1.1 Introduction:With a view to acquiring theoretical knowledge about the practical orientation and experiences of dynamic business world, it is obligatory to undertake an extensive study to prepare a term paper by the students of BBA program, IUBAT, who are desirous to the successful completion of their BBA degree. As part of the program, I am highly proud to join with Islami Bank Bangladesh Limited as Intern and selecting topic Mobile banking Service of Islami Bank Bangladesh Limited. I was placed in Islami Bank Bangladesh Limited Head Office for a period of three months.

This internship is an orientation to the entire working activities of, Islami Bank Bangladesh Limited and a study on an overall banking area. Though I worked there in several departments, but I had to select an area of study in which I can make detailed research and present my understanding in the report. This report is an attempt to map out a document, which clearly explains the existing situation in a comprehensive way regarding the activities at the IBBL. It is a nice opportunity for the graduates to have a taste of the real business world before starting their career. Internship, in the modern business world, helps students demonstrate skills and competence from their supervised experience and in addition, enables them to demonstrate maturity and acceptable professional, personal, and interpersonal behavior.

As the classroom discussion alone cannot make a student perfect in handling the real business situation, therefore it is an opportunity for the students to get accustomed with the real life situation through this program.1.2 scope of studyThis report will give a clear idea on overall mobile banking services available in our country. It also helps to know about IBBLs attempt to enhance its banking service by developing mcash. Idea about Mobile banking in Bangladesh. IBBLs Mobile banking condition. Available services under mobile/sms banking service from IBBL. Analysis of the study on IBBL mcash.1.3 Objective Of StudyStudy or working on any subject must have an objective. It may be only one objective or a combination of some objectives. My study also has some objectives. Before submitting the report I will discuss briefly about my specific objectives. Broad objective of the report is to examine mcash service of IBBL. TogetanoverallideaaboutthemanagementpolicyofIBBLaswellascommercialBank.

1.4 Specific Objectives To get a view of Islami banks Mobile banking system. To find out its Mobile banking services available. To know the detailed information regarding IBBLs mobile services. To know its mobile/sms banking services availability. To know how mcash makes life easier for a customer. To know why mcash is safe for financial transaction. To compare IBBLs mCash with other mobile banking services such as DBBL and Bkash.

1.5 Limitations of the reportWhen I developed this report, I faced these problems which disrupted the fulfillment of this report. There were several constrains while preparing this reports. Only four-five weeks were not sufficient to obtain complete information. While preparing the report, I faced a number of problems which may be termed as limitations. They are: Lack of enough time due to university time restriction. Difficulties of getting information due to the employees work pressure. Lack of proper information due to organizational secrecy policy. Up to date information is not available in many situation. Last but not the least, I didnt get enough time to make this report more informative and accurate.

1.6 Methodology1.6.1 Sources of dataBoth primary data and secondary data are used in this report. There are many tables and figures in this report which are based on both primary and secondary data. 1.6.2 MethodsThe techniques of collecting primary data are not same as the techniques of collecting secondary data. The different methods and tools of collecting primary data and secondary data used in this report are mentioned below1.6.2Collection of Primary Data:It includes the fresh or completely new data sources collected for specified purpose. Such as Practical work Observation Informal discussion Focus group discussion Asking questions to the respective officer and clients1.6.3 Collection of Secondary Data:It includes the sources of existing data. Such as Articles Brochures Journals Manuals of IBBL Collection of data from web sites Official papers of IBBL Web site of IBBL and other banks web site. Annual report IBBL and other banks. Various journals of various Banks. Various Thesis reports of various Banks. Various leaflet of IBBL. The archive of the IBBL Bangladesh Bank Report.For preparing this report I have got information from web site of the IBBL. I have presented my experience and finding by using different charts and tables.1.6.4 Instruments used in analysisThere are some tools which are used in analysis. These are various figures, tables, charts. These instruments are used in the analysis with the information I got.

2.1History of the Company:Islami Bank Bangladesh Limited is one of the largest private banks in Bangladesh. It is the pioneer of Islamic banking in Bangladesh. It became incorporated on March 13, 1983. It is a Joint Venture Public Limited Company engaged in commercial banking business based on Islamic Shari'ah with 58.03% foreign shareholding. It got 236 Branches & 30 SME/Krishi Branches i.e. total 266 Branches, which makes this one of the largest private banks in Bangladesh. IBBL has taken the initiative to develop large scale software to support the Islamic Banking solution in the year of 2001. A team of 20 fresh and experienced graduates from different reputed universities was formed under the supervision of a talented project manager and advisory and consultancy services of local and western reputed universities made the project a success history in Bangladesh.

2.2IBBL at a glance

Established on:13thMarch 1983

Certificate for Commencement of Business:27thMarch 1983

Inauguration of 1st Branch:30thMarch 1983

Formal Inauguration:12thAugust 1983

Shariah Supervisory Committee:1983

CSR/Foundation activities:1983

IPO:1985

Listing in Dhaka Stock Exchange Ltd.:2ndJuly1985

Listing in Chittagong Stock Exchange Ltd.:7thMarch1996

Accommodation of IBBL Head Office in its own Tower:10thMarch 2000

1st Rights Share issue:1989

2nd Rights Share issue:1996

3rd Rights Share issue:2000

4th Rights Share issue:2003

Opening of 100th Branch:12thJune 1997

Opening of 200th Branch:21stJune 2009

Opening of 250th Branch:15thDecember 2010

Joining/Agreement with CDBL:29thDecember 2004

In-house Core Banking Software:2005

IBBL Mudaraba Perpetual Bond (MPB) Issue:25thNovember 2007

Inauguration of Broker House:1stJanuary 2008

Formation of Subsidiary Companies of IBBL

A.Islami Bank Securities Limited (IBSL):22ndMarch 2010

B.Islami Bank Capital Management Limited (IBCML):1stApril 2010

1st Position of IBBL in Inward Remittance :2007, 2008, 2009 & 2010

100% Branch Online Banking:7thJanuary 2011

Launching of i-Banking:21stJune 2007

Launching of Islami Bank m-Cash:27thDecember 2012

2.3 Mission and Vision of IBBL

Mission of Islami Bank

To establish Islamic Banking through the introduction of a welfare oriented banking system and also ensure equity and justice in the field of all economic activities, achieve balanced growth and equitable development in through diversified investment operations particularly in the priority sectors and less developed areas of the country. To encourage socio-economic upliftment and financial services to the less-income community particularly in the rural areas. Total Financial Inclusion for balanced growth of the economy. Spread out the benefits of Islamic Banking in each and every point of the country

Vision of Islami Bank

IBBLs vision is to always strive to achieve superior financial performance, be considered a leading Islamic Bank by reputation and performance. Its goal is to establish and maintain the modern banking techniques, to ensure soundness and development of the financial system based on Islamic principles and to become the strong and efficient organization with highly motivated professional, working for the benefit of people, based upon accountability, transparency and integrity in order to ensure stability of financial systems. We will try to encourage savings in the form of direct investment. We will also try to encourage investment particularly in projects which are more likely to lead to higher employment. To provide the better customer services with minimum charges

2.4 Strategic Objectives To ensure customers' satisfaction. To ensure welfare oriented banking. To establish a set of managerial succession and adopting technological changes to ensure successful development of an Islamic Bank as a stable financial institution. To prioritize the clients welfare. To emerge as a healthier & stronger bank at the top of the banking sector and continue stable positions in ratings, based on the volume of quality assets. To ensure diversification by Sector, Size, Economic purpose & geographical location wise Investment and expansion need based Retail and SME/Women entrepreneur financing. To invest in the thrust and priority sectors of the economy. To strive hard to become a employer of choice and nurturing & developing talent in a performance-driven culture. To pay more importance in human resources as well as financial capital. To ensure lucrative career path, attractive facilities and excellent working environment. To ensure zero tolerance on negligence in compliance issues both shariah and regulatory issues. To train & develop human resources continuously & provide adequate logistics to satisfy customers need. To be excellent in serving the cause of least developed community and area. To motivate team members to take the ownership of every job. To ensure development of devoted and satisfied human resources. To encourage sound and pro-active future generation.

