INTRODUCTION TO INFORMATION TECHNOLOGY (TTS1363)

KOLEJ POLY TECH MARA BANGI

(TTS1363)

INTRODUCTION TO INFORMATION TECHNOLOGY

ASSIGNMENT

ONLINE BANKING

PREPARED BY:

NAME ID NUMBER
IZZANNUR HUDA BINTI MOHD JEFREE (BGJ230210292)
WIDAD HUSNA BINTI JOHAR (BGJ230210295)
NUR IZZATI ALEEYA BINTI NAZREE (BGJ230210254)

CLASS:

SECTION 35

PREPARED FOR:

NORHAYATI BINTI JAAPAR

SUBMISSION DATE:

7 SEPTEMBER 2023

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 INTRODUCTION TO INFORMATION TECHNOLOGY (TTS1363)

1. INTRODUCTION

Online banking background in the industry:

Online banking allows you to conduct financial transactions via the Internet. Online
banking is also known as Internet banking or web banking. Online banking offers customers
almost every service traditionally available through a local branch including deposits,
transfers, and online bill payments. Virtually every banking institution has some form of online
banking you can access through a computer or app.

With online banking, you aren't required to visit a bank branch to complete most of your
basic banking transactions. You can do all of this at your own convenience, wherever you
want at home, at work, or on the go. Online banking can be done using a browser or app.
Mobile banking is online banking that is done on a phone or tablet.

Using online banking requires a computer, tablet, mobile phone, or other device, plus an
Internet connection and a bank or debit card. In order to access the service, you need to
register for the bank's online banking service and create a password. Once that's done, you
can use the service to do your banking.

Banking transactions offered online vary by institution. Most banks generally offer basic
services such as transfers and bill payments. Some banks also allow customers to open up
new accounts and apply for credit cards through online banking portals. Other functions may
include ordering checks, putting stop payments on checks, or reporting a change of address.

Online banking typically does not permit the purchase of traveler's checks, bank drafts, or
certain wire transfers. It also typically does not permit the completion of certain credit
applications, such as for mortgages. These transactions still need to take place face-to-face
with a bank representative.

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2. IMPLEMENTATION OF ONLINE BANKING

Online banking implementation in the industry has revolutionized the way people manage their
finances. It has made banking more convenient, efficient, and accessible for customers.

The financial sector is a very complex area of business, which works with a large amount of
information and in which even small discrepancies in the flow of information have far-reaching
effects. The costs, risks, and the duration of a digitalization project, therefore, seem difficult to
calculate. For this reason, many banks are reluctant to take the step toward the urgently
needed transformation into the digital world.

Every financial company has its individual strengths and its own grown structures. These must
be identified and transferred to the digital world. The biggest challenge lies in the smooth
integration of legacy systems, some of which are still based on older technologies and will
have to be integrated into the new processes, at least in the medium term. A complete
conversion of all business areas in a big bang is often not practical and goal-oriented - the
planning time would be too long and the performance of the financial institution too limited
during the implementation phase. Experience has shown that the corporate banking business,
especially the corporate lending business, has great potential for optimization through digital,
automated processes. This division is therefore also predestined for the first step toward digital
banking.

Here are a few key implementations of online banking in the industry ;

1. Mobile Banking Apps

Many banks have developed mobile apps that allow customers to access their accounts, make
transactions, pay bills, and transfer funds directly from their smartphones or tablets. These
apps provide a user-friendly interface and secure access to financial services on the go.

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2. Internet Banking Portals

Banks provide online portals where customers can log in with their credentials and access a
wide range of banking services. These portals enable customers to view account balances,
transaction history, download statements, manage investments, and perform various financial
transactions.

3. Electronic Funds Transfer

Online banking allows customers to transfer funds electronically between their own accounts
or to other accounts within the same bank or different banks. This eliminates the need for
physical checks and reduces the time and effort required for money transfers.

4. Online Bill Payment

Customers can pay their bills online through their bank's online banking platform. This
eliminates the need for writing checks, mailing them, and waiting for them to be processed.
Customers can schedule recurring payments or make one-time payments easily and securely.

5. Enhanced Security Measures

Online banking platforms have implemented robust security measures to protect customer
information and transactions. These measures include multi-factor authentication, encryption,
secure login protocols, and real-time fraud monitoring to ensure the safety of customer
accounts.

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6. WHAT THE ONLINE BANKING DO?

Online banking is designed to be convenient, saving you time and letting you do your
banking on your own schedule rather than only during the hours your local bank branch is
open. Almost anything you can do at a traditional bank or credit union location you can
accomplish online, starting with opening an account.

The one advantage that traditional banks and credit unions have had over their online
counterparts is the ability to withdraw funds using an ATM. Increasingly, online banks and
credit unions are providing access to a network of ATMs that won't charge you a fee. Some
financial institutions will reimburse your ATM fees up to a certain amount each month.

a) Paying Bills

Instead of writing checks to pay bills, your bank can print and mail a check for you month
after month. But for greater convenience, it’s also possible to send money to a payee
electronically, even if the amount you owe changes every month.

b) Transferring Funds

If you need to move money from your checking account to your savings account or into a
certificate of deposit (CD), you can carry out these intrabank transfers online. You can even
link your accounts at different banks or send money to friends and family almost instantly
through person-to-person services accessible through your bank.

c) Applying for Loans

Getting a loan is traditionally a paperwork-intensive process, but it doesn’t have to be.

