Home Banking

• Home banking refers to banking services that can be accessed

from home, either through the internet or by phone.
• most banks offer digital services that allow customers to
conduct various transactions through the internet.
• Services offered through home banking can include viewing
account balances, reviewing transactions, and transferring
money.
• It also referred to as online banking,
• Home banking minimizes the need for physical locations,
which results in greater operating efficiency and cost-
effectiveness.
 Function of Home Banking
• Transactional Functions
 Bill payments
 Transferring funds between accounts
 Buying and selling investments
 Applying for loans and credit cards
 Function of Home Banking
• Non-Transactional Functions
 Viewing account balances
 Reviewing recent transactions
 Viewing bank statements
 Updating address and other personal
information
Branchless Banking
 Branchless Banking
• Branchless banking makes financial services available outside of
traditional bank branches through the use of available technologies: cell
phones, magnetic stripe or chip cards, and biometric applications.
• These new business models rely on a widespread network of agents,
often retail locations, where customers can go to transact.
• Customers can open bank accounts, deposit money, transfer money to
other accounts, withdraw money from their account and make
payments for purchasing goods and services at Point of Sale (POS)
machine maintained by a bank or its branchless banking agent.
• The agents are equipped with Tablet device and POS machine along
with magnetic strip card for operation of transaction.  For
authentication of transaction all fingers (thumb and index of each hand)
are verified in the POS Machine.
Advantages of Branchless Banking
1. Service provided at their doorstep/village
2. Availability of Basic Banking Services throughout the day
3. Hassle free transaction for the villagers
4. Familiarity in dealing with their own person
5. Reduces the cost of transaction
 Why Branchless banking in Nepal
• Increasing financial access to micro customers on deposits, loan,
remittance, and other banking products.
• Delivery of quality services amongst the customers of larger
circumference and hence to enhance customer base in the area
where it will be costly for us to provide services.
• Minimization of customers’ travelling costs, time cost and physical
costs by delivering services right at their doorsteps.
• Mobilization of local trusted parties as an intermediary between
the Bank and customers by appointing them as the Bank’s
business correspondents to extend service outreach.
• Mobilization of local deposits and hence in turn to expand the
deposit base.
 Nepal Investment Bank
Branchless Bank Agent
Municipalilit
S.No Agent Name  Branchless Place y/ Rural District Province  Contact No.
Municipality
Braham Deo Sabaila 9854023731/
1 Sah Rauniyar Raghunathpur Bazar Municipality Dhanusha 2 9854024790

Uttar Dhoj Pujari Tole, Bharatganj Nijgadh

2 Singaul, Nijgadh Bara 2 9845041393
Shrestha Municipality-02,Bara Municipality
Janaki Tola Chowk,
Nawal Kishor Dhobini Rural 9812240960/
3 Chauhan Dhobini Rural Municipality Parsa 2 9869887607
Municipality-02,Parsa
Gadhaiya Tole, Balara
Municipality, Ward
Ratnesh Balara 9802754520/
4 Kumar Sah No: 8, Sarlahi Municipality Sarlahi 2 9844438847
(Opposite of Nepal
Police Office)
Sapahi Bazar,
Shiv Shankar Laxminiya Rural Laxminiya 9844105205/
5 Rural Dhanusha 2
Kumar Sah Municipality Ward Municipality 9817638555
No:4, Dhanusha
 Automated Teller Machine(ATM)
• An automated teller machine (ATM) is an electronic banking
outlet that allows customers to complete basic transactions
without the aid of a branch representative or teller. Anyone with
a credit card or debit card can access cash at most ATMs
• ATMs are convenient, allowing consumers to perform quick self-
service transactions such as deposits, cash withdrawals, bill
payments, and transfers between accounts
• This machine also allows to check their account at any time and
without the need for a human teller.
• There are two primary types of ATMs. Basic units only allow
customers to withdraw cash and receive updated account
balances. The more complex machines accept deposits, facilitate
line-of-credit payments and transfers, and access account
information
 ATM FUNCTIONING

• ATM connect to the networks through processing

center and then to the cardholder‘s bank.
• If there are sufficient funds in the ATM cardholders
accounts for the withdrawal request, the transactions
will be completed.
• The ATM receives the authorization and dispenses
the cash requested.
ATM Operations
S
W 3
I Bank
T Server
C
H 5
4
2 6
1
Card Holder ATM Terminal Database

