E business has been continuously growing as a new industry during the last decade (Van Hoeck, 2001). E banking is now a global phenomenon. A strong banking industry is important in every country and can have a significant effect in supporting economic development through efficient financial services. (Salehi and Azary, 2008; Salehi et. Al, 2008). Apart from the developed countries, the developing countries are experiencing strong growth in e banking such as India and the Republic of Korea. In Southeast Asia, Internet banking is developing rapidly in Thailand, Malaysia, Singapore and Philippines (Mia et. al. 2007). E banking has proved to be a revolutionary tool of doing business in this global era. E banking technologies have proliferated in recent years, and the availability of wide range of products has leed to increasing adoption among consumers. Consumers are getting attracted to these modern form of technologies because of convenience, increasing ease of use, and in some cases, cost savings (Anguelov et al., 2004).

The economy of most developing countries is cash driven; meaning that monetary transactions are basically made through the exchange of bank notes and coins for goods and services. However, this trend is now giving way to a modern and sophisticated payment system where the currency and notes are converted to data which are in turn transmitted through the telephone lines and satellite transponders. This is as a result of rapid technological progress and development in the financial market. (Ozuru et al, 2010; Johnson, 2005). For Nepal, ATM has been the latest and trendy form of banking service in Nepal. Banks equip with ATM machines at the various densely populated region to attract customers as well as to make the service easy and reliable. However, when it comes to E banking, large number of population even from cities and towns prefer going to the banks and work physically to get the task done.

It is believed that m banking will provide another new channel for banking services, especially for certain remote areas where online internet is still unavailable. Strategic implications and customer perception of m banking services are explored (Laukkanen and Lauronen, 2005). With a focus on consumer value creation and a better understanding about the customer perceived value of m banking services. For instance, mobile internet service has been quite popular in Japan (over 60 million users in 2003) especially for those young and single (i.e., unmarried) consumers (Scornavacca and Barnes, 2004).

The term mobile banking (or m banking) describes the banking services that the user can perform via a mobile device ubiquitously at any time and from anywhere. In order for users to access their accounts, they need a mobile device and network connectivity. Therefore sitting in front of computer is not a requirement anymore; accessing accounts can occur while users are waiting their turn at the dentist clinic or relaxing at the beach! (Al Akhras and Qwasmi, 2011).

A majority of studies highlight the fact that 'security' is the biggest single concern of customers when faced with decision to use Internet Banking. Security has always been an issue, but its scope has changed from mere doubts about the privacy of personal information to worries of financial loss (Sayar and Wolfe, 2007). It is followed by 'responsiveness of service delivery (speed and timeliness)', 'ease of use', 'credibility of the bank', and 'product variety' (White and Nteli,2004). Akinci et al. (2004) finds that the selection of internet banking service provider is effected by security, reliability and privacy. Security which involves protecting users from the risk of fradu and financial loss, has been another important issue in safe use of the internet when conducting financial transactions in Saudi Arabia (Sohail and Shaikh, 2007).

Thapa (2003) conducted a study of future prospective of online banking in Nepal to examine the future feasibility of the online banking services in Nepal. It was found that the most important factor to online banking users surveyed was the overall security of their money. Those who responded to the survey also highlighted privacy, cost, convenience and access to financial information as key components to using online banking. Shrestha (2012) concludes saying in Nepal, where the literacy rate is low, most of the people are technologically ignorant while among the literate portion many of them have computer phobia. Internet banking is increasingly becoming a ‘need to have’ than ‘nice to have’ service.

INTRODUCTION:

Mobile banking can be kept under the subset of E banking itself. Soon after People’s Movement II, the campaign was launched Haat Haat ma Mobile, Ghar Ghar ma Internet (Mobile in every hand, Internet in every house). Internet in every house is yet not answerable, however we can say the first part met it’s objective in the run anyway. Mobile has almost been in every individual’s hand, no matter where the citizen belongs to. There is nothing to get surprised in seeing cell phone user in Jumla at this phase of time for sure. After this revolution in technology banking sector further expanded their service through Mobile. There are two main telecommunication Networks serving actively in Nepalese communication wave. Nepal Telecom and Ncell has huge role in development of telecommunication sector in context of Nepal. However, United Telecom Limited, Smart Cell, Hello Nepal and other few exists. There few Indian telecommunication networks gaining popularity in border side as well.

