Chapter-1 Overview of the Study
INTRODUCTION 1.1. PROPOSITON OF THE STUDY In a constantly changing world of today, where past is replaced by dynamic present and the dynamic present is being replaced by more challenging future, the old ways of doing things is no longer valid. Change is permanent and a reality. Those who are not able to keep pace with the changes are destined to loose the race. Science and technology is changing the way financial institutions perform their transactions. Today’s banks are shaking by these technological changes. Life has never been so easy, comfortable, and luxurious. Science and technology have brought our life to this stage. But a new technology brings with it not only the potential for success but also a neverending series of questions regarding its design, its value to its users, ultimate use and acceptability. For over a decade, Information technology has significantly affected the banking industry Banks and other financial institutions have improved their functions as a financial intermediary through adopting various information technologies. Generally when the information technologies combine with functions of banks and financial institutions, it is called electronic banking. E-banking is a form of banking where funds are transferred through an exchange of electronic signal between financial institutions, rather than exchange of cash, checks, or other negotiable instruments. For many consumers, electronic banking means 24 hours access to cash through an ATM or direct deposit of paychecks in to checking and savings accounts. Now in world which is becoming increasingly opens as a result of the internet and www, Electronic-banking has been gaining ground around the globe. This offers banking institutions a new frontier of opportunities and challenges further augmenting competition in the global banking market.

1 Since the launch of Internet the large planet has become a smaller one. It has rendered enormous impacts on business sectors. Remarkable development in ICT (Information and Communication Technology) has introduced a global revolution in banking sectors. The global trend in business arena set some challenges that cannot be fulfilled with the help of the traditional banking system. The survey of current banking system in Bangladesh reveals the fact that it requires rapid modification and adaptation to keep harmony with the world economy business. It becomes more obvious by observing the increased number of customers in some modern banks while others are losing them. In the context of Bangladesh, a country of more than 140 million people, it is to be realized that there is no other option for us than to join the current trend. Otherwise it is almost impossible to bring any sort of fruitful achievement for the country. At present, people are very often scared of doing any banking function with most of the bank of Bangladesh. For, they still follow the traditional paper-based system. It, then, becomes cumbersome to perform even a simple financial service such as account checking. Therefore, the existing banking system in our country is awkward, slow and error-prone. It, in one hand, fails to meet the customers’ demand and, on the other hand, it causes some significant losses both for the banking authority and traders. Electronic banking, on the other hand, solves the above problems. Furthermore, it opens up some other salient aspects such as increased foreign trade and foreign investment. In order to cope with the changing technology Southeast Bank pursuits E-banking services such as Online banking, SMS Banking, ATM Card – Debit Card, Credit Card, Live Payment of foreign remittance services keeping in mind to hold up their position in the global competitive world providing better services that customer expect being a man in the twenty first century.

2 1.2. OBJECTIVES OF THE REPORT The sensible motives of preparing the report on Issues of infrastructure development of e-banking in Bangladesh are to depict the overall scenario of banking sector at a glance with the light of ICT infrastructure through the following grounds: I. II. III. IV. V. VI. To describe the different types of electronic banking system To examine the present (2009-20010) status of E-banking in Bangladesh. To identify various forms of E-banking available in Bangladesh To identify the problem areas of electronic banking in Bangladesh To identify the key issues of infrastructure development of e-banking in Bangladesh To make the necessary recommendations to solve the problems of electronic banking system

1.2. ORGANIZATION OF THE REPORT The paper is organized in the following manners: • • • • • The first chapter describes the objective, rationale, importance, study area, methodology and the limitation of the study. The second chapter gives a clear notion of the literature review of Electronic-banking and the current state of Electronic-banking in Bangladesh The third chapter presents Electronic-banking in General The fourth chapter is organized with the light of the E-banking Services of South east Bank Ltd. The fifth chapter consists of SWOT analysis and the findings and concluding remarks of this paper are described


research in various branches of academic disciplines operate its study through its own different ways. Bank personnel were interviewed to collect data on the E-banking services offered by the bank. Research produces bodies of knowledge. PRIMARY DATA A structured questionnaire has been used to get data on the demography and the behavior of 50 personal banking consumers of the E-banks (Online-banks). how E-banking ripples the mind of the people at the twenty first century. Electronic-banking is the innovative product of such advancement of information http://bba-mba-arena.7. what the reacts towards the new technology of the society. METHODOLOGY Research goals is to make a feasible study at problems and understanding and interpreting business phenomena and processes and how it affects the business entities and the society. As a formal investigative process. 1. After this proliferation of technology what sorts of changes found in the human civilization. RATIONALE OF THE STUDY An immense development has been brought by the scientists in the field of information technology.http://bba-mba-arena.4. Research in Business Studies focuses on describing. scrutinize investigate interconnections of multifarious variables that remain surrounded us.html 4 .So.html 1. contribute towards the development of literature of the professions and academic disciplines. A structured questionnaire has also been used to get data on the demography and the behavior of 50 personal of Southeast Bank consumers of the E-services of this bank. The respondents were chosen randomly while they were actively involved in banking transaction. how it impacts the dimension of operations of the financial institutions and ability to provide security about the customers confidentiality are the immanent driving forces behind me to opt this topic and make a analysis. This study is based on both primary and secondary data. research takes place at different level of scientific sophistication or kinds of epistemology .

html SECONDARY DATA Bank’s websites had been the sources of getting information on the services offered by those banks. Apart from them.) International Telecommunication Union (ITU) DATA ANALYSIS No statistical tools are used. 1. 2. 4. books and internet had rigorously been used. So I can not give a clear notion of E-Banking of the country.http://bba-mba-arena. • • • • • Other published documents Internet Online Journals Magazines (Star Campus) Bangladesh Bureau of Statistics http://bba-mba-arena. 5. Server utilization is not shown here under different loads. LIMITATION OF THE STUDY The limitations of my study are1. Complete information about how E-banking thrusts the bottom line of the income statement is not available.blogspot. BTCL etc. A country like Bangladesh is not so developed in the IT Sector. 3.html 5 . Internal Sources • Southeast Bank's Annual Report External Sources • • • • • • Different books and periodicals related to the E-banking Bangladesh Bank Circulars Newspapers Website information Annual Reports(BTRC. This is not fully E-banking because all transactions must be done by bank and customer cannot make any transactions by his home PC. For social-cost benefit analysis simple mathematical calculations are done to cast the idea to the Response time is not measured under different loads. for literature review different scholar’s journals. Only qualitative analysis is duly

blogspot. Electronic Cash and Internet Gaming (2003). reasonable price. Weitzman. The most commonly factors are ease of use. Ehou and Chou (2000) identified five basic services associated with online banking: view account balances. requesting credit card advance. The transformation from traditional brick-and-mortar banking to E-Banking has been Automatic Teller Machine (ATM) and thus the retail banking industry witnessed significant and extensive change. E-banking comprises various formats or technologies. 2000). (Earring Wood and Story. Lassar. Developing alternative distribution channels is not only important in terms of reducing costs and improving competitiveness.html 6 .html Chapter-2 Literature review Developing alternative distribution channels is not only important in terms of reducing costs and improving competitiveness but also in terms of a financial institution’s ability to retain the existing customer case (Kimball and Gregor. Luk and Chow. and PC or internet banking (Power. (2005). availability of infrastructure and resistance to change. 1995) as well as to future attract new customers.blogspot. 1996). Manolits and Lassar. including telephone (both land line and cell phone banking. case of use awareness of service and its benefits.http://bba-mba-arena. transferring funds between accounts. Formally. 1995) as well as to attract new customers. Organization theorists and practioners have defined e-banking in various ways. Sathye (1999) proposed a model for Internet Banking in Australia is significantly influenced by variables of system insecurity. (2000). convenience and speediness (Wan. transaction security. from ATMs. but also in terms of financial institution’s ability to retain the existing customer case. we have seen new financial distribution channels increasing rapidly both in the numbers and form. telephone banking. Majority of banks of banks is planning to introduce ICT for integration of banking service and new finance service. and ordering checks. 2001). which will play a vital role in bringing efficiency in financial sector (Raihan. paying bills. has defined http://bba-mba-arena.(Kimball and Gregor. and transaction With the extensive technology innovation and telecommunication. 2005). PC banking to internet banking. direct bill payment (EFT). A Survey of Electronic Banking.

