I) Giới thiệu chung

Today, most banks offer online banking services……

Commercial banks in advanced countries around the world have been
developing strongly electronic banking services. In our country, the level of
interest varies, there are places where people only consider this service as
something new, remote, expensive, some also research applications but in
moderation, listening, behind other units, but there are also places of interest
and strategic investment in applied research. This is because E-banking has
many advantages, but it also has some disadvantages.

- Định nghĩa
Electronic banking is a form of banking in which funds are transferred through
an exchange of electronic signals rather than through an exchange of cash,
checks, or other types of paper documents. It is simply the use of electronic
and telecommunications network for delivering various banking products and
services. Transfers of funds occur between financial institutions such as banks
and credit unions. They also occur between financial institutions and
commercial institutions such as stores. Whenever someone withdraws cash
from an automated teller machine (ATM) or pays for groceries using a debit
card (which draws the amount owed to the store from a savings or checking
account), the funds are transferred via electronic banking.
https://www.encyclopedia.com/finance/encyclopedias-almanacs-transcripts-
and-maps/electronic-banking
https://www.toppr.com/guides/business-economics-cs/money-and-banking/e-
banking/

In the 1950s the Bank of America was one of the first institutions to develop
the idea that electronic computers could take over the banking tasks of
handling checks and balancing accounts, which was, at that time, extremely
labor-intensive.
https://www.encyclopedia.com/finance/encyclopedias-almanacs-transcripts-
and-maps/electronic-banking
- Thực trạng sử dụng
In fact, a 2012 comScore report revealed that close to 29% of all Internet
users worldwide have accessed online banking sites. This represents roughly
423.5 million people. That number is higher in North America where more than
45% of Internet users accessed bank websites.
https://www.doughroller.net/banking/is-online-banking-safe/?fbclid=IwAR109ri-
IirOcQOzmBHjDWa_YGR5nqGDtIn6sEva4Mk2qdL0V_27ZfdimWI

Approximately 72.5 million American households -- 80 percent of the

population -- used online banking in 2010 [source: Fiserv]. Internet banking
has become an accessible, everyday practice as common as walking into a
local branch and speaking to a teller.
https://money.howstuffworks.com/personal-finance/online-banking/online-
banking-safe.htm?
fbclid=IwAR1EG98B_CRosNFdtx8rfvlxlQOeDdFmKeT16estHAemmPW58nnJi
p_dP3k

Chart1: Number of individuals that use online banking services* in select European countries as of March 2018
This statistic illustrates the number of individuals in select European countries that use online
banking services (banking-related websites or apps) as of March 2018. The total number of
Germans that used online banking as of March 2018 amounted to approximately 33 million.
Despite having slightly less online banking users, at 25 million, Spain had the highest
percentage for banking website/app penetration with 85 percent of adults using online banking
https://www.statista.com/statistics/919078/number-of-individuals-that-use-online-banking-in-
europe/

Chart 2:
Around half (51%) of adult Europeans use internet banking. This share is constantly increasing and
has doubled since 2007, when it stood at 25%.
Internet banking is particularly popular among 25 to 34 year olds, with 68% using this facility. The use
of internet banking tends to increase in line with the education level of the user. While only 24% of
those with low education use e-banking, 77% of those with high education use this service.
Among EU Member States, internet banking is most common in Denmark (where 90% of people aged
16 to 74 said they were using it) and the Netherlands (89%), followed by the other Nordic countries -
Finland (87%) and Sweden (86%).
The lowest shares were registered in Bulgaria (5%) and Romania (7%). Less than 30% of those
between the ages of 16 and 74 use internet banking in Greece (25%) and Cyprus (28%).
https://ec.europa.eu/eurostat/web/products-eurostat-news/-/DDN-20180115-1

Features of e-Banking
ATMs – ATM is shot form of Automated Teller Machines. These machines are
actually electronic terminals which provide the customers to bank anytime.
The ATM machines take inputs from the ATM that the banks provide to its
customers. To make use of ATM, the user must have a password. Banks
charge a nominal fee from the customers on every transaction made after
crossing the specified limit of free transactions, if the transaction is done from
any other bank’s ATM machine.

