Presentation Of E Banking 3o3d25
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- Words: 3,635
- Pages: 42
CREATED BY:HAROON RASHEED
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Contents What is E-Banking ? Development of E-Banking Types of Banking is Varied by Diagram Types of E-Banking E-Banking Products Benefits of E-Banking Disadvantages and Risk of E-banking Scope of E-Banking in Pakistan
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What is E-Banking ? E -banking is defined as:
Electronic banking is one of the truly widespread avatars of Ecommerce the world over. Various authors define E-Banking differently but the most definition depicting the meaning and features of E-Banking are as follows:
Banking is a combination of two, Electronic technology and
Banking. Electronic Banking is a process by which a customer performs
banking Transactions electronically without visiting a brick-andmortar institutions Electronic banking is also called Cyber banking , virtual
banking and online banking .
In short, Electronic banking is the delivery of banking services to the customers through the use of electronic communication primarily the internet CREATED BY:HAROON RASHEED
02/15/10
8
BANK Information technology
Custome r
CREATED BY:HAROON RASHEED
02/15/10
9
Development of E-Banking History 1980s :
E-Banking made its debut in UK and USA during 1920s. It became prominently popular during 1960s through electronic funds transfers and credit cards. The concept of Web-based banking came into existence, in Europe and USA in the beginning of 1980s. It has been estimated that 40 percent of banking transactions would be done through net at present. Today, a wide range of services are being rendered by banks using the electronic media. Since many years, banks have been operating inter-city transfer of money through demand drafts, mail transfers and telephonic transfers from one city to other or even within the same city and also from bank to bank through telephones. It facilitates availability of funds the next day itself. It is a matter of great satisfaction that the eCommerce is greatly assisted by the e-Banking through electronic cash cheques and smart cards. It is one of the trend setting paperless mode of effecting payment by two kinds; I) Electronic Credit Clearing, and II) CREATED BY:HAROON RASHEED Electronic02/15/10 Debt Clearing. The10
- Rapid development of the Internet - T/IP system (communication system) - E-commerce
Early 1980s : -
Access to their s with the computer of the bank
Development of E-Banking
May 1995 : Wells Fargo - the first bank in the world to offer customer access to their s over the internet . Allows customer to see their s
online CREATED BY:HAROON RASHEED
02/15/10
11
Development of E-Banking
Hong Kong (September 1999 ): Bank of East Asia - first launched Internet banking Mortgage applications personal loans stock trading
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02/15/10
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TYPES OF BANKNG IS VARIED
This is a direct banking because the customer get any services on the spot.
This is a online banking because the customer get services from many distance
CREATED BY:HAROON RASHEED
This is a wireless or PDA(personal digital assistance) banking because in this type no any wire is connected and customer get services at any where. when he want. 02/15/10
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Types of E-Banking MAIN TYPES OF E-BANKING SYSTEM Automated Teller Machine (ATM) Tele banking or Phone Banking Mobile Banking Pc Banking & Digital TV banking Internet Banking Wireless or PDA Banking
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e-Banking CSFs e-Trade
e-Business
e-Business
e-Banking
Clearing Bank A
Bank Server
Bank B
Settlement CREATED BY:HAROON RASHEED
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Types of E-Banking Automated Teller Machine (ATM)
First electronic channel introduced
Accepting deposits and dispenses cash
Convenient in handling s
AUTOMATIC TELLER MACHINE (ATM): This system is known as "Any Time Money" because it allows customers who have an ATM card to withdraw money at any time from the bank without interacting with human teller. Since the ATM machine can be installed anywhere like petrol bunks, markets, railway stations etc, and can well be linked to the main computer. It allows customers to transact with the bank 24 hours a day and 365 days a year. They allow the customers to transfer money to and from s to view information, to deposit cheques or CREATED BY:HAROON RASHEED cash, to order cheques, to receive cash etc.
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Types of E-Banking Automated Teller Machine (ATM) Using an ATM, customers can access their bank s in order to make cash withdrawals (or credit card cash advances) and check their balances. Many ATMs also allow people to deposit cash or checks, transfer money between their bank s, pay bills, or purchase goods and services. ATMs are known by various casual including cash machine, hole-in-the-wall, cash point or Banc mat (in Europe and Russia).
