an account he/she should have some documents to open an account, these are2 copies PP size photo of Applicant Photocopy of National ID Card 100 take as account opening charge. 4.7.4 Mobile Account opening procedure in a flow chart Applicant fills up the relevant application form in the prescribed manner

He/ she is required to fill up the specimen signature

The authorized officer scrutinized the introduction and examine the documents submit Depositing the cash

Depositing the cash

After registration of DBBL Mobile Banking DBBL cell center call customer for choosing the password. Customer chose four digit numbers what they like. The mobile banking number will be like mobile number with one cheque digit. It will be active within 1-2 working days. 4.7.5 Why PIN is required?

PIN is required to be inputted during cash withdrawal from an Agent or DBBL ATM. PIN ensures security of your money and protects fraudulent transaction. 4.7.6 Why PIN is strictly confidential?

PIN is the key for transaction of Mobile Banking. Only correct match of PIN & Mobile Number can access the Mobile Account. PIN is needed to verify the A/C owner by the system. If a PIN is disclosed, respective account is at risk; therefore, PIN should be handled very carefully. 4.7.7 Why check digit? Mobile number is public and known to many people. Without knowing your check digit, none will be able to deposit money at your account, thus it helps to keep your mobile account confidential. On the other hand, a check digit eliminates typing error, thus protects sending or depositing money to a wrong account. 4.7.8 Which Telco’s Mobile can be registered? Customer has any mobile from any Mobile Operator can be registered for DBBL Mobile Banking at any agent point of Banglalink and City Cell. All these Mobile Account holders will be able to deposit and withdraw money from the Agents. However the customers having mobile from operators other than Banglalink and City Cell will not be able to initiate many self-initiated services like Balance checking, fund transfer, utility payment, Air-time top up, PIN Change etc Customers having mobile from Banglalink and City Cell will be able to enjoy all the services – agent-initiated as well as self-initiated. 4.7.9 What type of Mobile set is required? Any type of mobile set can be used for DBBL mobile banking. 4.7.10 How much initial deposit is required? Customers can open a DBBL Mobile Account with an initial deposit of Taka 50/- (taka fifty) only. 4.7.12 Can I deposit and withdraw money immediately after registration? You can deposit money immediately after registration. However, you can withdraw after your account is fully registered. Bank officer verifies the information on the registration form (KYC form) and authorizes the account for full registration. Normally 1-2 working days are required for full registration. After your account is fully registered, you will get an SMS notification.

4.7.13. How is DBBL Mobile Banking secured?

DBBL Mobile Banking is highly secured as it uses USSD or SMS+IVR as its communication channel. In case of USSD, both the instructions and PIN are communicated using USSD while in case of SMS+IVR, instructions are sent via SMS and PIN via IVR (voice channel) both the USSD and IVR are secured for transmission of PIN Customer’s money is safe as none can withdraw his/her money without taking possession of Mobile set, PIN and Check digit together. None will be able to deposit unwanted money into a Mobile Banking Account without knowing the check digit (although the mobile number is publicly known). 4.7.14. Where to cash-out (cash withdrawal)? Customer can cash-out (withdraw) at any authorized agent of DBBL (at present City cell & Banglalink agents), DBBL ATMs and DBBL Branch. 4.7.15 Mobile A How does it work?

 Customer asks the Agent for withdrawal of an amount from his/her mobile account  Agent initiates the transaction from his/her mobile  Agent gets prompt menu and in reply agent enters customer’s mobile account number (including check digit) and amount to withdraw  DBBL system sends prompt menu to the customer’s mobile (or IVR Call): “You are going to withdraw Tk. XXXX from your mobile account with DBBL. If you want to continue, please enter your 4-digit PIN”  Customer enters his/her PIN  System debits customer’s account and send an SMS to the customer’s mobile  Agent hands over money to the customer 4.7.16 Where to cash-in (cash deposit)? Customer can cash-in (deposit) at any authorized agent of DBBL (at present City cell & Banglalink agents) or DBBL Branch. 4.7.17. What is transaction limit?