2.4 Core Values Trust in Almighty Allah Strict observance of Islamic Shariah Highest standard of Honesty, Integrity & Morale Welfare Banking Equity and Justice Environmental Consciousness Personalized Service Adoption of Changed Technology Proper Delegation, Transparency & Accountability

2.4 Commitments To Shariah To the Regulators To the Shareholders To the Community To the Customers To the Employees To other stakeholders To Environment

2.5 Organization Structure:Organogram of IBBL

2.6Corporate Governance at IBBLGovernance in Financial Institutions is considered to be the agent of effective and profitable business operation. The Corporate governance establishes trust among the interested parties, provides information for the stakeholders, establishes professionalism, builds capacity to operate business efficiently and create a congenial working environment, which is inevitable to face the challenges of the present competitive business environment. Corporate governance in IBBL may be delineated as follows:

Corporate InformationFinancial Information:[ As on: 31 December 2013 ]

BDT (Tk.)US Dollar ($)

Authorized Capital20,000.00 Million257.23 Million

paid-up Capital14,636.28 Million188.25 Million

Equity45,511.90 Million385.36 Million

Reserve Fund29,149.01Million374.91 million

Deposits473,140.96 Million6,085.41 Million

Investment(including Investment in Shares)474,015.95 Million6,096.67 Million

Foreign Exchange BusinessBDT (Tk.)US Dollar ($)

Import285,890 Million3,677.04 Million

Export205,269 Million2,640.12 Million

Remittance286,956 Million3,690.75 Million

Organizational Information:

Chairman, Board of DirectorProf. Abu Nasser Muhammad Abduz Zaher

Managing Director & CEOMohammad Abdul Mannan

Company SecretaryAbu Reza Md. Yeahia

CFOMohammad Nesar Uddin, FCA, ACMA

Number of Zones15

Number of Branches288

Number of AD Branches48

Number of ATM Booth410

Number of Shareholders33,686

Number of Manpower11,381

2.7 Board of Director:Prof. Abu Nasser Muhammad Abduz Zaher (CHAIRMAN)

Prof. Abu Nasser Muhammad Abduz Zaher, Chairman, Islami Bank Bangladesh Ltd. the first and leading Islamic Bank (based on Islamic Shariah) of South - East Asia was born in a respectable Muslim family

Yousif Abdullah Al-Rajhi (VICE CHAIRMAN)

Janab Yousif Abdullah Al-Rajhi is a Vice Chairman of the Board of Directors and a foreign Director of the Bank. He served as a Branch Manager of Al-Rajhi Banking & Investment Corporation from 1987 .

Engr. Mustafa Anwar (VICE CHAIRMAN)

Engr. Mustafa Anwar is Vice Chairman of the Board of Directors of the Islami Bank Bangladesh Limited. He is the former Engineer of Bangladesh Water Development Board (BWDB). Engr.

Abdullah Abdul Aziz Al-Rajhi (DIRECTOR)

Abdullah Abdul Aziz Al-Rajhi is a foreign director of the Islami Bank Bangladesh Limited. He was elected as a director of the Bank on 15.05.2012.

Engr. Md. Eskander Ali Khan (DIRECTOR)

Engr. Md. Eskander Ali Khan is the Chairman of the Executive Committee of Islami Bank Bangladesh Limited. He is a well known business man in Developer and Poultry Hatchery in Bangladesh.

Dr. Abdul Hameed Fouad Al Khateeb (DIRECTOR)

Dr. Abdulhameed Fouad Al-Khateeb is a foreign director of the Islami Bank Bangladesh Ltd. He was elected as a director of the Bank from 1st September 2006 to till date.

Md. Abul Hossain (DIRECTOR)

Md. Abul Hossain is a representative of Investment Corporation of Bangladesh (ICB) and was elected as a director of Islami Bank Bangladesh Limited on 15.05.2012.

Dr. Areef Suleman (DIRECTOR)

Janab Dr. Areef Suleman represents on behalf of Islamic Development Bank, Jeddah, KSA as director of Islami Bank Bangladesh Limited. He is appointed as director on March 28, 2013 .

Mohammad Abdullah Al Jalahma (DEPOSITOR DIRECTOR)

Mohammad Abdullah AlJalahma is a representative on behalf of Kuwait Awqaf Public Foundation as director of Islami Bank Bangladesh Ltd. He appointed as director on April 06, 2009 .

Md. Abdus Salam, (DEPOSITOR DIRECTOR)

Janab Md. Abdus Salam, FCA, FCS, obtained both Chartered Accountancy and Chartered Secretary degrees. He was elected Depositor Director of Islami Bank Bangladesh Limited on March 23, 2010.

Professor NRM Borhan Uddin( INDEPENDENT DIRECTOR)

Professor NRM Borhan Uddin obtained Ph.D. Degree in Management from Stevens Institute of Technology, New Jersy, USA. At present he is the Vice Chancellor of City University

Professor A.K.M Sadrul Islam (INDEPENDENT DIRECTOR)

Professor A.K.M Sadrul Islam did his Ph.D in Mechanical Engineering from University of London, UK in 1988. At present he is the Professor of Dept. of Mechanical and Chemical Engineering

Barrister Mohammed Belayet Hossain (INDEPENDENT DIRECTOR)

Barrister Mohammed Belayet Hossainis an Advocate of Supreme Court of Bangladesh. He is a Barrister-at-Law (Legal Professional Services) and obtained PGDL degree from UK.

Mr. Mohammad Abdul (EX-OFFICIO DIRECTOR)

Mr. Mohammad Abdul Mannan is currently the Managing Director of Islami Bank Bangladesh Limited- the largest Bank in the private sector of Bangladesh. Before assuming the position in May 2010.

2.8 Corporate Social Responsibility of IBBL:Islami Bank believes that Corporate Social Responsibility (CSR) is integral and inseparable part of the long term business and sustainable growth and success, which plays an important role in promoting values both locally and internationally. The bank integrates all social, environmental and socio-economical issues in the time of its decision making. Contribution in CSR programs is always supported and encourage by the Board of Directors of the Bank. The management reports to the Board on CSR activities and is responsible to implement a specific line of approving authority, control and monitoring for financial support to such activities.

In the table below, sector-wise spending of the Bank for CSR purpose in 2009 and 2010 has been furnished:

SectorBDT(in million) 2009BDT(in million) 2010

Education2.707.19

Health7.9513.15

Sports0.937.88

Disaster/ Relief6.69Nil

Art & Culture5.6114.42

Others6.7411.40

Total30.6265.91

2.9 Recognition of PerformanceAs recognition of good performance IBBL won the following awards:

IBBL has been selected as the only Bank from Bangladesh in top 1000 banks in the world by a UK based century old financial magazine, 'The Banker' published the list in its July 2012 issue.

The institute of Chartered Accountants of Bangladesh (ICAB) awarded IBBL the first prize of SARRC Anniversary Award for Corporate Governance.

South Asian Federation of Accountants (SAFA) awarded IBBL as joint Winner in the Corporate Governance Disclosure Award-2010.

South Asian Federation of Accountants (SAFA) also awarded IBBL with Certificate of Merit in Banking Sector in the Annual Report for the year 2010.

The Institute of Cost and Management Accountants of Bangladesh (ICMAB), awarded IBBL as the ICMAB National Best Corporate Award-2007 (First Position, Local Bank) and ICMAB Best Corporate Performance Award 2008 (Second Position, Private Commercial Bank).

