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E Banking
E Banking
What is e-banking? Development of E-banking RBI & E-banking Advantages of the E-Banking Disadvantages and Risk of E-banking Precaution of risk and security Persecutions
What is E-banking?
The provision of banking service through electronic channels and the customer can access the data without time and geographical limitation. delivery of banks services to a customer at his office or home by using electronic technology.
Development of E-banking
Development of E-banking 1980s Rapid development of the Internet TCP/IP system (communication system) E-commerce
Development of E-banking
Development of E-banking May 1995 Wells Fargo - the first bank in the world to offer customer access to their accounts over the internet . Allows customer to see their accounts online
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.
PC banking
EFTPOS
Smart cards
Electronic Funds Transfer (EFT) Electronic Data Interchange (EDI) Electronic Clearing System (ECS) Shared Payment Network System (SPNS)
Uses special software distributed by the bank, which is installed in the users PC. Customers access banks via modem linked directly to the bank. Customers access their bank account via Internet The bank makes use of an online service provided by another party such as AOL Use of satellite or cable to deliver account information to TV screens of customers Customers can access their bank via regular phones or mobile phones using SMS or WAP services ATMs provide cash accessibility and account information and in some cases enable to transfer funds Electronic funds transfer at point of sale (EFTPOS) is essentially a payment system for purchases through debit cards within the store itself. Microchip based cards can be used between individuals to exchange electronic cash or can interface with ATMs, telephones and retailers. Uses computer and electronic technology as a substitute for checks and other paper transactions. Transmit financial information and payments in electronic form. Paperless mode of effecting payment for handling bulk and repetitive payment transactions. A large network of ATMs, Cash Dispensers belonging to different banks to provide anytime and anywhere banking service.
$ 1.07
Telephone Banking
$ 0.54
ATMs
$ 0.27
PC Banking
$ 0.02
Internet Banking
$ 0.01
ATM NETWORK
1,054
15,320
Internet Banking
(in India) Adoption Rates of Internet Banks (As on March 31, 2004)
Number of Banks Number of Banks With Websites
Private Sector Banks New* Old** Public Sector Banks Foreign Banks All Banks
30 9 21 27 36 93
28 9 19 27 35 90
Source: Websites of the individual banks available at www.banknetindia.com/banklinks.htm (accessed during December, 2003 to March 2004) Figures in bracket denote percentage. * includes banks established after the liberalization reforms as recommended by Narsimham Committee in 1991. ** includes banks established before the liberalization reforms as recommended by Narsimham Committee in 1991.
Different services provided under ebanking ONLINE BILL PAYMENT SHOPPING TICKET BOOKING PRE PAID MOBILE RECHARGE MARKET WATCH INVESTMENT SERVICES ONLINE APPLICATIONS PERSONAL UPDADATE
Advantages of E-banking
Benefits for Banks Benefits for Small to Medium Businesses Benefits for Customers
Disadvantages OF 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
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
Fake e-mails
Email send from Fraudulent bank Verify the personal information Guide customer enter the fraud link Disclosing their ATM card numbers and their passwords
Suggestions
For Bank Should provide specific guidance to their customers
Suggestions
For Customers Should not disclose their customer IDs (e.g., account numbers) or passwords to anyone else. Periodically change their passwords Should promptly log out from the service Should regularly check their account balances and statements to identify unusual transactions. Do not access Corporate Cyber banking through public terminals. To safeguard your computer from any other hacker attack, install anti-virus and antispyware software on your computer and update it regularly.
Conclusion
E-Banking Enable Better Business Anywhere, Anytime. E-Banking represent a tremendous opportunity in India. However, Factors such as illiteracy in India, availability of cheaper labor force, reluctance to change by the existing staff of banks and slow growth of technology in India are responsible for slow growth of e-banking in India. Development and acceptance of standards by financial institutions will clearly have a positive impact on the level of security achieved by banks and bank customers. Since opportunities foregone are opportunities lost, the banks have to rise ahead of time so as not to lag behind in the e-banking era.
e-Commerce
Doing business online Buying products and services online
Brief History
1980s:Electronic Funds Transfer (EFT) Used by the banking industry to exchange account information over secured networks Late 1980s:Electronic Data Interchange (EDI) for e-commerce within companies Used by businesses to transmit data from one business to another 1990s:the world wide web on the internet provides easy to use technology for information publishing and dissemination Cheaper to do business (economies of scale) Enable diverse business activities (economies of scope)
Features of e-commerce
Online business Covers vast amount of B2B and B2C Advertisement Anytime and anywhere service Direct contact between buyer and seller Reduction of cost Medium of interaction Promptness in surveys Expand the business
Scope of e-commerce
E-PAYMENT-It does not involve physical exchange of currency. Its convenient to make payment via network. E-BANKING- It means anywhere any time banking. E-MARKETING- The growth of internet has created opportunities for consumer and firms to participate in online global market place.
DISADVANTAGES OF ECOMMERCE
Loss of ability to inspect products from remote locations Lack of training programmers Competition among sellers Change in technology Costly
CONCLUSION
Thus, we come to the conclusion that e-commerce has great advantage for industrialization which has laid to revolutionalization. Thus, increasing the growth of our country in terms of economy.
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