Download - Application of e banking in bangladesh
![Page 1: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/1.jpg)
![Page 2: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/2.jpg)
Premier University
Faculty Of Business Studies
Section:D22st
Batch
![Page 3: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/3.jpg)
Student Name ID
Saddam Hossain 1022114569
Mir Md Belal 1022114557
Sifuddin Ahmed 1022114559
Joyasree Ghosh 1022114684
Kohinur Akther 1022114580
Nishat yesmin sonia 1022114586
Group Member
![Page 4: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/4.jpg)
Mrs.Tasmia TahlilLecturer
Faculty Of Business studies
Premier University
Mrs.Tasmia TahlilLecturer
Faculty Of Business studies
Premier University
![Page 5: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/5.jpg)
Application Of Electronic Banking In Bangladesh
Application Of Electronic Banking In Bangladesh
Presentation on
![Page 6: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/6.jpg)
Electronic Banking: electronic banking is a segment of
electronic business, which in turn encompasses all types of business performed through electronic networks.
EBS developed for three reasons:1)To protect and increase market share2)To reduce operating cost.3)To generate new revenue.
![Page 7: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/7.jpg)
Components of e-
banking
Components of e-
banking
Banking system
software
Communication network
Delivery channel
Switching system
Basic components of electronic banking
![Page 8: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/8.jpg)
ATM Cash Management
Debit card Wire transfer Credit card Corporate
Automated Point of sale(POS) Clearing
house(ACH) Cheque truncation Home Banking
Type of Electronic Banking
Retail electronic Banking services
Whole Electronic Banking Service
Electronic Banking services Offered By Bangladesh
![Page 9: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/9.jpg)
ATMIt stands for automated teller machine.It is one of the most improvised way of transaction.As people do not feel comfortable to carry huge amount of money, they use ATMs.As ATM holders need to create a bank account and deposit money into the account.Bank provide ATM card with a pin number.By using this PIN number they can withdraw money from any AT M machine of that bank.
![Page 10: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/10.jpg)
Card reader keypadDisplay screen
Screen buttons
Cash dispenser Deposit slot speaker
![Page 11: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/11.jpg)
![Page 12: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/12.jpg)
ATM is connected to host computer, and the host computer is connected to the Bank computer. Here the connection network is telephone network that may be leased line or dial up using modem. Host computer mainly connected as a gateway between ATM and Bank computer. Many ATMs can be connected through this host computer.
![Page 13: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/13.jpg)
![Page 14: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/14.jpg)
Steps of transaction process in ATM:
A/c and PIN is being ETN sends clearance signal
Checked in ATM to the ATM machine.
Machine.
Request for PIN
Debited the account
From the customer Send all transaction information to ETN
Account. server.
![Page 15: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/15.jpg)
Debit card: Debit card is a plastic card it is issued by banks or financial institution to
the depositorsHold magnetic coded number for transaction.
![Page 16: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/16.jpg)
Objectives of debit card services: Revenue generation: The bank can enhance their income by using that card in the following ways-Merchant discountInter charge feesCard feesInterest on credit line
Expenditure reduction:By using debit cards the expenses of paper transaction like file, voucher, letter etc. can be minimized, which were really expensive. Expenses can be reduced to a greater extent by reducing the number of employee.
Client service: Debit card is used as an alternative of cash, cheque and credit card. The client will feel comfortable at the time of payment.
![Page 17: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/17.jpg)
Those who are involved with heavy banking transactions.
Those who perform transactions mostly by cheques.
Those people whose average income is high. Young people use debit cards more than the old. People who keep lower amount on an average in
their accounts. People who are interested to get card for travel
and entertainment. People who have more financial assets.
![Page 18: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/18.jpg)
![Page 19: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/19.jpg)
Credit card is a popular process in retail electronic banking. Generally if the clients have creditworthiness or have enough money in the deposit account. Then provide this plastic card to the clients. In spite of having debit balance in the deposit amount, a client can use this card. This card is used for payment of a product or service or for withdrawing cash from some specific institutions.
