E banking merits and drawbacks

1. Electronic Banking
Gagandeep Chaudhary

2. Contents
• What is E-Banking
• Two approaches E-Banking
• E- banking devices
• Benefit of E-Banking
• Drawback of E-Banking
• Wireless banking
• Security features
• Simple safety measures
• Conclusion
• References

3. What is E-Banking?
• Electronic banking is defined as:
the automated delivery of new and
traditional banking products and services
directly to customers through electronic,
interactive communication channels.

4. Two approaches E-banking
1 Dial-in Approach:
Requires users to have a
separate finance software, so
that they can do all the process
offline and connect to the bank
just for transactions.
2 Internet Approach:
Users directly log on to their
bank website and complete all
their work online.

5. Benefit of E-Banking
• Anytime banking ,and anywhere banking
• Online Banking is much cheaper for the bank. A
survey says that Online Banking costs only 10% of
branch services
• Reduction in cost of transaction
• Pay bills online there by saving postal services.
• Easy to make utility payment
• Online purchases
• The services are available seven days a week, 24
hours a day.

6. Drawback of E-banking
• Difficult in adoption technology
• Fear of technology
• High cost of technology
• Lack of preparedness
• Restriction on usage of technology

7. Wireless banking
• Wireless banking is gaining popularity.
• With a phone number and a special PIN number a
customer has access to his account balance from his
cellular device.
• Allows user to pay bills, transfer funds between
accounts and check accounts from anywhere.
• Banks like PNB, Indian-bank,SBI,Axis Bank,Union
bank offers wireless banking in India.
• Security is an important issue in Wireless Banking.
• Newsbytes reports tells that wireless banking users
over 50 million in the US in 2012 and in Europe
almost 70 million.In India it is estimated about 5
million.

8. Security features
• Security is a primary concern in internet banking
• SSL (Secure Sockets Layer) protocol is used to
ensure data security between customer’s
browser and web server.
• SSL provides data encryption, data integrity and
server authentication.
• 512 bit data encryption.
• Customer database is protected by double
firewalls.

9. Simple safety measures
• Change Your password
periodically.
• Review your bank accounts
frequently.
• Try to use low limit credit
card for internet
transactions

10. Conclusion
• The strategy of bank is to provide value added
services and products to the customers,
Utilizing the internet extensively.
• The main aim of e-banking is to making
transactions through online poses and make
costumer more benefical.

11. References
• http://www.unicreditbank.cz/en/individuals/d
irect-banking/online-banking.html
• http://www.bai.org/bankingstrategies/2012-
july-aug/index.html