MOBILE PAYMENTS

Mobile Payments System for Bank Italia

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Table of Contents

1 Introduction1

2 Literature Review1

3 Research Design3

4 Analysis of Findings5

5 Expected Results5

6 Limitations of Research Design6

7 Conclusions and Recommendations7

References9

Mobile Payments System for Bank Italia

1 Introduction

Bank Italia is a hypothetical Italian online bank. Now the bank is considering introducing the mobile commerce into its product and service offerings. This mobile banking will allow consumers to transfer their money and make payments using their mobile phones. The technology for mobile commerce and mobile banking is already available in the market worldwide. However, the Italian banking system is not currently providing any mobile banking services. Accordingly, this research aims to develop the feasibility for the introduction of mobile banking for Bank Italia in Italy and worldwide. The banks' online systems are used by customers located throughout Europe and even outside. The provision of mobile banking facility to customers is expected to result in higher brand equity, more customers, and higher customer retention and satisfaction.

The aim of this research project is to determine the feasibility for the introduction of mobile banking, including mobile payments, at Bank Italia. Accordingly, both secondary and primary sources of data will be used to develop this feasibility for the introduction of mobile banking at Bank Italia.

2 Literature Review

The latest trend in computer systems for the banking sector is mobile banking. Mobile banking allows customers to check balances, transfer funds, and pay bills through their cell phones. Mobile banking is well established in Japan and in much of Europe. However, the obstacles to its implementation include a disagreement between the bank and the carrier provider with respect to the design and implementation of the software. However, the US consumers also showed no interest in using the mobile technology. Only 10% of the US customers were found to be interested in mobile banking.

There are several technologies available for mobile banking. For example, the bank may allow customers to download software into their phones, which could be used for mobile banking. In addition, other technologies provide complete web pages for mobile banking in the mobile phones of the users.

However, mostly the customers are concerned about security of their transactions. Financial data is more prone to security risks over wireless networks than other text and image data. However, the mobile banking also provides security of this data. Mostly they require a 6-digit PIN for accessing the services. Further, such PINs and account information is not stored in the handset. Moreover, they also provide 128-bit encryption to secure the financial communications (Stair and Reynolds, 2010).

Mobile banking is also provided in Bangladesh for rural banking services which are required in remote locations where bank branches are not available. This is accomplished through specific mobile technology-equipped vehicles. Accordingly, the project uses 159 vehicles for the purpose. Then these mobile vehicles provide various services such as loan approval, loan disbursement, taking repayments, and accepting deposits. In this case, the mobile banking provides banking on wheels, rather than through the use of the mobile phones (The World Bank, ...