![Page 20: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/20.jpg)
By issuing credit card bank can identify their valuable and responsible customer.Purchase of products or services and other bill payments are possible by using this card in a particular place.With the help of this card, anyone can withdraw advance cash from the financial institutions.
Advantages of credit card:
![Page 21: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/21.jpg)
Point of Sale service :An advanced payment system which enables consumers to use an ATM card to pay for
goods and services, electronically debiting the card holders account and crediting the account of the merchant. In this system the account of the service provider and receive are simultaneously debited and credited instantly.
Money can be transferred by two ways; • Seller is required to make a sales draft like credit card. Then this sales draft would
debit the card owners account and credit the sellers account. • Respective clients/financial institutions/sellers accounts are to be debited or
credited by transferring taka from online point of sale terminals.
![Page 22: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/22.jpg)
Components used in POSterminals of POSconcentrators terminalsswitching centrebank computer systems
![Page 23: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/23.jpg)
Cheque truncation is a process of service where, financial institutions do not return the rejected and unhonoured cheques to clients. Financial institutions keep these checks with the monthly statements and provide rejected checks along with monthly statement to the clients.
Check truncation:Check truncation:
![Page 24: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/24.jpg)
Retail automated clearing house services: ACH is an integrated process of service by which payments of different financial institutions are cleared and exchanged in electronic way. ACH is a computer based integrated system and it is the distribution place of paperless transactions. Electronic payments are the substitutes of papers and are recorded in machine-readable from in magnetic tape and one account is debited and another is credited. ACH exchanges electronic transactions within a specific geographical area.
![Page 25: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/25.jpg)
![Page 26: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/26.jpg)
Types of payments by ACHgovernment payment for any person or institutionsdirect deposit of payrollPayment of insurance premium approved earlier.Now a day, limited use of ACH can be found in the following types of payments.Payment of telephone billPayment of pre-approved mortgage, rent and loan instalmentsCash transfer from one business to another under a part of the cash management system.
![Page 27: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/27.jpg)
Through developed electronic fund transfer system bank can offer its financial services to the doors of customers. Customer can open L/C, transfer fund, check their account sitting in their own desk with the help of his PC and a telephone at home. In this way customer can handle his all kinds of deal, payment and order before sitting in front of his own PC, that’s called Home Banking. The next version of home banking is Video Home banking(VHB).The internet is expected to be a major factor in home banking.
Home BankingHome Banking
![Page 28: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/28.jpg)
Information retrieval: clients can get various information of regarding the accounts, price information, and product descriptions.
Transaction: clients can pay their bills, order the cheques, and purchase the instruments
Provide electronic information: clients can confirm deny loons, make any complaints, or transfer massages.
Computation: clients can calculate mortgage loan repayment schedule, prepare budget and make pre-costing.
VHB services are divided into 4 parts:
![Page 29: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/29.jpg)
Wholesale electronic banking is such a banking system where banking activities are performed through inter-bank networks.1. Cash management: Raise the speeding up of collection of cheque and bills payable Careful controlling of the cash disbursement Monitoring of cash flows Investing the idle money
Wholesale Electronic Banking:
![Page 30: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/30.jpg)
2. Wire transfer.Wire transfer is a process in which funds are transferred from render to receiver quickly and in due time. These types of transfer could be done within or outside the country. Wire transfer activities of electronic banking system include the following four stages:Payment ordering parties: Payment ordering mechanism.Payment processing and delivery.Payment advising.
![Page 31: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/31.jpg)
3. Corporate clearing house:By clearing house, financial institution clear and exchange their electronic payments. Cash concentration strategy through ACH is very popular and widely used service. Corporations are going for ACH service after considering financial the facilities (Cost reduction, receipt of funds within one day etc.)
