E banking

1. W o r k s h o p O n B u s i n e s s C o m p u t i n g
S u b m i t t e d T o
M s N e h a G u l a t i
1 4 . 0 9 . 2 0 1 6
S u b m i t t e d B y
P r e e t i k a D h i m a n
S i m r a t K a u r
M b a H r 1
E-BANKING

2. Index

3. HISTORY
 History of E-Banking dates back to 1980s
 Stanford federal credit union was the first one to offer e-banking
to its customers in 1994.
 Later on banks like Well Fargo, Chase Manhattan and Security
First Bank followed suit.
 The term mainly referred to the use of terminal, keyboard and
TV to access the banking system using a phone line

4. INTRODUCTION
 The internet has revolutionized the way we live, shop,
entertain and interact.
 It has also influenced the way we manage our money, save
and invest.
 It has changed both the banking industry as well as banks’
services to its customers.
 Simply speaking, E-banking is a method of banking in
which the customer conducts transactions electronically via
the internet.
 It includes services like checking account status, fund
transfer, ordering demand drafts, debit card credit card
usage, shopping portals etc.

5. E-Banking in India
 Internet banking arrived in India in the late 1990s.
 ICICI was the first bank to champion its usage and
introduced internet banking to its customers in 1996.
 Other banks like HDFC, Citibank, IndusInd etc
followed.
 Nationalised banks were first apprehensive of using
internet banking but eventually SBI launched
internet banking in 2001.

6. What is E-BANKING?
 E-Banking enables financial transactions from
anywhere and at anytime.
 It takes use of e-channels like Internet, ATM
network, SMS and FAX, Web TV, automated
telephones, WAP based mobile network etc.
 Its also known as virtual banking, digital banking or
internet banking.
 Major delivery channels include – ATMs, Smart
cards, telebanking.

7. Services of e-banking
 Transactional services like funds transfer, bill pay,
loan applications and transactions
 Non transactional activities like request for cheque
book, stop payment, online statements, checking
accounts, updating information.

8. How does e-banking work?
User
( with Internet and SSl
connection)
Security
subsytem
Web Server
Internet
front office
system
Bank back
office
system

9. Advantages of e-banking
 Online accounts simple to open, easy to operate.
 Convenient to pay bills, transfer funds etc.
 24x7 availability
 Faster transaction speed.
 Efficient management of accounts.
 Through mobile banking, you can keep an eye on
your accounts all the time.
 Great medium for banks to advertise their products.
 Low cost.

10. Disadvantages of e-banking
 Understanding the usage of e-banking might be
difficult for beginners.
 No access to online banking without internet
connection.
 Security of transactions is a big issue.
 Can’t be used in case bank’s server is down.
 A person must have basic computer skills to operate
e banking.

11. E-banking vis-à-vis traditional banking
 Speed
 Accessibility
 Electronic documentation
 Time saving
 Satisfaction to the customer
 Complimentary to traditional banking
 Geographical boundaries surpassed

12. Why e-banking?
 Increasing number of banking transactions.
 Providing customers with cost effective services.
 Stress on branchless banking.
 Competitive reasons.
 Differentiation of products from the other.
 Removes geographical barrier.

13. Types of E Banking
 PC Banking
 SMS Banking
 Digital TV banking
 Automated teller machine
 Tele banking
 Plastic cards
 E-cheque

14. Examples of e banking

15. How do ATM’s work?

16. Tele Banking

17. Mobile banking

18. Smart cards
 A smart card, chip card, or integrated circuit
card (ICC) is any pocket-sized card that has
embedded integrated circuits.
 Smart cards can provide personal
identification, authentication, data storage, and
application processing.
 Smart cards serve as credit or ATM cards,
authorization cards for pay television, household
utility pre-payment cards, high-security
identification and access-control cards, and public
transport and public phone payment cards.

19. Risks associated with e-banking
 Transactional risks – inaccurate processing of
transactions.
 Credit risk – risk regarding whether an obligation will be
settled or not.
 Liquidity/interest rate risk – Banks’ inability to meet the
required obligations.
 Reputation risk – Risk of getting significant negative
public opinion.
 Compliance risk – Violation of rules or regulations.
 Safety – E banking is exposed to risks of hacking and
frauds.

20. References
 Weekly P. E-banking : Challenges and.
2015;38(51):5377–81.
 Economic S, Weekly P, January N. Models of Mobile
Banking. 2010;xlv(5):2010–2010.
 Iyengar J, Belvalkar M. Case study of online banking
in India: User behaviors and design guidelines. IFIP
Adv Inf Commun Technol. 2010;316:180–8.
 Sharma H. Bankers ’ Perspectives on E-Banking.
2011;1(1):21–36.