Mobile Finance for Rural Banks

Topics: Mobile phone, Text messaging, GSM Pages: 7 (1547 words) Published: April 18, 2013
Mobile Finance
For Apex and RCBs


George Edward Neizer

Table of Contents
Mobile Accounting3
Mobile Brokerage3
Mobile Financial Information Services4
Technological Platforms that enable Mobile Finance4
Interactive Voice Response (IVR)4
Java 2 Micro Edition (J2ME)4
Short Message Service (SMS)4
Secured Short Message Service (SSMS)5
Figure 15
Unstructured Supplementary Service Data (USSD)5
SIM Application Toolkit (SAT)6
Wireless Application Protocol (WAP)6
Mobile Finance for the Rural Environment6
Mobile Finance solution6
List of Mobile Finance software vendors and their products8

Mobile Finance refers to the provision of a set of banking and financial services, which are accessible through telephony devices like Mobile phones, Smart phones and Personal Digital Assistants (PDAs), on a telecommunications backbone. The scope of services offered can be categorized into the three (3) main areas listed below * Mobile Accounting

* Mobile Brokerage
* Mobile Financial Information Services
Mobile Accounting
This is a transaction based service that employs branchless banking model to achieve payments, deposits, withdrawals and transfers. Examples of services that can be offered through mobile accounting include * Deposits

* Withdrawals
* Transfers
* Mobile Recharging
* Payments
Payments can further be broken down into
* Person to Person Payment
Payment from one person to another.
* Person to Business Payment
This is payment from a person to a business entity.
E.g. Payment of Utility bills
* Business to Business Payment
Payment from one business entity to another
E.g. Payment for delivery of goods and services
* SMS alerts are sent to notify interested parties when deposits, withdrawals, transfers and payments are made. Mobile Brokerage
Mobile brokerage refers to stock market services offered via mobile telephony devices. This type of service allows the subscriber to react to stock market developments in a timely fashion, irrespective of physical location. Examples of Services offered through mobile brokerage include * Stock Trading from anywhere

* Stock Price Monitoring
Mobile Financial Information Services
These are non-transactional informational services which are essential for conducting transactions. Examples of such services are a. Balance enquiry
b. Last three(3) transactions
c. Mini-Account Statements
d. Cheque book request status
e. Mini-Loan statement
f. SMS Alerts Services
Services rendered include
* Debit and credit alerts.
* Bounced cheque alerts.
* Loan repayment alerts
These alerts are sent seven days prior to the repayment date of a loan installment
* Investment alerts
Notify investors on rollovers, maturity and payments

Technological Platforms that enable Mobile Finance
Technically, Mobile Finance is seen as an extension of the existing infrastructure of a bank to mobile phones as a channel for leveraging the reach of telecommunications operators to deliver banking and financial services to consumers. Figure 1 below, shows the Mobile Finance technology stack which indicates a range of Mobile devices as well as the communication channels and technologies needed to implement mobile banking. The technologies include IVR, J2ME, SMS, USSD, SSMS and SAT Interactive Voice Response (IVR)

IVR allows customers to interact with a system via a mobile phone keypad or by speech recognition. Through a series of prerecorded or dynamically generated audio IVR directs users to perform enquiries. IVR is suitable for providing informational services and can be accessed by all mobile handsets from the low end Nokia 3310 to the high-end HTC Sensation. Using IVR over a telecommunication network is expensive since it uses the normal voice channel as compared to SMS or USSD...
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