7 7

Cash dispenses on Rejection of request

positive response on negative response
 ATM Operators
• Step 1- A cardholder (Account holder) inserts his card in the ATM Terminal
and enters his PIN through the keyboard
• Step 2- After checking all security aspects, this information is forwarded to
the switch.
• Step 3 – The switch verifies the authentication of the cardholder and
passes on the transaction request to the bank server.
• Step 4 – The bank servers verifies the customer profile in its database and
maintains a record of the transaction request.
• Step 5 – The bank server passes on the request back to the switch.
• Step 6 – The switch then routes the transaction request to the ATM
terminal. If transaction is valid then it sends.
 ATM CARD
• An ATM card is simply a plastic card with information (customer
name, bank account information, account number) stored on a
magnetic strip.
• when people insert the card:
 The machine reads this data off of the magnetic strip and uses it to
process the transaction
 ATM will ask the user to enter a PIN number which acts as a
password to the card inserted
• A double layer of security is achieved to access an account - the
user must have both the ATM card and the associated PIN number.
• It contains a unique card number and identity information.
• It is also known as cash cards, bank card, client card, key card.
Components of ATM
 Components of ATM
Card Reader
• If there will be no card reader, then ATM card can not be read so no
transaction can be done by machine.
• ATM card is required to swipe through this card reader slot. After
swiping card it captures the account
• After retrieving the correct information of your account, card reader
send this information to the host processor for further process.
Keypad
• Key pad or touch pad is responsible for taking input from the user.
• On this pad, numbers and few other keys such as Clear, OK etc., will
be placed.
• Key pad transfers your inputted data to host controller to process the
request.
 Components of ATM
Cash dispenser: Bills are dispensed through a slot in the
machine, which is connected to a safe at the bottom
of the machine.
Printer: If required, consumers can request receipts that
are printed here. The receipt records the type of
transaction, the amount, and the account balance.
Screen: The ATM issues prompts that guide the
consumer through the process of executing the
transaction. Information is also transmitted on the
screen, such as account information and balances.
 Advantages of ATM
• You can withdraw cash at any time, day or night. The banks
don’t need to be open.
• ATMs offer the convenience of multiple locations. You can
withdraw cash at any bank that is part of the system to which
your ATM card linked.
• Your ATM card is protected by a PIN, keeping your money
safe.
• You don’t need to fill out withdrawal and deposits slips as is
required at the bank.
• ATM are faster than going to the bank – no long lines.
• You can withdraw cash at ATMs in foreign countries.
 Disadvantages of ATM
• ATM may be offline (system down)
• You may forget your PIN number.
• Risk of robbery when you leave the ATM.
• The ATM can break down or run out of cash.
• Fees charged to use ATMs of other banks can
become expensive.
 SECURITY Risk
• Card Based Fraud - ―Skimming‖
• counterfeited ATM and Credit cards and copying the
magnetic stripe encoding from debit or credit cards
to forged cards
• Key Loggers
• Programs which stores information as they are
typed.
• Critical info. such as user ID, Password, Account
No can be tracked.
• Millions stolen by ATM hackers exposes vulnerability
of Nepali banks in 2019.
 Internet Banking
• Internet banking allows you to conduct bank
transactions online, instead of finding a bank and
interacting with a teller.
• In a broad sense, it is the use of electronic means
to transfer funds directly from one account to
another, rather than by cheque or cash.
• Internet banking means any user with a personal
computer and a browser can get connected to his
banks website to perform any of the virtual
banking functions
 Internet Banking
• Internet banking means any user with a personal
computer and a browser can get connected to his banks
website to perform any of the virtual banking functions:
 Balance Enquiry
 Transfer of Funds
 Online payments of bills
 Accrued interests, fees and taxes
 Transaction detail of each account
 Accounts, credit card & home loan balances.
Procedure for register internet banking

• Fill up the application for Internet banking.

• Submit it to the respective branch.
• Receive your user ID and passwords in your e-
mail and mobile phone.
• Begin using Internet banking service.
 advantages

 Cost less
 Transaction speed
 Efficiency
 Speed banking
 Greater geographic diversification
 Increased customer demand for
services new revenue opportunities
• Rough estimates assume teller cost at Re.1 per
transaction, ATM transaction cost at 45 paisa,
phone banking at 35 paisa, debit cards at 20 paisa
and Internet banking at 10 paisa per transaction.
 Issues in internet banking

 SECURITY

Start up may take time
 Learning Curve
 Trust thing
Online Banking/Internet Banking
• Security
• Website Authentication
• SSL ( Secure Socket Layer) based web client

• Customer Authentication
• Login password/Transaction Password
• Digital Signature Based
• Randomly Generated Keys
• Picture/Phrase Identification
• Internal Network and System Security
• Segregation of duties and Dual Control on critical tasks
• Encryption Techniques
• Transaction limits
Increasing number of Fake emails
fraudulent bank purporting to be sent
websites. from banks.