Deposit and Withdraws (Direct) –This service under e-banking offers the
customer a facility to approve paycheques regularly to the account. The
customer can give the bank an authority to deduct funds from his/her account
to pay bills, instalments of any kind, insurance payments, and many more.

Pay by Phone Systems – This service allows the customer to contact his/her
bank to request them for any bill payment or to transfer funds to some other
account.

Point-of-Sale Transfer Terminals – This service allows customers to pay for

purchase through a debit/credit card instantly.

Forms of e-Banking
● Internet Banking – The customer uses electronic devices like
computer or mobile to conduct transactions using the internet.
● ATM machines – The customers can withdraw cash, deposit cash,
transfer funds using ATMs.
● E-cheque – The customer can transfer money using PayPal or other e-
service providers.

https://www.paisabazaar.com/banking/internet-banking-e-banking/

- Phương thức hoạt động

As online banking has become more sophisticated, banks have been formed
that operate exclusively as electronic banks and have no physical storefront
for customers to use. Without the costs of purchasing and maintaining
physical “bricks-and-mortar” structures like traditional banks do, online banks
are able to offer higher interest rates on savings accounts (interest payments
are fees that customers collect for keeping their money in the bank).
Customers at online banks can use the Internet to conduct all the standard
banking transactions (including paying bills online, viewing images of
cancelled checks, and transferring money to accounts at other banks and
brokerages).
https://www.encyclopedia.com/finance/encyclopedias-almanacs-transcripts-
and-maps/electronic-banking

Do e-Banking products store personal information of the customer?

Yes, the User ID, password and user preferences are stored by online
banking products.

How can I access e-Banking?

Any banking customer, who wants to use e-banking service, must fill in the e-
Banking registration form and submit it to his/her bank. Once the registration
is received, the request is processed. The customer has to wait for a few
working days as mentioned according to the concerned bank to receive login
credentials. Then only the customer can access e-banking.
https://www.paisabazaar.com/banking/internet-banking-e-banking/

- Limitation of e-Banking:
● Huge Number of branches all over the Bangladesh even outside the country
and for the purpose of automation huge investment is necessary.
● Most of the branches are in the rural areas where there are no modern digital
communication facilities.
● Most of the users or clients of the banks are poor and uneducated village
people having no knowledge about electronic banking and cannot afford it at
the current cost level.
● Most of the officials of these banks in the classical stage especially the state
owned ones are aggie and cannot understand and are reluctant to accept
modern electronic banking. To turn around these banks at first the outdated
mentality of these officials of the classical banks.
● Illiteracy is a great problem in consideration of E-Banking activities execution.
III) Ways to boost the security of your e-banking:
- Customers:

1. Confirm your online bank’s legitimacy

You should be able to know if your online bank is legitimate by reading the
information found on the site and whether or not it is insured with the FDIC.
The FDIC has a tool that let’s you search for banks, which you can access
here.

2. Be very careful with copycat Web sites

Be sure that you do not fall prey to sites that use a name that is very similar to
your online bank. For example, BankofAnerica.com or Citigrop.com.

When you receive an e-mail purporting to be from your bank, don’t click any
links in the email. Instead, type in the url of your bank and login. If your bank is
really trying to contact you, you’ll likely find a message when you access your
account. Alternatively, call the number on the bank of your debit card or latest
bank statement.

3. Learn more about your bank’s security system

You should know how your bank encrypts your private information. When you
are accessing the Website, you should find a small “lock” or “key” icon to tell
you that the site and your transactions are secure.

You should be able to use PINs and passwords when you access your
account online. Lastly, do not send personal information over e-mail. Under no
circumstances would your bank ask for personal data over e-mail.

