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Online

Banking
Introduction to
Online Banking
Online banking is the practice of making
bank transactions or paying bills via the
Internet. Access account information,
review bills, pay bills, transfer funds:
 Apply for credit, mortgage or auto loans
 Find out if a check has cleared
 Compare rates and prices
 24 hour access to your bank accounts
How Does Online Banking
Work?
 Online banking offers many changes for
consumers to do certain transactions over
the internet. They allow them to use online
features which are available on the web
such as checking their account balance
and other types of transactions. To use
internet features consumers have to log in
and type their account number with the
password .This will enable them to view all
the information they need of their
accounts and by clicking on the type of
transaction they want
 Architecturally bank may design its online
banking system in two ways:
1. Central Server System
2. Distributed Server System

Considering the facts of telecommunication


infrastructure distributed system is preferred
solution. So that one branch can do its
transaction and customers can get service even if
the communication is disrupted. The foreign
banks in our country use central server concept.
In these systems all the branches log in the
central server and perform transactions. Solid
communication line is required for central server
system. If the line is down transaction hampers
Illustration of customer
sign up
Growth In Internet
Banking
Numerous factors including competitive
cost, customer service, and demographic
considerations are motivating banks to
evaluate their technology and assess their
electronic commerce and Internet banking
strategies:
• Competition
• Cost Efficiencies
• Geographical Reach
• Branding
• Customer Demographics
Types Of Internet
Banking
The following three basic kinds
of Internet banking are being
employed in the marketplace:
• Informational
• Communicative
• Transactional
Authorisation control
Security Tips for
Consumers
 Make sure that you are on the correct
website
 Make sure that you choose a
password that will not easily be
decoded
 Check monthly checking and credit
card statements carefully each month
 Report errors or problems promptly
 Be sure to “Log Out” of website when
finished
Security Tips for
Consumers
 Disclose personal information such as
credit card or social security numbers
unless you are 100% sure who you
are dealing with.
 Download or open files that were sent
from strangers because this could
infect your computer and capture
sensitive information without you
even knowing.
Security Control
Issues in Internet
Banking
Key components that will help maintain a
high level of public confidence in an open
network environment include:
 Security
 Authentication
 Trust
 No repudiation
 Privacy
 Availability
Types of online attacks
 Sniffers
 Guessing Passwords
 Brute Force
 Random Dialing
 Social Engineering
Online Banking 2006:Surfing
to the bank
Privacy Policies
 Most financial institutions have
policies about what information
they collect, how they use this
information, and whom they will
share it with..
 You do have the right to inform
your financial institution that
you do not want your
information to be shared.
Benefits of Online Banking
For Banks: For Consumers:
 Cuts payroll  Saves
costs time/Money
 Extends to new
 Flexible
markets
 Can log on from
 Flexibility
 Image of
almost
Company anywhere
 Convenient

 Transaction
Speed
Disadvantages of Online
Banking
 Start up may take time
 Security
 Learning Curve
 Site Changes
 The trust thing
Still Not Sure

 Most banks provide a “demo” on


their website for new users to see
what the online banking services
provide.
Thanks to
all