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E Banking


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Published in: Business, Economy & Finance

E Banking

  2. 2. What is INTERNET Banking or @ E-Banking?
  3. 3. Introduction • The systems that enable financial institution customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet. i.e. • PC • ATM • PDA • TT • BOOTH • Online banking
  4. 4. History Of E-Banking  E-Banking History dates back to 1980s.  The term online became popular in the late '80s and referred to the use of a terminal, keyboard and TV (or monitor) to access the banking system using a phone line  Stanford federal credit union was the first who offer online internet banking services to all of its members in 1994.  Later on snapped up by other banks like Well Fargo, Chase Manhattan and Security First Bank.
  5. 5. Definition  quot;Online Bankingquot; or quot;Internet Bankingquot; is a term used for performing transactions, payments etc. over the Internet.  Online banking or Internet banking allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society. (Wikipedia)
  6. 6. Types of E-Banking  Basic Level Services. Information About products and services.  Simple Transactional Website. Submit Application, Instruction but don't offer Fund based Transaction.  Fully Transactional Website. Transfer Funds, Payment of different bills, Subscribing to other products and sale and purchase of securities .
  7. 7. Is e-banking really popular?  Data from payments association Apacs show 21 million people used online banking last year, compared with 3.5 million early adopters in 2000.  According to Alexa, the list of 100 most popular websites in India has 4 websites that are of top most banks in India.  - Rank 27, ICICI Bank  - Rank 34, HDFC Bank  - Rank 98, State Bank of India  - Rank 100, Citi Bank
  8. 8. How Is Internet Currently Employed?  Net Banking / e-Banking / Online Banking  Statements / Transactions Summary  Inter Branch Funds Transfer (all branches not e-banking enabled)  Inter Bank Funds Transfer (all banks not enabled with this service)  Bills Payment - Phone & Electricity  Lead Generation for Deposits, Investment Plans, Credit Cards  Marketing, Advertising, Brand Building
  9. 9. Products and Services  Electronic Fund transfer In Electronic fund transfer mostly we use ATM and Bank’s website.  Personal Computer banking Account summary, Request cheque books, Payment of Utility bills  Phone Banking By using phone you can make payments.  Person to person payment It also known as email money transfer.
  10. 10.  Debit card Purchase You can use your account balance any where in the world with he help VISA support. ( PSO, Electronics, Book shop, Hotels)
  11. 11. Comparison between National and international bank Funds Transfers inside Fund Transfers inside Utility Bills Bill Payment Balance inquiry Account summary SMS Alert Account alerts Order cheque book Credit card activity Funds transfer outside Fund transfer outside Credit card payment View checks
  12. 12. Online Banking Frauds  While online banking has been around for many years, but no cases of fraud have been reported until recently. Since the beginning of the year 2004, reports of fraud cases nearly explode.
  13. 13. Password + Fishing  The quot;phishingquot; scheme involves using fake emails and/or fake websites. Criminals send emails that appear to be from the customer's bank that direct customers to a fake website.  The first half of 2008 alone has seen 20,000 reported phishing incidents – where users are sent phony emails taking them to fake banking websites trying to get hold of their account details – compared with just over 5,100 cases two years ago.
  14. 14. Phishing
  15. 15. Spyware is generally considered to be software that is secretly installed on a computer and takes things from it without the permission or knowledge of the user Trojan horse The quot;Trojan horsequot; scheme is based on embedding a computer virus type software program onto the customer's PC. Trojans often tie themselves into the keyboard driver and record keystrokes
  16. 16. Skimming  Skimming is a more advanced version of an identity theft . Fraudsters illegally copy the information from the magnetic strip on the back of your plastic without interfering with the legitimate payment transaction.
  17. 17. Over the shoulder  The quot;over the shoulder lookingquot; scheme occurs when a customer performs financial transactions while being observed by a criminal.
  18. 18. Risk Management Board and Management Oversight  An explicit, informed and documented strategic decision as to whether and how the bank is to provide e-banking services.  The initial decision should include the specific accountabilities, policies and controls to address risks, including those arising in a cross-border context.
  19. 19.  It encompasses security control process, such as the development and maintenance of a security control infrastructure.  Third-party dependencies.  Outsourcing relationships
  20. 20. Legal and Reputation Risk Management  Delivery on a consistent and timely basis.  Effective incident response mechanisms.  Banks should effective capacity, business continuity and contingency planning.  Develop appropriate incident response plans, including communication strategies
  21. 21. Security Controls  Appropriate authorization privileges and authentication measure.  Logical and physical access controls.  Adequate infrastructure security to maintain appropriate boundaries. Restrictions on both internal and external user activities.  Data integrity of transactions, records and information.  Protection and privacy regulations.  Adequate disclosure
  22. 22. Suggestions and Recommendation 1. Let them Shop  These customer are more than comfortable playing with their money on their bank’s website.  If the bank could provide a Online Shopping Facility and great deals on daily need products like grocery, books, gadgets etc.  Why would you or I even bother going to eBay, Shop hive, Amazon or any online store and spending hours on bidding and comparing prices?  Huge amount of money can be made by any bank since there is no product display cost involved; only order delivery costs and these costs can be beared by the suppliers and the bank could earn a commission on every sale.
  23. 23. 2.Let Debit Cards Go Online  Most of the Pakistani and Indian online stores don’t accept debit cards.  The number of debit card holders is 10 times more than that of credit card holders in the world. Or may be even more.  Let customers use debit cards for online shopping at least where they can pay in the local currency.  No one would mind paying a small convenience fee as low as Rs.10 per transaction.  Lets say, the number of daily online purchases in Pakistan is 1,00,000 and that means Rs.10,00,000 can be made everyday and that is Rs.36 crores to be made every year.
  24. 24.  3.Online customer support If we don’t take care of our customers, someone else will.
  25. 25.  Every bank can offer customer support over the Internet.  Call me back option.  Live chat over the bank website  Toll free number ( Allied bank and Standard charted bank)
  26. 26.  FAQs  Site Maintenance activity  Multi language support  Feedback
  27. 27. 4.Website Structure  Ease of use The communication has to be enable with the customer through use of text, graphics and animation.  Customer’s confidence How customer feel while visiting your website?  Relationship services Building relation ship services by offering extra services and information
  28. 28. Q&A