There is nothing so huge in explaining the meaning of Mobile banking, Mobile Banking is a service that allows you to do banking transactions on your mobile phone without making a call, using the SMS facility or using Wireless Access Protocol (WAP). Hence, gaining service of the bank without sitting in the queue of the bank, all through your cell phone by the means of SMS or WAP can be explained as Mobile banking.

Since, mobile technology has not yet made huge history, mobile banking must be called as developing trends. Mobile banking has allowed customers to check their balance, figure out the amount deposited or withdrew and even transfer balance. Use of GPRS and upgraded models of cell phones has allowed customers to enjoy entire features of Internet Banking through their cell phone itself. Today, it is possible to enjoy every service provided by Banks through cell phone, and that does not matter where one belongs to. It does not matter whether customer is in the bus, travelling somewhere, or at beach out of the country, he can get every details in his hand itself. One certainly does not need to stay in the queue or even wait for the electricity to appear in the hours of load shedding to get details of one’s account.

The best part of mobile banking is the 24-7 service that it provides. So, no longer should one rush in huge traffic to bank simply to get details or carry out minor transactions, as it is possible all through the means of Mobile itself. However, from organizational point of view, mobile banking has reduced the burden of employee as well. When the customers don’t come to the work place for minor tasks as to check the balance, employees burden decrease as well. A son studying in Valley must not rush to the bank to ensure that the amount sent by his father has been added to his account. He can simply check it through his cell phone. Again, one can move without any risk of being robbed. He need not to take care of his ATM as well.

Although minor transactions were carried out through Mobile in Nepal since 2004 itself, it was Laxmi Bank that introduced first Mobile banking service through its product, ‘Mobile Khata’. By this date, there are various other banks that has separate department to provide its service from Mobile Phone anyway. Gradually, mobile banking has been turning out to be the need of the bank, because within increasing number of commercial banks in Nepal, customers have become selective in selection of the institution considering the services they provide.

Statement of the Problem:

Mobile banking is a new technology in Nepal which has lots of potential to bring revolution in the banking system but still it is facing difficulties in providing better services to the customers and gain their trust. So from this research, we want to find out the various factors that affects the current situation and future prospects of mobile banking in Nepal.

Objective of the Study:

· To identify the prospect of mobile banking in Nepal.

· To detect problems of mobile banking in Nepal.

· To make suggestions on the basis of findings.

METHODOLOGY:

In order to complete the study, two sources of data was used. First, secondary data were collected from various websites and articles. Information was collected from online sources, as well as various other places.

Second, primary data was collected through surveys. The data was collected from various mobile bank holding consumers. The age group was from 16 to 40. Both male and female equally participated in the survey, that was conducted on online basis through Google Forms as well as hard copy forms. There were asked regarding their views on Mobile banking through likert scale format.

The collected data are then evaluated using measures of central tendency that is by mean, median and mode.

ANALYSIS AND DISCUSSION:

Mobile Banking has been new to Nepal. Not much of the Banking systems here provide mobile banking service in Nepal. They have the Mobile Alert in maximum cases, however, transactions via mobile is somewhat new in context of Nepal. So, four hypothesis were used, and the respondents had to answer in Likert data scale.

Out of 100, 90 responded to the survey. The participation of male and female in the survey can be seen through the pie diagram below.

The hypothesis testing can be seen below:

Hypothesis 1:

Mobile banking will be time consuming.

Here, out of 90 responses collected: 34 strongly disagreed, 24 just disagreed, 15 showed their neutral response towards it, 4 agreed and 9 of them strongly agreed!

Variables (x)	frequency (f)	cf	fx
1	34	34	34
2	28	62	56
3	15	77	45
4	4	81	16
5	9	90	45
	n = 90		Efx = 196

Mean (Efx/n) = 2.178

Median [(n+1)/2] = 45.5^th term = 2

Mode = 1

From all the measures of central tendency, we can conclude that the respondents disagreed to the hypothesis that Mobile Banking will be time consuming. They rather believe that mobile banking is less time consuming one. This indicates that people are at least aware of the fact that mobile banking will reduce their banking time. This analysis showed the figure that, respondents showed just disagreement upon the hypothesis.

Hypothesis 2:

Mobile Banking will increase the banking charges. It is expensive.

Out of 90 responses collected, we can see that 19 of them regard this as strongly disagreement factor, 25 of them regard it as disagreement factor. 25 of them regard it as neutral, 12 regard it as agreement factor, and in the end 9 regard it as strongly agreement factor.