The Institute of Chartered Accountants of Bangladesh (ICAB) awarded IBBL with 3rd position under the catergory-1, Banking in the best published accounts and reports for the year 2010, the Certificate of Appreciation for the year 2001 & 2010 and Certificate of Merit for the year 2008.

The Global Finance, a reputed U.S.A. based quarterly Financial Magazine, awarded IBBL as the best Islamic Financial Institution of the country for the years 2008, 2009, 2010 & 2011. The Global Finance also awarded IBBL as the best bank of the country for the year 1999, 2000, 2004 and 2005.

ICICI Bank, Hong Kong, awarded IBBL as The Quality Recognition Award-2009 for U.S. Dollar Clearing (2009).

Bankers Forum awarded IBBL as the Best Bank for Corporate Social Responsibility for 2008 and 2009.

The Bank-Bima Patrika, a Fortnightly Magazine, awarded IBBL as the Best Islami Banking Award 2007.

Exclusive economic weekly The Industry awarded IBBL as the Best Rated Bank Award-2010.

The Citi Bank NA awarded IBBL as the Largest Contributor in Foreign Trade Operations in Europe- Bangladesh corridor in 2009.

The UAE Exchange awarded IBBL for mobilizing around 30% of total foreign remittance of the country.

2.10 Deposit and investment Scheme of IBBL

Al-Wadeeah Current Account Mudaraba Savings Account Mudaraba Term Deposit Receipt Mudaraba Special Notice Account Mudaraba Special Savings (Pension) Account Mudaraba Hajj Savings Account Mudaraba Savings Bond Scheme Mudaraba Foreign Currency Deposit Scheme (Savings) Mudarabawaqf cash deposit Mudaraba Monthly Profit Deposit Scheme MudarabaMuhor Savings Deposit Scheme

Modes of Investment Bai-Murabaha Bai-Muajjal Hire Purchase Under ShirkatulMelk Mudaraba Musharaka Bai SalamInvestment Scheme Household Durable Scheme Housing Investment Scheme Real Estate Investment Scheme Transport Investment Scheme Car Investment Scheme Investment Scheme for Doctors Small Business Investment Scheme Agriculture Implements Investment Scheme Rural Development Scheme Woman Entrepreneurs Investment Scheme Micro Industries Investment Scheme Mirpur Silk Weavers Investment Scheme

2.11 Aims and Objectives Of IBBL To conduct interest-free banking To invest on profit and risk sharing basis. To accept deposits on Mudaraba& Al-Wadeah basis. To establish a welfare-oriented banking system. To extend co-operation to the poor, the helpless and the low-income group fortheir economic upliftment. To play a vital role in human development and employment generation To contribute towards balanced growth and development of the country through investment operations particularly in the less developed areas. To contribute in achieving the ultimate goal of Islamic economic system.

TOPIC PART2.12 Islami Bank mCash (Mobile Banking):

Islami Bank Bangladesh Limited (IBBL) launchedMobile Bankingservice Islami Bank mCash, under which anytelecom operatorcustomers can get banking services anytime anywhere of the country without going to any branches. IBBL is the third bank that launched themobile bankingservice in the country,Islami Bank mCash offers different services that include free opening of customer account quickly, deposition and withdrawal of cashmoney, fund transfer from one account to another, sending remittancefrom abroad, knowing account balance and mini-statement, giving and receiving salary, mobile top-up (recharge), payment of utility bill and fund transaction among IBBL accounts.Despite making significant improvements in all the areas relating to financial viability, profitability, innovation and competitiveness, there are concerns that banks have not been able to include vast segment of the population, especially the underprivileged sections and rural people into the fold of basic banking services.Countrys 24 per cent people have access to the banking service while 60 per cent people use mobile phone. IBBL is working to cover all the 160 million people of the country under banking service; hence, the central bank took initiatives to spread theMobile Bankingservice. Islami Bank included to central banks guidelines in the mobile banking business. IBBL wanted to bring all the people under its banking services. Through mCash, the bank can provide banking service easily to the people, who are yet to receive the service.

On the other hand, rapid growth of mobile phone users and wider range of the coverage of Mobile Network Operators (MNOs) has made their delivery channel an important tool of the trade for extending banking services to the unbanked/banked population.In order to ensure the access of unbanked people by taking advantage of countrywide mobile network coverage, Bangladesh Bank given the permission to start the mobile banking operation for adoption of the unbanked people who have mobile connection.

Taking the growth of Mobile banking into consideration, it can be the perfect platform for Bangladesh to take financial services to the country's largely unbanked population in an efficient and low-cost manner.

2.13 IBBL mCash: Mission and Vision

Mission of Islami Bank mCash

To establish Islamic Banking through the introduction of a welfare oriented banking system and also ensure equity and justice in the field of all economic activities, achieve balanced growth and equitable development in through diversified investment operations particularly in the priority sectors and less developed areas of the country. To encourage socio-economic upliftment and financial services to the less-income community particularly in the rural areas. Total Financial Inclusion for balanced growth of the economy. Spread out the benefits of Islamic Banking in each and every point of the country

Vision of Islami Bank mCash

Its vision is to always strive to achieve superior financial performance, be considered a leading Islamic Bank by reputation and performance. Its goal is to establish and maintain the modern banking techniques, to ensure soundness and development of the financial system based on Islamic principles and to become the strong and efficient organization with highly motivated professional, working for the benefit of people, based upon accountability, transparency and integrity in order to ensure stability of financial systems. We will try to encourage savings in the form of direct investment. We will also try to encourage investment particularly in projects which are more likely to lead to higher employment. To provide the better customer services with minimum charges

2.14 Mobile Banking Facilities of IBBL:

Mobile banking seems to be the "in" thing right now. With mobile banking you can access your bank accounts, make payments and transfer funds via your cell phone. With vast mobile connectivity, mobile banking has become extremely successful.Let's take a look at the merits of mobile banking. The first advantage is mobile banking has an upper hand over internet banking because for the latter you will need to have an internet connection and getting the connection in remotest places might not be possible. Secondly, it saves a lot of time as you can pay your bills and make payments whenever you want.Mobile banking is extremely user friendly. The interface is really simple and if you follow a few simple instructions you will be able to make the transaction easily. Mobile banking is cost effective and most banks offer this facility at lower costs compared to banking by self.

Facilities:

Unique system for all to take the Banking Services of Islami Bank Bangladesh Limited based on Islamic Shari'ah. Profit will be given to the customer's mobile account based on the Mudaraba Principles of Islamic Shari'ah. Available banking services in 24 hours in a day, 7 days in week and 365 days in a year. Banking services without any branch banking Able to banking from anywhere of the country Foreign Remittances will be deposited directly to the mobile account in a short time. A service for the unbanked people to take banking services. Most modern, updated and more secure banking. Creation of bank transactions almost for all types of financial activities. Except the cash transactions, all transactions can be performed by the customer himself. Mobile Banking Facility from Islami Bank

2.15 Partner Mobile service operation of M-banking:Name of Bank Mobile Service Operations

Brac BankGrameenphon ,Robi, Banglalink, Airtel, Citycell, Tele Talk

Dhaka BankGrameenphon , Banglalink

Mercantile Bank LimitedGrameenphon , Robi, Banglalink, Citycell,

Dutch Bangla Bank LimitedGrameenphon ,Robi, Banglalink, Airtel, Citycell, Tele Talk

Islami Bank BangladeshGrameenphon ,Robi, Banglalink, Airtel, Citycell, Tele Talk

Bangladesh post officeGrameenphone ,Robi, Banglalink, Airtel Telecom,Citycell, Tele Talk

2.16 Opening of mCash Account

Where & how to register Islami Bank mCash account

Islami Bank mCash Account can be registered from any branch of Islami Bank Bangladesh Limited, any agent approved by Islami Bank Bangladesh Limited and mobile network operators' approved agent where Islami Bank mCash signboard will be appeared. Here account opening form will be found. Anyone can open the Islami Bank mCash account who has a mobile SIM of any mobile company will fill up the form and submit to the agent. To open an account, one needs the following:1. 1 copy of passport size photograph.2. Photocopy of National ID Card / Driving License/PassportAgent / Officer will open an account based upon the information provided by the customer and the customer will receive an SMS which will confirm the opening of the account.