service and idea. The total costs incurred in using Internet Banking must be minimal or competitive (Joyawardhena and foley. Claessens. remote electronic banking. http://bba-mba-arena. Cooper (1997) reported that case of use of innovation product or service as one of the three important characteristics for adoption from the customer’s perspective. (Joris. reasonable price.http://bba-mba-arena. Customers today are more conscious of the expenses associated with the banking as they are generally better informed about alternative option.blogspot.html 7 . the service provided by the banks should be perceived to be innovative with high quality and user friendliness to meet an individual’s The Willis Report (1997 in 1999) Stated that the technology must be reasonably priced relative to alternatives for customers. 2000).2001). This is related to user friendliness and ease of navigation as well as simple institutions to use the service. Offer the internet banking. decision and confirmation before they adopt the product or services.(pc) virtual banking. Otherwise the acceptance of the new technology may not be viable from customer’s stand point. availability of infrastructure and resistance to charge. Customers go through a process of knowledge. Howard and Moore (1982) reported that consumers must be aware of the new brand before adoption. persuasion. Adoption means acceptance and continued use of a product. the greater the awareness level among customers and therefore the higher will be internet banking adoption. which argued that the Intention of Internet Banking in Australia is significantly influenced by variables of system insecurity.html electronic banking as “an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick and mortar institution”. and phone banking are the most frequently used line electronic banking system give every body the opportunity for easy access to their banking activities. Sathye (1999) proposed a model for Internet Banking Adoption.blogspot. home Banking. The following terms all refer to one form or another of electronic banking: personal banking. Besides awareness. Therefore it is important factor that the boxes have to create awareness on internet banking to the consumers. on line banking. Valentine Dem et. case of use awareness of service and its benefits.

html E-banking is the waves of the future.36 million at the end of May 2010. http://bba-mba-arena. P 97-110 ) According to BTRC the total number of Mobile Phone Active Subscribers has reached 58. either through internet.html 8 . in order to provide international payments. It provides enormous benefits to consumers in terms of case and cost of transactions. telephone or other electronic delivery channels (Nsouli and banks need to have a means to link up with international payment systems (Trade Finance Infrastructure Development Handbook for Economies in Transition.blogspot. 2002) The clearing house generally provides the settlement of funds between member banks for the following services: • Cheque clearing • Crediting employees’ wages directly into their accounts (GIRO) • Processing of transfers and payments of bills • Execution of other debit and credit transactions The electronic linkages of banks with a clearing house will speed up local payment processes.http://bba-mba-arena.

com/p/internship-reports_06.19 thousand at the end of May 2010.http://bba-mba-arena.html According to BTRC the total number of PSTN Phone Subscribers has reached 9 . Fig: Internet Growth Statistic in BD http://bba-mba-arena.

com/p/ A survey of electronic cash.blogspot. in some cases consumers report to banks or other financial intimidators. They operate via stored electronic units of value.blogspot. electronic banking and internet gaming (2002) reported that the term electronic cash. e-cash or e-money refer to electronic payment schemes that enable consumer to store and redeem financial value.html 10 . E-cash (e-money) comes in two forms: smart card e-cash and computer e-cash http://bba-mba-arena. these funds can be transferred between vendors and individuals using compatible electronic system.http://bba-mba-arena. Paid for in advance by conventional money and representing equivalent units in real currency.

currently the electronic commerce over the Internet is some $26 billion.5 trillion by 2008-09. both rewritable and non-rewriteable. According to Lou Gerstner. and keyboards. Certain data.1 Electronic Commerce Electronic Commerce is an emerging concept that describes the process of buying & selling or exchanging of products. primarily related to the security of the card. Globally.blogspot. extranets & intranets. speed. but is generally defined as “portable data storage device with intelligence (chip memory) and provision for identity and security. One of the most widely tested stored value cards offered by Mondex. has an electric wallet.html 11 . & information via computer networks including the The smart card has been defined many ways. reaching new customers. ” critical business systems & 3. displays. smart card. IBM’s CEO: “E-business is all about cycle time. generally with specific patented control and production circuits.http://bba-mba-arena. with both of these peripheral devices.3 E-Money E-money includes electronic debit and credit system. these cards are small microcomputers—lacking only external power supply.2 Electronic Business Electronic Business (e-business) is connecting constituencies directly via internet. available as an optional accessory.” In their simplest forms. 3.html Chapter-3 Electronic-Banking in Bangladesh 3. according to a survey conducted by IDC. enhanced productivity. sharing knowledge across institutions for competitive advantage.blogspot. while it is expected to reach about $1. The microprocessor chip in a stored –value card is specialized and http://bba-mba-arena. can be entered only at the time of manufacture. globalization. services. In addition to a microprocessor each card generally has several kilobytes of permanent memory.

The following chart exhibits the definition of E-Banking. Stored value cards may help to make the transition from paper-based payments to electronically based payments more likely as these cards incorporate familiar aspects of using money in a way that could prove to be both convenient and acceptable to the the basic way of handling payments by consumers has not changed.blogspot.html Although there has been significant effort made to eliminate paper-based payment 12 . http://bba-mba-arena.blogspot.

5% 1. showed also that 58% of retailers had a preference for cash transactions. The number of cash purchases far exceeded any other payment method.http://bba-mba-arena.4% 6. conducted by Ernst & Young.blogspot. Even assuming that stored-value cards capture only a small fraction of their targeted markets. inexpensive purchases. The reasons given for using cash where that 1) it is convenient for small.1% *Percentages will not add to for purchases at gasoline filling stations. Over the past few decades various media and industry experts have predicted the demise of cash and the advent of the “cashless” society.html 13 .2% 38. the potential of the market for stored-value cards has been estimated to be http://bba-mba-arena. but cash still often remains a preferred method of payment by many people.blogspot. Table 1 presents the results of that survey Preferred Forms of Payments By Consumers Cash 3rd Party Credit Cards (i. Visa) Check Store Credit Cards Debit Cards Others 54. and 3) the recipient preferred or only accepted cash. However. Table-1: World-wide Preferred forms of Payments The due to format of questions asked. and for dining out. 2) force of habit. methods of payment have also changed. The evidence from this survey is noteworthy. Cash is used most often at food stores. recent survey results showed that the preferred form of payments by consumers and merchants was still cash.5% 23.. as it is easy to see the vast market potential for a product such as the smart card that is designed to be a replacement primarily for cash transactions.html As money technology has evolved.0% 1. although their value accounts for less than 20 percent of the value of total consumer transactions on a monthly basis.e.

3. the ability to move their money between different accounts. According to Devlin (1995). modem and software provided by the financial services vendors.blogspot. 3. requiring a PC. As a result there was heavy reliance on traditional branch based delivery of financial services and little pressure for change.html 14 . The Internet is a relatively new channel for delivering banking services. http://bba-mba-arena.html roughly the size of the market for traveler’s checks -$20 billion transacted annually. This changed gradually with deregulation of the in dustry during 1980s and 1990s.4 E-banking In its very basic form.blogspot. and making payments or applying for loans via Its early form ‘online banking services’. although most consumer transactions represent only a small share of the total expenditures.4. e-banking can mean the provision of information about a bank and its services via a home page on the World Wide Web (WWW).1 Evolution of E-banking There have been significant developments in the e-financial services sector in the past 30 years. were first introduced in the early 1980s. More sophisticated ebanking services provide customer access to accounts. One main consequence of this was limited competition both domestically and internationally. it failed to get widespread acceptance and most initiatives of this kind were discontinued. However. A large number of organizations from within and outside the financial sector are currently offering e-banking which include delivering services using Wireless Application Protocol (WAP) phones and Interactive Television (iTV). whilst during this time. Such customers may be either an individual or another business. The term e-banking will be used in this book to describe the latter type of provision of services by an organization to its customers. the increasingly important role of information and communication technologies brought stiffer competition and pressure for a faster pace of (Low income families are an exception to this statement). until the early 1970s functional demarcation was predominant with many regulatory restrictions imposed.http://bba-mba-arena.

