• KHAWAJA JAMIL (Group leader) (117-SE/BS(H)/F07)
• MUHAMMAD ISHTIAQ (118-SE/BS(H)/F07)
• MUHAMMAD ARSHAD (114-SE/BS(H)/F07)
• MUHAMMAD SHAKIL (125-SE/BS(H)/F07)
• MUHAMMAD JAMIL (127-SE/BS(H)/F07)
• 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.
• Online banking
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
Stanford federal credit union was the first who offer
online internet banking services to all of its members in
Later on snapped up by other banks like
Well Fargo, Chase Manhattan and Security First Bank.
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)
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 .
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.
www.icicibank.com - Rank 27, ICICI Bank
www.hdfcbank.com - Rank 34, HDFC Bank
www.onlinesbi.com - Rank 98, State Bank of India
www.citibank.co.in - Rank 100, Citi Bank
How Is Internet Currently
Net Banking / e-Banking / Online Banking
Statements / Transactions Summary
Inter Branch Funds Transfer (all branches not e-banking
Inter Bank Funds Transfer (all banks not enabled with this
Bills Payment - Phone & Electricity
Lead Generation for Deposits, Investment Plans, Credit Cards
Marketing, Advertising, Brand Building
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
By using phone you can make payments.
Person to person payment
It also known as email money transfer.
Debit card Purchase
You can use your account balance any where in the world with he help
VISA support. ( PSO, Electronics, Book shop, Hotels)
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
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.
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
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.
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
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
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.
Over the shoulder
The quot;over the shoulder lookingquot; scheme occurs when a
customer performs financial transactions while being
observed by a criminal.
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
It encompasses security control process, such as the
development and maintenance of a security control
Legal and Reputation Risk Management
Delivery on a consistent and timely basis.
Effective incident response mechanisms.
Banks should effective capacity, business continuity and
Develop appropriate incident response plans, including
Appropriate authorization privileges and authentication
Logical and physical access controls.
Adequate infrastructure security to maintain appropriate
boundaries. Restrictions on both internal and external
Data integrity of transactions, records and information.
Protection and privacy regulations.
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
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.
2.Let Debit Cards Go Online
Most of the Pakistani and Indian online stores don’t accept debit
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
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.
3.Online customer support
If we don’t take care of our
customers, someone else
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)
Site Maintenance activity
Multi language support
Ease of use
The communication has to be enable with the customer through use of text, graphics and
How customer feel while visiting your website?
Building relation ship services by offering extra services and information