Some of the advantages of ATM to customers are:
Ability to draw cash after normal banking hours
Quicker than normal cashier service
Complete security as only the card holder knows the PIN
Does not just operate as a medium of obtaining cash.
Customer can sometimes use the services of other bank ATM.
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Types of E-Banking Tele banking or Phone Banking HISTOR Y
How Its Work
It came into operation in the 1970s in the developed countries like the US. It is accessible for corporate customers that have large volumes of payments to effect and dispose of a fully automated ing system. They can establish a Computer to Computer link with their bank and in this way exchange truly paperless credit transfers which are handled all the way from the originator to the beneficiary's without any paper involved.
This facility is available with the help of Voice Response System (VRS or IVR). This system basically, accepts only TONE dialed input. Like the ATM customer has to follow particular process, initially number and telephone PIN are fed for the process to start. Also the VRS system provides the s within additional facilities such as changing existing with the new desired.
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Types of E-Banking Tele banking or Phone Banking Some of the advantages of TELE-BANKING are:
Automatic balance voice out for the default .
Balance inquiry and transaction inquiry in all
Inquiry of all term deposit
Statement of by Fax, e-mail or ordinary mail.
Cheque book request
Stop payment which is on-line and instantaneous
Transfer of funds with CBS which is automatic and instantaneous
Utility Bill Payments
Renewal of term deposit which is automatic and instantaneous
Voice out of last five transactions.
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Types of E-Banking Mobile Banking Mobile banking comes in as a part of the banks initiative to offer multiple channel banking providing convenience for its customer. A versatile multifunctional, free service that is accessible and viewable on the monitor of mobile phone. Mobile phones are playing great role in banking- both directly and indirectly. They are being used both as banking and other channels.
Its most commonly used type is SMS Banking SMS-banking The Short Message Service (SMS) is a GSM service to exchange text messages up to 140 byte (or 160 characters of 7 bit). The transmission of mobile-originated short messages is carried out by the short message service center (SMSC) of the particular network operator. The SMSC is receiving the message from the mobile device and routing it to the destination device. For generating mobile-terminated short messages, it is possible that a company or a special service provider runs an own SMSC. Thus, a bank could generate SMS from bank data like balance or movements and send it to the mobile device of the customer. This technique is used at SMS-banking: The customer sends an SMS with a request to the bank, and gets the desired data as an answer. CREATED BY:HAROON RASHEED
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Types of E-Banking PC & Digital TV Banking PC Banking PC Banking - The forerunner to Internet banking has been around since the late 1980's and is still widely used today. Individual banks provide software which is loaded on to an SME's office computer. The SME can then access their bank via a modem and telephone link to the bank. Access is not necessarily via the Internet.
Digital TV Banking Digital TV Banking- Using the standard digital reception equipment (set top box and remote control), s can access their bank . Abbey National and HSBC services are available via Digital TV providers. One of its main selling points is that no details are transmitted via the World Wide Web.
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Types of E-Banking Inter Net or Online Banking The advent of the Internet and the popularity of personal computers presented both an opportunity and a challenge for the banking industry. For years, financial institutions have used powerful computer networks to automate million of daily transactions; today, often the only paper record is the customer’s receipt at the point of sale. Now that their customers are connected to the Internet via personal computers, banks envision similar advantages by adopting those same internal electronic processes to home use. Banks view online banking as a powerful “value added” tool to attract and retain new customers while helping to eliminate costly paper handling and teller interactions in an increasingly competitive banking environment
I n t e r N e t B A N K I N g
Internet Banking lets you handle many banking transactions via your personal computer. For instance, you may use your computer to view your balance, request transfers between s, and pay bills electronically. Internet banking system and method in which a personal computer is connected by a network service provider directly to a host computer system of a bank such that customer service requests can be processed automatically without need for intervention by customer service representatives. The system is capable of distinguishing between those customer service requests which are capable of automated fulfillment and those requests which require handling by a customer service representative. The system is integrated with the host computer system of the bank so that the remote banking customer can access other automated services of the bank. The method of the invention includes the steps of inputting a customer banking request from among a menu of banking requests at a remote personnel computer; transmitting the banking requests to a host computer over a network; receiving the request at the host computer; identifying the type of customer banking request received; automatic logging of the service request, comparing the received request to a stored table of request types, each of the request types having an attribute to indicate whether the request type is capable of being fulfilled by a customer service representative or by an automated system; and, depending upon the attribute, directing the request either to a queue for handling by a customer service representative or to a queue for processing by an automated system.