There may be scarcity of cash at agent points. We want to serve as many customers as possible from each agent points. On the other hand, it is required to minimize fraudulent loss, if any. To arrest all the above, a transaction limit in terms of frequency and amount have been set in the system. Current limit for the customers are as under: Cash-in frequency per day = 5 times Cash-out frequency per day = 5 times Cash-in / cash-out amount per transaction = 5,000/Cash-in frequency per month = 20 times Cash-out frequency per month = 20 times 4.7.18 How to check your account balance?  Customer initiates the transaction from his/her own mobile  DBBL system sends prompt menu to the customer’s mobile (or IVR Call): “Please enter your 4-digit PIN to know your balance or press Cancel button to cancel the request”  Customer enters his/her PIN  System sends the balance into his/her mobile 4.7.19 How to change PIN?

 Customer initiates the process from his/her own mobile.  DBBL system sends prompt menu to the customer’s mobile (or IVR

Call): “Please enter your existing 4-digitPIN to proceed or press Cancel button to cancel the request”  Customer enters his/her existing PIN  DBBL system asks for new 4-digit PIN  Customer enters his/her new PIN  The PIN is changed 4.7.20. What is Salary/Allowance Disbursement?

It is a process by which Corporate Office can disburse the salary of their employees and Government can disburse different allowances like elderly allowance, freedom fighter allowance to the people within a few moment in a hassle free way. How it works?  Corporate Office/ Government will send the list of mobile account numbers (including check digit) and monthly salary/allowance to DBBL  DBBL will credit all the individual accounts by debiting corporate account centrally by a batch process system  the employee/beneficiary will get an SMS regarding the transaction  the employee/beneficiary can go to any agent or DBBL ATM or DBBL Branch for withdrawal of money. Benefits of Corporate Office/ the Government?  Time savings  Cost savings  No need of extra manpower  Probability of error is very low  Instant service is ensured 4.7.2o.3 Benefits of employee/beneficiary?

 Instant credit to the account  No hassle to collect salary/allowance  No queue  Money can be withdrawn from any agent or DBBL ATM or DBBL Branch 4.7.21. How foreign remittance can be sent to Mobile Account?  Exchange houses at abroad receive remittance against beneficiary’s mobile account number  Exchange houses send the mobile account number and the amount to DBBL  DBBL will centrally credit the amount against respective mobile account  The beneficiary will get an SMS regarding such transaction.  The beneficiary can go to any agent or DBBL ATM or DBBL Branch for withdrawal of money 4.7.22. Fees & Service Charges Registration Fee: Free Cash-in Charges: 1% of the transaction amount or Tk.5/-, whichever is higher Cash-out Charges: 2% of the transaction amount or Tk.10/-, whichever is higher. Merchant Payment: Free for customer Mobile Top-up: Free for customer Salary Disbursement: Free Allowance Disbursement: Free Remittance Disbursement: Free 4.7.23. Enquiry Based • Credit/Debit Alerts. • Minimum Balance Alerts • Bill Payment Alerts • Account Balance Enquiry • Account Statement Enquiry • Cheque Status Enquiry. • Cheque Book Requests. • Recent Transaction History. 4.8. Advantages of Mobile Banking The biggest advantage that mobile banking offers to banks is that it drastically cuts down the costs of providing service to the customers.  You can make transactions or pay bills anytime. It saves a lot of time.  Mobile banking thorough cell phone is user friendly. The interface is also very simple. You just need to follow the instructions to make the transaction. It also saves the record of any transactions made.  Cell phone banking is cost effective. DBBL provide this facility at a lower cost as compared to banking by self.