2005) found e-banking to be the fastest growing commercial activity on the The “dot. The bursting of the Internet bubble in early 2001 caused speculation that the opportunities for Internet services firms had vanished.4.blogspot.http://bba-mba-arena.  Choice and Convenience for Customers  Attracting High Value Customers  Enhanced Image of country & bank at a time  Increased Revenues  Easier Expansion  Load Reduction on Other Channels  Cost Reduction  Result in greater efficiency and agility in organizations 3. One survey conducted by the TechWeb News in 2005 (TechWeb Another factor in e-banking growth is that banks have discovered the benefits of e-banking and have become keener to offer it as an option to customers.2 Importance of e-banking in Bangladesh Many banks and other organizations have already implemented or are planning to implement e-banking because of the numerous potential benefits associated with it. banks renewed their interest in electronic modes of delivery using the Internet. growing in most parts of the world. and in some cases dramatically.html 15 .4.” companies and Internet players struggled for survival during that time but e-commerce recovered from that shock quickly and most of its branches including e-banking have been steadily. The spread of online banking has coincided with the spread of high-speed broadband connections and the increasing maturation of the Internet user population. it found that 13 million Americans carry out some banking activity online on a typical day. Some of these major benefits are briefly described below.3 Role of ICT in E-Banking http://bba-mba-arena. In its survey of Internet users. a 58 percent jump from late 2002.blogspot.html With the rapid growth of other types of electronic services since mid 1990s.

from book keeping to information storage and from enabling cash withdrawals to communicating with customers (see Table 3. this high degree of reliance on ICT means that banks spend a large chunk of their budget on acquiring as well as maintaining these technologies. banks rely on ICT to perform most functions.1. • More branches are opened as a complement to retail branch distribution. Internal as well as external pressures often result in questions being asked about the return on ICT investments Table -3. Operational Function Internal Dimension • The cost of labor-intensive activities such as processing is reduced and the capacity to handle administrative tasks is enhanced. offered by Barclays Bank (1966) • Facsimile machine (1966) • Database Management Systems (1967) Service Provision External Dimension • The Cheque Guarantee Card is introduced and use of cheques become widespread • The first Automated Bank Statements are printed • Money Transfer is automated: more transactions available in branches. • Information systems provide quick and useful information for decision • Automated Machines to Local Networks (1968-1980) • Operating System with multitasking (1969) • Arrival of Microprocessor (1971) • Microchip is integrated in a plastic cards (1973) • Personal Computer (1975) • Automatic Teller Machine arrive • Branches become automated and services are now more easily accessible. • Real time operations at branches becomes a reality • Customers can sort transactions in any branch of their own bank.K. manipulating and transferring purchasing power between different parties.html 16 . http://bba-mba-arena.html Banks are essentially intermediaries which create added value by storing.http://bba-mba-arena.1 for an overview of ICT enabled changes).The Role of ICT in Banking (Adapted from To achieve this.blogspot. In developed countries at least. • Financial resources are sought and new skills are developed to support the ATM. • Lack of specific software encourages the emergence of new professional skills of software development.blogspot. • Use of computers is mostly in the back-office of 2003) Technological Events Phases • Processors to Database (1945-1968) • Magnetic Stripe (1965) • First Credit Card in U.

3. • LINK Interchange Network Ltd (LINK) formed as a company jointly owned by banks to expand distribution channels. • CRM systems (described in Chapter IV) developed to help with many banks introducing new product lines such as credit cards.http://bba-mba-arena.blogspot.html • “Switching” technology in telecommunication (1979) • Standardization vs Customization (19802007) • Networking Software (1980) • Microchip is used in a telephone card (1982) • File Transfer Protocol (1985) • ITS implemented as major technology for network connection (1988) • Wide use of Internet an wireless technologies in banking (1990s and 2000s) A focus on ROI reveals that ICTs provide a very limited return unless accompanied by changes in organizational structures and business processes. stock brokerage and investment management services. Thus ICT has mostly enhanced productivity as well as increased the choice for customers both in terms of variety of services available and the ways in which they are able to conduct their financial activities • Gold Credit Cards are offered to selected customers. • Internet Banking is introduced and becoming prominent making.blogspot. These changes also need to be followed by a diversification of service offerings.4. • Banks introduce telephone Banking • Introduction of Debit Cards • Non payment services are introduced (i.html 17 . • Number of branches is reduced: the personnel is requalified and is given a more prominent role. mortgages.4 Various Forms of E-Banking Electronic Data Interchange (EDI): pensions).

manufacturing. the ATM has to connect to. EDI was first used in North America by retail industries in the late 1960s. Display screen. Receipt printer. ATM has two input devices.html EDI is a technique used to communicate business. distribution and tourism sectors. Like any other data terminal. Banks have to interact with the systems of customers on one side and the service providers on the other side. and communicate through. The host processor is analogous to an Internet Service Provider (ISP) in that it is the gateway through which all the various ATM networks become available to the cardholder (the person wanting the cash).card reader and keypad.  improved efficiency and  Customer satisfaction resulting in improved growth and profitability. It enables the customers to view/ download account details. An ATM has four output devices. Unlike email.Speaker.http://bba-mba-arena. http://bba-mba-arena. Banks can play a vital role in FEDI for the payments in real In banks.html 18 . EDI implementation in banks results in  reduced cost. Financial EDI (FEDI) is mostly used to settle the bills with the objective of ‘making the right financial resources available at the right time’. In mid-1980s EDI was introduced in other areas including automotive. a host processor. cash dispenser. it is structured communication and sent in machine process able Automated Teller Machine (ATM) An ATM is simply a data terminal with two input and four output devices. financial and transaction information between computer systems of different organizations and their business partners.blogspot.

The payment system should be efficient and secure. sound and efficient payment and settlement systems for the country. Debit Cards. This card is a deposit access product http://bba-mba-arena.http://bba-mba-arena. Through this ECS credit clearing. dividend to a large number of employees/exemployees/investors/share holders. pension. age. level and source of income and repaying capacity. Debit Card A Debit Card provides for online electronic payment like Credit Card but from savings or current accounts of the cardholder for purchases. Credit Card Credit Card can be called as an equivalent of a loan sanctioned by the bank to its customers.blogspot. the bank would like to know and be sure the identification. The ECS credit clearing is a mode of payment electronically instead of paper warrants. secure. And service charges also will be collected from the cardholder for the transaction and processing. Recently several innovations helped to simplify consumer payment which includes Credit Cards. By using these plastic card. an institution makes a large number of payments like salaries. This exchange is in the form of digital financial instrument such as credit card numbers and debit card numbers backed by a bank or an intermediary. MasterCard. It can be divided into two categories namely. Before issuing the card. and Interest will be charged by the bank on monthly basis for the credit provided through the card.html 19 . ATM Cards and Smart Cards. interest. financial exchanges takes place on line between buyers and sellers.html Electronic Clearing Service (ECS): The primary goal of any national payment system is to enable the circulation of money in its Plastic Card Currency Plastic cards also known as plastic currency involving electronic device in their functioning is gaining popular as a convenient mode of payment. This card facilitates the cardholder to purchase goods and services from the merchant establishments and shops through the collaborating credit card companies like VISA.blogspot. Credit card facilitates and makes it possible to “Use First and Pay Later” the specified amount of credit as per the agreed terms of sanction. Maestro. The ECS is created to establish safe. Credit Clearing and Debit Clearing.

