MODULE

2
Internet Banking

2.1 Module Objectives

In this module you will learn:

4 What internet banking is

4 What the advantages of internet banking are
4 What banking functions can be performed through
internet banking
4 Safety precautions for internet banking
4 How to log into an internet banking application
4 How to view account balances and transactions through
internet banking
4 How to transfer funds from one account to another
through internet banking
4 How to pay your bills through internet banking

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internet banking

2.2 What is internet banking?

Internet banking provides an efficient way to personally access and manage your bank accounts
and conduct financial transactions securely over the Internet any time of the day and any day of the
week. Internet banking gives you complete management over your accounts and saves you time
from queuing at the bank. All that is required to conduct internet banking is an internet connection
and an active internet banking subscription with your bank. Unfortunately not all banks offer this
facility but the major ones do.

2.2.1 What are the main transactions that can be performed through
internet banking?

The following are banking transactions that can be conducted online:

• Viewing account information (including loan accounts, credit card accounts, term
deposits and foreign currency accounts) including transaction history
• Transferring funds in any currency to any other bank accounts both locally and
overseas including in your own accounts
• Receiving text messages every time there is a movement in your bank accounts
• Setting up mobile phone top-up facilities
• Paying bills
• Applying online for various banking services
• Setting up recurring transfer or payment instructions
• Receiving e-statements and e-advices directly via internet banking
• Updating personal details
• Ordering cheque books and stopping cheque payments
• Sending messages or instructions to the bank
• Opening new term deposit accounts and updating maturity instructions
• Opening new savings and current accounts online
• Viewing past statements
• Viewing images of cashed cheques
• Managing standing orders
• Ordering bank drafts
• Performing investment services and managing investment portfolios

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2.3 Internet Banking Security

Your financial status is highly confidential and it is very important for banks to ensure that your
money and your personal information are safe. For this reason the infrastructure of the internet
banking portal is designed to offer the highest levels of safety.
Internet banking portals apply the following security mechanisms:

• A very strong networking infrastructure built up to international ICT audit standards

adapted particularly for banks and banking
• A very strong data encryption mechanism to store your data and passwords
• A very strong data encryption mechanism for the transfer of data of the internet (SSL)
• A complex login procedure for end users
• An extensive activity log mechanism for each movement that takes place in your
accounts

The combination of these mechanisms makes it very difficult for malicious users and even for the
banking staff to act without your consent on your accounts and not getting caught.

There are also some security precautions that you have to take to avoid fraudulent activities:

• Ignore any e-mails requesting you to provide any of your security details, even if the
e-mail claims to be sent from your bank. As a security procedure, no bank asks for its
clients’ Internet banking security details
• The bank will never ask you for your security details not even by word of mouth. You
should never supply these details not even to a bank representative
• Keep your account details in a safe place
• Never write down your personal password or reveal it to anyone. Make an effort to
remember it by heart
• Avoid accessing your account in public places like for example in internet cafes
• When you finish an Internet Banking session, log off properly by clicking on Log off
• Install anti-spyware software and anti-virus software on your computer, and update
them regularly
• Ensure you keep the security gadget safe and handy. If lost or stolen, you must report
it immediately to the Bank’s Customer Service Centre
• Keep the security gadget away from liquid substances or extreme heat sources
• Never leave your PC unattended while logged on to the Internet Banking system
• Check your bank accounts regularly. If you find a transaction of which you are not
aware of, or if cash is transferred unexpectedly, note down its exact details and report
the matter to your bank immediately

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2.4 Applying and registering for internet banking

There are a few steps to take and resources to acquire before you can start making use of an
internet banking application, as per guidelines below.

1. Open a bank account.

As a first step you must have an active bank account with a bank that offers internet banking
services. Some banks impose on their clients to have at least one savings or current account in
order to offer them the internet banking facility rather than just a term deposit account.

2. Subscribe for the internet banking service.

To use this service you must inform your bank so that they can make the necessary preparations
to set it up for you. You can apply for this service online through your bank’s website or else
through any bank branch.