 Banking through mobile reduces the risk of fraud. You will get an SMS whenever there is an activity in your account. This includes deposits, cash withdrawals, funds transfer etc. You will get a notice as soon as any amount is deducted or deposited in your account.  Banking through cell phone benefits the banks too. It cuts down on the cost of tale- banking and is more economical.  Mobile banking through cell phone is very advantageous to the banks as it serves as a guide in order to help the banks improve their customer care services.  Banks can be in touch with their clients with mobile banking.  Banks can also promote and sell their products and services like credit cards, loans etc. to a specific group of customers.  Various banking services like Account Balance Enquiry , Credit/Debit Alerts, Bill Payment Alerts, Transaction History, Fund Transfer Facilities, Minimum Balance Alerts etc. can be accessed from your mobile.  You can transfer money instantly to another account in the same bank using mobile banking.  Mobile banking has an edge over internet banking. In case of online banking, you must have an internet connection and a computer. This is a problem in developing countries. However, with mobile banking, connectivity is not a problem. You can find mobile connectivity in the remotest of places also where having an internet connection is a problem. Mobile banking is helping service providers increase revenues from the now static subscriber base. Service providers are increasingly using the complexity of their supported mobile banking services to attract new customers and retain old ones. A very effective way of improving customer service could be to inform customers better. 4.9. Limitation of Mobile Banking Uncertainties over the speed and nature of customer adoption: This is to be expected with any new offering, although the uncertainty is compounded by the relative lack of knowledge of the needs of unbanked people in many places, and the market potential. Consumer education may speed adoption; but more likely, adoption on scale will happen as it has happened with mobile phones: by forced to adapt their offerings as they encounter feedback in the market place. Therefore, it is necessary to have sufficient providers in the market. Who can remain long in the market enough to ensure that to identify the elements of a successful model. Hence, support to providers may assist in overcoming this barrier. Generally available research into the patterns and needs of the un-banked target market may also help. Lack of inter-operability with existing systems: Inter-operability of different payment systems is primarily a question of market structure and regulation. It arises initially only in markets where there is an existing payment infrastructure with which new providers can inter-operate (and later on, once new infrastructure becomes the standard). Without inter-operability, the fixed costs of deploying financial infrastructure may be much harder to recover, since usage per item of proprietary infrastructure will fall. Clearly, one solution may be to give regulators the power to require interoperability; however, it may be sufficient to encourage the identification of appropriate standard upfront. This could take place via support to regulators or industry bodies, where these exist.

Regulatory barriers: Specific regulatory impediments vary by market; but in general, a lack of openness to new models of provision and a lack of policy certainty limit the potential of new models. Increasing

openness and certainty may require support to regulators to outline high level policy, as well as to amend existing regulations or draft new ones where and when required. 4.14 Challenges before Mobile Banking:

Scalability & reliability Personalization Customer education Reduce cost of clients High transecting cost Lac of cash out late Cost of cash in and out is high compare to interest rate on bank deposit Marketing to convince more people Merchants and Shops to accept M-cash in payment for goods and services. Overcome initial security of customer money. Reaching deeper into rural areas without costly investment in infrastructure. Reducing the costs of servicing. Chapter- 05 Analysis 5.1 Demographic information analysis of the respondents 5.1.1 Ages of the respondents: 20-30 31-40 41-50 50> Total

Age No. of Respondents 44 26 17 13 100

Table: 01 Age of the respondent

Percentage 44% 26% 17% 13% 100%


13% 17%


20-30 31-40 41-50 50>


Figure: 01 Age of the respondents Among 100 respondents, 44% of the respondents belong to the age group of 20-30, 26% respondents

age is between 31 to 40 years, 17% respondents age is between 41 to 50 years, 13% respondents age is above 50 years. Therefore, most of the respondents are age between 20 to 30 years. This percentage is 44%. The lowest portion 13% belongs to the age group of 50+.

5.1.2 Genders of the respondents: Gender No. of Respondents











Table: 02 Age of the respondents Gender 80 70 60 50 40 30 20 10 0 Male

Figure: 02 Age of the respondents


Among 100 respondents 68 respondents were male and 32 were female. It has been found that, the largest parts of respondents are male & that percentage is 68%. But the male and female ratio of the respondents is much deferred. 5.1.3 Occupation of respondents: Respondent

No of respondent

Respondent %







Business man



Service Holder



House Wife



Table 3: Occupation of the respondents

Occupation 1 40 35 30


25 20 15 10 5 0 Student

ProfessionalsBusiness ManServices HolderHousewife

Figure: 3 Professions of the respondents Among 100 respondents, 35 % of the respondents are student, 10% belongs to Professional, 13% business man, 25% respondents belong to the Service Holder &17% is housewife. Therefore, most of the respondents are age student. 5.1.4 Reason for opening A/C: Reason of A/C opening Required

