Internet banking

Types of Internet Banking

There are three types of Internet banking, which vary by complexity and level of risk:
  Informational: The simplest level of Internet banking; this level involves placing
marketing information on a stand-alone server for customer access. This type of Internet
banking entails the least risk, since generally this type of banking is only informational
rather than transactional in nature, and thus there is no direct link between the provided
information and a bank's internal network.
 Communicative: The level of Internet banking intermediate in complexity; this level
involves permitting customers to perform non-transactional tasks such as inquiring about
accounts and updating contact information. This type of Internet banking entails more
risk than informational Internet banking, since there may be a direct link to a bank's
internal networks.
 Tranactional: The most complex level of Internet banking; this level allows customers to
complete banking transactions electronically, including account access, fund transfer, and
bill payment. This type of Internet banking involves the most risk, since a direct link to a
bank's internet networks is required.

Not surprisingly, the current trend is for banks to make their Internet banking services more
transactional in nature in a bid to compete with other banks providing similar services.

Advantages of Internet Banking

Advantages for Consumers

 Convenience: Consumers can perform various banking transactions such as bill payment,
check ordering, or fund transfer in any location with an Internet connection, at any time,
without the lines typical of physical banking offices.
 Access: Consumers can access banking information electronically, thus eliminating the
necessity for information such as bank statements in paper form.
 Time Savings: Consumers can access banking information within seconds.
 Cost Savings: Online banking generally is a free service, and thus consumers can bank
online without transaction costs in lieu of visiting physical bank offices, which
sometimes charge service fees for personal service.

Also

 Access accounts at any time and any location

 Pay bills online
 Track and manage expenses
 Update personal contact information
 Set up recurring deposits
 Transfer money between accounts
 View and print past statements
 Recharge a mobile phone
 Contact customer service
 Update personal contact information
 Monitor account for suspicious activity
Architecture of Mobile Banking