International Journals of Advanced Research in Computer Science and Software Engineering ISSN: 2277-128X (Volume-7, Issue-6) Research Article June 2017 © www.ijarcsse.com , All Rights Reserved Page | 75 Mobile Banking Matthew N. O. Sadiku, Mahamadou Tembely, and Sarhan M. Musa Roy G. Perry College of Engineering, Prairie View A&M University Prairie View, TX 77446, United States Omonowo D. Momoh College of Engineering, Technology, and Computer Science, Indiana University-Purdue University, Fort Wayne, IN 46805, United States DOI: 10.23956/ijarcsse/V7I6/01615 Abstract— Mobile banking refers to provision of banking services through mobile devices such as mobile phone or tablet. It is a natural evolution of Internet banking and a better digital alternative. It represents a breakthrough for remote banking services. It is providing banking services at any place and at any time. The purpose of this paper is to present a brief introduction to mobile banking. Keywords— Mobile banking, Electronic banking, Internet banking I. INTRODUCTION Banking plays a key role in our economy and has become an integral art of our lives. Today, mobile users can conduct basic banking transactions such as checking balances, paying bills, and transferring money from anywhere anytime. Mobile phones are not only used for communication purposes, they are used for banking transactions. Mobile banking (or m-banking) is an emerging branch of electronic or online banking. It is an application of mobile commerce based on wireless networks and mobile devices. It consists of banks, telecommunication companies and mobile devices. It uses software called an app, which can be downloaded to a mobile device. Since the apps handle sensitive personal information, their safety is important. The mobile user is connected to a mobile network through a SIM card. Mobile banking has a unique competitive edge over traditional banking because it allows customers to perform banking transactions irrespective of place and time. Advantages of mobile banking for both banks and customers include easy access anywhere, control over your money, availability on 24-hour basis, and reduction in the cost of handling banking transactions. One does not need to have Internet connection; a mobile connection is all that is required. Right now, banks are not charging customers for their mobile banking services. But wireless carriers do charge some fees. II. ADOPTION DIFFICULTIES Mobile banking is still underused despite its advantages (such as ubiquity and immediacy) and the substantial investments in it. Its adoption rate is lower than expected. Researchers and practitioners are interested in the factors that delay or even prevent its widespread adoption. What factors affect customers’ decision to use mob ile banking? Potential barriers to adoption of mobile banking include customers’ perception of its usefulness, its ease of use, its associated cost, e-literacy, and culture. Security, privacy, trust, and risk also raise concerns on adoption. Mobile banking needs to be secure, convenient, and competitive in charges [1]. Trust is important in customer loyalty because there is no face-to-face interaction in mobile banking and sensitive personal information is involved. Age is also an important factor in adoption behavior. Studies show that younger people tend to use mobile banking than older people [2]. Mobile banking in developing nations is still restricted. Factors that have direct impact on adoption and usability of mobile banking include cultural differences, convenience, and literacy. It is helpful and convenient to be able to access your bank at your fingertips while on the go. Non-literate population cannot handle complex devices such as smart phones and personal digital assistant (PDAs). Factors that hinder its adoption include perceived security risk and lack of trust. Technology anxiety affects the usage of self-service technologies. It prevents customers from mastering new technologies. Because mobile banking does not involve face-to-face interaction, it is hard to build trust. When the service providers have the trust of the customers, they readily satisfy the customers. III. CHALLENGES There are some unique challenges facing mobile banking. One problem is preventing fraud. The bank must ensure that transactions requests are made by legitimate mobile user. The personal identification number (PIN) is typically used for authenticating users. There is no universal standard for mobile banking. Banking structures and systems vary from one country to another. Despite the advantages of mobile banking, it has failed to take off in most developing nations. The low penetration rate may be due to non-availability of smart phones and banks in rural areas of those countries. Security and trust are major barriers to mobile banking [3].