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What is E - BANKING
Electronic banking, also known as electronic funds transfer (EFT), it is simply the use of electronic means to transfer funds directly from one account to another, rather than by cheque or cash.
In 70s, banks started to establish centralized data processing centers. Essentially the roles of these data processing centers are: Collect the handwritten documents from branches Compile the documents Manual data entry by the operators Generate reports for the bank staff and the central bank Execute some banking transactions
Branch Automation
In 80s, banks started technology investments for the branches. The first step is offline branches. Terminals connected to local branch computer Second step is online branches connected centrally. Most of the transactions started to be performed in the central mainframe.
Uses of EFT
Have your check deposited directly into your bank or credit union checking account.
ECheque
Internet Banking
ATMs
TELE Banking
Plastic Money
ECheque
Internet Banking
More and more banks are coming to realize that internet is a part of banks' alternative delivery channel strategies activities concentrated in the businessto-consumer segment, focused on retaining clients In Internet banking, security is a primary concern. Security concerns have been addressed from every angle within the architecture of the Internet banking application. Sample Internet Banking Architecture
ATM.....
It took 16 years for the first 100,000 cash dispensers to be installed, but only four years more for the next 100,000 and 3 months for the next 100,000.
Now, ATM became the electronic face of banking for most customers. Beside cash withdrawal, there exist various transaction options from transfer to fund buying/selling. Now there are 1217463 ATM installed in and around Mumbai
Switch System
Point of Sale
New habits in shopping Increased the use of plastic cards Now there are 313140 POS installed in India (Ref: www.moneylife.in)
Main components Switch IVR CTI(Computer Telephony Integration) Manage each call using the computer Pop up the user information while transferring the call Agent Desktop Application Win32,ActiveX, HTML Host Application
Telecom
IVR
CTI
HOST
IVR
Interactive Voice Response (IVR) is a software application that accepts a combination of voice telephone input and touch-tone keypad selection and provides appropriate responses in the form of voice IVR has come into our life at the beginnings of 90s. First step in Telephone Banking Peak transaction volume in salary payment days for balance inquiry
Plastic Cards
The plastic card usage grown enormously in last 2 decade. Plastic card became the main media for bank customers. Number of credit card in India:
Total 82,44,538 53,09,846 50,483 1,36,04,867
Credit Card Type National Cards International Cards Visa 12,00,704 70,43,834 MasterCard 4,88,881 48,20,965 Other 13,599 36,884 total 17,03,184 1,19,01,683
Mobile Banking
SMS Banking
Basic banking inquiry transactions(balance inquiry, funds, exchange rate inquiry) are performed by the cooperation of bank and the GSM operator Security is the main problem
GSM Network
Bank SMS DB
Bank Host
WAP Banking
Wireless application protocol (WAP) is an application environment and set of communication protocols for wireless devices designed to enable manufacturer-, vendor-, and technology-independent access to the Internet and advanced telephony services. WAP is a global standard and is not controlled by any single company Various banking transactions offered in WAP environment by banks.
SIM Toolkit
SIM card enables to keep and load different applications. SIM Application Toolkit has been agreed as a GSM standard
In the near future, banks will start to offer banking transactions in this platform.
Product Factory
Portfolio Management
POS
Deposit (TD,DD)
FBS
Securities
Promissory Notes
FX Import / Export
Delivery Services
Teletel
NBS
EFT
Cheques
Merchant
Telerom
CMS
Treasury
Payments
YKB HR
Teller (Branch)
Internet Banking
GL / Accounting
Reporting
Information Delivery
Loans&Credits
C E N T E R
Data Warehouse
Electronic repositories of summarized historical data The main idea behind data warehouse is get all company data working together so users can see more,learn more, and make the organization work better Data Warehouse helps users to identify trends, find answers to business questions and derive meaning from historical and operational data. Data access is easier and less costly Decision support solutions run faster and are more accurate.
Transform
Extract
Deliver
Partial Solution s
Data Mapping
Data Replication
Channel Costs
2
1.5
0.5
Internet and mobile devices have brought new rules to economy and shaped the way to do business Banks has also evolved according to the new economy and took their places in this new world to add value to their customer The new ways to do business are : e-commerce (B2C) m-commerce B2B
E-commerce - B2C
E-commerce is the buying and selling of goods and services on the Internet. Main feature of e-commerce
24-hour availability a global reach the ability to interact provide custom information and ordering and multimedia prospects,
The Web is rapidly becoming a multibillion dollar source of revenue for the world's businesses. Banks provide secure payments infrastructure - virtual POS
M-commerce
Mobile commerce applications involve using a mobile phone to carry out financial transactions- this usually means making a payment for goods or transferring funds electronically. As content delivery over wireless devices becomes faster, more secure, and scalable, there is wide speculation that m-commerce will surpass wireline ecommerce as the method of choice for digital commerce transactions.
B2B
A housands of companies that sell products to other companies have discovered that the Web provides not only a 24-hour-a-day showcase for their products but a quick way to reach the right people in a company for more information. In the B2B, the bank role is to provide a reliable payment infrastructure that add value to corporate business This infrastructure should cover: Bill presentment Bill payment Different payment types(credit card, deposit account, loan) Information after payment
E-Security
To improve the e-business, all the users should feel secure to perform the transaction this environment The main concepts in e-security are:
PKI (public key infrastructure) enables users of a basically unsecure public network such as the Internet to securely and privately exchange data and money through the use of a public and a private cryptographic key pair that is obtained and shared through a trusted authority. Public key is a value provided by some designated authority as a key that, combined with a private key derived from the public key, can be used to effectively encryption messages and digital signature. Private or secret key is an encryption/decryption key known only to the party or parties that exchange secret messages. Public key is used together with a private key
E-Security - continued
Digital certificate is an electronic "credit card" that establishes your credentials when doing business or other transactions on the Web. It is issued by a certification authority (CA).
CA (certificate authority) is an authority in a network that issues and manages security credentials and public key for message encryption. As part of a public key infrastructure, a CA checks with a registration authority to verify information provided by the requestor of a digital certificate
An RA (registration authority) is an authority in a network that verifies user requests for a digital certificate and tells the certificate authority to issue it.
Advantages of E-banking
To run its operations more effectively Lower cost than traditional financial management mechanisms
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
A suspicious bank website: www.sbionline.com Original bank website www.onlinesbi.com These website are believed to aim to trick persons into disclosing their sensitive personal information
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
When we open some suspicious websites or email Trojan Horse Program will install our computer secretly Hidden in the computer When you access bank websites Capture our account and the password
Dont use the hyperlink to login to the website of banks Should deeply check the postscript of the website Observe that is it have the encryption and compare the login account of encryption cert is equal to the bank.
Precautionary Measures
For Bank:
For Customers : Should not disclose their customer IDs (e.g., account numbers) or PIN to anyone else. Periodically change their PIN 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 anti-spyware software on your computer and update it regularly.
Anytime, anywhere banking Telephone Banking Internet Banking Mobile Banking Television banking Next ???
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