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Types of E-Banking Three Types of Inter net Banking Informational
This is the basic level of Internet or E-Banking. Typically, the bank has marketing information about the bank’s products and services on a stand-alone server. The risk is relatively low, as informational systems typically have no path between the server and the bank’s internal network. This level of Internet banking can be provided by the banks or outsourced. While the risk to a bank is relatively low, the server or web site may be vulnerable to alteration. Appropriate controls therefore must be in place to prevent unauthorized alterations to the bank’s server or web site.
Communicative
Transactional
This type of Internet banking systems and the customer. The interaction between the bank’s system and the customer. The interaction may be limited to electronic mail, enquiry, loan applications, or static file updates (name and address change). Because these servers may have a path to the bank’s internal networks, the risk is higher with this configuration than with informational systems. Appropriate controls need to be in the place to prevent, monitor, and alert management of any unauthorized attempt to access the bank’s internal networks and computer systems. Virus controls also become much more critical in this environment. This level of Internet banking allows customers to execute transactions. Since a path typically exists between the server and the bank or outsourcer’s internal network, this is the highest risk architecture and must have the strongest controls. Customer transactions can include accessing s, paying bills, transferring funds etc. 23 CREATED BY:HAROON RASHEED 02/15/10
Types of E-Banking ADVANTAGES OF INTERNET BANKING
Convenience
Ubiquity
If you’re out of state or even out of the country when a money problem arises, you can log on instantly to your online bank and take care of business, 24\7.
Transaction speed
Efficiency
Effectiveness
You can access and manage all of your bank s, even securities, from one secure site.
Unlike your corner bank, online banking sites never close; they’re available 24 hours a day, seven days a week, and they’re only a mouse click away.
Online bank sites generally execute and confirm transactions at or quicker than ATM processing speeds. Many online banking sites now offer sophisticated tools, including aggregation, stock quotes, rate alert and portfolio managing program to help you manage all of your assets more effectively. Most are also compatible with money managing programs such as quicken and Microsoft money
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Types of E-Banking Wireless or PDA Banking Wireless banking is gaining popularity. With a phone number and a special PIN number a
customer has access to his balance from his cellular device. Allows to pay bills, transfer funds between s and check s from anywhere. Net bank ,td bank offers wireless banking. Security is an important issue in Wireless Banking. Newsbytes reports that wireless banking s will number over 7 million in the US by 2005.
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Types of E-Banking Wireless Application Protocol
WAP-banking The most widespread solution for mobile banking is based on micro-websites following the WAP standard (Wireless Application Protocol). The function of WAP banking is in many ways similar to the function of Electronic banking using http. The client sends a request and gets a response with page content which is stored on or dynamically generated by a standard web server. The main difference is in the usage of a WAP gateway for the conversion of the protocols. At banks must be considered that very sensitive data is processed. While a normal content provider doesn’t has to observe special security precautions, and in some cases can even use the services of extern providers, has to secure its web server and WAP Gateway especially against unauthorized access. This is especially necessary because of the fact that inside the WAP Gateway the encryption protocol is converted from SSL/TLS to WTLS with the effect that data is not encrypted while it is processed. While authentication is assured via a PIN (personal identification number) of the , authorization for transactions is realized via transaction numbers (TAN). This concept, known from the electronic banking, forces the to carry a TAN list with him in order to make transactions
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E-Banking Products E-Banking Services Bill payment service Fund transfer Credit card Debit Card Investing through Internet banking Railway Recharging your prepaid phone Shopping at your fingertips E-Cheque Smart Card CREATED BY:HAROON RASHEED
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E-Banking Services Bill payment service Bill payment service Each bank has tie-ups with various utility companies, service providers and insurance companies, across the country. It facilitates the payment of electricity and telephone bills, mobile phone, credit card and insurance bills. To pay bills, a simple one-time registration for each biller is to be completed. Standing instructions can be set, online to pay recurring bills, automatically. One-time standing instruction will ensure that bill payments do not get delayed due to lack of time. Most interestingly, the bank does not charge customers for online bill payment.
