Associate Professor www.ranasingh.org Agenda EBanking - Concepts and advantages Technical Framework !ndian Banking Scenario !C!C! !nfinity" A Case Study A nonresident !ndian (NR!) in Paris has an easy way to access money in this fashion capital of the world. His Citibank account in !ndia can be accessed through an ATN in Paris, which in turn transmits information to Citibank`s central hub in the US. The !ndian rupees are converted to US dollars, which are in turn converted into French Francs at the current exchange rate, the !ndian account is debited and the Francs made available to the NR!. elcome to the era of technology banking! !magine a Scenario Definition EBanking is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brickandmortar institution. hat is Ebanking? "nline banking or !nternet banking !n simple terms it does not involve any physical exchange of money, but it`s all done electronically, from one account to another, using the !nternet. From a personal computer, you can access your bank account information, and perform many banking functions, like transferring money, making a loan payment hat is Ebanking? "nce you register yourself on a bank website, you can view o Your accounts, credit card S home loan balances o Accrued interest, fees and taxes o Transaction details of each account o Pay bills o Transfer funds to third party accounts which you nominate o "pen a deposit right from the terminal you are sitting at. hat is Ebanking? However, till now !nternet services in !ndia only allows for a minimum level of interactivity such as o Answering email queries o Feedback forms o Articles asking for readers' opinion at the end An accountholder, armed with a password, can use the Net to order a cheque book, stop payment of a cheque and spot the balance and individual operations in the account and transfer funds. Advantages Eliminates the use of paper and replaces it with computer screens No need to stand in line at the bank, because all you have to do is log onto the internet S access your account !t's safe, hassle free, saves hours of time a month Advantages !t comes with a world of other benefits o !nterest earning checking accounts, o Automatic bill payment o ATN/Debit cards o Credit Cards o Direct Deposit o "nline Statements o Loans o Noney market accounts 'ransaction costs Source : Booz ,Allen and Hamilton stomer service As an online bank customer, you have a website that is at your disposal 24/7 You can get your online statement for the month, week, day, or year You can send emails with questions or concerns You can pay bills E Banking Set7 Elements of an E Banking System Hardware o Servers o Storage device and database o Communication channels and lines o Cateways and remotely located devices (e.g., thin clients or !nternet appliances) serving as interfaces between users and computers Software Elements of an E Banking System o "perating systems o Firewalls o Database management systems o Security application programs. E Banking Set7 Areas Of Secrity Authentication o verifying your identity using passwords/pass phrases and certificates Confidentiality Non Repudiation o Nethod by which the sender of data is provided with proof of delivery and the recipient is assured of the senders identity Areas Of Secrity !ntegrity Access Control o Nechanisms and policies that restrict access to computer resources Availability Access ontrol Access control restricts the flow of data traffic !nternet Banking uses firewalls in the area of access control. !nternet Banking two firewalls are used o "ne before the !nternet Banking server o Before the SQL database Access ontrol Banking uses firewall which fall into two categories o Packetfiltering Cateways o Proxy services. Data 'ransmission and onfidentiality Public Key Encryption Secure Socket Layer (SSL) Athentication Digital ertificate o A digital certificate is an electronic !D, which is verified by a third party, a certification authority (CA) o The CA controls the Public Key !nfrastructure (PK!). o A security certificate ,associates an identity with a public key. "nly the owner knows the corresponding private key that allows the owner to decrypt or make a digital signature. o Eg Barclays UK's Digital certificate EBanking Scenario Ebanking 'rends orldwide Concept of Ebanking is more prevalent in the technologically developed parts of the world such as Europe and the US The number of online banks in Western Europe has mushroomed. As per Bluesky !nternational Narketing, a US based research agency, the number is quoted at 1,84S in mid 1333. The scene is similar in the US where a recent Dataquest survey forecasts that the number of US households banking online will reach 24.2 million by 2004. !ndian Banking Scenario private banks and 4 foreign banks 27 public sector banks account for over 84 of the total deposits and over 82 of the total banking advances in !ndia Rough estimates assuming teller at Re 1 per transaction put ATN transaction costs at 4Sp, phone banking at Sp, debit cards at 20p and !nternet banking a measly 10p. Ebanking in !ndia Narriage of technology and banking is inevitable to keep pace with changes in the global scenario. The erma ommittee recommended the need for greater use of !T even in the weak Public sector