The mobile account number will be the combination of his mobile number with a check digit which will be placed at the last of his mobile number. So the mobile account number will be a combination of 12 digit number.Then the customer call *259# and get the mCash Account Activation Confirmation menu and submit a four digit PIN number which will be used for each transaction and will not be disclose to anyone for security reason. At this stage, customer only can deposit money to his account but not able to withdraw and other transactions.

The authorized officer scrutinized the introduction and examine the documents submitHe/ she is required to fill up the specimen signatureApplicant fills up the relevant application from in the presided mannerAfter the activation of his mobile account by the branch employee of IBBL, he will get a confirmation SMS. Now, he can enjoy all the services of Islami Bank mCash. Generally it is required 1-3 days to activate an account.

Depositing the cash

Account is opened

Figure 9: Mobile Account opening procedures

Uses of mCash PIN Number

PIN will provide the first level of security to the customer and for each transaction his mobile phone and PIN number will be required. So, this PIN number is not shareable to anyone and must have to remember by the customer with higher preference.

2.17 How is IBBL Mobile Banking secured?IBBLMobileBankingishighlysecuredasituseseitherUSSDorSMS+IVRasits 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 Customers moneyis safe, none can withdraw his/hermoney without taking possession of the Mobile set, PIN and Checkdigit together. None will be able to deposit unwantedmoney into a Mobile Banking Account without knowing the check digit (although the mobile number is publicly known).

Figure 10: Mobile Banking secured

2.18 mCash: Service Details

Where and how the transactions will perform

Islami Bank mCash Account transactions can be performed at any branch of Islami Bank Bangladesh Limited, any agent approved by Islami Bank Bangladesh Limited and mobile network operators' approved agent where Islami Bank mCash signboard will be appeared.

Transaction Procedures

Cash in (deposit)Customer can cash-in (deposit) at any IBBL branches. Service Center, IBBL nominated Agent and from Grameenphone, Robi, Banglalink, Warid Telecom, City cell, Tele Talk retail points. Customer will give the deposited amount and mobile account number to the agent Agent will start the cash in process from his mobile phone Agent will give the deposit slip to the customer Then both the customer and agent will receive a SMS as the confirmation of the cash in (deposit) After receiving the SMS, customer will confirm about his cash in. So, he/she must not leave the agent counter before getting the SMS

Cash Out (Withdraw) Cash Out (Withdraw) at any IBBL branches. Service Center, IBBL nominated Agent and from Grameenphon, Aktel, Banglalink, Warid Telecom, City cell, Tele Talk retail points.

Customer will give mobile account number and tell the amount of cash out (withdraw) to the agent Customer will call *259# from his mobile and get the Cash Out (withdraw) menu Then he will submit the agent's mobile account number, amount of money and PIN number Then transaction will complete and both the customer and the agent will receive the confirmation SMS from the System Agent will take the customer's signature/finger print and give the cash out (withdraw) receipt and money to the customer

Send Money (from one account to another)The money transfer from one mobile account to another mobile account is called P2P transfer. At present, Grameenphone, Robi, Banglalink, Airtel, City cell, Tele Talk mobile account user can transfer maximum Tk.10,000/- (Ten thousand) per day and Tk.25,000/-(Twenty five thousand) per month from own account to any mobile account any time. Customer will call *259# from his mobile and get the Fund Transfer menu Then, the customer will submit the mobile account number, amount of money and PIN number Then, both the account holder and the customer will receive a confirmation SMS and transaction will be completed

Merchant Payment To purchase products from any merchant, the merchant should be a registered IBBL merchant Customer will call *259# from his mobile and get the Merchant Payment Then, the customer will submit the mobile account number of the merchant, amount of money and PIN number Then, both the customer and the merchant will receive a confirmation SMS and transaction will be completed

Mobile Recharge (Top-Up)IBBL mobile account holder can Top-up own or others Grameenphon, Aktel, Banglalink, Warid Telecom, City cell, Tele Talk mobile balance through his/her IBBL Mobile Account. Customer will call *259# from his mobile and get the Mobile Recharge menu Customer will select this menu and then will select the mobile number of his own phone or give the other mobile number Then customer will submit the recharge amount and PIN number Then, the customer will receive a confirmation SMS and transaction will be completed

Balance Check Customer will call *259# from his mobile and get the My Wallet menu Then customer will select the Balance Check menu from the My Wallet menu and submit the PIN number In the reply SMS, he will get the current balance of his mobile account

Mini Statement Check Customer will call *259# from his mobile and get the My Wallet menu Then customer will select the Mini Statement menu and submit the PIN number In the reply SMS, he will get the Mini Statement (last 5 transactions) of his mobile account.

PIN Number Change Customer will call *259# from his mobile and get the My Wallet menu Then customer will select the Change PIN menu and submit the current PIN number and twice the new PIN number In the reply SMS, he will get the confirmation about the change of his PIN number

Salary/Allowance DisbursementIt 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 allowanceto the people within a few moment in a hassle free way.

Figure 11: Allowance Disbursement

2.19 Receive Foreign Remittance

Now, it is not required to come at the branch premises to receive the foreign remittance. Now, anyone can send the foreign remittance directly to the mCash mobile account from the IBBL foreign liaison offices, approved agents and exchange houses. Within 24-72hours the fund will be credited directly to the mobile account and also get the confirmation SMS both the remitter and the beneficiary.This money can be able to withdraw from any branch of Islami Bank Bangladesh Limited, any agent approved by Islami Bank Bangladesh Limited and mobile network operators' approved agent where Islami Bank mCash signboard will be appeared. Please provide your remitter the following information to remit the foreign remittance: Amount of Money Name of the beneficiary Account Number (mCash Mobile Account) Bank Name: Islami Bank Bangladesh Limited

2.20 mCash: Amount of Charges

Account Opening: Free

Foreign Remittance Deposit: Free

Receive Salary & Allowance: Free

Mobile Recharge (Top-Up): Free

Merchant Payment: Free

Cash In (Deposit): Free

Cash OutRegular Cash OutAt Agent / IBBL Branch: Tk. 5 or 1.80% Tk. of transaction amount whichever is higher

At IBBL ATM / POS: Tk. 5 or 1.30% Tk. of transaction amount whichever is higher

Salary / Foreign RemittanceAt Agent: Tk. 5 or 1.00% Tk. of transaction amount whichever is higher

At IBBL Branch / ATM / POS: Tk. 5 or 0.30% Tk. of transaction amount whichever is higher

Send MoneymCash to mCash: Tk. 4 per transaction (for Tk. 10-Tk. 5,000)

IBBL A/C to mCash: Tk. 5 or 0.50% Tk. of transaction amount whichever is higher

mCash to IBBL A/C: Tk. 5 or 1.30% Tk. of transaction amount whichever is higher

Fees Payment: Tk. 2 or 1.50% Tk. of transaction amount whichever is higher

2.21 mCash: Transaction Limit

As per Mobile Financial Services Guideline of Bangladesh Bank, the following transaction limits are allowed for each customer of mobile banking:

Daily Deposit:5 times (maximum)

Daily Withdraw:3 times (maximum)

Daily Deposit Amount:50 - 25,000 Tk.

