Data analytics in

Banking Industry
  Analytics is helping the banking industry become smarter in
managing the myriad challenges it faces.
 While basic reporting and descriptive analytics continues to be a
must-have for banks, advanced predictive and prescriptive
analytics are now starting to generate powerful insights, resulting
in significant business impact.
 Product and portfolio optimization modelling is helping banks
INTRODUC achieve profitable growth in an environment with significant
volatility across asset classes and rising losses in traditional
-TION banking products.
 Consumer behaviour and marketing analytics are driving
sustainable competitive advantage in an era with eroding product
differentiation, waning customer loyalty, and exploding volume,
velocity and variety of data
 Sophisticated risk modelling presents a powerful way to
understand short and long-term profitability and capital adequacy
or in other words, chances of bank’ssurvival in future.
 I. Chapter 1….….ABOUTTHE MOBILE PAYMENTS INDUSTRY
II. Chapter 2……..MAJOR COMPANIES INTHE INDUSTRY

INDEX III. Chapter 3 …..…PRODUCT PROFILE

IV. Chapter 4……...INTRODUCTIONTO STUDY
V. Chapter 5………RESEARCH METHODOLOGY
  The digital payment system types include mobile wallets, internet
banking, mobile banking, PoS, and others.
CHAPTER 1
 M-wallet market segment, which currently account for a
minuscule part of Digital Payments includes transferring of
ABOUT THE money, banking transactions, shopping, ticketing, recharging, and
bill payments is projected to grow at a CAGR of around 30% in the
next five years from 2015-2019.
MOBILE  Total transaction value in the "Digital Payment" segment in India
PAYMENTS amounts to USD 28,961.6 million in 2016 and the Indian digital
payments industry is projected to reach $500 Bn by
INDUSTRY 2020, contributing 15% to India’s GDP, as per a recent report by
Google and Boston Consulting Group.
 I. Banks
• State Bank of India
CHAPTER 2
• Central Bank of India

MAJOR II. Private Players

COMPANIES  One 97 communications
IN MOBILE  Amazon India

PAYMENTS
III. Public Players
INDUSTRY  National Payments Corporation of India
 Mobile Payments Forum of India
  PayTM
 Amazon Pay
 Google TEZ
CHAPTER 3  Freecharge
 BHIM
PRODUCT  Phone Pe
PROFILE  SBI Anywhere Personal
 Cent Mobile
 NUUP or *99# service
 No Journal/Conference Title Author Yea Conclusion/Results
r
Second International Mobile Kruttika Feb In this paper, a mobile payment processing model
1. Conference on Mobile payment Sutrave, rua is presented and each type of mobile payment
CHAPTER 4 and Secure Services
(MobiSecServ)
security,
threats, and
Christe ry,
n Hahn, 201
systems is introduced. It also summarizes the
security services desired in mobile payment
challenges Yong 6 systems and also the security mechanisms which
Wang are currently in place. It further identifies and
discusses three security threats, i.e., malware,
INTRODUCTION SSL/TLS vulnerabilities, and data breaches, and
four security challenges, i.e., malware detection,
TO STUDY multi-factor authentication, data breach
prevention, and fraud detection and prevention,
in mobile payment systems.
Information An exploratory Sumit Jan The findings of the study reveal the important role
4.1 2. Technology
Development
for study
mobile
on Gupta,
Hee-
uar
y,
of perceived risk and control in influencing
customers’ intention to adopt mobile banking.

Literature banking
adoption
Indian
in
Woong
Kim,
Heng
201
7
Moreover, perceived risk and control significantly
influenced mobile banking adoption by customers
in urban areas but only perceived control

Review metropolitan
and
areas:
urban
A
Xu,Haej
ung Yun
significantly influenced mobile banking adoption by
customers in metropolitan areas. Additional
analysis show that customers’ risk and control
scenario based perceptions differ according to level of security;
experiment however, these perceptions do not have a
significant influence on risk and control.
 No Journal/Conference Title Author Year Conclusion/Results

Journal of Mobile Ravi May, Although the number of Internet Banking users
3 Organizational Banking: Lonkani, 2017 have grown rapidly in recent years, not all
Computing and Exploring Chuleepor customers are ready to accept mobile banking
Electronic Determina n services. It remains a challenge for banks to
Commerce nts of its Changchit, explore how to attract more customers to adopt

4.1 Adoption Jomjai

Sampet
the use of banking services via a mobile channel.
This study examines the factors that impact
acceptance of the use of mobile banking. A total of
309 subjects participated in this study. Data was
collected via a survey instrument. After multiple
regression analysis of the data, findings suggest
the factors that bank should consider when

Literature Organizacija, User Aleksandr Novem

implementing mobile banking services, thus
allowing them to design services that meet the
needs of their customers.