Fund transfer Fund transfer Any amount can be transferred from one to another of the same or any another bank. Customers can send money anywhere in India. Payee’s number, his bank and the branch is needed to be mentioned after logging in the . The transfer will take place in a day or so, whereas in a traditional method, it takes about three working days. ICICI Bank says that online bill payment service and fund transfer facility have been their most popular online services.
Debit Card Debit Card Debit Card is an identity card issued by a bank to a customer, which the customer can use to buy goods. The price of the goods is charged to customer's bank .
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E-Banking Services
Shopping at your fingertips Shopping at your fingertips Leading banks have tie ups with various shopping websites. With a range of all kind of products, one can shop online and the payment is also made conveniently through the . One can also buy railway and air tickets through Internet banking. CREATED BY:HAROON RASHEED
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E-Banking Services
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Benefits of E-Banking
Benefits for Banks
Benefits for Small to Medium Businesses
Benefits for Customers
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Benefits of E-Banking Benefits for Banks
Larger customer coverage
Reducing the costs of operations
Promoting their services and products internationally
Increasing the customer satisfaction and providing a personalized relationship with customers CREATED BY:HAROON RASHEED
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Benefits of E-Banking Benefits for Small to Medium Businesses
To run its operations more effectively Lower cost than traditional financial management mechanisms
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Benefits of E-Banking Benefits for Customers Communication -
communicate easily Environmental
-
Abolishing the uses of paper Others
- Offering one-stop-shop solutions
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Disadvantages on E-banking A need for customer skill to deal with computers and browsers. E.g. Elderly, Housewives
→ Inconvenient
Site change it will make the customer have some confusion or delay. Security Risk
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Security Risk of E-Banking Increasing number of fraud net bank websites Fake emails purporting to be sent from banks Use of Trojan Horse programs to capture IDs and s
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Scope of E-Banking In Pakistan E-Banking in Pakistan Opportunities & Challenges Generally speaking three factors Quickness Easiness cheapness
Firstly
The State Bank Of Pakistan and other commercial banks are quite aware of the Changing needs of customers in Pakistan. The SBP has promulgated Electronic Transaction Ordinancein2002. which provides legal recognition for electronic settlement of transaction in banking sector. At the present the 40% of the commercial bank branches have been automated .The online banking which is the wave of future is now on the move in Pakistan and is progressing is satisfactorily
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. The symptoms are new products, new players, new channels etc. This transformation is taking place across all sectors of the banking industry. That is why banks urgently need to improve their ability, to think strategically about IT investments. Only those banks that use their technology resources effectively have the opportunity to secure real competitive advantage in this fast-changing industry through real product or service differentiation. CREATED BY:HAROON RASHEED
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Scope of E-Banking In Pakistan E-Banking in Pakistan Opportunities & Challenges
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. In order to meet the challenges of competition unleashed in the global arena, it has become an imperative on the part of captains of various segments of the economy to open up to harvest the advantages that are forthcoming from such global challenges. It is in this context, the most vibrant and important sector, the banking sector, started gearing up to face the challenges of such ground realities. Accordingly, several measures were initiated and implemented for improving and strengthening the competitive position of the banking industry vis-à-vis the foreign banks. Such measures include e-Banking entry into mutual funds and insurance sector business
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Scope of E-Banking In Pakistan E-Banking in Pakistan Opportunities & Challenges
Thirdly
banking is service-oriented industry, which has peculiarity to implement various social as well as commercial objectives. It is an instrument for the development of the economy of the country. Banks have two roles to play. They create a runway for the free flow of capital necessary for the growth of the economy. At the same time it must attend to lending and deposit mobilization in order to make profit for its survival and growth. Banking, though, is now not a high profit service industry in most countries. In many countries banks are affected by loan losses and this has a great impact on the health of the banks. This has resulted in the poor quality of service. Complaints of deterioration in service are viewed in several quarters. Getting customer patronage and goodwill are becoming a great task and a challenge for banks.