Debit card contains the symbol or hologram of collaborating company such as VISA. The cardholder is responsible for all transaction made by the use of the card. The cardholder is always required to maintain safely the PIN to prevent fraudulent activity.http://bba-mba-arena. the cardholder must have sufficient balance in his/her account. The loan amount sanctioned to the former will be recorded in the card. http://bba-mba-arena.html where cardholder uses his own money in his bank account through the debit card on the principle of “Pay First and Use Later”. ATM Card As mentioned earlier. DBBL. HSBC.blogspot.blogspot. ATM Card-cum-Debit Card ATM Card-cum-Debit Card can be used both as an ATM card and Debit card as a method of payment when purchasing goods and services in Bangladesh and Overseas. MasterCard. Mart card is issued to the formers to provide adequate and timely credit support for their cultivation needs including all purchases. deposit bills in the account. SCB. deposit money. The merchants can sell the goods to the former based on the card and they can collect the amount from the local branch of the issued bank or any other bank. The data can be encrypted and hence the card is completely temper-proof. On issuance of card. For example. It is the size of a regular ATM card but is capable of storing over a 1000 times more data. But in order to use the debit card. balance enquires. BRAC Bank and other banks operating in Bangladesh provides ATM Card-cumDebit Card. The formers can use this card wherever they Debit card can be used to make purchase at retail shops and merchant establishments in the same way as the credit card is used. The card can also be personalized to the holder by printing personal and other details on the card face.html 20 . Smart Card The smart card is an amazing piece of technology. The cardholder must maintain a savings bank account or current account with the bank. In Bangladesh most of the debit cards issued by banks are also ATM cards. the cardholder is intimated a four digit secret Personal Identification Number (PIN). ATM Card can be used to withdraw Maestro and Cirrus etc.

Customer behavior is changing rapidly. SMS Banking is developed to provide transactions related to client’s card account via SMS. It is possible to use “SMS-Banking” abroad provided that international calls and roaming are activated.html Internet Banking Internet banking is a web-based service that enables a customer access his account by logging in to the bank’s website with the help of a bank-issued identification and a personal identification SMS must be written in Latin letters.blogspot. SMS Banking SMS Banking allows you to do some banking enquiries on your mobile phone.http://bba-mba-arena. The concepts of e-banking and internet banking are synonymous. http://bba-mba-arena. These facts represent huge challenges for the financial service providers. In reply the subscriber will receive a message reporting the result of the transaction made. Now the financial service is characterized by individuality. The comprehensive security infrastructure includes layers of security from the network to the browser. There is no subscription fee for the service. The above SMS must contain (with space between commands): • • • • • A type transaction Individual access code for working with “SMS-Banking” A sum to be paid (if payment transaction) Identifier of payment (debt) Identifier of data. So the Internet is now considered to be a ‘strategic weapon’ for them to satisfy the ever-changing customers’ demand and innovative business needs Adequate legal framework and maximum security are the two essential factors for Internet banking.html 21 . Internet banking would free both bankers and customers of the need for proprietary software to carry on with their online banking transactions. though banking activities carried out through the internet just constitute a part of the whole gamut of e-banking indeed. including sophisticated encryption that protects customers’ from intrusion when they access the bank over the public network. independence of time and place and flexibility. Actually mobile banking is a variation of Internet banking. The SMS-s to number 611 is charged in accordance with the company tariffs. After having registered the service SMS-Banking. a (mobile Phone) subscriber should send an SMS to 611(say) with a request for appropriate transaction.

Tele-banking Tele-banking is a form of remote banking which is essentially the delivery of branch financial services via telecommunication devices where the bank customer can perform retail transactions by dialing a touch-tone telephone or mobile communication unit.http://bba-mba-arena. they exist entirely on the Internet. It is option of Bank who provides this service. Tele-banking has been in Bangladesh since 1990s. A type of request is: <transaction type> blank <access code>blank <the amount of payment>blank<payment identifier> blank<data identifier>the data of the request should not be put in brackets/ inverted commas. Factors to be considered in Virtual Banking http://bba-mba-arena. In most cases a web browser such as Internet explorer or Netscape Navigator is utilized and any normal internet connection is suitable. The use of Telebanking is easy and confidential. where they offer the same range of services and adhere to same rules and regulations of central banks. This is very useful especially outside banking hours. over the internet through a bank’s secure website. which you select on your first call and can change at any time. which is connected to an automated system of the bank by utilizing Automated Voice Response (AVR) technology. and you’re Personal Identification Number (PIN). Virtual Banks Virtual banks are banks without bricks. Online Banking Banks are considering online banking as a powerful “value added” tool to attract and retain new customers while helping to eliminate costly paper handling and teller interactions in an increasingly competitive banking environment.html 22 .com/p/ from the customer perspective. No special software or hardware is usually needed.blogspot. your account number. All you need is a push button telephone.blogspot. Online banking (Internet banking) is a term used for performing transactions. Tele-banking will provide you the following services: • Checking account balance • Interest rates related information etc. payments etc.html The mobile company may charge for SMS and Bank may charge for service.

E-Payments Payment is generally understood as a transfer of fund from the one person (payer) to other person (Payee). Debit card. and loan outstanding etc. Rates and tariff Inquiry.blogspot. Banknet: Banknet is a communication backbone connecting various centres of a country to facilitate the transfer of inter-bank or inter-branch messages.http://bba-mba-arena. cheque book request. exchange rates. Available services at call center are: Account related services: Balance inquiry.html 23 . In E-payments. deposit rates. lending rates. Customers are now getting improved services at a reduced cost in an exciting manner.html • The routine banking transaction was becoming both costly and time consuming. The main objective of the Banknet is to speedup the process of transfer of funds from one bank to another bank and one branch to another branch. transaction inquiry. Product Information: Deposit accounts.blogspot. the funds are transferred through electronic mode. Personal loan. ATM/Debit card hot listing. The banks resorted to computerization to cut cost and time overheads in handling routine transactions • The introduction of automated teller machine (ATM) impart flexibility to bank customers and gave further boost to virtual banking • The introduction of credit cards and debit cards helps both the consumers and retailers to be free from cash handling Call Center Call center is a streamlined customer interface and offers a range of banking services through its call center agents. tariff etc. duplicate statement. Most of the centres of a country are being brought on the The following are some of the E-payment system. Savings and current accounts.

This system utilizes the Service Branches of the member banks. Transfast(TF).com/p/internship-reports_06. Remittance (Electronic Way) Today’s fast changing electronic banking channels have massively improved the flow of remittance across the world. It operates 24 hours on all days. Most of the central banks world-wide use the message standard provided by SWIFT for the purpose of automatic clearing house activities.KFE. Banks have grown up relations with many international financial agencies. Banks collect service charges from the customers. The banks can do foreign exchange business safely and secured KMB. Money Gram. It facilitates the transfer of funds from one place to another place within the country quickly and safely. Xpress Money. In Bangladesh. We can say. Electronic Fund Transfer (EFT): EFT system permits transfer of funds from any account at any branch of any member bank in any city to any other account at any branch of any member bank in any other city.blogspot. The banks have to become the member of International Financial Messages Communication Network. secured and expeditious telecommunication facilities for exchange of financial messages all over the world.html 24 .blogspot. A few such operators working in Bangladesh are: Western Union Money Transfer. the foreign exchange business which the banks are conducting today would not have been possible without SWIFT. Following are some E-Banking services: • • • • • Access our bank accounts Transfer money Make investment Pay Bills Apply for loans and mortgages • • • • Receive Healthcare Order medicines Personalization or Customization services ATM Rebates http://bba-mba-arena.html SWIFT: The society for System for Worldwide Inter-bank Financial Telecommunication (SWIFT) provides reliable.http://bba-mba-arena. RMC. or intermediaries to master the inflow of remittance into the country from the expatriates working in foreign countries. 21st century E-Banking Services Customer can expect some other E-Banking services from a e-bank. Ria.