Review 4 The goal of the research was to analyze user

Volume 49 Experience a Svilar, ber, opinions about the current situation: how users
with Joze 2016 perceive security and how the authentication
Security Zupancic methods they are using affect user experience.
Elements The results indicate that the use of mobile banking
in Internet is relatively low, as only 30 percent of respondents
and Mobile use mobile banking along with Internet banking.
Banking Users perceive security to be the most important
factor in mobile and online banking, closely
followed by reliability. 69% of respondents
selected the correct authentication method. The
opinion of 88% of respondents was that
authentication methods do not limit them when
using mobile and Internet banking.
 No Journal/Conference Title Author Year Conclusion/Results

Journal of “Rechargi Dr. Januar To answer the fundamental question whether it is a

5 Business and ng: the Karmind y, 2016 better strategy to develop a unique positioning on
Management Right er the basis of single key service or it’s better for an
(IOSR-JBM) Way??” A Ghuman, organization to offer multiple services, thereby
e-ISSN: 2278- case study CS Shruti reducing risk, Increasing traction and thus increasing

4.1 487X on e-
payment
giants:
Freecharg
Shrivasta
va
its valuation The present study employs the case
example of two leading e-platforms: Freecharge and
PayTM that are employing diametrically opposite
strategies in order to scale up their ventures. It also
e& examines the role of Push and Pull strategies in a
PayTM
single industry, thus drawing the reader to take a
position, which is better and why.

Literature 6 13th International

Conference
Information
on
Mobile Gabriel June,
Payment: A Machado 2016
systematic Braido,
It identified 4 categories where the studies forum
concentrate, namely: adoption of mobile payment
(Theory of Innovation), trust ship (Theory of Transfer

Review Systems
Technology
Management-
& review of Amarolin
the
literature
da
Zanela
Klein
of Confidence), intention to use technology (Unified
Theory of Acceptance and Use of Technology) &
acceptance of technology (Technology Acceptance
CONTECSI 2016 Model).
Journal of Mobile Ravi May, This study examines the factors that impact
7 Organizational Banking: Lonkani, 2017 acceptance of the use of mobile banking. A total of
Computing and Exploring Chuleepor 309 subjects participated in this study. Data was
Electronic Determina n collected via a survey instrument. After multiple
Commerce nts of its Changchit, regression analysis of the data, findings suggest
Adoption Jomjai the factors that bank should consider when
Sampet implementing mobile banking services, thus
allowing them to design services that meet the
needs of their customers.
4.2  Mobile Payment Characteristics : Simplicity and Usability,
Universality, Interoperability, Cost, Speed, Security, Privacy and
Trust.
 Mobile Payment Solutions: Bank Account based M-Payment,
Background Credit Card based M-Payment, Telecommunication Company Billing
of M-Payments.
of the  Technologies for Mobile Payments: Short Message Service (SMS),
Unstructured Supplementary Services Delivery (USSD), WAP/GPRS,
Study Phone-based Application (J2ME/BREW), SIM-based Application,
Near Field Communication (NFC), Dual Chip , Mobile Wallet.
4.3  With the rapid development of information technology,
Problem ubiquitous mobile phones, and the impact of the demonetization
scheme of the Government of India, India has experienced a
Statement/ significant surge in the number of electronic transactions through
mobile payment apps and services.

Rationale  However, around the world, spread of electronic banking has

resulted in thousands of cybercrimes and monetary thefts by
of the cybercriminals. The security risks related to electronic transactions
through mobile payments are high due to various technological
Study and other reasons.
4.4
 To assess the security policy of the various mobile payments
systems in India