Daily Withdraw Amount:50 - 25,000 Tk.

Daily Transfer Amount:10 - 10,000 Tk.

Monthly Deposit:20 times (maximum)

Monthly Withdraw:10 times (maximum)

Monthly Deposit Amount:1,50,000 Tk.

Monthly Withdraw Amount:1,50,000 Tk.

Monthly Transfer Amount:25,000 Tk.

Daily Agent Cash In/B2B Credit:5 times

2.22 SMS Banking ServiceIBBL has introduced its SMS banking service since 2008. Registration is required. For registration you have contact to your branch. SMS Facilities are applicable only for their Online Branches. 2.22.1 Services1. Multiple Account Registration 1. International Push- Pull Facility 1. Account Balance (BAL ) 1. Mini Account Statement (STM)1. Account Information (ACI) 2.22.2 SMS Format1. IBB SERVICE PIN A/C Serial 1. Send to : 6969 (for local clients) +8801714006969 (for international clients) 2.22.3 ChargesTill now, no charges required except the normal SMS service charge.For more information please contact to your nearest branch or see the Rules and regulation given overleaf of the SMS Banking Registration Form.

2.23 Comparison among Islamic banks2.23.1 daily traffic rank trendTraffic rank for islamibankbd.com:Traffic RankChange

7 day60,743-10,264

1 month63,653+10,261

3 month66,367-28,124

Among the Islamic banks in Bangladesh Islami Bank has the traffic record, whereas other didnt come to the list yet.

2.23.2 daily reach(percent)Estimated percentage of global internet users who visit islamibankbd.com:ReachChange

7 day0.0025+20%

1 month0.0023-18%

3 month0.00225+46%

This represents the ability to reach people around the world. Islami Bank(IBBL) has the highest reach among the Islamic banks in Bangladesh.

2.24 Comparison among commercial banks2.24.1 daily traffic rank trendTraffic rank for islamibankbd.com:Traffic RankChange

7 day60,743-10,264

1 month63,653+10,261

3 month66,367-28,124

Here Brac Bank(BBL), and Duch-Bangla Bank(DBBL) got lot more traffic than IBBL, which is not great for IBBL. 2.24.2 daily reachEstimated percentage of global internet users who visit islamibankbd.com:ReachChange

7 day0.0025+20%

1 month0.0023-18%

3 month0.00225+46%

Here also BBL and DBBL got greater reach than IBBL, which is not good for IBBL.

2.25 COMPARISON WITH bKash, DBBL ,Bank Asia McashBefore comparing with bKash and DBBL, it is better to read some details of these two.2.25.1 BRAC Bank/ bKash: In 2011 BRAC Bank launched a 51% owned subsidiary called bKash combined with an investment from the USA based Money in Motion. Bangladesh Bankgranted permission to BRAC Bank and bKash jointly to operate the MFS business. The MFS guidelines specifically allow banks and their subsidiaries to carry out the MFS business. BRAC Bank/bKash launched its operations in July 2011 and its initial MNO partner was Robi. In January GrameenPhone (GP) opened a USSD channel to bKash opening the service to GP subscribers. BRAC Bank/bKashs service is delivered over the Fundamo platform initially developed in South Africa which has since been acquired by Visa. BRAC Bank/bKash has agents in all districts of Bangladesh and its aspiration is to be a large scale provider of MFS reaching tens of millions of Bangladeshis in a few years time. BRAC Bank/bKash were cautious that the service would not be profitable for another45 years. BRAC Bank/bKash has also received a $10 million grant from the Bill and Melinda Gates Foundation and technical assistance from Shore Bank International to support the launch of its MFS services.

Features/Services of bKash Mobile Banking are: Cash in & Cash Out Send Money Change pin Payment My wallet check balance request statement Token Create Token encash token redeem token2.25.2 Dutch Bangla Bank: DBBL launched its MFS service branded DBBL Mobilein March 2011 using a technology platform from an international vendor called Sybase 365.Presently DBBL operates this as a separate platform from its core banking system, but the two systems can be linked in the future. This platform uses various technologies (SMS,IVR, USSD) to open accounts and process payments. The main service is a menu driven service accessed through USSD channels provided under agreements with Airtel, Banglalink and GP. DBBL also offers an SMS/IVR based service for Citycell subscribers. DBBL makes its services available through a network of 3,181 agents provided by a combination of Banglalink, Citycell, Airtel, and UISC8. But the largest number of agents DBBL acquires itself through third party distributors. In total DBBL reports agents in 61 districts serve a total of 172 thousand accounts. DBBL aspires to acquire 1 million customers during 2012 and 10 million during 2013. DutchBangla Bank sees the main challenges in establishing stable commercial relationships to use the wireless networks ofMNOs. It also sees profitability and revenue in the early stages as a major challenge because the revenues are not sufficient to provide the income necessary to agents to build the business. An additional challenge is maintaining quality and covering the high cost of KYC with large numbers of new accounts being opened.Features/are: CustomerRegistration SalaryDisbursement Cashin(CashDeposit) ForeignRemittance Cashout(CashWithdrawal) Air-timeTop-up MerchantPayment FundTransfer Utility PaymentAbove two banks are the main competitor thatIBBL mcash has to face inthe market. So,to get success IBBL has to beat these two big competitor. IBBL has to convince the customer to use mcash rather than bKash and DBBL.

2.26 Comparison with DBBL & bkash:SubjectIBBLDBBLbKash

1.LaunchedDecember 27,2012March 20112011

2.Mobilebank Agents26 thousand34 thousand58 thousand

3.Mobilebank Customers18 million15 million20 million

4.Transactions LimitsGood Good Good

5.ChargeLower High High

6.ConvenientYes Yes Yes

7.AgentShipComplexEasy Easy

8.SecurityNo fraud found Fraud foundFraud found

9.MarketingMediumStrong Strong

10.Merchant/tradePaymentGood Good Wide

11.AcceptanceMediumMediumHigher

12.ContractedOperator666

13.GeneralbankingBestGood good

14.LimitationExistsLow Low

DECISION:From the above table it is easy to take decision on the superiority of mobile banking services among three (3) banks. But any bank has not superiority in all subjects. Therefore IBBL mcash is in strong position in general banking customer base, capital base, security which are positive sides of IBBLto become successful in the market. Also the cost of mobile banking service is lower than bKash. But it has slow growth rate ofcustomer and agents due to lack of promotional activities, lack of contract with main mobile operator.

2.27 Comparison of mobile banking services with other banks.Bank NameServicesPlace of servicePhones

IBBL Customer Registration Cash-in (cash deposit) Cash-out (cash withdrawal) Mobile Top-up Person to Person Transfer (P2P) Foreign Remittance Salary Disbursement Balance Inquiry Bill Payment Merchant Payment Any branch, any agent approved agent where Islami Bank mCash signboard will be appeared Grameenphone ,Aktel, Banglalink, Warid Telecom, Citycell, Tele Talk

DBBL All in above Linkage with core banking account. Any branch, any agent approved agent where DBBL mCash signboard will be appeared

ATM Grameenphone Aktel, Banglalink, Citycell Robi Teletalk

BRAC All in Above of IBBL BKash any agent approved agent where Bkash signboard will be appeared.

For Bkash all phone is approve.

