NET BANKING

ManojiKumar.R
0920315
Section - D
• Electronic banking (or net banking) refers to an application of
the Internet that allows customers to dial into bank networks
or their websites, using their own telephones and computers,
and to get a host of banking services directly on their home or
office PCs.
• Net banking offers armchair convenience and access to your
account information from anywhere in the world, at any time
of the day or night.
• No need to worry about bank holidays or taking time out to go
to the bank, or standing in long queues for a simple
transaction!
• Access most of the bank's services from the comfort of your
home/office!!
By Net Banking a customer can
• Manage your accounts online.
• Transfer money between accounts.
• Pay your bill online and keep convenient record of all
payments.
• Review your processed checks online.
• Apply for loans online.
• Trade stocks or mutual funds.
• Track your recent account activity
• More and more banks are coming to realize that internet is a
part of banks' alternative delivery channel strategies activities
concentrated in the business-to-consumer segment, focused on
retaining clients
• In Internet banking, security is a primary concern. Security
concerns have been addressed from every angle within the
architecture of the Internet banking application.
 Two Approaches of Net 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.
2
CHANNEL COST COMPARISON:
1.5

0.5

0
Web ATM Call Center Branch
 Advantages of Net Banking

• Net Banking is much cheaper for the bank. A survey says that
Net Banking costs only 10% of branch services.
• Normally internet banks offer better rates than traditional
banking.
• Pay bills online there by saving postal services.
• Consolidated Bill Presentment services alert you when the bills
are due.
• The services are available seven days a week, 24 hours a day.
• Free Stock Trading
• Direct transfer of bank statements to the customers financial
management software such as MS Money.
• Free interactive help for the customers investment decisions.
Concerns…
• Security concerns, like hackers accessing your bank accounts .
• Need an account with an Internet Service Provider (ISP).
• Switching banks can be more cumbersome online than in
person.
• Online banks generally do not have their own ATMs.
• Must have basic computer skills and Internet knowledge.