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- 1. ONLINE BANKING Presented by: rajendra arekar email id : [email protected]
- 2. INTRODUCTION • Online bankingis also known as internet banking, e-banking , or virtual banking. • It is an electronic payment system that enables customers of a bank to conduct a range of financial transactions. • The online banking will typically connect or be a part of the core banking system which is in contrast to branch banking.
- 3. HISTORY • Online bankingwas first introduced in the early 1980’s in NEW YORK , UNITED STATES. • Four major banks – Citi bank , Chase bank , Chemical bank , and Manufacturers hanover offered home banking services. • Chemical bank introduced its pronto services for individuals and small businesses in 1983 which enabled individuals to maintain electronic checkbook registers.
- 4. Difference between onlineand traditional banking • Online banking 1. It is faster than traditional banking. 2. It is inexpensive. 3. It is a time saving process. 4. Records can be maintained for a long time. 5. Transactions can be secured properly. • Traditional banking 1. It is comparatively slower. 2. It involves paper expenses. 3. It is a time consuming process. 4. Records can be torn as they are on paper. 5. There is lack of security in such cases , and even records an be misplaced.
- 5. FEATURES • The keyfeatures are as follows: 1. Balance and transaction history search 2. Transaction history export 3. E statements and statement preferences 4. Order new statements
- 6. 5. Mobile banking 6.Transfers 7. Pay bills with bpay 8. Receive bills online with BPAY View
- 7. VARIOUS FORMS OFE- BANKING Automated teller machine Tele banking Smart card Debit card E- cheque Direct deposit Electronic bill payment
- 8. procedure Online banking investigatesthe entry threshold for providing a new transaction service channel for the use of normal users , Organizations and Academicians. • Customer must have a valid user id and password to login to the system. • If a wrong password is given in succession , that account will be locked and the customer will not be able to use it.
- 9. • After thevalid user logs in he is shown the list of accounts he has with the bank. • On selecting the desired account he is taken to a page which shows the present balance in that particular account number. • User can request for the details of the last ‘n’ number of transactions that he has performed.
- 10. ADVANTAGES OF ONLINEBANKING There are some advantages on using e – banking both for banks and customers: Permanent access to the bank Lower transaction costs/ general cost reductions Access anywhere using mobile or computer Less time consuming
- 11. Very safe andsecure method Helps to transfer the money immediately and accurately Easy to use Better interest rate on cd’s and savings account opened online
- 12. DISADVANTAGES OF ONLINE BANKING The disadvantages of online banking are as follows: Limited access Difficulty in resolving disputes Security concerns
- 13. Identity confirmation Customerservice Banks not having atms will have to pay atm fees Other threats
- 14. ATTACKS and risks •Attacks on online banking used today are based on deceiving the user to steal login data and valid TAN’s. • Two well known examples are PHISHING and PHARMING. • A method to attack signature based banking methods is to show correct transactions on the screen and fake transactions in the background.
- 15. • There isalso a risk of increasing number of fraudulent websites. • Along with this fake emails purporting to be sent from banks is on rise. • These all risk possibilities lead to the online banking procedure less reliable.
- 16. COUNTERMEASURES There exists severalcountermeasures which try to avoid attacks. 1. DIGITAL CERTIFICATES are used against phishing and pharming. 2. “Secoder” card readers is a measurement to uncover the software side manipulations of the transaction data. 3. To protect their system from trojan horses , users should use virus scanners.
- 17. ONLINE BANKING ININDIA • India is still in the early stages of E- banking growth and development. • Competition and changes in technology and lifestyle have changed the face of banking. • E- banking is likely to bring a host of opportunities as well as unprecedented risks to the nature of banking in India . • E –banking in India is not yet apparent .
- 18. • Many researchcompanies believe that E -banking in India would be slow compared to the other Asian countries. • E- banking is still nascent , although it is becoming a fast strategic necessity for most commercial banks. • The Reserve Bank of India has also set up a “Working Group on E-banking to examine different aspects of E- banking . • According to a report by the Boston Consulting Group in collaboration with FICCI and the Indian Banks’ Association (IBA), India has around 470 million banking customers. Among this demographic, 60 million of them, amounting to 13% of the total users, use online banking
- 19. CONCLUSION • The strategyof bank is to provide value added services and products to the consumer, utilizing the internet extensively. • The main aim o E-Banking or Online Banking is to make transactions through online processes and provide customers with more benefits. • Providing internet banking is increasingly becoming a “need to have” than “nice to have” services.
- 20. REFERENCE/LINKS Wikipedia UKessays E- Commerce and E- Business (book)