Electronic banking, or e-banking, describes transactions that take place between companies, organizations, individuals, and their banking institutions using electronic communication channels. While some banks offered early forms of e-banking in the 1980s, growth was slow due to lack of interested users and high costs. However, the rise of the internet in the late 1990s made people more comfortable conducting transactions online, helping e-banking to expand.

3. Electronic banking, or e-banking, is the term that
describes all transaction that take place among
companies, organizations, and individuals and their
banking institutions. First conceptualized in the mid-
1970s, some banks offered customers electronic banking
in 1985. However, the lack of interested users, and costs
associated with using online banking, stunted growth.
The internet explosion in the late-1990s made people
more comfortable with making transactions over the
web.

4.  Pakistan is amongst one of those few nations of the world which delayed the most from
switching from the ordinary traditional banking, but once the move is being made then
there are continual improvements in the process and the reliability of the transactions.
 Today, the Banking sector of Pakistan is playing pivotal role in the growth of country’s
economy

5. E banking can be defined as “Automated delivery of banking products
and services to customers through interactive electronic
communication channels.” E banking includes that enable bank
customers to access accounts, withdraw amounts from accounts, bills
payment and /or obtain information about banking products and
services, through a network i.e. internet.

6. To improve its
customers’ standard of
living
to provide its target
market customers a full
range of financial
products and banking
services.
To expand banking
business locally and
globally
To compete and gain a
competitive advantage
in highly competitive
environment

7. E-banking can be offered in two main
ways:
o First, an existing bank with physical
offices can also establish an online site
and offer e-banking services to its
customers in addition to the regular
channel. For example Citi bank.
o Second, e-banks that exist only on the
Internet, allowing users to work with a
"virtual" bank. For example Netbank..

8. Identification &
Authentication
FirewallsEncryption

9. Electronic Fund Transfer Online Banking Smart cards
ATMs Phone banking Internet Banking
Debit Cards E-Cheque

10. ATMs are widely used electronic channels in Banking services;
It is a computer controlled device at which the customers can make
withdrawals, check balances without involvement of any individuals;
To use this system customer is given a plastic card which contains
customer name and account no.;
Customer is given a pin no., whenever he wanted to use it ,he has to
enter the pin number.

11. It is a chip based card;
When the transaction is made using these cards, the value is debited
and balances come down;
It is used to make purchase without the need of any pin;
It is a powerful card which carries out the function of a credit card or
a debit card

12. Electronic funs transfer is a system of transferring money from one bank
account directly to another without any paper money changing hands
EFT is a secure , efficient and less expensive than paper check payments and
collections

13. It means banking over Phone
Mainly used for Marketing banking services
A customer can do entire Non-cash banking over phone anywhere at
anytime
With fall in mobile phone rates mobile banking emerge as one of the most
effective delivery channel

14. In Internet banking, Customer of a bank with a Pc can log onto the website
of the bank & conduct basic functions
It has helped in banking at the click of the mouse
Internet banking system and method in which a personal computer is
connected by a network service provider directly to a host computer system
INTERNET BANKING

15. E-banking offers benefits for following:
• For Banks
• For Customers
• For General Economy

16. Reduction in Operational cost
Better customer Relationship and Customer Satisfaction
Wide Range of Services to the Customers.
Provides bank with Paper less System
Covers wide Geographical Area.
Round the Clock Banking.
Lesser Work load.

17. Easy to make Utility payments
On-line Purchases
Provides ease to Customer to manage his Bank
Account
No requirement of Minimum balance
Transfer money between different accounts

18. Supports Economic Growth, Prosperity and
Productivity
Discourages many illegal practices such as
fraud, money laundering and embezzlements
Helps banks of better monitoring their
Customer base
Helps in documentation of the economic activity
of masses

19. CBIS (Customer Based
Information System)
A CBIS is a system that automates the
process of recording transactions,
posting entries, updating accounts,
generating reports and reviewing results

20. Components of CBIS:
Management
Information
System(MIS)
Decision
Support
System(DSS)
Executive
Information
System(EIS)
Transaction
Processing
System(TPS)
Report
Generating
System(RGS))

22. Simple & Easy to Use
Quite convenient.
Availability of 24/7
Fast and efficient.
Ease of monitoring your account at anytime.
Automatic funding of accounts.
medium for the banks to endorse their products and services.