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Comparison Comparison E-banking system of Pakistan with E-Banking system of South Africa ALLPAY •Biometrically enabled •Human assistance •Expansion to include other banking services
MOBILE ATM’s •Reaching the under-banked •Flexible reach •Migrating transaction behavior
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Contents What is E-Banking ? Development of E-Banking Types of Banking is Varied by Diagram Types of E-Banking E-Banking Products Benefits of E-Banking Disadvantages and Risk of E-banking Scope of E-Banking in Pakistan
CREATED BY:HAROON RASHEED
02/15/10
7
What is E-Banking ? E -banking is defined as:
Electronic banking is one of the truly widespread avatars of Ecommerce the world over. Various authors define E-Banking differently but the most definition depicting the meaning and features of E-Banking are as follows:
Banking is a combination of two, Electronic technology and
Banking. Electronic Banking is a process by which a customer performs
banking Transactions electronically without visiting a brick-andmortar institutions Electronic banking is also called Cyber banking , virtual
banking and online banking .
In short, Electronic banking is the delivery of banking services to the customers through the use of electronic communication primarily the internet CREATED BY:HAROON RASHEED
02/15/10
8
BANK Information technology
Custome r
CREATED BY:HAROON RASHEED
02/15/10
9
Development of E-Banking History 1980s :
E-Banking made its debut in UK and USA during 1920s. It became prominently popular during 1960s through electronic funds transfers and credit cards. The concept of Web-based banking came into existence, in Europe and USA in the beginning of 1980s. It has been estimated that 40 percent of banking transactions would be done through net at present. Today, a wide range of services are being rendered by banks using the electronic media. Since many years, banks have been operating inter-city transfer of money through demand drafts, mail transfers and telephonic transfers from one city to other or even within the same city and also from bank to bank through telephones. It facilitates availability of funds the next day itself. It is a matter of great satisfaction that the eCommerce is greatly assisted by the e-Banking through electronic cash cheques and smart cards. It is one of the trend setting paperless mode of effecting payment by two kinds; I) Electronic Credit Clearing, and II) CREATED BY:HAROON RASHEED Electronic02/15/10 Debt Clearing. The10
- Rapid development of the Internet - T/IP system (communication system) - E-commerce
Early 1980s : -
Access to their s with the computer of the bank
Development of E-Banking
May 1995 : Wells Fargo - the first bank in the world to offer customer access to their s over the internet . Allows customer to see their s
online CREATED BY:HAROON RASHEED
02/15/10
11
Development of E-Banking
Hong Kong (September 1999 ): Bank of East Asia - first launched Internet banking Mortgage applications personal loans stock trading
CREATED BY:HAROON RASHEED
02/15/10
12
TYPES OF BANKNG IS VARIED
This is a direct banking because the customer get any services on the spot.
This is a online banking because the customer get services from many distance
CREATED BY:HAROON RASHEED
This is a wireless or PDA(personal digital assistance) banking because in this type no any wire is connected and customer get services at any where. when he want. 02/15/10
13
Types of E-Banking MAIN TYPES OF E-BANKING SYSTEM Automated Teller Machine (ATM) Tele banking or Phone Banking Mobile Banking Pc Banking & Digital TV banking Internet Banking Wireless or PDA Banking
CREATED BY:HAROON RASHEED
02/15/10
14
e-Banking CSFs e-Trade
e-Business
e-Business
e-Banking
Clearing Bank A
Bank Server
Bank B
Settlement CREATED BY:HAROON RASHEED
02/15/10
15
Types of E-Banking Automated Teller Machine (ATM)
First electronic channel introduced
Accepting deposits and dispenses cash
Convenient in handling s
AUTOMATIC TELLER MACHINE (ATM): This system is known as "Any Time Money" because it allows customers who have an ATM card to withdraw money at any time from the bank without interacting with human teller. Since the ATM machine can be installed anywhere like petrol bunks, markets, railway stations etc, and can well be linked to the main computer. It allows customers to transact with the bank 24 hours a day and 365 days a year. They allow the customers to transfer money to and from s to view information, to deposit cheques or CREATED BY:HAROON RASHEED cash, to order cheques, to receive cash etc.
02/15/10
16
Types of E-Banking Automated Teller Machine (ATM) Using an ATM, customers can access their bank s in order to make cash withdrawals (or credit card cash advances) and check their balances. Many ATMs also allow people to deposit cash or checks, transfer money between their bank s, pay bills, or purchase goods and services. ATMs are known by various casual including cash machine, hole-in-the-wall, cash point or Banc mat (in Europe and Russia).
Some of the advantages of ATM to customers are:
Ability to draw cash after normal banking hours
Quicker than normal cashier service
Complete security as only the card holder knows the PIN
Does not just operate as a medium of obtaining cash.
