97886883 e Bankinghgdfgh

8/21/2019 97886883 e Bankinghgdfgh

1/33

E-banking


2/33

E-banking history On global scenario 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 systemusing a phone line.

Online services started in New York in 1981 when four of the citys major

banks (Citibank, Chase Manhattan, Chemical and Manufactures Hanover)offered home banking services using the videotex system.

In India

ICICI was the first bank to start The Internet Banking revolution in Indiaas early as 1997 under the brand name Infinity.

ICICI Bank kicked off online banking way back in 1996.But even forinternet as whole, 1996 to 1998 marked the adoption phase, while usageincreased only in 1999 due to lower ISP online charges , increased PCpenetration and a tech-friendly atmosphere.


3/33

E-banking ?

In simple language it is defined as the provision ofbanking service through electronic channels and the

customer can access the data without time andgeographical limitation.


4/33

Virtual banks

Virtual banks have no physical location, but only conductonline transactions.

The world's first fully-functional virtual bank was theSecurity First Network Bank (SFNB)

These banks were designed without a traditional bankinginfrastructure.


5/33

Virtual Banks around the world are:

ING Direct

U Bank HSBC Direct

First Direct


6/33


7/33


8/33

Electronic mediums of E-Banking

Internet banking

Phone Banking

Mobile Banking

ATM


9/33


10/33


11/33


12/33

ATM An automated teller machine(ATM), also known as

automatic banking machine(ABM), Cash Machine, or Cashpoint , is a computerised telecommunications device thatprovides the clients of a financial institution with access tofinancial transactions in a public space without the need for a

cashier, human clerk or bank teller.


13/33

On Most modern ATMs, the customer is identified byinserting a plastic ATM card with a magnetic stripeor a plastic smart card with a chip, that contains aunique card number and some security informationsuch as an expiration date. Authentication isprovided by the customer entering a personal

identification number (PIN).


14/33

Phone banking


15/33

Mobile Banking


16/33

Development in Ebanking

Growth of internet banking account

117% increase in transaction volume since April 2001

More than 1 million contacts in February 2002

Coverage across 100 locations in the country

103% increase in internet banking registrants since April 01

84% increase in transactions since April 01


17/33


18/33


19/33


20/33


21/33

Advantages of E banking Benefits to bank

Benefits to customer

Benefits to small to medium business


22/33

Benefits for Banks

Larger customer coverage

Reducing the costs of operations

Promoting their services and productsinternationally

Increasing the customer satisfaction and providinga personalized relationship with customers


23/33

Benefits for Small to MediumBusinesses

To run its operations more effectively

Lower cost than traditional financial management

mechanisms


24/33

Benefits for Customers

Communication

- communicate easily

Environmental

- Abolishing the uses of paper

Others

- Offering one-stop-shop solutions


25/33


26/33

Disadvantages on E-banking

A need for customer skill to deal with computers andbrowsers.

E.g. Elderly, HousewivesInconvenient

Site change it will make the customer have someconfusion or delay.

Security Risk


27/33

Security Risk

Increasing number of fraudulent bank websites

Fake emails purporting to be sent from banks

Use of Trojan Horse programs to capture user IDs

and passwords


28/33

Fraudulent Bank Websites

A suspicious bank website:www.onlinebea.com

Original bank websitewww.hkbea.com

The website was believed to aim to trick personsinto disclosing their sensitive personal information.
http://www.onlinebea.com/http://www.onlinebea.com/http://www.hkbea.com/http://www.hkbea.com/http://www.hkbea.com/http://www.onlinebea.com/


29/33

Fake Emails

Email send from Fraudulent bank

Verify the personal information

Guide customer enter the fraud link

Disclosing their ATM card numbers and their

passwords


30/33

Viruses and Worms-Trojan HorseProgram When we open some suspicious websites or email . Trojan Horse Program will install our computer secretly.


31/33

Hidden in the computer When you access bank websites Capture our account and the password


32/33

PersecutionsFor Bank: Should provide specific guidance to their customers


33/33

For Customers: Should not disclose their Log In IDs(account

number) or password to anyone else.

Periodically change their passwords.

Should regularly check their account balancesand statements to identify unusualtransactions

Documents

97886883 e Bankinghgdfgh