E BankingSubtitle

A non-resident Indian (NRI) in Paris has an easy way to access money in this fashion capital of the world.

His Citibank account in India can be accessed through an ATM in Paris, which in turn transmits information to Citibank’s central hub in the US.

The Indian rupees are converted to US dollars, which are in turn converted into French Francs at the current exchange rate, the Indian account is debited and the Francs made available to the NRI.

• WELCOME TO THE WORLD OF E BANKING

Electronic banking, also known as e-banking, virtual banking and online banking, is a service that allows customers to access their bank information, conduct financial transactions, make deposits, withdrawals and pay bills through the Internet without having to physically visit their bank. It provides the convenience of accessing banking facilities from the comfort of their home or office.

What is eBanking ??

Features of eBanking

Electronic banking services and solutions fall into a few broad categories, including transactional services, non-transactional services, administrative services and wire transfers.

Transactional services include EBPP (electronic bill presentment and payment), transfer of funds between different user accounts, investment sale or purchase, loan transactions and applications.

Non-transactional services provided by electronic banking systems include webchat with online bankers, viewing online statements and accessing bank information services online.

Administrative services are also provided online, including interest rate calculation, depreciation, adjustment of fees and others.

Once you register yourself on a bank website, you can view

o Your accounts, credit card & home loan balances

o Accrued interest, fees and taxes

o Transaction details of each account

o Pay billso Transfer funds to third

party accounts which you nominate

o Open a deposit right from the terminal you are sitting at.

Product based

• Customer introduction on different systems

• Difficulty in creating new products

• Different user interfaces for different environments

• Product based Customer - Bank relation

Consumer based

• One customer information file

• Product factory• Standard graphical

user interface• Consolidated

customer data

Classification of eBanking…• Telephone banking is a service provided by a financial institution,

that enables customers of the financial institution to perform financial transactionsover the telephone, without the need to visit a bank branch or automated teller machine. 

• Online banking (or Internet banking) allows customers of a financial institution to conduct financial transactions on a secure website operated by the institution, which can be a retail or virtual bank, credit union or society. It may include of any transactions related to online usage

• Mobile banking (also known as M-Banking, mbanking) is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as amobile phone or Personal Digital Assistant (PDA).

Viruses and Worms –Trojan Horse Program

Internet Banking

Infrastructure

Hardware Web servers Application servers Database servers Networking equipment

Networking Isolation from

the main network Hosting

decision In-house vs

IDC

Security FirewallsCertificationServer level (mandatory)Client level (optional)Intrusion detection system Subscribing to

advisories

Services Application integration with core bankingScalability tests (desirable but optional)Web designingServer sizing

SoftwareSystems softwareApplication software

Advantages• Convenience

• Ubiquity

• Transaction speed

• Efficiency

• Effectiveness

• However, till now Internet services in India only allows for a minimum level of interactivity such as

o Answering e-mail queries

o Feedback forms

o Articles asking for readers’ opinion at the end

• An accountholder, armed with a password, can use the Net to order a cheque book, stop payment of a cheque and spot the balance and individual operations in the account and transfer funds.

Disadvantages

• Start-up may take time

• Learning curve

• Bank site changes

• Money Laundering

• The “trust thing”

Customer service :-

• As an online bank customer, you have a website that is at your disposal 24/7

• You can get your online statement for the month, week, day, or year

• You can send e-mails with questions or concerns

• You can pay bills

Digital cerificate

Digital Certificates are the electronic counterparts to driver licenses, passports and membership cards. You can present a Digital Certificate electronically to prove your identity or your right to access information or services online.

 Digital Certificate typically contains the:

• Owner's public key

• Owner's name

• Expiration date of the public key

• Name of the issuer (the CA that issued the Digital Certificate

• Serial number of the Digital Certificate

• Digital signature of the issuer

What is a digital signature?

• A digital signature functions for electronic documents like a handwritten signature does for printed documents. The signature is an unforgeable piece of data that asserts that a named person wrote or otherwise agreed to the document to which the signature is attached.

• In other words, Digital Signatures enable "authentication" of digital messages, assuring the recipient of a digital message of both the identity of the sender and the integrity of the message

How to get started :-

Trends in Technology Banking Email

SWIFT

Single window system

Anytime banking

Tele banking

Home banking

Internet banking

• Corporate banking.

• EFT.

• RTGS

eBanking Worldwide trends

• Concept of E-banking is more prevalent in the technologically developed parts of the world such as Europe and the US

• The number of online banks in Western Europe has mushroomed. As per Bluesky International Marketing, a US based research agency, the  number is quoted at 26,540 in  mid 2011.

• The scene is similar in the US where a recent Dataquest survey forecasts that the number of US households banking online will reach 69.1 million by 2015.

Key Statistics

The revenue of Indian banks increased four-fold from US$ 11.8 billion to US$ 46.9 billion in the period 2001–2010. In that phase, the profit after tax rose about nine-fold from US$ 1.4 billion to US$ 12 billion.

Banking Index with the Sensex (Bankex) that tracks the performance of primary banking sector stocks grew at a compounded annual growth rate (CAGR) of nearly 20 per cent over the period 2003–2012.

Total number of onsite and offsite ATMs of Indian Banks reached 100042 in July 2012.

Conclusion

• Internet banking is changing the banking industry

and is having the major effects on banking

relationships.

• The net banking, thus, "now is more of a norm

rather than an exception in many developed

countries" due to the fact that it is the economical

way of providing banking services.

• Banking is now no longer confined to the traditional

brick and mortar branches, where one has to be at

the branch in person, to withdraw cash or deposit a

cheque or request a statement of accounts.

• Providing internet banking is increasingly

becoming a 'need to have' than a 'nice to have'

services.

Yakshika Vats

Thank you