Customer can sometimes use the services of other bank ATM.
CREATED BY:HAROON RASHEED
02/15/10
17
Types of E-Banking Tele banking or Phone Banking HISTOR Y
How Its Work
It came into operation in the 1970s in the developed countries like the US. It is accessible for corporate customers that have large volumes of payments to effect and dispose of a fully automated ing system. They can establish a Computer to Computer link with their bank and in this way exchange truly paperless credit transfers which are handled all the way from the originator to the beneficiary's without any paper involved.
This facility is available with the help of Voice Response System (VRS or IVR). This system basically, accepts only TONE dialed input. Like the ATM customer has to follow particular process, initially number and telephone PIN are fed for the process to start. Also the VRS system provides the s within additional facilities such as changing existing with the new desired.
CREATED BY:HAROON RASHEED
02/15/10
18
Types of E-Banking Tele banking or Phone Banking Some of the advantages of TELE-BANKING are:
Automatic balance voice out for the default .
Balance inquiry and transaction inquiry in all
Inquiry of all term deposit
Statement of by Fax, e-mail or ordinary mail.
Cheque book request
Stop payment which is on-line and instantaneous
Transfer of funds with CBS which is automatic and instantaneous
Utility Bill Payments
Renewal of term deposit which is automatic and instantaneous
Voice out of last five transactions.
CREATED BY:HAROON RASHEED
02/15/10
19
Types of E-Banking Mobile Banking Mobile banking comes in as a part of the banks initiative to offer multiple channel banking providing convenience for its customer. A versatile multifunctional, free service that is accessible and viewable on the monitor of mobile phone. Mobile phones are playing great role in banking- both directly and indirectly. They are being used both as banking and other channels.
Its most commonly used type is SMS Banking SMS-banking The Short Message Service (SMS) is a GSM service to exchange text messages up to 140 byte (or 160 characters of 7 bit). The transmission of mobile-originated short messages is carried out by the short message service center (SMSC) of the particular network operator. The SMSC is receiving the message from the mobile device and routing it to the destination device. For generating mobile-terminated short messages, it is possible that a company or a special service provider runs an own SMSC. Thus, a bank could generate SMS from bank data like balance or movements and send it to the mobile device of the customer. This technique is used at SMS-banking: The customer sends an SMS with a request to the bank, and gets the desired data as an answer. CREATED BY:HAROON RASHEED
02/15/10
20
Types of E-Banking PC & Digital TV Banking PC Banking PC Banking - The forerunner to Internet banking has been around since the late 1980's and is still widely used today. Individual banks provide software which is loaded on to an SME's office computer. The SME can then access their bank via a modem and telephone link to the bank. Access is not necessarily via the Internet.
Digital TV Banking Digital TV Banking- Using the standard digital reception equipment (set top box and remote control), s can access their bank . Abbey National and HSBC services are available via Digital TV providers. One of its main selling points is that no details are transmitted via the World Wide Web.
CREATED BY:HAROON RASHEED
02/15/10
21
Types of E-Banking Inter Net or Online Banking The advent of the Internet and the popularity of personal computers presented both an opportunity and a challenge for the banking industry. For years, financial institutions have used powerful computer networks to automate million of daily transactions; today, often the only paper record is the customer’s receipt at the point of sale. Now that their customers are connected to the Internet via personal computers, banks envision similar advantages by adopting those same internal electronic processes to home use. Banks view online banking as a powerful “value added” tool to attract and retain new customers while helping to eliminate costly paper handling and teller interactions in an increasingly competitive banking environment
I n t e r N e t B A N K I N g
Internet Banking lets you handle many banking transactions via your personal computer. For instance, you may use your computer to view your balance, request transfers between s, and pay bills electronically. Internet banking system and method in which a personal computer is connected by a network service provider directly to a host computer system of a bank such that customer service requests can be processed automatically without need for intervention by customer service representatives. The system is capable of distinguishing between those customer service requests which are capable of automated fulfillment and those requests which require handling by a customer service representative. The system is integrated with the host computer system of the bank so that the remote banking customer can access other automated services of the bank. The method of the invention includes the steps of inputting a customer banking request from among a menu of banking requests at a remote personnel computer; transmitting the banking requests to a host computer over a network; receiving the request at the host computer; identifying the type of customer banking request received; automatic logging of the service request, comparing the received request to a stored table of request types, each of the request types having an attribute to indicate whether the request type is capable of being fulfilled by a customer service representative or by an automated system; and, depending upon the attribute, directing the request either to a queue for handling by a customer service representative or to a queue for processing by an automated system.
