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Internet banking
Internet banking
Internet banking
Internet banking
Internet banking
Internet banking
Internet banking
Internet banking
Internet banking
Internet banking
Internet banking
Internet banking
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Internet banking

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  • 1. D.A.V.V. School Of Economics 3rd Internal Assignment “IT FOR MANAGERS” On “Internet Banking” Submitted By: Ashutosh Kaurav Dhiresh Chawla Sunil Chichra Vivek Pandey
  • 2. Internet Banking Introduction Internet banking mixes with 2 words i.e. Electronic technology and Banking. It is Process by which a customer performs banking transactions electronically via internet. The automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. It’s also known as online banking or E-banking.This new and convenient way of banking has set a boom in our day to day life The concept of Internet banking has been simultaneously evolving with the development of the World Wide Web (www). The online shopping promoted the use of credit cards through Internet. The automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. Internet Banking offers consumers and business alike the ease of managing banking and financial tasks from home. Online banking has become a lifeline for those who cannot leave the house, or live in rural areas where access to banks can be limited. Online banking facilities offered by various financial institutions have many features and capabilities in common. The remote delivery of new and traditional banking products and services through electronic delivery channels. The common features fall broadly into several categories:
  • 3. A bank customer can perform non-transactional tasks through online banking, including Viewing account balances Viewing recent transactions Downloading bank statements Viewing images of paid cheques New Cheque Book ordering Download periodic account statements Depositing Taxes Downloading applications for M-banking, E-banking • • • • • • • • etc. • • • • • • • • • • Funds transfers between the customer's linked accounts Paying third parties, including bill payments Investment purchase or sale i.e. investment services Loan applications and transactions, such as repayments of enrollments Shopping Ticket Booking Prepaid Mobile Recharge LIC & other insurance premium payments Donations to NGO’s Self-account funds transfer across India Internet/Online banking is easy, reliable and convenient way to fulfil our banking needs. This robust banking facility connects us with our bank at our convenience, we don’t have to plan our day according to bank hours, no more waiting in queue and even you can check your balance whenever and wherever you want. Most of the time online banking and internet banking are often used interchangeably. In this method, customer gets his bank account ID and password and he can check his account, pay his bill and print his receipt
  • 4. through his home personal computer which is connected with Internet. E-banking is development of today banking system. It refers to the provisions of electronic banking services via internet through personal computer (PC) or other access devices with internet capabilities. From an economic perspective, information technology and computer networks have enhanced the automation, speed and standardization in communications and internal administration, increasing customer convenience and functionally and reducing costs in back-office and front desk banking functions. Internet banking gives customers the ability to access virtually any type of banking services in any place and at any time. Many depository institutions contract with third party firms for internet banking support services they choose not to provide themselves. ICICI was the first bank to initiate the Internet banking revolution in India as early as 1997 under the brand name 'Infinity‘ ICICI Bank kicked off online banking way back in 1996. But even for the Internet as a whole, 1996 to 1998 marked the adoption phase, while usage increased only in 1999- due to lower ISP online charges, increased PC penetration and a tech-friendly atmosphere The Reserve Bank of India constituted a working group on Internet Banking. The group divided the internet banking products in India into 3 types based on the levels of access granted. They are:- i) Information Only System ii) Electronic Information Transfer System iii) Fully Electronic Transactional System Information Only System
  • 5.  General purpose information like interest rates, branch location, bank products and their features, loan and deposit calculations are provided in the banks website.  There exist facilities for downloading various types of application forms.  The communication is normally done through e-mail.  There is no interaction between the customer and bank's application system.  No identification of the customer is done. In this system, there is no possibility of any unauthorized person getting into production systems of the bank through internet Electronic Information Transfer System  The system provides customer- specific information in the form of account balances, transaction details, and statement of accounts.  The information is still largely of the 'read only' format. Identification and authentication of the customer is through password.  The information is fetched from the bank's application system either in batch mode or off-line.  The application systems cannot directly access through the internet. Fully Electronic Transactional System  This system allows bi-directional capabilities.  Transactions can be submitted by the customer for online update.
