1. In the e-banking environment, what are the major security threats?

- Login detail disclosure: This is most basic threat to the financial system. Using a
number of means, criminals acquire login details, such as a customer number, pin,
and use it to access the account and steal money from it. This threat could be
mitigated through promotion of good practice amongst con-sumers to keep their
login details safe.
- Computer spy viruses: These are computer programs which are circulated
through email or other means. Once a customer opens a malicious email a program
is automatically installed in his/her computer. These programs collect login id or
other financial information which is used to conduct a range of criminal activities
such as credit card cloning or unauthorized funds transfer.
- Dummy sites: Here customers is lured to the dummy or look alike website. These
website look very similar to a bank’s website, and when login details are entered,
these are recorded and used for criminal activities.
2. Some measures banks need to take to promote trust in e-banking?

- Purchase of similar web domain names so it becomes difficult for fraudulent

traders to set up similar websites.

- Being pro-active in combating online crimes and cooperating with other banks
and other regulatory/professional bodies to detect and prevent crimes.

- Taking proper care in protecting consumer’s information and taking particular care
in using it for marketing purposes.
- Providing appropriate guarantees against consumer losses in the event of fraud.
3. Advantages and disadvantages of outsourcing services?
Outsourcing In-house System Development
Advantages - An attractive option for - Development of in-house
replacing legacy systems expertise
- Low risk - Flexibility
- Known costs - Own developers have better
- Expert support from understanding of business
vendors - Less changes may be required in
- Easier upgrades business processes
- Ability to focus on core - Unique processes may lead to
business issues competitive advantage
Disadvantages - Possible inflexibility - High risk strategy
- Hight external - High costs
consultancy costs - High training expenses
- Difficult change - Difficult and costly upgrades
management issues
- High dependency on
 vendors

4. Solutions for electronic banking development?

- Needs a comprehensive, unified, national digital payment infrastructure design

and construction plan that can spread to all regions. regions.
- need to build network infrastructure of electronic payment points
- In the coming time, it is necessary to soon pilot the service of using
telecommunications accounts in low-value service payments
- On the other hand, at a macro level, the completion of the national database on
population will be an important factor to help the inter-agencies. agencies can
connect and synchronize, thereby perfecting the digital payment infrastructure.
- promulgation of legal regulations in line with the trend of digital banking
development
5. What are the services that e-banking can provide?

Types of e-banking Description

Account Access Access online to all of one’s account
information (usually checking, savings,
and money market), which is either
updated in real time or on a daily bath
basis.
Bill Payment Pay any designated bill based on
instructions one proves including
whether to pay automatically or
manually each month.
Bill Presentment View billing statements as presented
electronically, which allows interactive
capabilities such as sorting, drill-down
details, or advertising, in addition to on-
click payments.
Mortgage/Credit Card/ Misc. Lending Search, apply, and receive approval
online for various types of loans and
then review your statements using online
bill presentment.
Business Banking Services In addition to all of the basic payment
and account access services, merchant
can manage their electronic lock box for
received payment, accounts receivable
posing, as well as initiative payment via
networks.
Customer Service & Administration While the Web will eventually enable

Cross-selling
Personalised Content and Tools
Accounts Aggregation
live communication, it is most optimally
designed to facilitate interaction with
information so that customers can more
easily service themselves. In the process,
customers receive as good, if not better,
service while the bank saves money with
each additional transaction as it realises
the scale economies of its largely fixed
online investment. Advanced e-Mail
systems with automated replies and
intelligent routing are also helping to
improve the online customer service
experience.
Just as visitors to a branch are being
offered new products by tellers and
simple signage, so can Web bank
customers. In most cases today, banks
perform this function online with
standard, broadly targeted text offers or
by just making their product literature
available online. In the future, banks will
be able to harness the true power of the
Internet by providing targeted offers to
Web customers based on a combination
of their indicated interests and financial
situation. Not only will banks be able to
sell banks products, but non-financial
products as well.
As one visits the Web branch, one is
instantly recognised and content
displayed is oriented toward one’s
interests including weather, investment,
and hobbies. More importantly, by using
the Web, bank customers could use
online financial planning tools to better
manage their finances.
Accounts aggregation enables a
consumer to be presented with all his or
her account details (current account,
saving account, mortgage account
etc.) on a single page. For access to
external (to their first choice bank)

Electronic Funds Transfer
financial data consumers to provide their
account passwords to the aggregator
(usually a bank). The aggregator uses
the passwords to access automatically
the consumer’s accounts. The
information is then provided to the
consumer on a consolidated basis on a
single page so the customer has a full
view of his/her financial portfolio. In
most cases funds can be transferred from
one account to another.
Electronic Funds Transfer (EFT) is a
system of transferring money from one
bank account directly to another without
any paper money changing hands. One
of the most widely-used EFT programs
is Direct Deposit, in which payroll is
deposited straight into an employee’s
bank account. This system may also be
used for debit transfers, such as
mortgage payments.

1. What are the Management Problems faced by e-banking?

A. Regulatory Issues.
B. Information Management.
C. Security
D.all above
2. What are the benefits of investing in IT systems for e-banking?
A. Ability to focus on core business issues
B. Known costs
C. Unique processes may lead to competitive advantage
D. Easier upgrades
3. What should e-banks do to improve security?
A. There are staff members with security expertise
B. Plan continuity to deal with the consequences of any security breach.
C. use digital signature
D. all above
4. Electronic banking benefits?
A. High interest rates for savings
B. Improve capital efficiency
C. Fast and convenient
 D. B and C
5. Advantages of cloud technology for electronic banks?
A. Speed up the development of new products and services, easily expand the
market and improve labor productivity
B. Improve bank sustainability and transparency
C. Cut the cost
D. All above