![Page 32: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/32.jpg)
![Page 33: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/33.jpg)
Customers need an Internet access service for accessing such kind of banking system. The customer will have an ID and confidential/secret password so that he/she can access their own account and transaction as an International Banking customer. Here customer can access the ledger balances, transfer of money, request something towards bank, and order a goods against this account
Internet Banking
![Page 34: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/34.jpg)
1. Electronic money: electronic money includes-Electronic debit and credit system.Smart cardTrue digital money.
2. Electronic commerce:now e-commerce is an important aspect of internet banking. Auditing, payment of bills, investments, stock exchange activities and many other activities can be done using these internet banking systems.
3. Digital currency:digital currency has a lot of features like traditional currency. It does not require approval of banks or their party to make payment. Clients by metaphorical cash taken from participating bank. This electronic coin can be used like traditional coins from local hard drive in which is stored. Through this way, buyers and sellers can transfer funds without any help of third party and other financial institutions
Selecting concept of internet banking:
![Page 35: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/35.jpg)
24 hours cash deposit and withdrawal facility.Quick cash withdrawal without having queue.Account activities enquiry in any moment.Statement request through ATM/debit/credit
card.Transfer own funds to other account number
in same bank.Present balance enquiry.More than 16 hours shopping facilities.Deposit or mail cash or cheque through
mechanical device.
The common features of electronic banking in Bangladesh:-
![Page 36: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/36.jpg)
Changing personal identify number.Cash deposit which will originally deposit very next day of
deposit that means do not need to go to the branch for every occasion.
Mini statement which contain 8-10 previous transaction records.
Can able to pay utility bill.Withdraw money by using visa, plus, master, maestro and
other credit card.Withdraw money from dollar account which gives take by
converting foreign currency.
![Page 37: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/37.jpg)
![Page 38: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/38.jpg)
The main problem of introducing electronic banking in Bangladesh is in efficiency and lack of adequate knowledge of the bank management about the e-banking.
Lack of proper strategic plan to gain and retain market share of the indigenous banks. In addition, much bank management is not inclined to give services with electronic means.
Lack of international standard channel. Bangladesh inter-district telecommunication system, countrywide data communication system moreover, branch offices cannot be linked with their head office through single networking based on online real time basis.
Problems of introducing electronic banking in Bangladesh:
![Page 39: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/39.jpg)
Lack of attractive remuneration to the technocrats. This motivates them to go abroad for higher remuneration.
Inadequate budget for establishing back and front office. In fact, it requires systematic and planned budget for expanding e-banking.
Lack of comprehensive legal structure is one of the problems in implementing e-banking in Bangladesh.
However, the people of villages are illiterate and they are not habitude of using electronic banking.
![Page 40: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/40.jpg)
Government should create a congenial environment so that all government and private sectors could the benefit.
Provide adequate training and technological support to develop the manpower/ personnel working in the e-banking section need to be arranged by the management of government and private authority.
Developing the national as well as the international communication standard for providing e-banking services with case.
![Page 41: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/41.jpg)
Banks should have their own strategic plans for automated market development.
Developing of integrated e-banking software within a short period of time.
A standard carrier design needs to be formed for the computer experts within the bank.
Clearing house operations are demanded to be fully automated.
Countries legal structure also needs to be technology based.
![Page 42: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/42.jpg)
Conclusion
In this age of information technology and competitive world, banking sections should be modernized. In order to keep pace with the changing world we have to replace our traditional banking systems by electronic banking systems. It has been found that local private and state owned banks are not doing well s compared to foreign banks. Foreign banks are using new technology and they are earning more. The banking sectors of our country should use electronic banking system so that they can provide more services to their customers and earns sustainable amount of money to support the national economy.
![Page 43: Application of e banking in bangladesh](https://reader037.vdocuments.us/reader037/viewer/2022102903/55c2b83fbb61ebe8508b45aa/html5/thumbnails/43.jpg)