  • 6.  This system requires high degree of security and control. In this environment, web server and application systems are linked over secure infrastructure.  It comprises technology covering computerization, networking and security, inter-bank payment gateway and legal infrastructure.  Automatic Teller Machine (ATM)  ATM is designed to perform the most important function of bank.  It is operated by plastic card with its special features.  The plastic card is replacing cheque, personal attendance of the customer, banking hours restrictions and paper based verification HISTORY Online services started in New York in 1981 when four of the city’s major banks (Citibank, Chase Manhattan, Chemical and Manufacturers Hanover) offered home banking services First internet banking service start in the UK 1983,Bank of Scotland offers Nottingham Building Society (NBS) known as “home link” connecting via a telephone and television to send transfers and pay bills. The first online banking service in United States was introduced, in October 1994. The first online website was Stanford Federal Credit Union, which is a financial institution. In 2001, 19 million users start accessing bank accounts online
  • 7. In 2005, Debit and credit was launched In 2007, Apple launches I-phone and shifting of banking services via personal computer or Smartphone begins Technology has enabled numerous advantages and overcome the traditional banking, offering the best of banking experience on your fingertips. Advantages Of Internet Banking 1. Convenience 2. No lines 3. Availability 4. Innovation 5. Easy to Operate 6. Friendlier Rates 7. Transfer Service 8. Ease of Transactions 9. Less Time Consumption (Speed) 10. Multiple Operations In Single Shot 11. Performance 12. Shop & Payment 13. Banking from anywhere in the world 14. Inexpensive
  • 8. Disadvantages Of Internet Banking 1. Legal Issues 2. Setting up an account may take time 3. Site changes and Updates 4. Customer Services 5. Ease Internet Access 6. Security Concerns (Risks, Hacking) 7. Technical Breakdowns 8. Switching Banks 9. Money Usage (req. ATM) 10. Learning Difficulties 11. Computer Skills and Internet Knowledge Required 12. Required Hardware’s to operate (PC, handsets) 13. Banks himself don’t trust their own security systems 14. Relevant Operating system required (98, 2000, vista)
  • 9. Online Banking versus Traditional Banking: – A Comparison Traditional Banking * Traditional banking is great because you can develop relationships with your bank representatives. This is helpful when you’re borrowing money, looking for sound advice or just like to know the people who are managing your money. * In traditional banking transactions you do not need any type of security. * Traditional banking also offers the convenience of easy deposits and withdrawals. You know that your deposit will be in your account the same day or the next day. And you can withdraw money during regular banking hours. * Traditional banks offer a number of features like money orders, wire transfers and travelers checks, often without a fee. You can still get these from banks where you don’t have an account but there is usually a high fee involved to process. * The only matters that you have to keep your bank papers of bankbook safe. * Traditional banks have security in the form of surveillance cameras and occasionally they employ security guards. * If you are having any problem related to the bank, you can immediately go to the bank and solve your doubts. * You can get any information related to bank and still have any doubts you can immediately ask. The downside to traditional banks is that you have to stick to their business hours, which aren’t always convenient. You cannot access your bank account when you’re out of town, and every time you need to process a transaction you have to go to the bank. * If the papers of bank are lost you may also lose the right of your bank properties.
  • 10. * In traditional banking sometimes your work may remain uncompleted which is wasted of time. *If employees are busy with their bank it is not possible that they may give you the proper answer. *Your bank papers are not secured through traditional banking Online Banking * Online banking means you can access your account from anywhere at any time. You can get into your account, transfer money, pay a bill, and make withdrawals and deposits from other accounts. * Online banking is fast. You don’t have to leave your couch to process a transaction. * Online banking is often cheaper. In addition to being able to offer competitive rates, many online banks don’t charge hefty fees and you don’t have to pay for the gas to get there. And you save money on postage if you’re paying bills electronically. * Most online banks also send notices and statements via email, which saves paper and notifies you immediately if there is any funny business with your account. However, the downside to online banking is that you need an internet connection to interact with your account. You also have to be comfortable using the computer. Finally, online banking poses some security and identity theft risks. Most online bank accounts offer advice, assistance and protections to keep your information and your money safe. * In online banking services one needs to count with an internet service provider. *Hackers may access your bank account Switching banks can be more cumbersome online than one person.
  • 11. CONCLUSION E-banking transactions are much cheaper than branch or even phone transactions. This could turn yesterday’s competitive advantage – a large branch network –into a comparative disadvantage, allowing e-banks to undercut bricks and mortar
  • 12. banks. This is commonly known as the “Beached Dinosaur” theory. E-banks are easy to setup, so lots of new entrants will arrive . Old world’ systems, cultures and structures will not encumber these new entrants. Instead, they will be adaptable and responsive. Ebanking gives customers much more choice. Consumers will be less inclined to remain loyal. Portal providers are likely to attract the most significant share of banking profits. Indeed banks could become glorified marriage brokers. They would simply bring two parties together e.g. buyer and seller, payer and payee. The products will be provided by monoclines, experts in their field. Traditional banks may simply be left payment and settlement business even this could be cast into doubt. Traditional banks will find it difficult to evolve, not only will they be unable to make acquisitions for cash as opposed to being able to offer shares, they will be unable to obtain additional capital from the stock market. This is in contrast to the situation for internet firms for whom it seems relatively easy to attract investment.

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