Electronic Banking

Gagandeep Chaudhary

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

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.

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.

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.

Drawback of E-banking

• Difficult in adoption technology• Fear of technology • High cost of technology • Lack of preparedness• Restriction on usage of technology

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.

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.

Simple safety measures

• Change Your password periodically.

• Review your bank accounts frequently.

• Try to use low limit credit card for internet transactions

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.

References

• http://www.unicreditbank.cz/en/individuals/direct-banking/online-banking.html

• http://www.bai.org/bankingstrategies/2012-july-aug/index.html