e-banking. internet banking internet as new communication medium. open up current it-systems to...
TRANSCRIPT
International Telecommunication Services B.V.
E-BANKING
International Telecommunication Services B.V.
International Telecommunication Services B.V.
Internet Banking
Internet as new communication medium.
Open up current IT-systems to the outside world.
Automating relations.
What is e-banking
1. using the internet to process financial transactions
2. deliver new online services
Introduction
International Telecommunication Services B.V.
Internet Banking
Status current Internet Banking;• There is no uniform solution
• No realtime transaction processingBatchprocessingNot realtime
• Banks are having a hierarchical service structure in a very complex infrastructuur
• Standard products versus tailormade
• Current IT systems tend to have a high complexity. This implicates high investments to integrate front-office with back-office (via the Internet)
International Telecommunication Services B.V.
Internet Banking
Current banking products online?;
• High product information but relative poor service levelOnly paying and saving accounts are on-line No interaction (a different accounts per service)
• UnilateralBased on advise (productsupport)Documentation not suitable for internet applications No possibility to individualize because of the restrictions of
organisations and techniques
International Telecommunication Services B.V.
Internet Banking
Why is a mature player on the internet lacking;
• Organizational restrictions (Hierarchical model)
• Web-based techniques;
No interaction and two way communication possible.
Insecure; Viruses, hackers, Spam
• Product-offering not suitable for internet
• Restrictions through current IT systems
• High investments and overhead costs (not profitable)
International Telecommunication Services B.V.
Internet Banking
Conclusion:
The success of e-banking is totally dependant on the technology and the way it is implemented.
The potential of Internet Banking is enormous!
International Telecommunication Services B.V.
Potential
Statistics people online;
September 2002Asia/Pacific 187.24mEurope 190.91mNorth America 182.67mLatin America 33.35m
594.17m
a data monitor report of the bank industry estimates a growth to 66.2million online accountholders in 2004 against 26.2 in 2003!
International Telecommunication Services B.V.
Possibilities
General possibilities;
• Personal marketing through benchmark capabilities• Transaction oriented, realtime; direct response of users, more
insight in individual requirements.• International coverage • Increasing profits• Integration of administrative and logistical systems• Time to market• Individual customer profile, freedom of choice of product and
services• Userfriendly (ease of use and ease of adoption)
International Telecommunication Services B.V.
Internet Banking
E-banking with Beeyond!
International Telecommunication Services B.V.
E-bank
Complete integrated and realtime banking-model.
• Total concept within 1 technological model.
• Integrated financial service linked to one accountnumber
• Economies of scale; from Iran access to a worldmarket!
• Extensive services and products and individual oriented
• Increase of throughput and decrease transaction lead-times
International Telecommunication Services B.V.
Transaction center for online payments• Online payments
CreditcardDebitcard via point of sale (pin)CollectionsBank transfers
• Authorisation and authentication of online payments• Clearing transactions to the bank (netting)• Settlement (physic money transfer)
Clearinghouse
International Telecommunication Services B.V.
Payment Methods Netherlands
• Cash guaranteed payment • CreditCard guaranteed payment (within creditlimit)• DebitCard guaranteed payment• Collections not guaranteed payment• Online Bank transfers not guaranteed payment
• A transaction is authenticated when the combination of the cardholder, the credit card and the account number is validated.
• Risks are higher on the internet because of the lack of physical control capabilities to authenticate a transaction.
• The ClearingHouse takes over this risk of authentication.• The ClearingHouse (like interpay) obliges strong security methods
in the e-business software.
Authentication and authorisation
International Telecommunication Services B.V.
Issuing bank
Acquiring bankACH
Acquiring clearing house
C.CCommunity center
Swift
National bank
payer receiver
Settlement
Authenticationauthorisation
International Telecommunication Services B.V.
Issuing bank
Acquiring bankACH
Acquiring clearing house
C.CCommunity center
Swift
National bank
payer receiver
Settlement
Authenticationauthorisation
Beeyond technology
International Telecommunication Services B.V.
The road to e-bankingTransition path1. Unlock information (2skin)
Keep existing database and maintenance applications Build necessary applications to extract information
2. Build interactive processes Replace batch processing to interactive processing
3. Implement new infrastructure Implement new interactive processing using internet/intranet
4. Implement e-commerce functions Build front office internet applications for customers
5. Replace backoffice systems Replace all traditional applications (RPG)
6. Implement e-banking concepts Build state-of-the art applications to support e-banking