3. E-Banking
Merits & Demerits of E-banking
Popular services covered under E-banking
Focus aspects of Banking sector
Conclusion
References
4. Delivery of banking services & products directly to
customers using electronic delivery channels
Earlier E-banking was in the form of ATM and
telephone transactions
Recently, internet is used for facilitating banking
transactions and offers ANYTIME, ANYWHERE
banking
8. An ATM is an Electronic Fund Transfer
terminal capable of handling balance
enquiries, cash withdrawals, pay bills, etc.
It is operated by plastic card with its special
features.
It enables the customer to withdraw money
anytime.
ATM
Debit and Credit cards
The Debit and Credit cards provide the usage
of bank money wherever and whenever it is
required by the individual.
9. Banks are adding chips to their current magnetic stripe cards to
enhance security and offer new service
It can have a monetary balance downloaded to the card which can
then be used like cash for transportation, event admission, etc.
A Smart Card can be reconfigured for different uses through the
interface machine.
Smart cards
They are faster
Take 3-4 days
They eliminate the need for consumer
education
E- Cheque
10.
11. Use of the Internet to deliver banking activities such as
funds transfer, paying bills, viewing account balance,
paying mortgages and purchasing financial instruments
Allows customers to conduct financial transactions on a
secure website operated by their retail or virtual bank
Any user with a personal computer and a browser can get
connected to his bank -s website to perform any of the
virtual banking functions
Internet/Online Banking
12.
13.
14. Used for performing balance checks, account transactions,
payments etc. via a mobile phone or PDA
Performed via SMS or internet through mobile
Doesn’t allow cash withdrawal and deposits but offers all other
features of ATM
Enables banks to operate selected banking services over
customer’s mobile
SMS banking services are operated using push and pull messages
M- Banking
SMS Banking
15. Money is transferred from one bank to
another on a ‘real time’ and ‘gross basis’
It is the fastest possible money transfer
system through banking channel
It is primarily for large volume transactions
Real time gross settlement (RTGS)
16. Facilitates one-to-one funds transfer individuals can
electronically transfer
Can transfer funds from any bank branch to any
individual having an account with any other bank branch
in the country participating in the Scheme
Simple, secure, safe, fastest and cost effective way to
transfer funds
Facility available through online mode for all internet
banking and mobile banking customers
National Electronic Fund Transfer
system (NEFT)
17.
18.
19. The approach of identifying, establishing maintaining and
enhancing relationships with the customers
Places equal emphasis on SALES & SERVICE
Can increase banks profitability
“Having the right offer for the right client at the right time via the
right channel”
21. Networking of branches, which enables Customers to
operate their accounts, and avail banking services from any
branch of the Bank on CBS network
All CBS branches are inter-connected with each other so a
consumer is a bank’s customer and not of any branch
Various branches use technology to focus on customer
interface and service and to make them comfortable
22.
23. Practice of identifying potential risks in advance, analyzing them and
taking precautionary steps to reduce the risk
Risk management in bank operations includes risk identification,
measurement and assessment
Its objective is to minimize the negative effects risks can have on the
financial result and capital of a bank
A bank is exposed to various kinds of risks in its operations such as
liquidity risk, credit risk, market risks, exposure risks, investment risks etc.
24.
25. The banking industry has changed drastically over the past decade.
Internet has created plenty of opportunities for players in the banking sector
While the new entrants have the advantages of latest technology; the goodwill
of the established banks gives them a special opportunity to lead the online
world
But increasing security threats is leading to unpopularity of e-Banking
There are certain efforts which should be made by the banking industry and
also the customers to decrease the possibility of such problems
Modern banking is the term basically used for e banking suggesting that banking no longer follows the old traditonal way but the new modern techno way…..
E banking has two parts – Internet banking and banking through other electronic modes such as ATM, M-banking etc
Also, internet banking and mobile banking are different from e-banking and in the coming slides we will know the difference
Fast – Flexibility – Convenient –Cash free- Low set up cost – Cost effective- Funds management – Protection of environment
First we will go through the merits & demerits associated with e-banking
ATM or credit card may be cards that have both IC and magnetic stripe. For this kind of cards, it is still a smart card.Smart cards could be categorized into memory card and microprocessor card. ATM or credit cards should be the latter.
First we see the login page for any person who is new
Next, this is a security notice
Personal Digital Assistant (PDA).
RTGS
'Real Time' means the processing of instructions at the time they are received rather than at some later time. 'Gross Settlement' means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis).
market risks (interest rate risk, foreign exchange risk and risk from change in market price of securities, financial derivatives and commodities),