Objectives  To determine the issues faced by the users of the mobile payment
systems
of the  To evaluate the security of the various mobile payments systems
in India
Study
  Hypothesis 0 [H0]: The mobile payment system is not risky based
on the security principles.
 Hypothesis 1 [H1]: The mobile payment system has low risk based
4.5 on the security principles.
 Hypothesis 2 [H2]: The mobile payment system has moderate risk
based on the security principles.
Hypothesis  Hypothesis 3 [H1]: The mobile payment system has high risk based
on the security principles.
 Hypothesis 4 [H4]: The mobile payment system is very risky based
on the security principles.
  The study included evaluation of the apps installed on
CHAPTER 5 smartphones with various versions of Android OS, iOS in case of
Apple devices, and basic mobile phones without data connection.
The time spent with the subjects ranged from thirty to sixty
RESEARCH minutes.
 A total of 45 activities, including installation, transactions,
METHODO- login/logout, is studied. The subjects were asked to share their
experience as the experiment was in progress so that it could be
LOGY recorded for further analysis. Additionally, the researchers
participated in the transactions, when required.
  The apps chosen for each of the category of online payment were
based on their popularity. They are as follows: ·

5.1 Category 1: Mobile Wallets – PayTM, Amazon Pay·

Category 2: Apps linking to bank accounts – BHIM, PhonePe.
Category 3: Banks’ Apps for Account Holders – SBI Anywhere
Personal (SBI Bank), Cent Mobile (Central Bank of India).

Research Category 4: Basic USSD - using *99#

 The study follows a Causal Research Design. (Experimental
Design Research).
Dependent variable = function (Independent variable)
User Issues = function (Security)
Risk = function (Principles)
  The apps were evaluated on the RBI guidelines and BASEL norms for secure
digital financial transactions as below:
1. Confidentiality: To evaluate this aspect in the apps, we investigated

5.1 2.
whether the data (in-transit or saved data) was accessible only to intended
stakeholders.
Transaction non-repudiation management: We investigated whether the
transaction logs were maintained and if the data in the logs could be used
in case of transaction repudiation. Whether the app tracked and warned in
cases of unusual transaction patterns.
3. Authentication of the identity of the customers: We investigated
Research 4.
whether every transaction was authenticated, and conducted with explicit
consent. & also the strength of login and logout process authentication.
Data and transaction integrity: We investigated whether the Data

Design maintained and displayed were accurate and consistent, Transaction

confirmation processes followed the norms of a reliable and consistent
transaction.
5. Access and availability: We investigated the Variety of modes in which the
services were available & Reliability of the service such as availability of
information on ombudsman.
6. Privacy of customer information: To evaluate this aspect, we investigated
whether the requested privileges were justified (whether the functionality
of the app could be compromised without access to the privileges).
  The study includes collection of data from 2 sources:

5.2 I. Primary Data Source

 Survey
 Interview
 Journals
Sources
of Data I. Secondary Data sources
 News Paper articles
 Public Press Releases
 Websites
  The Primary data for the research is collected in 2 ways:

5.3 1) Survey
 The instrument used is a semi-structured questionnaire.

Data 2) Interview
 Each interview acts as a key informant survey.
Collection  Subject was regarding the issues faced by them while using the
systems
Method
TRIANGULATION : By using two methods simultaneously we
get more reliable & accurate representation. Thus eliminating the
chances of error.
5.4
 The population for the study includes 16000 students and 1500
Population faculties from the campus of 22 academic institutions.
 Sampling Technique : Probabilistic Sampling
 Sampling Method : Stratified Sampling
5.5  Sample Size : 250
 Sample Location : Parul University, Vadodara, India
 Sampling Instrument : Questionnaire & Interview
Sampling
Plan
 1. PayTM
 When money is transferred from bank to wallet, the bank sends an
OTP to complete the transaction. This is generated by the bank,
CHAPTER 6 and is to be entered in the bank’s portal. However, Paytm picks up
the OTP message, when it is not intended for Paytm. Some of our
Data Analysis subjects expressed concern over this violation of data
& confidentiality.
 Allows for vendors such as Uber, Bigbasket to not only be able to
Interpretation view the users’ available balance, but also allows for automatic
deduction without the explicit consent of the user.
 2. Freecharge
 The FreeCharge wallet balance displayed in the home page of a
user did not represent the transferable balance accurately. On
clicking on it, a pop-up displayed that the amount was not usable
cash balance but voucher balance. Voucher balance is not
transferable and usable only for paying to certain third party
vendors like mobile recharge, movie ticket booking, etc. However,
the wallet balance display was misleading, giving a sense of
available cash balance.
 In the latest Android and iOS platforms, FreeCharge allows users
to explicitly accept or deny access to privileges. However denying
access to phone, SMS and storage caused installation failure and
did not allow the user to carry out any transaction.
 3. Cent Mobile
 During the app installation and setup on the user’s mobile device,
the app asks the user to setup the password which will later be
required by the user for app login. User selects one of the two
options: existing internet banking password, or setting up a new 4-
digit-pin.
 The app is directly linked to the user’s CBI bank account. The bank
sends transaction notifications to users based on user preferences
setup with the bank. However, the app does not send any
notification (SMS or email) to the user. Since the app is managing
the bank account separately, it should generate and send
notifications to users to ensure transaction integrity and prevent
non-repudiation.
 4. BHIM