Variables (x)	frequency (f)	cf	fx
1	19	19	19
2	25	44	50
3	25	69	75
4	12	81	48
5	9	90	45
	n = 90		Efx = 237

Mean (Efx/n) = 2.63

Median [(n+1)/2] = 45.5^th term = 3

Mode = 2 and 3

From all the measures of central tendency, here we can see that the response has been regarded as ‘3’, which means neutral. Now, this gives different aspects towards the hypothesis. We can regard this case as the state of confusion. On one hand, yes it increases the bank charge, because various banks in Nepal have charges that are applicable for taking this service. Again, on the other hand, customer tends to forget that the charge is not that high that they need to fear. Their transportation cost per month for visiting bank probably would be equal to mobile banking charge.

Hypothesis 3:

Mobile Banking in Nepal is for upper class people only.

Out of the collected responses, 8 of them showed strong disagreement, 12 of them simply showed their disagreement, 11 of them had neutral attitude towards it, 30 of them agreed on it, and 29 of them agreed upon it.

Variables (x)	frequency (f)	cf	fx
1	8	8	8
2	12	20	24
3	11	31	33
4	30	61	120
5	29	90	145
	n = 90		Efx = 330

Mean (Efx/n) = 3.66

Median [(n+1)/2] = 45.5^th term = 4

Mode = 4

Here we can see that mean value is 3.66, that falls between neutral and agree. Median value hereby is 4 that shows there is agreement, although not strongly agreement upon the hypothesis that mobile banking is for upper class people only. We can say from the findings that, large number of people believes that mobile banking is not for middle class, or lower class. They don’t feel that anyone owning a mobile set is the potential user of mobile banking.

Hypothesis 4:

Mobile Banking in Nepal is for professionals.

Among 90 responses collected, 21 of them ticked on ‘Strongly Agree’ option, 17 of them ticked on ‘Agree’, 18 showed neutral response, 20 of them chose ‘Disagree’ option while 14 of them chose ‘Strongly Disagree’ option.

Variables (x)	frequency (f)	cf	fx
1	21	21	21
2	17	38	34
3	18	56	54
4	20	76	80
5	14	90	70
	n = 90		Efx = 259

Mean (Efx/n) = 2.87

Median [(n+1)/2] = 45.5^th term = 3

Mode = 1

In this case we can see mode being different from mean and median. We can regard, mean and median, as they are same and take our analysis. Here we can find neutral attitude towards the hypothesis, and that shows the state of confusion. Respondents generally tend to believe that mobile banking is for professional people, again they are confused, and they even feel that mobile banking is also for general people.

CONCLUDING REMARKS:

From the analysis above we can conclude that people are aware that mobile banking is fast and quick process. So, the problem lies in failure to make clearness in idea about the Mobile Banking to the bank customers. They know that mobile banking saves time, is easy process. However, they are confused with banking policies. They fear that taking mobile banking service will increase their bank charge. That will let them towards more expenses. They again have the feeling that mobile banking is for upper class people only. This signifies that mobile banking is the service, that has to be utilized with people with high bank balance, because it is generally upper class people who have high bank balance in the bank. Consumers can also be seen in the state of confusion regarding this service hereby. They fear that mobile banking is not for general banking users like housewives, students, small businessman, one who deposits for the sake of interest. On the basis of this study, following recommendations can be granted to Banking sectors in Nepal for the massive participation of consumers in mobile banking service.

1. Consumers are aware of the fact that mobile banking is quick and a rapid process. However, they fear with the charges that are applicable for use of this service. Banking sector should clearly specify their banking charge rates, and keep it to the minimal point. They should make clear statement regarding their charging policies.

2. Consumers tend to believe that mobile banking in Nepal is for upper class people only, which actually is not the case. Every account holder of the bank shares equal importance of mobile banking. However, there is this wrong perception among the mind of Nepalese account holders about this specific issue hereby.

3. Are mobile banking only for professionals? Certainly not, even students, housewives, shopkeeper or any account holder can make best use of mobile banking. Banking sectors need to make clear promotion about this regard.

4. Large number of respondents showed the figure that they want to use Moblie banking service (from the finding that first hypothesis) however, they are scared of various factors, and are in the state of confusion. It is therefore the responsibility of Banking sectors to make an effective promotion with the mission of ‘informing’ about the Mobile Banking service showing the pros and cons of it. Only when the things are crystal clear in the mind set of service taker, they tend to be attracted towards the service.

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Received on 29.11.2014 Modified on 13.12.2014

Asian J. Management; 6(4): Oct. -Dec., 2015 page 256-260

DOI: 10.5958/2321-5763.2015.00037.2