Filling in your application online speeds the credit-check process, enabling your bank or credit
union to respond with an answer more quickly. Some financial service providers with online
loan applications make funds available the same day you get approved for a loan. Other
lenders that operate entirely online can make near-instant lending decisions.

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d) Monthly maintenance fees for maintaining an online banking account ,

especially if you don’t meet certain balance or activity requirements.

e) Overdraf fees if you spend beyond your balance.

f) ATM fees if you use an out of network ATM.

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7. THE WAY ONLINE BANKING TO PARTICIPATES IN THE USAGE OF INTERNET

It may be a mobile-first world, but consumers still use—and sometimes prefer—online banking

channels. Here are some key lessons our global consumer survey on digital banking revealed

about online banking usage.

Many bank round the world are aggressively pursuing a mobile-first strategy. Some have

launched mobile-only bank brands to fend off fintech challengers, while a vast majority are

enhancing their mobile apps with new features such as person-to-person payments, personal

financial management tools, and virtual assistants.

While this focus on mobile banking is well deserved, lately, there seems to be little discussion

about the role of online banking in a mobile-dominant world. As more and more customers

adopt mobile banking, will online banking remain relevant—and if so, how?

Findings from Deloitte’s global digital banking survey of 17,100 consumers across 17 countries

on their digital banking behaviors and channel usage suggest banks should continue to invest

in making online banking a seamless and high-quality customer experience. The survey

findings reveal online banking may remain a key channel of customer interactions in the

forseeable future, even among mobile banking users.

Our survey found 73 percent of respondents globally use online banking at least once a month,

compared to 59 percent who use mobile banking apps. Moreover, it revealed no generational

differences in how frequently online banking is used—baby boomers use online banking just

as often as tech-savvy millennials.

Even more interesting, mobile banking customers3 who responded to our survey continue to

use online banking channels extensively: Ninety-four percent use the online channel at least

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once a month. These respondents said they use mobile banking for relatively simple and quick

transactions, such as transferring money or balance inquiries, but prefer to go online to

transfer money internationally, inquire about products, or update account information.

When selecting a primary bank (the bank that handles most of their banking needs), seven

out of 10 survey respondents said having a consistent experience across channels, including

mobile and online, was extremely important or very important to them. Our survey also

showed customers globally are more likely to use online banking more frequently if

banks increase security, provide more real-time problem resolution, and allow more regular

banking transactions to be completed online.

Overall, these findings suggest that as banks continue to invest in improving and enhancing

mobile capabilities, there are potential challenges if banks allow mobile banking to fully eclipse

online banking. Instead, banks should continue to enhance the value proposition of the online

channel, focusing on evolving the online banking experience rather than seeing it as a phase-

out to mobile. To do this, banks should aim to provide a more seamless experience between

online and mobile channels and purposefully measure online customer engagement to meet

evolving customer needs and preferences.

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8. DIGITAL SECURITY, ETHICS AND PRIVACY PRESENTED BY THE TECHNOLOGY

ONLINE BANKING :

Keeping your online account safe

Banks take lots of precautions to make sure your online account is safe. These include
encrypted websites, timed log outs and many authentication processes. You can ask your
bank for more details.

Accessing your bank account online is generally safe. This is as long as you make sure
you enter in all the right details when making a transaction and follow a few rules:

- Check your statement often and report any unusual activity to your bank.

- Don’t reply to emails that claim to be from your bank that ask for personal details or
passwords.

- Always remember to log out of your online banking session.

- Only use secure wi-fi connections to access your bank account.

- Public wi-fi connections are often not secure, so it’s important not to use them for
banking or to make purchases. If you’re out and about with a mobile or tablet, it’s safer
to use your 3G or 4G connection.

- Keep your operating system and anti-virus software up to date.

- Choose your password carefully.

- Create it by combining three random words and don’t re-use the same one for different
accounts.

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9. ADVANTAGE OF ONLINE BANKING

Online banking provides consumers with many advantages. We’ll highlight the five
advantages of online banking you’ll come across the most frequently. You may already
capitalize on some of these perks, but you don’t want to miss out on any of them.

1. Convenience And Control of Your Account

Convenience and control reduce stress and uncertainty in your life. Having your account
information accessible on a mobile app means fewer trips to the bank. Online banks give you
more time to spend with loved ones, work on a side hustle, or pursue a hobby.

2. Easier Bills Payment

Bills will never go away, but late payments make them worse. Credit card debt comes with
higher interest rates than average, and missing utility payments can result in losing power. A
more accessible bills payment system reduces the chance of making a late payment or falling
behind.

3. Simple Fund Transfer

Transferring funds gets complicated if you don’t use internet banking. You’ll either have to visit
a local branch or call your bank. Simple fund transfers can protect you from overdraft fees. It’s
common for people to eat at restaurants.

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10. CONCLUSION

The internet has increased convenience and provided us with more choices. Online banking
does the same and makes life less stressful. If necessary, you could pay bills from your hotel
room during vacation. You don’t have to drive to a local branch or call your credit card
company.

Online banking gives you easy access to your credit score and financial products, such as
loans and lines of credit. Online banking apps are safe ways to view your finances and make
transactions. You can do online banking anywhere in a few minutes without dialing your local
branch’s phone number. All you need is an internet connection to get started.

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