 The transaction notifications for BHIM show only the UPI id of the
payee, not her name. This may create confusion if the payee is one
of the many customers transferring money to the same vendor.

 Logout is automated in BHIM. The user is logged out of her account

when she exits from the app or after fixed time intervals. If the user
has to access the app, she has to login using the previously setup 4-
digit-PIN. See figure below.
 5. USSD
 The user may add a beneficiary in the app. However, even if the
beneficiary has been added, every transaction from the user’s
bank account to the beneficiary’s account requires the user to
enter his/her UPI password.
 USSD system transfers money directly from user’s bank account.
If the bank account has a joint account holder, the other account
holder should also be notified in case of a transfer. But transfer
through USSD does not deliver transaction notification to the joint
account holder.
 For some users, the USSD screen disappeared after some interval
of inactivity, and the user has to repeat the entire process from the
beginning, starting with dialling *99#.
  There was no evidence of systematic analysis of transaction
patterns with a warning to users of unusual or problematic
transactions. For instance, if multiple, repetitive transactions are
made in a very short period of time, this is not flagged by the
payment systems. The lack of this feature is potentially harmful.
CHAPTER 7:  The Paytm app has an unusual and unreasonable access to the
one-time- password sent by a partner bank.
 Authentication processes are enabled in the apps, however we
Results & found that there are security concerns.

Findings  As with confidentiality issues, these security concerns arise if the

user's phone is compromised.
 Paytm allows partners such as BigBasket and Uber to
automatically deduct amounts, without authentication by the
user. Though this provides convenience, it also allows
unauthorized deductions (which may be disputed later).
  Paytm and Freecharge do not log out the user automatically, and
logging out is also not easy for a new user, whereas Cent Mobile and
Bhim automatically log out the user.
 USSD has some issues with the menu screen disappearing if there is a
delay in responding. This is an assuring aspect of the payment apps.
CHAPTER 7:  Some concerns are that Paytm does not update the balance amount
immediately and Freecharge reflects an inaccurate amount.
 There are serious privacy concerns with all the services studied. All the
Results & apps demand access to private data of the user, on the phone, without
providing a clear rationale as to why this is needed.
Findings  If some access is denied by the user, for instance access to the camera
and media, even when the QR mode of payment is not being used, the
apps do not function.
 We also observed that the security vulnerability is inversely
proportional to the users’ awareness of security threats, technology
and features of the phone.
CHAPTER 8:  Many respondents were not willing to install PhonePe, an app that
was prominently launched and widely advertised, owing to its
direct access to bank accounts, and hence, could not be included
Limitations of in our study.

Study
  Potential for confidentiality breaches was a problem observed for
all the mobile payment methods, except USSD.
 Unauthorized access to the phone can reveal all details about
CHAPTER 9 transactions made for Paytm, Freecharge, iMobile and Bhim. The
Paytm app has an unusual and unreasonable access to the one-
time- password sent by a partner bank.
Conclusion &  Data and transaction integrity was quite sound for most of the
apps.
Suggestions
 USSD and Bhim can operate on a voice and sms-based phone
connection, and do not need a data plan (internet access) as the
other payment apps do. Hence they enable a wider access.
  Improvements in terms of data integrity (accuracy of balance
sheet, transaction confirmation and such), and confidentiality
(ensuring that the data is accessible only to intended
stakeholders) will enhance the trust of the users.
 Certain aspects that were considered serious violations, such as
allowing a merchant to deduct without the explicit consent of the
user, should be addressed with urgency.
Suggestions  While the USSD apps and bank apps have a clear guidance on the
processes required to approach an ombudsman, the e-wallets are
lacking on this aspect. This needs due diligence from the app
vendors and regulatory authorities of India.
 While educating users is definitely an approach, it is
recommended that the OS vendors and app vendors enforce basic
security hygiene (such as enforcing phone password, login
password, logout and such) as part of their design.