UCBMBLUcashMy cash approved agentAll Phones

Jamuna BankBank AsiaSure cash

Remittance Ektee Bari Ektee Khamar Mobile Banking based on Smart Phones Mobile Banking based on Smart POS(point of sale)

approved agentAll Phones

2.28 Comparison of mCash: Amount of Charges with others bankIBBLDBBL

Account Opening: Free: Free

Foreign Remittance Deposit: Free: Free

Receive Salary & Allowance: Free: Free

Mobile Recharge (Top-Up): Free: Free

Merchant Payment: Freefree

Cash In (Deposit),Fast Track: FreeDBBL, BKB, RAKUB Branches 10tk

P2P Fund Transferfree5tk

Balance Enquiryfreefree

Statement Enquiryfreefree

Cash-in Chargesfree2% of the transaction amount or Tk. 10/-, whichever is higher

Cash-outRegular Cash OutAt Agent / IBBL Branch: Tk. 5 or 1.80% Tk.of transaction amount whichever is higher2% of the transaction amount or Tk. 10/-, whichever is higher

At IBBL ATM / POS: Tk. 5 or 1.30% Tk. of transaction amount whichever is higher

Salary / Foreign RemittanceAt Agent: Tk. 5 or 1.00% Tk. of transaction amount whichever is higher

At IBBL Branch / ATM / POS: Tk. 5 or 0.30% Tk. of transaction amount whichever is higher

Send MoneymCash to mCash: Tk. 4 per transaction (for Tk. 10-Tk. 5,000)

IBBL A/C to mCash: Tk. 5 or 0.50% Tk. of transaction amount whichever is higher

mCash to IBBL A/C: Tk. 5 or 1.30% Tk. of transaction amount whichever is higher

Fees Payment: Tk. 2 or 1.50% Tk. of transaction amount whichever is higher

2.29 Comparison of mCash: Transaction Limit with others bankIBBLDBBL

Daily Deposit5 times (maximum)Same

Daily Withdraw3 times (maximum)Same

Daily Deposit Amount50 - 25,000 Tk.Same

Daily Withdraw Amount50 - 25,000 Tk.Same

Daily Transfer Amount10 - 10,000 Tk.Same

Monthly Deposit30 times (maximum)20 times (maximum)

Monthly Withdraw15 times (maximum)10 times (maximum)

Monthly Deposit Amount1,50,000 Tk.Same

Monthly Withdraw Amount1,50,000 Tk.Same

Monthly Transfer Amount25,000 Tk.Same

Daily Agent Cash In/B2B Credit5 timesSame

3.1 INTERNSHIP EXPERIENCEI did my three months internship program in Islami Bank Bangladesh Limited, Head Office. During my internship program, I gained some experience about the corporate environment. My internship experience is given below-3.2 Internship Position, Duties & ResponsibilitiesThe duties and responsibilities I had to perform in the bank are given below: Before joining in the branch: Before joining in the branch, had an eight days training in the Islami Bank Training and Research Academy. There I have learned different terms and introduced with different products of IBBL. After joining in the branch: After joining in the branch, had to perform any kind of duties assigned by the manager and the senior principal officer. Account Opening- Here I had taken part in the completion of some account opening forms. After finishing the procedure of the forms I had to process and store client information into the banks software named Electra debt which IBBL use to do their online banking. Also done the transaction profile of the client and risk rating. Investment & Foreign Exchange department-Had to study different clients files and discuss different investment related issues with the supervisor. Had to explain different issues to the supervisor. Help the clients to open locker account in investment department. Putting seals in different papers. ATM Desk-Taking requisition for ATM card from the clients, sending request to the head office and hand it over to the client after receiving it. Giving account statement to the clients, issuing cheque and helping people to do i-banking.3.3 Different aspects of the job :I had to take an eight days training and give examination before joining in the branch. After joining in the branch I had to perform different works according to the orders of the manager and the senior principal officer. I had to study different clients files and discuss different investment related issues like the process of taking and giving investments, choosing the targeted customers, calculating the portion of profit and installment amount, documents needed to execute the investment etc. with the supervisor. I had to help the clients to open account in account opening desk. I had to work with Electra debt and IBBLs software for data entry and other computer related works. I had to take requisition for ATM card from the clients, sending request to the head office and hand it over to the client after receiving it. I also had to give account statement to the clients and issue cheque books. 3.4 Critical observations and recommendations:From my observations in the bank while working there, I noticed that most of the customers are satisfied with the bank. They are also getting new products and services like student account, Internet-banking. But I have some recommendations for the bank according to my observations. Those are given below: The bank needs to open more ATM booths in different places as it has a huge number of customers. The bank can be more flexible to grant investments to the customers. It can provide training on the internet to its employees. It needs to build up a stronger backup system. As it is a financial institution, missing of data caused by backup failure may turn into a huge loss. It can employ more female employees in the branch. The bank can make a clear picture on the difference between interest and profit. They can use an understandable Islamic terms. They can upgrade their services more.

Survey Research on Mobile Banking of IBBL (Dilkusa,Motijill,Heasd Office ).

4.1 Problem Statement (Background of the study):This report is based on the Mobile Banking Service of Islamic Bank Bangladesh Limited. The main purpose of the report becomes very clear from the topic of the report. Islami Bank Bangladesh Limited (IBBL) launchedMobile Bankingservice Islami Bank mCash, under which anytelecom operatorcustomers can getbankingservices anytime anywhere in Bangladesh. The report discusses about the different Mobile banking services & facilities and compares them with mCashs competitors. The most important part of any of this is that if the customers are satisfied. What do the customers think about the mobile banking and mCash. Mobile banking has revolutionized banking in Bangladesh. It is faster than before, it is more flexible and less costly, but again it is very important to find out what the customers think about that because, at the end of the day, everything is for the customers. Success always comes from a banks happy customers. So what I have tried to find out is clearly what do the customers think or feel about the service of mobile banking and Mcash on the next research part.4.2 Project Timeline:To prepare this project report we had to spend total one month. The project activities have shown in the following: Week 01: Methodology developed & Questionnaire finalization. Week 02:Data Collection Week 03:Conduct survey research Week 04:Data analysis and Interpretation

Description of ActivitiesWeek 1Week 2Week 3Week 4

Developed the research plan

Developed the hypothesis

Conduct survey research

Data analysis and Interpretation

4.4 Budget Information:The total individual expenditure to prepare this project as followed:ParticularsAmount (BDT)

Transportation1,000

Printing, Photocopy & Binding1,500

Cell phone & Internet Bill1,500

Lunch bills1,000

Others Expenses500

Total5,500

Table 1: Internship Budget Information

4.5 Data Source:

Primary Data: The primary data has been collected from field survey through the questionnaire structure. The questionnaire structure has been solved face to face conversation with the selected sample.

Secondary Data: Website of Islami Bank Bangladesh Limited. Banks Annual report 2013. Hand note provided by the bank. Internet

4.6 Research Design:Sampling Plan Population The population for the survey was the approximately 1200 Mobile banking customers in Islami Bank Bangladesh Limited head office over three period of months. Sample Unit: Customers of Islami Bank Bangladesh Limited Head Office. Sample Frame: The sample frame of this study consists of approximately 1200 Mobile banking customer in Islami Bank Bangladesh Limited Head Office. Sampling Size: A total of 40 customers have been selected randomly. The Customer has been defined both male and female

Sampling System:For conducting this study simple random sampling method has been followed. Instrument of Research Questionnaires with Structure question Personal Question with MCQ Likert Scale Question 4.5.2 Research Approach Survey 4.5.3 Research Instrument Questionnaires with Structure question personal Question with MCQ4.5.4 Contract Method Questionnaire Survey

4.7 Data Analysis: For analysis of data Microsoft Word, Microsoft Excel, different tables and graphs were used to make the data meaningful. Hypotheses were testing to derive a meaningful conclusion from the empirical data. In addition, basic statistical techniques of different measures of central tendency have been used for analyzing the data. As the sample size is more than 30, I have used Z test for the study. The following formula has been followed: Z test = (- )/ (/n) = mean value n = sample size = Standard deviation

= AverageBased on our analysis, I made findings, recommendations, and conclusion.

