IntroductionDefinition:-• The provision of banking service through electronic channels and the customer. It can access the data without time and geographical limitation.• Combination of the two term Electronic technology & Banking.• Process by which a customer performs banking transactions electronically.
What is E-banking? E-Banking denotes the provision of banking and related services through extensive use of information technology. Delivery of bank’s services to a customer at his office or home by using electronic technology.
Development of E-banking1980s :• Rapid development of the Internet• TCP/IP system (communication system)• E-commerce
Development of E-banking• 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.
CHANNELS IN E-BANKING AUTOMATED TELLER MACHINE (ATM) TELE-BANKING OR PHONE BANKING
Internet Banking• More and more banks are coming to realize that internet is a part of banksalternative delivery channel strategies activities concentrated in the business-to-consumer segment, focused on retaining clients• In Internet banking, security is a primary concern. Security concerns havebeen addressed from every angle within the architecture of the Internetbanking application. Sample Internet Banking Architecture
Technology-based BankingProducts & Services ◦ Balance inquiry ◦ Aggregation ◦ Transaction ◦ Electronic Finder information ◦ Automated ◦ Funds transfer clearinghouse (ACH) ◦ Cash Management transactions ◦ Bill payment ◦ Internet Payments ◦ Bill presentment ◦ Wireless Banking ◦ Loan applications ◦ Certification Authority ◦ Stored Value ◦ Data Storage
SMS Banking Basic banking inquiry transactions(balance inquiry, funds, exchange rate inquiry…) are performed by the cooperation of bank and the GSM operator Security is the main problem Leased line GSM Bank SMSGSM OperatorNetwork Application Gateway Server GSM Bank Operator SMS DB SMS DB Bank Host
WAP Banking Wireless application protocol (WAP) is an application environment and set of communication protocols for wireless devices designed to enable manufacturer-, vendor-, and technology- independent access to the Internet and advanced telephony services. WAP is a global standard and is not controlled by any single company Various banking transactions offered in WAP environment by banks. Similar architecture with SMS banking
Television Banking Digital television (DTV) is the transmission of television signals using digital rather than conventional analog methods. Advantages of DTV over analog TV include: Superior image resolution (detail) for a given bandwidth Smaller bandwidth for a given image resolution Compatibility with computers and the Internet Interactivity Superior audio quality Consistency of reception over varying distances Banks offer their banking transaction in this new environment T-commerce in the near future.
Channel Costs 21.5 10.5 0 Web ATM Call Center Branch
Channel Integration Evolution Channel Integration evolution ◦ Reuse ◦ Efficiencies of Scale ◦ Reduction of Redundancies
E-commerce - B2C E-commerce is the buying and selling of goods and services on the Internet. Main feature of e-commerce ◦ 24-hour availability ◦ a global reach ◦ the ability to interact ◦ provide custom information and ordering ◦ and multimedia prospects, The Web is rapidly becoming a multibillion dollar source of revenue for the worlds businesses. Banks provide secure payments infrastructure - virtual POS
M-commerce Mobile commerce applications involve using a mobile phone to carry out financial transactions- this usually means making a payment for goods or transferring funds electronically. As content delivery over wireless devices becomes faster, more secure, and scalable, there is wide speculation that m-commerce will surpass wireline e-commerce as the method of choice for digital commerce transactions.
B2B A thousands of companies that sell products to other companies have discovered that the Web provides not only a 24-hour-a-day showcase for their products but a quick way to reach the right people in a company for more information. In the B2B, the bank role is to provide a reliable payment infrastructure that add value to corporate business This infrastructure should cover: ◦ Bill presentment ◦ Bill payment ◦ Different payment types(credit card, deposit account, loan) ◦ Information after payment
E-Security To improve the e-business, all the users should feel secure to perform the transaction this environment The main concepts in e-security are: ◦ PKI (public key infrastructure) enables users of a basically unsecure public network such as the Internet to securely and privately exchange data and money through the use of a public and a private cryptographic key pair that is obtained and shared through a trusted authority. ◦ Public key is a value provided by some designated authority as a key that, combined with a private key derived from the public key, can be used to effectively encryption messages and digital signature. ◦ Private or secret key is an encryption/decryption key known only to the party or parties that exchange secret messages. Public key is used together with a private key
E-Security - continued ◦ Digital certificate is an electronic "credit card" that establishes your credentials when doing business or other transactions on the Web. It is issued by a certification authority (CA). ◦ CA (certificate authority) is an authority in a network that issues and manages security credentials and public key for message encryption. As part of a public key infrastructure, a CA checks with a registration authority to verify information provided by the requestor of a digital certificate ◦ An RA (registration authority) is an authority in a network that verifies user requests for a digital certificate and tells the certificate authority to issue it.
Smart Cards About the size of a credit card, a smart card is a plastic card with an embedded microchip that can be loaded with data, used for telephone calling, electronic cash payments, and other applications, and then periodically "recharged" for additional use. smart card contains more information than a magnetic stripe card and it can be programmed for different applications. Some cards can contain programming and data to support multiple applications and some can be updated to add new applications after they are issued Benefit of smart cards: ◦ enhanced security ◦ off line transaction ◦ programmable card loyalty customer information