4. Protect your computer

Hacking attacks are not always directed at banks. Because many such attacks
are directed at customers, you will do well if you have the latest virus and
malware scanning software installed on your computer. You should also
ensure that all the software you use on your computer has been patched with
the latest security updates.

https://www.doughroller.net/banking/is-online-banking-safe/?fbclid=IwAR109ri-
IirOcQOzmBHjDWa_YGR5nqGDtIn6sEva4Mk2qdL0V_27ZfdimWI
 5. Skip public wifi for private banking
With a public network, you can’t be totally sure who sees what you send online,
unless each page you visit is encrypted. The security of your private home network is
ideal. If you have to log in while away from home, consider using your cellular data
plan instead of Wi-Fi, or a virtual private network, known as a VPN. However you
choose to log in, check for web page encryption by making sure the address on the
browser starts with “https.” The “s” signals that the page is secure.

6. Ask for two-factor authentication

When you log in to a website, you prove who you are by entering a username
and a password. That’s one factor. With two-factor authentication, you’re
asked to enter another piece of identification, such as a temporary code. The
bank would email or text you the code at the time you try to log on, so it’s
unlikely someone else could receive it beforehand.

7. Use the ebank app

Download your bank’s mobile app, and use that instead of accessing it from
your desktop. Unfortunately, computers get hit with the most malicious
attacks.While every single device has the potential to get hacked, it’s just not
as common for mobile devices. Accessing your cellular network and logging
into your bank account will give you the most protection.

8. Sign up for text alerts

If your bank gives you the option to get text alerts about your account, don’t
hesitate to sign up. Every time a large sum of money is drawn from your
account, you’ll get a text. Hopefully, you’ll only get texts when you’re the one
taking out cash. Text notifications allow you to pounce on any suspicious
activity in your bank account. If you receive a text that your balance has
suddenly dropped, and you haven’t made any transactions, you can contact
your bank and quickly put a stop to any fraudsters.

9. Avoid using automatic login

With automatic login, your browser saves your username and password,
allowing you to access your bank account without remembering any of your
login information. While that’s convenient and all, it’s not the safest thing to
do.You should avoid automatic login at all costs, especially if you use your
phone for online banking. What if someone happens to swipe your phone?
They won’t even need your username or password to get into your bank
account.If you haven’t already, disable this feature on your phone and on your
desktop right away!
 10.
Use combinations that are difficult to guess, such as a mix of uppercase and
lowercase letters, numbers and symbols. The more complex the password,
the harder it will be to crack and the more likely it will provide protection
against hackers.

- Banks:
Banks need to keep updating their systems to keep up with the rapidly
changing technology to avoid any holes in its security system. Further, the
bank’s staff requires regular training to keep up with the new technologies,
too.
https://www.toppr.com/guides/business-economics-cs/money-and-
banking/risks-of-e-banking/

IV) Conclusion:

The trend of technology about banking is soothing for the customer, but there
may have some risk associates with it, since information technology is often
hacked by some notorious hacker. So, it is very much essential for the bank to
adopt the right technology with optimum security system. Banks are required
to ‘ restructure’ reinvent and reengineer and get the competitive edge due to
the introduction of information technology being an important out put of ;
information out put of information technology has ushered in an era which is
transforming the entire functioning of banks .

The flexibility of e-banking offers unprecedented opportunities for the bank to

reach out to its customers. With the rapid expansion of the Internet facilities,
e-banking is all set to play a very important role in the 21st century. Banks
have to deal with the sophisticated clientele with the help of latest technology
like e-banking. Lack of coordination and cyber crimes encroaching E banking
if taken in the right way by banks and customers would take the economy to
its best and make it a boon to customers.

E-banking facilities have brought the world on our hands. Now a day, a person
can get banking facilities sitting his own office or residence or anywhere else.
Transfers of money, export, and import businesses, selling and purchasing –
all are possible within a very short time without any moving. Though there are
some obstacles in the way of E-Banking, such as hackers, it is very popular all
over the world wherever technological development has got maturity. In our
country, all private commercial banks including our Central Bank or
Bangladesh Bank and all nationalized banks are in the way of E-Banking.