4.8 Hypothesis Scale:In order to analysis the data a 5 point Likert scale has been used. 1 stands for highly disagreed customers, 2 stands for only disagreed customers, 3 stands for the neutral customers, 4 stands for agreed customers, and 5stands for highly agreed customers.The scale has been shown below:

Table: Hypothesis scaleCustomer OpinionWeighted

STRONGLY DISAGREE1

DISAGREE2

NEITHER AGREE NOR DISAGREE3

AGREE4

STRONGLY AGREE5

4.9 HYPOTHESIS DEVELOPMENT1. HA: Mobile Banking of IBBL has made banking exercise easier than before.2. HA: Mobile Banking of IBBL takes less time than traditional Banking.3. HA: Mobile Banking of IBBL is more efficient and secure than internet banking.4. HA: Mobile Banking of IBBL is more effective in developing saving habits.5. HA: Mobile Banking of IBBL is a very effective way to improve customer service.6. HA: Mobile Banking of IBBL is safe for financial transactions.7. HA: By using Mobile Banking of IBBL we can save our time by paying utility bills anywhere.

4.10 HYPOTHESIS TESTING: Likert ScaleH1H2H3H4H5H6H7

1= Strongly disagree3220231

2=Disagree7340354

3= Neither agree nor disagree85678910

4= Agree16151617151011

5= Strongly agree6151216121314

Total135158152169152145153

Average 3.3753.953.84.2253.83.6253.825

Standard Deviation1.1698

1.13111.13670.73331.11401.2741.106

Z-test value4.730

8.1077.23314.8777.3805.5847.576

Table 02: Hypothesis Testing

4.11 Graphical Representation:HYPOTHESIS 1HO: Mobile Banking of IBBL has not made banking exercise easier than before.HA: Mobile Banking of IBBL has made banking exercise easier than before.Ho: = 2.5Ha: 2.5 Total = 135

Here, Average = 3.375Standard deviation = 1.1698Since, n > 30, so I conduct Z test.

Z cal = ( )/ (/n) = 4.730At 5% level of significance, follows Z distribution Z0.05 = 1.645Since, Z cal> Z tab, the null hypothesis is rejected. So at 5% level of significance, it may be said that Mobile Banking of IBBL has made banking exercise easier than before. *------In 5 point scale the mean value is 2.5

Figure 11: Respondents view regarding Mobile Banking of IBBL has made banking exercise easier than before.HYPOTHESIS 2HO: Mobile Banking of IBBL does not take less time than traditional Banking.HA: Mobile Banking of IBBL takes less time than traditional Banking.Ho: = 2.5Ha: 2.5 Total = 158

Here, Average = 3.95Standard deviation = 1.1311Since, n > 30, so I conduct Z test.

Z cal = ( )/ (/n) = 8.107At 5% level of significance, follows Z distribution Z0.05 = 1.6451. Since, Z cal> Z tab, the null hypothesis is rejected. So at 5% level of significance, it can be said that Mobile Banking of IBBL takes less time than traditional Banking.*------In 5 point scale the mean value is 2.5

Figure 10: Respondents view regarding Mobile Banking of IBBL takes less time than traditional Banking.

HYPOTHESIS 3HO: Mobile Banking of IBBL is not more efficient and secure than internet banking.HA: Mobile Banking of IBBL is more efficient and secure than internet banking.Ho: = 2.5Ha: 2.5 Total = 152

Here, Average = 3.8Standard deviation = 1.1367Since, n > 30, so I conduct Z test.

Z cal = ( )/ (/n) = 7.233At 5% level of significance, follows Z distribution Z0.05 = 1.645Since, Z cal> Z tab, the null hypothesis is rejected. So at 5% level of significance, it can be said that Mobile Banking of IBBL is more efficient and secured than internet banking.*------In 5 point scale the mean value is 2.5

Figure 13: Respondents view regarding Mobile Banking of IBBL is more efficient and secure than internet banking.

HYPOTHESIS 4HO: Mobile Banking of IBBL is not effective in developing saving habits.HA: Mobile Banking of IBBL is more effective in developing saving habits.Ho: = 2.5Ha: 2.5 Total = 169

Here, Average = 4.225Standard deviation = 0.7333Since, n > 30, so I conduct Z test.

Z cal = ( )/ (/n) = 14.877At 5% level of significance, follows Z distribution Z0.05 = 1.645Since Z cal> Z tab, the null hypothesis is rejected. So at 5% level of significance, it can be said that Mobile Banking of IBBL is more effective in developing saving habits.*------In 5 point scale the mean value is 2.5

1. Figure 17: Respondents view regarding Mobile Banking of IBBL is more effective in developing saving habits.

HYPOTHESIS 5HO: Mobile Banking of IBBL is not a very effective way to improve customer service.HA: Mobile Banking of IBBL is a very effective way to improve customer service.Ho: = 2.5Ha: 2.5 Total = 152

Here, Average = 3.8Standard deviation = 1.1140Since, n > 30, so I conduct Z test.

Z cal = ( )/ (/n) = 7.47At 5% level of significance, follows Z distribution Z0.05 = 1.645Since, Z cal> Z tab, the null hypothesis is rejected. So at 5% level of significance, it can be said that Mobile Banking of IBBL is a very effective way to improving customer service.*------In 5 point scale the mean value is 2.5

1. Figure 16: Respondents view regarding Mobile Banking of IBBL is a very effective way to improve customer service.

HYPOTHESIS 6HO: Mobile banking is not safe for financial TransactionsHA: Mobile banking is safe for financial TransactionsHo: = 2.5Ha: 2.5 Total = 145

Here, Average = 3.625Standard deviation = 1.274Since, n > 30, so I conduct Z test.

Z cal = ( )/ (/n) = 7.47At 5% level of significance, follows Z distribution Z0.05 = 1.645Since, Z cal> Z tab, the null hypothesis is rejected. So at 5% level of significance, it can be said that Mobile banking is safe for financial Transition.*------In 5 point scale the mean value is 2.5

Figure 17: Respondents view regarding Mobile banking is safe for financial Transactions.

HYPOTHESIS 7HO: By using Mobile banking of IBBL we can not save our time by paying utility bill anywhere.HA: By using Mobile banking of IBBL we can save our time by paying utility bills anywhere.Ho: = 2.5Ha: 2.5 Total = 153

Here, Average = 3.825Standard deviation = 1.106Since, n > 30, so I conduct Z test.

Z cal = ( )/ (/n) =7.576At 5% level of significance, follows Z distribution Z0.05 = 1.645Since, Z cal> Z tab, the null hypothesis is rejected. So at 5% level of significance, it can be said that By using Mobile banking we can save our time to pay utility bill.*------In 5 point scale the mean value is 2.5 Respondent

Figure 17: Respondents view regarding By using Mobile banking we can save our time to pay utility bill.

5.1 Findings:These are some findings given below on the basis of seven hypothesis testing.1. Mobile Banking of IBBL has made banking exercise easier than before. In this Hypothesis, 40% respondent Agreed and 15% strongly agreed, 20% Neither Disagreed nor Agreed, 17.5% Disagreed and 7.50% Strongly Disagreed. So it can be said that Mobile banking is making banking easier than before.

2. Mobile Banking of IBBL takes less time than traditional Banking. In this hypothesis,25% respondent Agreed and 50% Strongly agreed,12,5% neither disagreed nor agreed,7.5% disagreed and 5% strongly disagreed. After taking a look at this result it can be said that the most of the people believe mobile banking saves them more time.

3. Mobile Banking of IBBL is more efficient and secured than internet banking. In this Hypothesis,40% agreed and 30% strongly agreed. On the other hand 10% disagreed. So by taking a look at the percentage it can be said that, mobile banking is more efficient and secured system than what internet banking has to offer. 4. Mobile Banking of IBBL is more effective in developing savings habits. In this hypothesis, 43% respondent agreed and 0% of respondent disagreed. It is strongly proved that mobile banking has increased the saving habits of people.