html • • • • • • • • • • • • • File tax returns Purchase goods and services Top-up mobile phones Sign contracts Change addresses Track parcels and shipments Access governmental services Collect dividend Vote Play online games Gamble Bet E-procurement • • • • • • • • • • Marketplaces and Shopping Galore Options to Purchase Certificate of Deposit Mortgage Applications Credit Card Applications Financial Planning Services Insurance Sales Options Ability to Interface With One’s Existing Software Twenty-Four-Hour Access to a Real Banker Internet Access Helpful Purposes Information for Tax Telephone 3.5. 2002). the availability of e-banking is substantially greater in developed countries than in developing economies. and presents an obstacle to the growth of ebanking.1 Technology Related Problems IT and Telecommunication Infrastructure Issues At present. banking.http://bba-mba-arena.blogspot. http://bba-mba-arena. These ‘scalability problems’ can give rise to a slowing down of the website. or even a website crash (temporary unavailability). bureaucratic and legal infrastructures to support the widespread introduction of e-banking (Simpson. This can cause many reputation problems and financial damage. Some of the ways of addressing this problem according to Seargeant (2000) are: • Undertake market research to predict demand. Capacity/Scalability Problems It is difficult to predict the usage of e-banking on an hourly or daily basis. Access to the Internet is a major problem in the developing world.html 25 . Issues/ Problems of E-Banking 3. Many developing countries do not have the necessary telecommunications.

which can be expensive and may bring its own set of problems. excessive use http://bba-mba-arena. A number of other technical solutions are also available to address this problem but owing to the high cost associated with them. product management (such as current accounts or savings accounts).com/p/internship-reports_06. font or navigation functions. Web Site Design and Operational Functionality There is considerable weight attached to the appropriate design of e-banking websites. a key barrier in e-banking. payroll. This type of integration is essential for the success of e-banking. often with suspension of services at other times for various reasons such as data backups and end-of-day processing (Mohamed & Al-Jaroodi.html 26 . banking. which were designed to provide services during only specified periods. some banks do not implement them. Lack of proper functionality. customer information. contrast. This often requires e-banking applications’ integration with legacy systems. shortcomings in technological infrastructure are often the biggest hurdle in the implementation of e-business channels and their integration with other parts of a business. and inventory systems. The new business applications are often not built from scratch and they normally rely on the functionality of the existing legacy applications.blogspot. Availability and Systems Integration One of the basic requirements of e-banking services is their 24-hour • • • Adopt systems with adequate capacity and scalability. 2003). as an electronic request for a typical financial transaction passes through a number of different systems before an action is complete. and Ensure adequate staff coverage and develop a suitable business continuity plan which not only helps coping with scalability problems but with other causes of systems failure. As pointed out in (Shah et al.http://bba-mba-arena. Poor design of website has been estimated to result in the loss of up to 50 percent of potential repeat visits (Cunliffe. Systems integration has been and is still. 2006). to some extent. Poor design may include use of inappropriate colours. 2007. 2000).blogspot. Shah & Siddiqui. Usual legacy systems are accounting. Undertake proportionate advertising campaigns. Incompatibility between e-banking applications and legacy systems means that most banks require middleware to integrate these systems.

2 Management Problems Regulatory Issues As the Internet is a global medium. These factors need to be taken into account when designing a website as aging population in most industrialized counties means that this segment is increasing in size. 2005). thereby adding to the firm’s store of knowledge and making their jobs more meaningful and efficient. http://bba-mba-arena. Vision changes include a decline in visual acuity resulting in inability to see objects on a screen clearly. 2005). These are the people who might need the online services most due to mobility issues. and many others.html 27 . cognition. However managing information has been a problem for organizations across many industries. decreased capacity to focus at close range. has further complicated the situation. Information Management Good information management enables organizations to become more effective in their operations as it provides the information employees need to analyze and conceptualize information. good information can be a vital difference between success and failure. Several software tools. This gives employees an opportunity to add value to the organization’s products and services (Blount et al. 3. or increased sensitivity to glare from light reflecting or shining into the eye. These physiological changes. it creates opportunities for trading on an international basis.5 . and physical impairments associated with the normal aging process. but every country has its own laws and regulations concerning the provision of financial services.blogspot. The issue of preventing money laundering. This is one of the major problems in expansion of e-banking services on a global basis. Poor website design can also result in decreased trust in using online financial services as look and feel often creates a lasting impression. impact the users ability to see Web objects and read online content ( including Dottie and Usability Enforcer. which is considered to be the main source of finance for terrorism and other related criminal activities. In online services operations. Web usage barriers can also be attributed to vision.blogspot. . This issue is further covered in greater detail below in the section on trust issues.html of graphics or other similar factors can also deter customers from coming back to that website. are available for seniorfriendly web sites.

causing web sites to slow or crash). and flaws in systems providing opportunities for security breaches (e.g.blogspot. E-banking increases security Advantages Security Security related issues are a major source of concern for everyone both inside and outside the banking industry.html 28 . Outsourcing vs. potentially exposing traditionally isolated systems to the open and risky world of Internet.html Outsourcing Problems Development or implementation of e-banking systems and other technical tasks such as upgrading and integrating existing legacy systems are very complex. 2002). hacking by ‘casual hackers’ ( hacking with criminal intent (e.g. defacement of web sites or ‘denial of service’ . a users is able to transact on other users’ http://bba-mba-arena.http://bba-mba-arena. They require very high levels of technical and project management competence to carry out without outside help.g. According to McDougall (2007) security problems can mainly be categorized as. fraud). Even the best companies need to recognize the limitations of their expertise and when to outsource certain e-Commerce functions (Hirsh.blogspot. in-house e-commerce systems development Outsourcing • An attractive option for replacing legacy systems • Low risk • Known costs • Expert support from vendors • Easier upgrades • Ability to focus on core business issues Disadvantages • Possible inflexibility • High external consultancy Costs • Difficult change management Issues In-house System Development • Development of in-house expertise • Flexibility • Own developers have better understanding of business • Less changes may be required in business processes • Unique processes may lead to competitive advantage • High risk strategy • High costs • High training expenses • Difficult and costly upgrades.

legal and reputational risks associated with them. security threats largely fall into the following categories: • Login detail disclosure: This is most basic threat to the financial system. • Dummy sites: Here customers are lured to the dummy or look alike website. • A proactive approach to security. Luckily actual financial losses from these breaches have been very low in comparison to (say) credit card frauds. Information is a valuable asset and to fully utilize it needs wide availability at least within an organization. such as a customer number. http://bba-mba-arena. pin.html accounts). controls (e.blogspot. McDougall (2007) suggests that banks need as a minimum to have: • A strategic approach to security. penetration testing). Using a number of In an e-banking environment. criminals acquire login 29 . These website look very similar to a bank’s website. These threats have potentially serious financial.g. these are recorded and used for criminal activities. Once a customer opens a malicious email a program is automatically installed in his/her computer. • Computer spy viruses: These are computer programs which are circulated through email or other means. Financial regulators also demand a very high standard of security from banks.blogspot. building best practice security initiatives into systems and networks as they are developed. • Sufficient staff with security expertise and responsibilities. planning response to new threats and vulnerabilities and regular reviews of internal as well as external threats. • Regular use of system based security and monitoring tools. However security requirements might hinder wider information sharing. and use it to access the account and steal money from it. and when login details are entered. involving active testing of security systems.

trustier and trustee. The criminals behind “phishing” scams were also becoming increasingly “industrialized” in their approach. • Cultural change.blogspot. Phishing for Bank Customers has Boomed Phishing involves using fake websites to lure people into revealing their bank account numbers. Wang (2005) categorized these characteristics in the following categories: • Trust and trustees: The two parties. Organizational Structures and Resistance The introduction of e-banking can generate conflicts and morale problems as changes required to succeed in e-banking may have profound effects on the way an organization is structured. are vital for establishing a relationship. In an online environment. The amount stolen is still relatively small but it is set to go • Continuity plans to deal with aftermaths of any security breaches. To compensate. Harden (2002) suggests that e-channels erode a direct relationship with customers as compared with traditional over-the-counter banking: e-banking does not offer face-toface contact in what is essentially a one-to-one service relationship. a website.html 30 . This is not just about vulnerability to fraud but also loss of http://bba-mba-arena. Four interrelated types of organizational change: • Process change. e-banks must deliver higher quality services in order to compete with other service delivery channels (Liao & Cheung. is a trustee and a consumer is a thruster. online trust does share a number of characteristics with the offline trust. • Structural change. or rather the trader behind it. Loss of Personal Relationship Another key barrier in e-banking is a lack of personal contact between customers and banks. Although winning consumer trust is more important in online environment. • Political change affect e-banking Trust Issues Lack of consumer trust is a major hurdle in the growth of e-banking. 2005). • Vulnerability: Offline traders usually have a physical presence which reduces the sense of vulnerability but the anonymity associated with the online world leaves consumers feeling more vulnerable.