The following are the procedures to be followed to register for the online banking services of BOV
and HSBC through their relative websites:

BOV

1. On the top right corner of

the Bank of Valletta website
homepage click on Apply.
By clicking on this button
you will be redirected to an
information page with all the
necessary details you need to
know before you submit the
application.

Figure 2.1: BOV website homepage – www.bov.com

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2. Click on the apply online

link found in the main content
of this information page. This
will take you to the online
application form of the Bank
of Valletta Internet Banking
service.

Figure 2.2: BOV Internet Banking information page

3. Submit the resulting form

with the required details. In
this form you will be required
to enter personal and financial
information that will enable
you to manage your accounts
through the online banking
portal. For instance you will
be requested to enter a list
of the BOV account numbers
you wish to manage through
the internet banking portal.
You will also permit the bank
to charge you an annual
fee for the provision of this Figure 2.3: BOV Internet Banking application form

service.

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internet banking

HSBC

1. On the left menu panel

entitled Express Banking of
the HSBC website homepage
click on Register to Personal
Internet banking.

Figure 2.4: HSBC website homepage – www.hsbc.com.mt

2. Enter your Quikcash card

number and also the card’s
PIN in the form and click on
Continue. This will take you
to an online form that requests
your personal and financial
information. The information
requested on this site is very
similar to the information
requested on the BOV Internet
Banking application form. Figure 2.5: HSBC Internet Banking logon page

Note that professional security measures have been taken by the banks to ensure that submitting
this personal information on the internet is safe.

This application process might take some time to be fully concluded by the banks due to the safety
procedures involved.

Most banks provide their clients with a small gadget to be used when logging into the internet
banking portal. Each time you log into the portal, you have to use this gadget to generate a PIN
number or password that you will use to log into the portal.

Without this gadget you will not have the password with which you will log into your account online.
This is a high technology security feature to ensure that your bank accounts are strictly viewed and
managed only by yourself and it is highly improbable that malicious hackers find a way around this
security mechanism.

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4. Log into the internet banking application.

Once all has been set up, all that remains is that you log in for the first time into the internet banking
portal. From then on, you can experiment with all the available features of the system and enjoy
your account management experience. If you want to experiment with transfers and other physical
money movement transactions, you can make use of simulation or demonstration portals that the
banks provide for free. This simulation portal is a portal identical to the internet banking portal but
with fictitious accounts and transactions.
BOV simulation portal:
http://www.bov.com/page.asp?p=10694&l=1
HSBC simulation portal:
https://www.hsbc.com.mt/1/2/onlinehelp

Whilst the internet banking services offered by different banks are very similar, the login procedures
or interfaces may vary between banks. In this module the main steps of the Internet Banking systems
of the main local banks are covered.

2.5 Logging into the system

Browse your bank’s website and click on the link to access the internet banking system.
BOV: www.bov.com
HSBC: www.hsbc.com.mt

Figure 2.6: BOV Internet Banking logon page

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Figure 2.7: HSBC Internet Banking logon page

Follow the specific logon procedure of your internet banking system making use of your login
credentials which usually are made up of three key stages:
• Your username or user id.
The bank provides you with a username or user id when you register for the internet banking portal.
• The security code generated by your security gadget.

Figure 2.8: Internet banking security gadgets

• A password or memorable answer.

For password guidelines see Module 3: Purchasing Online

2.6 Checking account balances

To check the balances of your accounts, search for the menu item that groups account management
applications.

In the HSBC Internet Banking System follow the following menu structure:
Accounts > Account Summary

In the BOV Internet Banking System follow the following menu structure:
Account Information > View Balances

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Once you enter these sections you will see a list of the accounts you hold at your bank together with
their respective current balances.

To view the account history of a specific account, click on the account number. This will show you
the list of the transactions of your account in descending order. If you are suspicious about any
transactions, you should inform your bank immediately for more details.

2.7 Transferring funds

Bank transfers can take place both between your own bank accounts; and between your bank
accounts and another person’s accounts. Transfers can become very handy when you want to
transfer cash into your cheque book or else when you want to pay someone directly into her/his
bank account. Note that transfers between bank accounts of different banks may carry charges.
This section focuses on transfers between your own bank accounts.