5. Mobile Banking of IBBL is a very effective way of improving customer service. In this hypothesis, 37.5% respondent agreed and 7.5 respondents disagreed. So it is quite safe to say that Mobile Banking has improved customer service through direct communication with customers via cell phones.

6. Mobile banking is safe for financial transactions. In this hypothesis, 25% agrees, 33% strongly agreed,23% neither agreed nor disagreed,12% disagreed and 7% strongly disagreed. So looking at this result it can be said that financial transactions are much safer, speedy and safeguard against fraudulent transactions.

7. By using Mobile Banking we can save our time by paying utility bills anywhere. In this hypothesis, 25% agrees, 33% strongly agreed, 23% neither agreed nor disagreed, 12% disagreed and 7 % strongly disagreed. So mobile banking is ultimately saving more time and has made our lives easier than before.5.2 Recommendation: Islami Bank Bangladesh Limited is on third position on Mobile Banking Services in our country. First position is Dutch Bangla bank and second position is Brac Bank Limited. All the services are almost same but the customers are different from one another but now a days, Mobile banking service of IBBL is performing well compared to its competitors and increasing the customers of mcash. Although the IBBL mcash is providing many facilities, they need to increase some extra facilities for more popularity.On the basis of the field observations and analysis of the gathering information from the relevant studies the flowing recommendations may be proposed for the further improvement of Mobile Banking of IBBL.1. From the findings, maximum people have agreed with this hypothesis. It is found out that, there is no major problem with the mcash services. So it can be said that, mobile banking has made banking easier than before though I believe it hasnt been much popular because of the lack of good advertising or rather I would say serious advertising.

2. From the findings, maximum people have agreed with this hypothesis. From the survey it is clear that maximum people are happy with mobile banking more than traditional banking because of the flexibility mobile banking has to offer. So it is pretty clear that not only IBBL but all the banks have reached their goals which is they achieved the trust of their customers on mobile banking system and now I think it is time for the next step or goal to look forward to.

3. From the findings on this hypothesis, it is clear that mobile banking is strongly accepted by the people. Because now people can make transactions and get all information about their accounts within a second by using mcash. There is no chance of getting hacked in Mcash services which may occur in the internet banking. Though, the IBBL authority should always keep their eyes and ears open to protect their clients from any potential threat.

4. From the findings on this hypothesis, it is also clear that now people are saving more than before. It is simply because of the fact that mobile banking has reached to more and more new people. Though it has not reached in some of the remote areas of our country. So I think authority should give proper publicity and advertisement to reach to those remote areas.

5. Mobile banking is a perfect way to improve customer service. Most of the middle class & lower class people use mobile at the present time. They need appropriate service by the mobile operators. Authority can create more customer care and also create more customer care employees by training system.

6. From the findings, clients are comfortable doing the financial transactions because it is safe and secured So the authority should keep an eye out on it so that it stays that way.

7. From the findings, maximum respondent have agreed more than disagreed that they are using mobile banking to pay the utility bills. People now do not need to go to the banks and wait on the long serials to pay their bills, they can do it anywhere by using phones. The authority should encourage their clients on using mcash and advertise more on it.

The bank also needs to provide more facilities to the customer to increase its popularity. They can use the popularity to use on their customers to use mcash services. Islami bank ATM booths should be increased more on the other hand.

5.3 Conclusion: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 increase revenue from the now static subscriber base. For the fact is that one day, in most of our country emerging markets, more people will use mobile Banking service than use traditional banking service. 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 bebuilt by using today's technology. But to capture this significant opportunity, financial firms and telecommunications companies will have to partnership with one another and, possibly, with merchantsandretail chains aswell.Mobile banking is suspended to become the big killer mobile application arena. However, banks are going with mobile the first time needs to step the path cautiously. The biggest decision that banks need to make is the channel that they will support their services on. Mobile banking through an SMS based service would require the lowest amount of effort, in terms of cost and time, but will not be able to support the full breath of transaction-based services. However, in markets like India where a bulk of the mobile population users' phones can only support SMS based services, this might be the only option left. On the other hand a market heavily segmented by the type and complexity of mobile phone usage might be good place to roll of WAP based mobile applications. According to the Gartner Group, mobile banking services will have to support a minimum of 50 different device profiles in the near future.Islami Bank Bangladesh limited ispioneerofMobileBankingin Bangladesh and it has a lot of possibility to reach customers door as well as banking in the handoff customers.

6.1 Bibliography: Annual report 2013 of IBBL. Other Internship Reports of IUBAT, Discuss with the senior officers of IBBL General Banking portfolio of IBBL Books, Journal related to IBBL Relevant Statistics and Business Research Books, Mobile Banking PDFWebsite: http://www.islamibankbd.com http://en.wikipedia.org/wiki/Mobile_banking https://ibblportal.islamibankbd.com/indexLogin.do http://mcash.islamibankbd.com/ http://bdloan.net/how-to-get-mobile-banking-facility-from-islami-bank-mcash.html

6.2 Calculation of Average & Standard deviation :1.HO: Mobile Banking of IBBL has not made banking exercise easier than before providing online service

HA: Mobile Banking of IBBL has made banking exercise easier than before providing online service

Strongly DisagreeDisagreeNeither agree/Nor DisagreeAgreeStrongly Agree

1

12

123

234

2345

2345

2345

2345

345

345

4

4

4

4

4

4

4

4

4

314246430

Average3.375

SD1.169867404

6.3Questionnaire (Customers)Subject: Practicum (BUS-490) Study on Mobile Banking Service of Islami Bank Bangladesh Limited...

(The information collected from this questionnaire will be used for research/academic purpose and will be kept secret)

Name of respondent: .Location: ..Age: Marital Status: Married Unmarried DivorcedSeparatedOther ___________________Educational Qualification:

01. To what degree do you agree that Mobile Banking of IBBL has made banking easier than before?1.Strongly 2.Disagree 3.Neither Agree 4.Agree 5.Strongly Disagree nor disagree Agree

02. To what degree do you agree that Mobile Banking of IBBL takes less time than traditional Banking?1.Strongly 2.Disagree 3.Neither Agree 4.Agree 5.Strongly Disagree nor disagree Agree

03. Do u agree that Mobile Banking of IBBL is more efficient and secured than internet banking?1.Strongly 2.Disagree 3.Neither Agree 4.Agree 5.Strongly Disagree nor disagree Agree

04. Do you agree that Mobile Banking of IBBL is more effective in developing saving habits?1.Strongly 2.Disagree 3.Neither Agree 4.Agree 5.Strongly Disagree nor disagree Agree

05. To what degree do you agree that Mobile Banking of IBBL is a very effective way to improve customer service?1.Strongly 2.Disagree 3.Neither Agree 4.Agree 5.Strongly Disagree nor disagree Agree

06. Do you agree that Mobile banking is safe for financial Transactions?1.Strongly 2.Disagree 3.Neither Agree 4.Agree 5.Strongly Disagree nor disagree Agree

07. Do you agree that By using Mobile banking we can save our time by paying utility bills anwhere.1. Strongly 2.Disagree 3.Neither Agree 4.Agree 5.Strongly Disagree nor disagree Agree

Remarks:.

Thank you for your valuable time

Sharia Banking or Islamic Finance overarching principle is that all forms of interest are forbidden. The Islamic financial model works on the basis of risk sharing. The customer and the bank share the risk of any investment on agreed terms, and divide any profits between them. The main categories within Islamic finance are: Ijara, Ijara-wa-iqtina, Mudaraba, Murabaha and Musharaka.

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