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Types of E-Banking Three Types of Inter net Banking Informational
This is the basic level of Internet or E-Banking. Typically, the bank has marketing information about the bank’s products and services on a stand-alone server. The risk is relatively low, as informational systems typically have no path between the server and the bank’s internal network. This level of Internet banking can be provided by the banks or outsourced. While the risk to a bank is relatively low, the server or web site may be vulnerable to alteration. Appropriate controls therefore must be in place to prevent unauthorized alterations to the bank’s server or web site.
Communicative
Transactional
This type of Internet banking systems and the customer. The interaction between the bank’s system and the customer. The interaction may be limited to electronic mail, enquiry, loan applications, or static file updates (name and address change). Because these servers may have a path to the bank’s internal networks, the risk is higher with this configuration than with informational systems. Appropriate controls need to be in the place to prevent, monitor, and alert management of any unauthorized attempt to access the bank’s internal networks and computer systems. Virus controls also become much more critical in this environment. This level of Internet banking allows customers to execute transactions. Since a path typically exists between the server and the bank or outsourcer’s internal network, this is the highest risk architecture and must have the strongest controls. Customer transactions can include accessing s, paying bills, transferring funds etc. 23 CREATED BY:HAROON RASHEED 02/15/10
Types of E-Banking ADVANTAGES OF INTERNET BANKING
Convenience
Ubiquity
If you’re out of state or even out of the country when a money problem arises, you can log on instantly to your online bank and take care of business, 24\7.
Transaction speed
Efficiency
Effectiveness
You can access and manage all of your bank s, even securities, from one secure site.
Unlike your corner bank, online banking sites never close; they’re available 24 hours a day, seven days a week, and they’re only a mouse click away.
Online bank sites generally execute and confirm transactions at or quicker than ATM processing speeds. Many online banking sites now offer sophisticated tools, including aggregation, stock quotes, rate alert and portfolio managing program to help you manage all of your assets more effectively. Most are also compatible with money managing programs such as quicken and Microsoft money
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Types of E-Banking Wireless or PDA Banking Wireless banking is gaining popularity. With a phone number and a special PIN number a
customer has access to his balance from his cellular device. Allows to pay bills, transfer funds between s and check s from anywhere. Net bank ,td bank offers wireless banking. Security is an important issue in Wireless Banking. Newsbytes reports that wireless banking s will number over 7 million in the US by 2005.
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Types of E-Banking Wireless Application Protocol
WAP-banking The most widespread solution for mobile banking is based on micro-websites following the WAP standard (Wireless Application Protocol). The function of WAP banking is in many ways similar to the function of Electronic banking using http. The client sends a request and gets a response with page content which is stored on or dynamically generated by a standard web server. The main difference is in the usage of a WAP gateway for the conversion of the protocols. At banks must be considered that very sensitive data is processed. While a normal content provider doesn’t has to observe special security precautions, and in some cases can even use the services of extern providers, has to secure its web server and WAP Gateway especially against unauthorized access. This is especially necessary because of the fact that inside the WAP Gateway the encryption protocol is converted from SSL/TLS to WTLS with the effect that data is not encrypted while it is processed. While authentication is assured via a PIN (personal identification number) of the , authorization for transactions is realized via transaction numbers (TAN). This concept, known from the electronic banking, forces the to carry a TAN list with him in order to make transactions
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E-Banking Products E-Banking Services Bill payment service Fund transfer Credit card Debit Card Investing through Internet banking Railway Recharging your prepaid phone Shopping at your fingertips E-Cheque Smart Card CREATED BY:HAROON RASHEED
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E-Banking Services Bill payment service Bill payment service Each bank has tie-ups with various utility companies, service providers and insurance companies, across the country. It facilitates the payment of electricity and telephone bills, mobile phone, credit card and insurance bills. To pay bills, a simple one-time registration for each biller is to be completed. Standing instructions can be set, online to pay recurring bills, automatically. One-time standing instruction will ensure that bill payments do not get delayed due to lack of time. Most interestingly, the bank does not charge customers for online bill payment.