To transfer funds, you must access the following menu structures:

HSBC: Transfers > Make a transfer
BOV: Transfer of Funds > Between Own Accounts

When transferring funds, you will be requested to enter the following information:
• The account from which to withdraw the money
• The account to which the money should be transferred
• The amount and currency of the amount to be transferred
• The date on which you would like the transfer to take place. You can either execute the transfer
immediately or at a future date.

For instance if you have two accounts, Account A (Savings Account) and Account B (Cheque Book
Account), and you wish to transfer 50 Euros from Account A to Account B on the 1st of January,
you must set the following fields:

From Account: Account A

To Account: Account B
Amount to Transfer: 50 Euros
Date to Transfer: 1st January

Following the successful submission of this information and your confirmation, a transfer will
automatically take place on that date. Make sure that the requested funds are actually available on
that particular date or else your bank might issue financial charges against you.

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2.8 Paying bills

To pay your bills over the internet banking portals, you must access the following menu structures:
HSBC: Pay Bills > Pay a Bill
BOV: Transfer of Funds > Bill Payment Facility

When paying bills, you will be requested to enter the following information:
• The bank account from which you wish to pay the bill
• The company that has issued the bill
• The invoice number and/or client number found on the bill
• The amount you are required to pay

Once all these details are typed in correctly and you confirm the transfer, your supplier will receive
the payment directly into her/his account. As a proof of payment, the bank will log your payment
details into the system. The internet banking portal will also provide you with a transaction number
after you affect your payment. You should record this transaction number with every payment you
make by writing it down on your invoice and use the number if you are requested to provide evidence
of payment.

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2.9 Exercises
1. What is internet banking?
o A. A new way of physically depositing cash notes in your bank account through your home
computer
o B. A website that contains general information about banks
o C. A system offered by your bank that enables you to perform electronically basic banking
transactions
o D. A new online method of withdrawing cash notes from your bank account

2. What are the main operations offered by internet banking?

o A. Checking bank balances
o B. Transferring funds
o C. Paying bills
o D. All of the above

3. Which of the following statements is correct?

o A. Internet banking is fairly safe since it is hosted on the internet
o B. Internet banking is not safe at all
o C. Internet banking is very safe even if it is hosted on the internet
o D. None of the above

4. What is the function of an internet banking security gadget?

o A. It shows your account balances when you switch it on
o B. It is a plastic case that safely stores your banking card
o C. It is a small gadget that gives a security PIN that you have to use each time you log into an
Internet Banking portal
o D. It is a small gadget that allows you to deposit and withdraw cash from an ATM

5. Which of the following security precautions should be taken to avoid Internet Banking
fraudulent activities?
o A. Replying to emails from your bank that request confidential information about you
o B. Writing down the personal Internet Banking password on a piece of paper not to forget it
o C. Leaving your PC unattended while you are logged in the Internet Banking system
o D. Checking your bank accounts regularly and examining the transactions for unexpected or
suspicious transactions

6. Which of the following statements is true?

o A. Internet banking is unsafe and expensive
o B. From an internet banking system you can view other clients’ account balances
o C. You cannot apply for Internet Banking over the internet
o D. Internet banking can be accessed from any computer that has an Internet Connection

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7. To apply and use internet banking, you need to:

o A. Open a bank account
o B. Subscribe for the internet banking service by informing the bank
o C. Log into the internet banking application
o D. All of the above

8. Which of the following will you need to use internet banking?

o A. An internet browser
o B. Speakers
o C. Scanner
o D. All of the above

9. When using internet banking to transfer funds, it is possible to set the exact date on
which the transfer will take place.
o A. True
o B. False

10. What are simulation-portals used for?

o A. To simulate the login process of the internet banking portal
o B. To allow you to experiment with virtual money movements without doing the actual
transactions
o C. To simulate the proper use of the internet banking security gadgets
o D. To simulate the proper way of updating your personal details used by the
internet banking system

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