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12 March, 2022

Explain the concept of mobile financial services. Discuss the various services offered by it

Mobile banking refers to the activities of banking and financial services with the help  of  mobile communications. The scope  of  offered service  may  include facilities to conduct bank and stock market transactions, to administer accounts and to access customized transaction.

 

The mobile banking is consists of 3 inter-related concepts:

 

i)  Mobile accounting,

ii) Mobile brokerage,

iii) Mobile financial information services.

 

Mobile banking can offer services are:

i)  Accounting information: Mini statement, transaction alert, loan & card accessibility, balance checking, order & stop payment of check, etc.

ii) Payments, deposits, withdrawals & transfers: Local & global fund transfer, commercial payments, bill payment, etc.

iii) Investment: Portfolio management service, real time stock quotes, etc.

[As per Bangladesh bank DCMP circular in September 2011, the following mobile financial services may be allowed:

1. Disbursement of inward foreign remittances

2. Cash in-out using mobile account through agents/ bank branches/ ATMs/ Mobile operator’s outlets

3. Person to business payment i.e. utility bill, merchant payments

4. Business to person payment i.e. salary, dividend and refund warrant, vendor payments, etc

5. Govt. to person payment i.e. elderly allowances, freedom-fighter allowances, subsidies, etc

6. Person to govt. payments i.e. tax, levy payments

7. Persons to person payments

8. Other payments like microfinance, overdrawn facility, insurance premium, DPS, etc.]