limited size of target market. Basically. When the perception of benefits out weigh the risks in the relationship. • Produced actions: A consumer action may include just visiting a website for information or purchasing a product. but in the long run it may cost banks an established and loyal customer base. trust is a psychological state of mind when the person is willing to accept the risks involved. often providing credit/debit card as well as other personal information such as home address. In the short term a cheaper channel replacing an expensive one looks attractive. the person enters into a trusting relationship (Carr. Some people will trust easily whereas others will not trust no matter what. Both of these action benefit traders in terms of a potential sale or an actual sale. Adoption/Acceptance Issues From an organizational point of view.html privacy. Change Management Issues organizational issues like top management short-sightedness and longstanding internal barriers. because every move made by a consumer can be recorded and analyzed to assess their behavior. 2007).blogspot.html 31 . To provoke these actions. lack of time/resources to start new projects. For this reason many banks treat e-banking as only an extra channel. however fall. • Subjective matter: Trust is a subjective matter. and can be persuaded to trust even a virtual trader.http://bba-mba-arena.blogspot. Other factors include: uncertainty of financial benefits. The majority of consumers. and high costs of computing technology. a trader must do a number of things – discussed below – to create trust in consumers’ mind. Clash With Other Services Delivery Channels Although e-banking promises to be more cost effective and efficient than other channels such as branch or phone banking. failing to successfully adopt e-business initiatives originate from a combination of unclear business vision for e-business and lack of technological expertise amongst other a factor which could mean that growth of e-banking is much slower than many expected. somewhere in between. it may also cannibalize these other channels.

transferring. Going online is about serving customers. rather than business processes and social issues. Forming. accuracy of information. accepting. 8.blogspot.html One of the main problems established organizations encounter when considering ebanking adoption is organizational change. transparency. Cryptographic methods (Hiding information of computer system.http://bba-mba-arena. and increasing revenues. leveraging organizational talent. Ethical Issues Consideration of the ethics of e-banking have mainly focused on areas relating to the use/abuse of information collected through analyzing online customer behavior. Unauthorized access into network system.blogspot. Technology adoption is usually slow if too much attention is paid to technical aspects. creating innovative products/services. The use of the layning devices 3.html 32 . facilitating fraud (ethical/illegal activities of others).. Monitoring the protection of the software integrity. 2. Registration (logging) with reference to the forbidden resources 9. Some companies sell their e-commerce projects as ‘pilot’ or ‘learning’ vehicles and leave it’s development to the IT department and many senior executives equate ‘going online’ with a specific technology in mind rather than using digital technologies to implement their organization’s strategic objectives.1 Crimes on E-Banking: 1. The implementation of computer viruses and other ways of disturbance. These relate to: freedom of choice. 4. Deactivate protected equipment 5.6. High start up cost of e-banking also deters some banks to delay its implementation. Access in the restricted automated systems. transforming.) http://bba-mba-arena. achieving significant improvements in productivity. displaying and keeping some information 6. accessibility of information held and what uses of this information are ethically 7. In this context the main issues may include security/privacy of information about individuals. ownership of information and intellectual property.

it will hamper the resource. 4. resource. server.blogspot. network system should be treated as a crime. network system without authorization. 3. 3. Bangladesh. Sec 54 penalty of destruction into computer system. computer system and computer network or does by another body will be treated as cracking offence/crime. erase or change any computer system which will loss public assets. 00. etc Damage any file.2 Provisions regarding E-Banking crime: According to ICT act 2006 1. 1. Penalty: Maximum 10 year. hide code and desolate of any computer. computer program. but which by law may be treated within.6. Penalty: Maximum 10 year. Sec 61 penalty of accessing in restricted system Unauthorized access into any computer system knowing that it is restricted by controller of government should be treated as unauthorized access.000 taka or both of this. According to penal code of Bangladesh: Sec 03: Punishment of offences committed beyond. 1. Penalty: Maximum 10 year. 00. B) Access into any computer. Sec 56 Hacking or access without authorization If any person: A) Does any kind of offence knowing.html 3.http://bba-mba-arena.blogspot.000 taka or both of this. http://bba-mba-arena. It should treat as hacking crime/offence. 00. data.000 taka or both of this. Penalty: Maximum 3 year. Sec 55 penalty of cracking If any body does any hamper to any source code.html 33 . one 1.000 taka or both of this penalty 2. program. 00. 00.

water supply. Computer Networks can be primarily divided into two categories based on speed of data transfers and geographical reach. telecommunications. An attempt has been made to describe concepts. The diversity in computer. The highly unregulated Internet provides a less than secure environment for the banks to interface. In this chapter.blogspot. Security is one of the key issues in infrastructure development. roads enable the transport of raw materials to a factory.html Chapter-4 E.html 34 . all these capabilities come with a price. A http://bba-mba-arena. infrastructure facilitates the production of goods and services. an effort has been made to give an overview of the technologies commonly used in e-banking infrastructure. It allows customers to access banks’ facilities round the clock and 7 days a week. or the services and facilities necessary for an economy to function. power grids. and also for the distribution of finished products to markets Three Types of Infrastructure in e-banking • • • Building Infrastructure Systems Infrastructure Personnel Infrastructure 4. sewers. for example. such as communication and software technologies used by the banks vastly increases the challenges facing the online Building & System Infrastructure Computer networking & Internet The purpose of computer networking is sharing of computing resources and data across the whole organization and the outside world.Banking Infrastructure & its Development in Bangladesh 4. The term typically refers to the technical structures that support a society.blogspot.http://bba-mba-arena. and so forth. techniques and technologies related to privacy and security including the physical security. Viewed functionally. However.1 Introduction The Internet has provided a new and inexpensive channel for banks to reach out to their customers. Infrastructure is the basic physical and organizational structures needed for the operation of a society or enterprise. It also allows customers to access these facilities from remote sites/home etc.

The Internet is primarily a network of networks.blogspot. Protocols: The data transmission protocol suite used for the Internet is known as the Transmission Control Protocol/Internet Protocol (TCP/IP). They commonly use broadcast mode of data transfer. such as a floor or a building.html Local area network (LAN) connects many servers and workstations within a small geographical Telnet.ernet. the International Organization of Standards developed the OSI model (the Open System Interconnection Reference Model) in 1977. Connectivity in WAN set-up is provided by using dial-up modems on the Public Switched Telephone Network (PSTN) or leased lines.iitb.25 (Permanent Virtual Circuits). technologies and data communication protocols have different implications on safety and security of services.The Internet can be accessed using various applicationlevel protocols such as FTP (File Transfer Protocol). The data sent from one region to another is first transmitted to a Network Access Point (NAP) and are then routed over the backbone. The Wide Area Network (WAN). Frame Relay/X.blogspot. The data transfer rates here are very high. These protocols run on top of TCP/IP. The different 35 . The most innovative part of the Internet is the http://bba-mba-arena. It is necessary to have a good understanding of these layers for developing applications and for deploying firewalls. Hypertext Transfer Protocol (HTTP). on the other hand. The networks in a particular geographical area are connected into a large regional network. (Remote Terminal Control Protocol). Some of the common LAN technologies are 10 MB Ethernet. Simple Mail Transport Protocol (SMTP). 100 MB Ethernet. 1GB Ethernet.http://bba-mba-arena. The important services provided by some of the layers are mentioned below. Fiber Distributed Data Interface (FDDI) and Asynchronous Transfer Mode (ATM).84) and a hierarchical domain name (such as cse. or by using Virtual Private Networks (VPN) which are software-defined dedicated and customized services used to carry traffic over the Internet.16. VSAT networks. The regional networks are connected via a high speed “back bone”.111. Each computer connected to the Internet is given a unique IP address (such as 142. To standardize on communications between systems. The OSI breaks up the communication process into 7 layers and describe the functions and interfaces of each layer. is designed to carry data over great distances and are generally point-to-point. an Integrated Services Digital Network (ISDN) or T1 lines. Synchronous Optical Network (SONET).