Fund transfer Fund transfer Any amount can be transferred from one to another of the same or any another bank. Customers can send money anywhere in India. Payee’s number, his bank and the branch is needed to be mentioned after logging in the . The transfer will take place in a day or so, whereas in a traditional method, it takes about three working days. ICICI Bank says that online bill payment service and fund transfer facility have been their most popular online services.
Debit Card Debit Card Debit Card is an identity card issued by a bank to a customer, which the customer can use to buy goods. The price of the goods is charged to customer's bank .
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E-Banking Services
Shopping at your fingertips Shopping at your fingertips Leading banks have tie ups with various shopping websites. With a range of all kind of products, one can shop online and the payment is also made conveniently through the . One can also buy railway and air tickets through Internet banking. CREATED BY:HAROON RASHEED
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E-Banking Services
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Benefits of E-Banking
Benefits for Banks
Benefits for Small to Medium Businesses
Benefits for Customers
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Benefits of E-Banking Benefits for Banks
Larger customer coverage
Reducing the costs of operations
Promoting their services and products internationally
Increasing the customer satisfaction and providing a personalized relationship with customers CREATED BY:HAROON RASHEED
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Benefits of E-Banking Benefits for Small to Medium Businesses
To run its operations more effectively Lower cost than traditional financial management mechanisms
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Benefits of E-Banking Benefits for Customers Communication -
communicate easily Environmental
-
Abolishing the uses of paper Others
- Offering one-stop-shop solutions
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Disadvantages on E-banking A need for customer skill to deal with computers and browsers. E.g. Elderly, Housewives
→ Inconvenient
Site change it will make the customer have some confusion or delay. Security Risk
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Security Risk of E-Banking Increasing number of fraud net bank websites Fake emails purporting to be sent from banks Use of Trojan Horse programs to capture IDs and s
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Scope of E-Banking In Pakistan E-Banking in Pakistan Opportunities & Challenges Generally speaking three factors Quickness Easiness cheapness
Firstly
The State Bank Of Pakistan and other commercial banks are quite aware of the Changing needs of customers in Pakistan. The SBP has promulgated Electronic Transaction Ordinancein2002. which provides legal recognition for electronic settlement of transaction in banking sector. At the present the 40% of the commercial bank branches have been automated .The online banking which is the wave of future is now on the move in Pakistan and is progressing is satisfactorily
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. The symptoms are new products, new players, new channels etc. This transformation is taking place across all sectors of the banking industry. That is why banks urgently need to improve their ability, to think strategically about IT investments. Only those banks that use their technology resources effectively have the opportunity to secure real competitive advantage in this fast-changing industry through real product or service differentiation. CREATED BY:HAROON RASHEED
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Scope of E-Banking In Pakistan E-Banking in Pakistan Opportunities & Challenges
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. In order to meet the challenges of competition unleashed in the global arena, it has become an imperative on the part of captains of various segments of the economy to open up to harvest the advantages that are forthcoming from such global challenges. It is in this context, the most vibrant and important sector, the banking sector, started gearing up to face the challenges of such ground realities. Accordingly, several measures were initiated and implemented for improving and strengthening the competitive position of the banking industry vis-à-vis the foreign banks. Such measures include e-Banking entry into mutual funds and insurance sector business
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Scope of E-Banking In Pakistan E-Banking in Pakistan Opportunities & Challenges
Thirdly
banking is service-oriented industry, which has peculiarity to implement various social as well as commercial objectives. It is an instrument for the development of the economy of the country. Banks have two roles to play. They create a runway for the free flow of capital necessary for the growth of the economy. At the same time it must attend to lending and deposit mobilization in order to make profit for its survival and growth. Banking, though, is now not a high profit service industry in most countries. In many countries banks are affected by loan losses and this has a great impact on the health of the banks. This has resulted in the poor quality of service. Complaints of deterioration in service are viewed in several quarters. Getting customer patronage and goodwill are becoming a great task and a challenge for banks.
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Comparison Comparison E-banking system of Pakistan with E-Banking system of South Africa ALLPAY •Biometrically enabled •Human assistance •Expansion to include other banking services
MOBILE ATM’s •Reaching the under-banked •Flexible reach •Migrating transaction behavior
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