Use of Trojan Horse Hackers who hack into

programs to capture personal bank
user IDs and accounts and steal
passwords. money.
Viruses and Worms -Trojan Horse
Program
 Internet Banking - Frauds

• Network Based Fraud - ‗Phishing‘

• an identity theft whereby Internet hackers trick some naive
customers into revealing their sensitive information such as User
ID and password through fake email addresses, or spy ware.

• E-mails pretending to be from the bank asking to input the

username and password to update the information.

• After submitting the information, the information passes to the

fraudulent site where the information is captured.
 Mobile Banking
• Mobile banking refers to any banking activities conducted on
a cell phone. This includes receiving text alerts for fraudulent
activities, accessing your account via the bank’s app, and
using the bank’s website on your mobile device.
• Mobile banking is a service provided by bank to customer for
financial transaction using mobile device such as mobile
phone and tablets.
• The latest and most robust mobile banking option is a mobile
banking app. Rather than logging in through a website, you
can use the bank’s app instead. 
• Mobile banking is available on 24 hours.
• Mobile banking is a combination of banking system, mobile
devices and communication equipment.
 HOW TO CONNECT WITH
M-BANKING
CURRENT /
SAVINGS
REQUEST
ACCOUNT FROM
HOLDERS M-BANKING

BANK
Features &
Benefits
Using M
Banking current Sending a letter
& savings with pin code
account holders
 Benefits of Mobile Banking
• Convenience
• Easy Access
• Higher Security
• Time Saving
• Service available 24*7*365
 What is Core Banking?
• Core Banking is a banking service provided by a group of
networked bank branches where customers may access their
bank account and perform basic transactions from any of the
member branch offices.
• In simple terms, there is no need to visit your own branch to do
banking transactions. You can do it from any location, any time.
You can enjoy banking services from any branch of the bank
which is on CBS network regardless of branch you have opened
your account.
• CORE stands for “Centralized Online Real-time Environment(or
Exchange)”. This basically means that all the banks branches
access applications from centralized data centers. So if a
customer makes a deposit, it is reflected immediately on the
banks servers and the customer can withdraw the deposited
money from any of the banks branches throughout the world.
 Core Banking Solution/ System
• Core Banking System is the software or application
developed to support a banks most common transactions
in a centralized model.
• This software is installed at different branches of bank and
then interconnected by means of communication lines like
telephones, satellite, internet etc. It allows the user
( customers) to operate accounts from any branch if it has
installed core banking solution.
• Basic elements of CBS that help customers are : Internet
banking, Mobile banking, ATM, POS (Point Of Sale), Funds
Transfer, Passbook maintenance etc.
 Why CBS is Required
• To meet the dynamically changing market &
customer needs.
• To improve & simplify banking processes so
that bank staff can focus on sales & marketing
stuff.
• Convenience to customers as well as banks.
• To  Speed up the banking transactions.
• To expand presence in rural & remote areas.
 CBS used by some bank in Nepal
Pvt. Bank Ltd. CBS being used Manufacturer
Nabil Finacle 10 Infosys
Mega Flexcube Oracle
Global IME Finacle Infosys
Sunrise Finacle 10 Infosys
NMB Finacle Infosys
BOK Finacle 7 Infosys
RBB Pumori Mercantile Office Systems
Siddhartha Flexcube Oracle
Kumari Finacle 10 InfoSys

Other examples of CBS:- Temenos, Mambu, SDK.Finance, Finastra etc.

 Benefits of using CBS
A. Benefits For Customers
• Quicker services at the bank counters for routine transactions like
cash deposits, withdrawal, passbooks, statements of accounts,
demand drafts, etc.
• Anywhere banking by eliminating branch banking.
• Provision of banking services 24 X 7.
• Fast payment processing through Internet banking, mobile banking.
• Anytime anywhere banking through ATMs.
• CBS is very helpful to people living in rural areas. The farmers can
receive e-payments towards subsidy etc. in their account directly.
Transfer of funds from the cities to the villages and vice versa will be
done easily.
 Benefits of using CBS
B] Benefits For Banks
• Process standardization within bank & branches.
• Retention of customers through better customer service.
• Accuracy in transactions & minimization of errors.
• Improved management of documentation & records – having
centralized databases results in quick gathering of data & MIS
reports.
• Ease in the submission of various reports to the Government &
Regulatory boards like NRB.
• Convenience in opening accounts, processing cash, servicing loans,
calculating interest, implementing changes in policies like changing
interest rates, etc.
 Challenges of Implementing CBS in Nepal

• Cost and Financial Terms

• Ability of the business to adjust to the new system
• Availability of skilled personnel
• Vendor capabilities and credentials: Manufacture of
software
• System Flexibility: ability to cope with the product variety
• Data migration (transfer of data from one CBS to
another)
• User- friendliness of User interface
Thank you