organizations find it beneficial to provide access to their services through the Internet to its employees and the public. which allow users to move from any place on the web to any other place. The products accessible through Internet can be classified into three types based on the levels of access granted: http://bba-mba-arena. The web-based applications provide flexible access from anywhere using the familiar browsers that support graphics and World Wide Web (WWW). The applet connects to the application (directly using TCP/IP or through web server using HTTP protocols) on the organization’s application and database servers. The product may support centralized (bankwide) operations or branch level With the popularity of web.1 below shows some of the components and technologies/products commonly used in the design of web-based applications. operating systems and use different architectures.1 Components of a web-based application Banking Products: E-Banking applications run on diverse platforms. the product may run on computer systems of various types ranging from PCs.html 36 . Fig 4. Fig 4. In a typical situation.http://bba-mba-arena. The web uses hyperlinks.blogspot. These products allow different levels of access to the customers and different range of facilities. client server or three tier architecture based on a file system or a DBMS package. a component of the application runs (as an ‘applet’) within the browser on user’s workstation.blogspot. Moreover. It may have a distributed. These servers may be on different computer systems. open (Unix based) systems. The solutions are also scalable and easy to extend. to proprietary main frames.

The bank allows customers to submit transactions on its systems and these directly update customer accounts. or even have three or multi-tiered architecture. which may run on the same system (possibly a large. Thus.blogspot. 3.blogspot. Information is fetched from the Bank’s production system in either the batch mode or offline. processing of transactions as per the business rules. security & control system need to be strongest The information is still largely ‘read only’. proprietary computer system).html 1. No identification or authentication of customers is done and there is no interaction between the bank’s production system (where current data of accounts are kept and transactions are processed) and the customer. Fully Transactional System: These systems provide bi-directional transaction capabilities. Application architecture A computer-based application may be built as a monolithic software. the bank’s main application system is not directly accessed.html 37 . Therefore. Identification and authentication of customer takes place using relatively simple techniques (like passwords). branch locations. leading to three-tier or multi-tier architecture. The three tasks can be viewed as three layers. and the storage of business data. Interactivity is limited to a simple form of ‘e-mail’. A http://bba-mba-arena. or may be structured to run on a client–server environment. transaction Information only systems: General-purpose information like interest rates.2. loan and deposit calculators are provided on the bank’s web (WWW) site. The role extends across various job functions and any laxity in any of the functions leaves the system open for malicious purposes. FAQs. Electronic Information Transfer System: These systems provide customer specific information in the form of account balances.1 Issues in administration of systems and applications: The role of the network and the database administrator is pivotal in securing the information systems of any organization. statement of account etc. These layers can be briefly described as follows: 4. or may be separated on to multiple computers (across the Internet). product features. A computer application typically separates its 3 main tasks: interactions with the user. 2. The sites also allow downloading of application forms.

Further. b. http://bba-mba-arena. objects and devices reduces intentional and unintentional security breaches. It is necessary to know the latest and correct configuration of all software packages. improper installation may lead to degradation of Both data and software should be backed up periodically. recovery & business continuity: Back-up of data. Backup. care should be taken to install only the latest versions of software with the latest patches.html few important functions of the administrator and how they relate to or impinge on system security are discussed below: a. and give various access permissions to the users. Installation of software: A software (whether system or application) needs to be carefully installed as per the developer’s instructions. A bank’s system policy should specify access privileges and controls for the information stored on the computers. Access controls and user maintenance: An administrator has to create user accounts on different computer systems. Recovery and business continuity measures. c. documentation and software is an important function of the administrators. but may also contain trojans and viruses. The write / modify access permissions for all executables and binary files should be disabled.http://bba-mba-arena.blogspot. Online / real time systems require frequent backups within a day. Installation of pirated software is not only illegal and unethical. The execution privilege of most system–related utilities should be limited to system administrators so that users may be prevented from making system level changes. Setting access controls to files. Automating the back up procedures is preferred to obviate operator errors and missed back-ups. which may compromise system security. based on criticality of the systems.html 38 . The back-up may be incremental or complete. Hackers and intruders are often aware of these bugs and may exploit known weaknesses in the software. An off-site back up is necessary for recovery from major failures / disasters to ensure business continuity. The frequency of back up should depend on the recovery needs of the application. should be in place and a documented plan with the organization and assignment of responsibilities of the key decision making personnel should exist. The software system may contain bugs and security holes. The administrators create needed user groups and assign users to the appropriate groups. which over a period are fixed through appropriate patches. etc. Data Confidentiality: The concept of providing for protection of data from unauthorized disclosure is called data confidentiality.html 39 .2. file accesses. much like a phone number identifies a telephone. The administrator has to select types of information to be logged.http://bba-mba-arena. status of any resource. Security: Security in e-banking comprises both the computer and communication security. It goes hand in hand with authentication. machine. changes in status. For example. network access logs. Due to the open nature of Internet. disclosure and modification. the mechanisms for logging. and locations where the log files are stored. web server logs.html d. Authentication: It is a process of verifying claimed identity of an individual user. The aim of computer security is to preserve computing resources against abuse and unauthorized use. Access Control: It is a mechanism to control the access to the system and its facilities by a given user up to the extent necessary to perform his job function. In establishing a link between a bank’s internal network and the Internet.blogspot. 4. Most operating systems keep a log of all user actions. changes in system status such as shutdowns. change to file access control lists. software component or any other entity. It provides for the protection of the system resources against unauthorized access.2 Security and Privacy Issues Terminology: 1. An access control mechanism uses the authenticated identities of principals and the information about these principals to determine and enforce access rights. database packages and even business applications produce a ‘log’ of various tasks performed by them. System & network logging : Operating systems. locations for logging. or for verifying the sources from where the data are received. 3. Log files are the primary record of suspicious behavior. Log files can also provide evidence in case of legal proceedings. an IP Address identifies a computer system on the Internet. initializations and It may be to ensure that unauthorized users do not enter. http://bba-mba-arena. The information required to be logged should include Login/Logout information. The log files must be protected and archived regularly and securely. 2. and to protect data from accidental and deliberate damage. modem logs. 4. mail logs. location and time of failed attempts. Log files alert the administrator to carry out further investigation in case of suspicious activity and help in determining the extent of intrusion. we may create a number of additional access points into the internal operational system.

corrupt or otherwise alters data 3.blogspot. deposits. because of numerous paths available. 5. intentional tampering. 6. The intruder may gain unauthorized access and nothing more 2. The intruder gains access and destroys. Although it is difficult to monitor a transmission at random.http://bba-mba-arena. and to recommend any indicated changes in the control. loans or password etc. an attack could originate at any time from anywhere. Data Integrity: It ensures that information cannot be modified in unexpected way.html unless otherwise protected. which facilitates a security audit at a future date. Non-Repudiation: Non-Repudiation involves creating proof of the origin or delivery of data to protect the sender against false denial by the recipient that data has been received or to protect the recipient against false denial by the sender that the data has been sent. Failure to protect the correctness of data may render data useless. in order to test for adequacy of system controls. dangerous. special programs such as “Sniffers”. The intruder gains access and seizes control partly or wholly. can collect vital information. Access control. or even catastrophic events. encryption and digital signatures are the methods to ensure data integrity. 7. or worse. An attack could be any form like: 1. Audit Trail refers to data generated by the system. steps must be taken to prohibit parties from disputing the validity of. The intruder does not gain access. all data transfer can be monitored or read by others. Efforts must be made to ensure the accuracy and soundness of data at all times. perhaps denying access to privileged users 4. Some acceptable level of security must be established before business on the Internet can be reliably To ensure that a transaction is enforceable. to detect breaches in security. Security Audit Trail: A security audit refers to an independent review and examination of system's records and activities. set up at an opportune location like Web server. policy and procedures. or refusing to acknowledge. Loss of data integrity could result from human error. but instead forges messages from your system http://bba-mba-arena. It ensures compliance with established policy and operational This may include credit card number.html 40 . legitimate communication or transaction. Attacks and Compromises: When a bank’s system is connected to the Internet.blogspot.