No. of Respondents 53

Percentage 53%

Attractiveness Near from my palace Facilities Total

14 12 21 100

14% 12% 21% 100%

Table: 4 Reasons of account opening

Figure: 4 Reasons of account opening Among 100 respondents, 53 % of the respondents belongs that they have require Mobile A/C that’s the highest portion. The second height 21% respondents belong to the Facility. The lowest portion 12% belongs to the near from my place. 5.1.5 Education Level of respondents: Education Level No formal Education SSC HSC Graduate Post graduate Total

No of Respondents 9


25 38 12 16 100

25% 38% 12% 16% 100%


Table: 05 Education Level of the respondent 38%

40 25%

30 20 10




0 No formal Education



Figure: 05 Education Level of the respondents

Graduate Post graduate

Among 100 respondents, 38 % ( the height portion) of the respondents belongs that they are HSC level. The lowest portion 9%

belongs that haven’t any formal education. The second height 25% respondents belong to the SSC Level, 12% is Graduate & 16% is post graduate. Therefore, most of the respondents are HSC level. 5.1.6. You feel safe in your transaction through mobile Respondent Opinion

No of respondent


Strongly Agree












Strongly disagree



Table: 07 seem safe transaction of the respondents

You feel safe in your transaction through mobile 45 40 35 30 25 20 15 10 5 0

41 29 10 Strongly Agree



20 Disagree

0 Strongly Disagree

Figure: 6 seem safe transaction of the respondents Among 100 respondents, 41% respondents are strongly agree with the statement that you feel safe in your transaction through mobile at Dutch-Bangla Bank, 29% respondents are agree,10% respondents are neutral,20% respondents are disagree &0% are strongly disagree . Hence, most of the respondents agreed with this statement and the percentage is 70% (41% +29%). 5.1.8. Call center services are always available when you require

Cell center service availability of the respondents 60 50 40 30 20





0 Strongly Agree


2 Neutral


3 Strongly Disagree

Figure: 08 cell center service availability of the respondents Among 50 respondents, 50% respondents are strongly agree with Dutch-Bangla Bank Mobile Banking Call center services are always available, 18% respondents are agree, 2% respondents are neutral,27% respondents are disagree & 3% respondents are strongly disagree. Hence, most of the respondents agreed Dutch-Bangla Bank Mobile Banking Call center services are always available & the percentage is 68 % (50+18%). 5.1.9. The Cost of cash In and out is affordable in case of Mobile Banking.

Figure: 09 cost effective of the respondents Among 100 respondents, the highest respondents 21% strongly agree with the statement that The Cost of cash In and out is affordable in case of Dutch-Bangla Bank Mobile Banking. 20% respondents are also agree, 59% respondents disagree.

Hence, most of the respondents disagreed The Cost of cash In and out is affordable in case of Dutch-Bangla Bank Mobile Banking & the percentage is 59%. 5.1.10. Available agent and branch for m-banking Available agent and branch for m-banking 40 35 30 25 20 15 10 5 0

36 24


Strongly Agree Agree

6 Neutral


14 Strongly Disagree

Figure: 10 Available Agent & branch of M-Banking Among 100 respondents, 24% strongly agree with the statement that Available agent and branch for M-banking in case of Dutch-Bangla Bank. 36% respondents are also agree, 20% respondents disagree, 14%strongly disagree & 6% respondents neutral. Hence, most of the respondents agreed available agent and branch for M-banking in case of Dutch-Bangla Bank & the percentage is 60%(24%+36%). 5.1.11. M-banking is save your time Save Time 35 30 25 20 15 10 5 0


Strongly Agree




27 2 Neutral

11 Disagree

Strongly Disagree

Figure: 11Save time of M-Banking Among 100 respondents, 31% strongly agree with the statement that M-banking is save your time in case of Dutch-Bangla Bank. 29% respondents are also agree, 27% respondents disagree, 11%strongly disagree & 2% respondents neutral.

Hence, most of the respondents agreed available agent and branch for M-banking is save your time in case of Dutch-Bangla Bank & the percentage is 60%(31%+29%) 5.1.13. DBBL understands your specific needs DBBL understand specific need of the respondents 45 40 35 30 25 20 15 10 5 0

41 17 Strongly Agree


12 Neutral

20 Disagree

10 Strongly Disagree

Figure: 13DBBL understand specific need of the respondents Among 100 respondents, the highest respondents 41 agreed with the statement that DBBL understands your specific needs. The second highest, 20 respondents also Disagree that statements. For the data tables of this analysis. 5.1.14. Time taken to process of Mobile transaction of this bank is acceptable

Figure: 14 Transaction Time acceptances of the respondents Analysis: From the figure 14, it is evident that among 100 respondents, the highest respondents 58 agreed with the statement that Time taken to process of Mobile transaction of this bank is acceptable. The second highest, 25 respondents also strongly believes that statements. For the data tables of this analysis.