23. Automatic funding of accounts.
Easy updating and maintaining of direct accounts.
Speed of transaction is faster.
At one click, actual time account balances and
information are available.
No need to go to the bank.

24. Difficult for a beginners.
Availability of internet access.
Security of transactions.
Cannot be use, in case, the bank’s server is down.
Password security.
Most people lack trust.
Transaction problems.
Complex encryption software is used.

25. FIRSTLY, Generally speaking, three factors, quickness, easiness and
cheapness have become the catchwords for the competitiveness and
usefulness of all the business operations. Particularly it is commonplace
today to say that banking is undergoing a radical transformation.
Secondly, liberalization, privatization and globalization have been recognized
as the key elements propelling the world towards the present era,
characterized by rapid changes and increased challenges in various fields

26. TELE-BANKING:
AUTOMATIC TELLER MACHINE
(ATM):
SHARED PAYMENT NETWORK
SYSTEM (SPNS):
CREDIT CARD/DEPOSIT CARD:
CORPORATE BANKING
TERMINAL (CBT):
POINT OF SALE (POS)
TERMINAL
ONLINE BANKING:

27. Locating Customers
User-friendliness
Cyber Crime
Human Element
Regulating authority
Cut-throat global Competition
The human Resource
E banking – The producer side:
The producers are the bankers. These are the people who lead the bank
and design the policies. Following issues need a particular attention as
the discussion come to E banking.

28. E banking – The Consumer Side:
The producers are the bankers. These are the people who lead the bank
and design the policies. Following issues need a particular attention as
the discussion come to E banking.
Finding the fit Product
Simplicity and Ease of Use
Uncertainty and Legal matters
Cyber Terrorism

29. Global E-banking industry is covered by the following four sections:
E-banking Scenario
• It discusses the actual state, prospects,
and issues related to E-banking.
E-banking Strategies
• It reveals the key strategies that banks
must implement to derive maximum
value through the online channel.
E-banking Transactions
• It discusses how Internet has
radically transformed banking
transactions
E-banking Trends
• It discusses the innovation of new
technologies in banks

31. ATM’s
o The total number of
Automated Teller
Machines (ATM’s)
installed by 32 banks
in country reached
13,409 from 12,963 as
of December31,2017
o This shows the
quarterly growth of
3.4%

32. ONLINE BANKING
Real Time Online
Banking(RTOB)showed
41.7m transactions
valuing at Rs9.8tr which
includes online cash
deposits having highest
share at 47%

33. PLASTIC CARDS
• Debit card circulation stood at 19.8m
showing transaction of value in Rs 1.25
trillion.
• Credit card in circulation total 1.37m
with its transactions at Rs 47.4 billion.

34. • The initiative in e-Banking in the country was taken a bit late, but now
focused efforts are being made to catch up with rest of the world.
• Muslim Commercial Bank (MCB) recently organized 'Pakistan e-Banking
Conference'.
 Askari Bank Ltd,
 Alfalah Bank ltd,
 Barclays; and
 Standard Chartered are providing fully online services in Pakistan.
 Mobile banking in particular has greatly mapped the unbanked population of
Pakistan. For instance,
Easy Paisa launched by Telenor in collaboration with Tameer Micro Finance
Bank providing instant money transfer.

35. Cutting transaction costs results in higher profit margin for
the banks.
no transactions charges
1 Manual Rs. 40-500
2 ATMs Rs. 15-30
3 Internet/pc Rs. 8-10

36. Recommendations:
o Bank should focus on the customer oriented e- banking initiative
in order to service in the financial market as competition is
increasing
day by day.
o Another recommendation is bank should build a strong
customer relationship.
o In these days, banks have much information technology related
issues. Banks should take steps to resolve I.T related issues

37. Information technology has empowered
customers and businesses with information
needed to make better investment
decisions.
E-banking is essential for all the banks and
the successful banks are those that are
strengthen their relationship with their
customers which is possible with e-banking
only.