banks. Presently Net Banking facility is offered by !C!C! Bank, Citibank, HDFC Bank, Clobal Trust Bank etc. hanging Scenario urassic banking is pass. The !nternet is slowly converting retail banking into a commodity where the days of loyalty to bricks and mortar banking are obsolete. Retention of customers Survival in competitive markets Reduction of transaction costs !ew !nitiatives HDFC Bank is planning to introduce third party payments whereby account holders will be in a position to make payments to predetermined parties through the Net. The !C!C! group has also launched an !nternet payment gateway for handling Net transactions of its clients. HSBC is working on a comprehensive interactive financial services in collaboration with !BN which would be a stateoftheart local platform. Relationshi7 Banking !' enabled Relationshi7 banking Emphasis on Human Capital" Customer oriented. !T enabled Customer relationship management for banking services. Naximisation of profitability through the use of detailed Customer information. Financial portfolios tailormade to Customer's individual needs. 'ools sed in Relationshi7 banking Networking Techniques. Parallel Systems. Data Warehousing Data Nining Advantages of Relationshi7 Banking Higher customer retention Nore cost effective marketing Reduced Credit risk Reduced Customer Acquisition costs stomer Service ATNs Personal banking centres Retail delivery Channels Home Banking Telephone Banking Difficlties The picture in !ndia, however, is a bit grey. The RB! does not still allow interbank funds transfer through the Net since the cyber laws are still not in place. "nce allowed, this could pave the way for smooth cash management. Security also continues to remain a major issue, especially in the case of corporates, as bulk transactions are done in a day. Bankers are aware of the fact reliable transaction technology as well as management of the security perceptions of customers are the keys to success. Difficlties The infrastructural costs of providing such services are quite high. A bank not only has to automate its frontend systems which the customer interfaces with but also the backend systems so that the bank is able to provide robust functionality". !!!'s !nfinity !nternet Banking Service As per Mr. K.V.Kamath, MD and CEO ICICI Ltd., %echnology today, particularly via the internet, is creating a platform-independent, low cost communication infrastructure permeating all sectors of the economy and providing an affordable medium to conduct business. nfinity - nternet Banking Service as launched in December `97 and has 15,000 customers. It oIIers you convenient remote banking Iacility. It provides you an easy and secure access to your accounts ith us. With just a PC connected to the Internet, you can have your account inIormation at your Iingertips, Irom anyhere in the orld, anytime. So, iI you don't ant brick and mortar bank timings to hassle you, InIinity Internet banking is just the service Ior you. nline Services ffered Account information Summary of all your Accounts by giving details of each account, snapshot of balances, available credit lines, record of payments and transfers. Allows transaction tracking (retrieval of transaction details based on cheque number, transaction amount etc) Provides account statement and transaction reports based on user defined criteria. Displays account balance message and also a warning when the Account balance limit has been crossed. Allows you to view details of fixed deposits and loan installments due. Wunds transfer %ransfer money between your accounts across any of the branches %hird party funds transfer which means you can transfer money to any other bank holder. WRequests and intimations electronically submit a request for : heque-book Stop Payment nstruction pening a ixed Deposit pening a Recurring Deposit Wommunication with your account manager Mail-box facility enables you to send secure mail to your account manager to find out the status of a request or for any clarifications. WPersonalised ontent - InIinity provides customised content exclusively Ior its users. - Personal inance containing views of experts - Select articles on electronic commerce, information technology - Lifestyle articles on various places of tourist attraction - News updates Wnline investments Wnline real time e-shopping payments nline shopping payments at rediff.com, fabmart.com, malamall.com, magiccart.com, indiainfoline.com, eindia.com, indbazaar.com, shoppersstop.com, sify.com WUtility bill payments Bank has now tied-up with Life nsurance orporation to accept the payment of life insurance premium over nternet Payment of Bills of the cellular operators Which equipment and software do I need to access Infinity? f you have a P connected to the nternet, you will be able to use nfinity. or optimal performance and security, the recommended browsers are : WMicrosoft nternet Explorer 4.x or later WNetscape Navigator 4.x or later ICICI Bank launched a eb banking service Ior nonresident Indians (NRIs). NRIs can no open an account ith the bank on line by visiting its NRI services section on the ebsite. The bank presently has over 15,000 NRI customers, a majority oI hom are in the United States, Middle East and Europe. Thank You