5.1.15. In your experience, the approximate waiting time for cash in is

Waiting for cash in


Figure: 15 the


waiting time of respondent

28% 18%

Among 100 the highest 0% min, for Below 10 Min needs to 18% waits 16% waits for above 30 min.

15 Min

30 Min


Above 30 Min

respondents, 38% waits 15 deposit. 28% below 10 min., for 30 min. and

5.1.16. In your experience, the approximate waiting time for cash out is Waiting for Cash Out 60 50 40 30 20 10 0

50 18 Belo 10Min

15 Min


12 30 Min

Above 30 Min

Figure: 16Waiting for cash out of the respondents Among 100 respondents, the highest 50% waits for cash out 15 min, for deposit. 18% needs to below 10 min., 12% waits for 30 min. and 20% waits for above 30 min. 5.1.17. Are you regular customer?

Figure: 17 Regular customers

Among 100 respondents, the highest 76% are regular customer and 24% are irregular customers. Most of the customers are regular 5.1.18. How often do you use this facility? Use this facility 18% 10%



once a week

More than once a week

once a month


Figure: 18 how often Use this facilities Among 100 respondents, the highest respondents 55% use this facility once a week. The second highest, 24% respondents also use this facility more than once a week, 18% use the facility infrequently &10% once a weak. 5.1.19. Overall Responses of the Respondent:

Figure: 19 Overall respondents in pie chart Chapter-06 Major Findings Major findings:

Various banking services like Account Balance Enquiry, Credit/Debit Alerts, Bill Payment Alerts, Transaction History, Fund Transfer Facilities, and Minimum Balance Alerts etc. can be accessed from your mobile. There is no mobile banking website as information portal particularly for M-Banking. No involvement of small business. The largest parts of respondents are male It saves a lot of time. High transected cost. Cost of cash in and out is high compare to interest rate on bank deposit Potential source for a bank is students but no special encouragement for Mobile account opening. Do not fulfill the proper customer need. Chapter-07 Recommendation 7. Recommendation: Should develop a mobile banking website as information portal particularly for MBanking. Should Continuous support and training workshop on Mobile Banking. Should arrange more and more campaign in public place to increase M-Banking customer. The cost of cash in and out should decrease. Try to involve small business to raise customers. DBBL and concern partner should advertise more for attracting all level of customers. DBBL should encourage students for Mobile account opening because students are a potential source for a bank. DBBL should increase facility to fulfillment customers need. Chapter-08 Conclution 8. Conclusions: Banking is the backbone of national economy. Banking industry has been treated as a prospective financial sector in Bangladesh. As an organization the Dutch- Bangla Bank Limited has earned the top ranking with reputation. The organization is much more structured to operate banking activities. Technology and competition have made it vital for to build stronger bonds with the customers to meet their needs at their convenience and always try to meet respond for better customer needs. But they must concentrate more on customer oriented services and provide better technological advancement relating to banking activities. Mobail banking is very important banking tool for the banking business World. For service providers, Mobile banking offers the next surest way to achieve growth. Countries like Bangladesh where mobile penetration is nearing saturation, mobile banking is helping service providers increase revenues from the now static subscriber base. Also service providers are increasingly using the complexity of their supported mobile banking services to attract new customers and retain old ones. For the fact is that one day, in most of the world emerging markets, more people will use mobile telephones than use fixed telephone lines. Businesses that are based on mobile financial serviced will thus be a natural fit for these economies. What is more, there is no need to wait for the next generation mobile networks; these businesses can be built using today's technology. But to

capture this significant opportunity, financial firms and telecommunications companies will have to partnerships with one another and, possibly, with merchants and retail chains as well. DutchBangla Bank is pioneer of Mobile Banking in Bangladesh and it has a lot of possibility to reach customers door as well as banking in the hand of customers.