A separate PIN is typically required to activate the token. to verify the user’s identity. 1. http://bba-mba-arena. They can be used to generate one-time passwords when prompted by a host computer. but instead implements malicious procedures that cause the network to fail. and offers an alternative means to authenticate a user.http://bba-mba-arena. Tokens are well suited for one-time password generation and access control. and both Read Only Memory (ROM) and Random Access Memory (RAM). Further more.html 5. Biometrics involves identification and verification of an individual based on some physical characteristic.blogspot. Sniffer attack smart cards and biometrics can be used to strengthen the security structure by requiring the user to possess something physical. such as fingerprint analysis. The token resembles a small hand-held card or calculator and is used to generate passwords. operating system. 3. Denial-of-Service 3. A wide range of information regarding security hole and their fixes is freely available on the Internet. Common cracking attacks include: 1. 2.blogspot. There are various techniques available for authentication. if the system is not configured properly or the updated patches are not installed then hackers may crack the system using security hole. The device is usually synchronized with security software in the host computer such as an internal clock or an identical time based mathematical algorithm. Password is the most extensively used hand geometry. Utilizing security hole in the system software Authentication Techniques: As mentioned earlier. and hang. E-mail bomb and List linking 2. A smart card reader is required for their use. The intruder does not gain access. but contain an embedded computer chip. This technology is advancing rapidly. or retina scanning. or to carry cryptographic keys.html 41 . Smart cards resemble credit cards or other traditional magnetic stripe cards. Technologies such as tokens. authentication is a process to verify the claimed identity. Token technology relies on a separate physical device. which is retained by an individual. reboot. Most of the financial institutions use passwords along with PIN (Personal Identification Number) for authentication. Modern security techniques have made cracking very difficult but not impossible. The chip includes a processor. Firewalls: The connection between internal networks and the outside world must be watched and monitored carefully by a gatekeeper of sorts. Firewalls do this job. Otherwise, there is a risk of exposing the internal network and systems, often leaving them vulnerable and compromising the integrity and privacy of data. Firewalls are a component or set of components that restrict access between a protected network and the outside world (i.e., the Internet). Broadly, there are three types of firewalls i.e. Packet filtering firewalls, Proxy servers and stateful inspection firewall. • Packet filtering routers: Packet filtering routers are the simplest form of firewalls. They are connected between the host computer of an Internal network and the Internet gateway as shown in Fig.6. 2. The bastion host directs message accepted by the router to the appropriate application servers in the protected network. Their function is to route data of a network and to allow only certain types of data into the network by checking the type of data and its source and destination address. If the router determines that the data is sourced from an Internet address which is not on its acceptable or trusted sources list, the connection would be simply refused. Also, the filtering rules can be difficult to configure, and a poorly configured firewall could result in security loopholes by unintentionally allowing access to an internal network.

Fig. 2: A filtering router with a bastion host or proxy server • Proxy servers: Proxy servers control incoming and outgoing traffic for a network by executing specific proxy program for each requested connection. If any computer outside the internal

42 network wants to access some application running on a computer inside the internal network, then it would actually communicate with the proxy server, and proxy server in turn will pass the request to the internal computer and get the response which will be given to the recipient (outside user). That is, there is no direct connection between the internal network and Internet. This approach allows a high level of control and in-depth monitoring using logging and auditing tools. a. Stateful Inspection firewall: This type of firewalls thoroughly inspects all packets of information at the network level as in the case of proxy servers. Specifications of each packet of data, such as the user and the transportation method, the application used are all queried and verified in the inspection process. The information collected is maintained so that all future are inspected and compared to past transmission. If both the “state” of the transmission and the “context” in which it is used deviate from normal patterns, the connection would be refused. These types of firewalls are very powerful but performance would also decline due to the intensive inspection and verification performed.

Fig.6.3: Creating a ‘Militarized Zone” to protect internal systems Cryptography: The process of disguising a message in such a way as to hide its substance is called encryption. An encrypted message is called cipher text. The process of turning a cipher text back into plain text is called decryption. Cryptography is the art and science of keeping messages secure. It uses a ‘key’ for encrypting or decrypting a message. Both the method of encryption and the size of key are important to ensure confidentiality of a

43 message. There are two types of encryption: Symmetric key and Asymmetric key encryption. In the symmetric key cryptography scheme, the same key is used to encrypt and decrypt the message. Common symmetric algorithms include One-time pad encryption, Data Encryption Standard (DES), Triple DES, LOKI, Twofish, Blowfish, International Data Encryption Algorithm (IDEA). DES and Triple DES are the commonly used techniques. Asymmetric key cryptography scheme is also known as Public key crypto-system. Here two keys are used. One key is kept secret and therefore it is referred as “private key”. The other key is made widely available to anyone who wants it, and is referred as “Public key”. The Public key and Private key are mathematically related so that information encrypted using the public key can only be decrypted by the corresponding private key and vice-versa. • Diffie-Hellman: This is the first public key algorithm invented. It gets its security from the difficulty of calculating discrete logarithms in a finite field. Diffie-Hellman method can be used for distribution of keys to be used for symmetric encryption. • RSA: Named after its three inventors, Ron Rivest, Adi Shamir and Leonard Adleman, who first introduced the algorithm in 1978, RSA gets its security from the difficulty of factoring large numbers. The public and private keys are function of a pair of large (100 or 200 digits or even larger) prime numbers. The pair is used for asymmetric encryption. Digital Signature and certification: Digital signatures authenticate the identity of a sender, through the private, cryptographic key. In addition, every digital signature is different because it is derived from the content of the message itself. The combination of identity authentication and singularly unique signatures results in a transmission that can not be repudiated. Digital signature can be applied to any data transmission, including e-mail. To generate digital signature, the original, unencrypted message is processed through mathematical algorithms that generate a ‘message digest’ (a unique character representation of data). This process is known as “hashing”. The message digest is then encrypted with the private key and sent along with the message (could be encrypted also). The recipient receives both the message and encrypted message digest. The recipient decrypts the message digest using the sender’s public key, and then runs the message through the hash function again.


To do Digital certificates are messages that are signed with the CA’s private key. and identities must have been proven to the CA beforehand.html Certification Authorities and Digital Certificates: Certificate Authorities and Digital Certificates are emerging to further address the issues of authentication.6. The SSL servers have digital certificates issued by Certifying Authorities so that the clients can authenticate the service provider (a bank in our case).blogspot. They identify the CA. the represented party. data privacy and cryptographic key management. etc. Fig. non-repudiation.4: Flow of messages in SSL-based security (at conceptual level) Secure Socket Layer (SSL): SSL is designed to make use of TCP to provide a reliable end-to-end secure service. The CA must be trusted by the parties involved. and even include the represented party’s public key. the CA vouches for the identity of a party by attaching the CA’s digital signature to any messages. The servers use a password which are transmitted.. public keys.http://bba-mba-arena.html 45 . A Certificate Authority (CA) is a trusted third party that verifies the identity of a party to a transaction.blogspot.

information security. Physical security is achieved predominantly by controlled and restricted physical access to the systems Physical security involves the protection of building sites and equipment (and all information and software contained therein) from theft.html /PIN/digital certificate to authenticate clients. extreme temperatures and spilled coffee). the identity of the originator of a message can be traced to the owner of the private key.4. if not impossible. to initiate. Security Policy: The information security policy is the systemization of approaches and policies related to the formulation of information security measures to be employed within the organization to assure security of information and information systems owned by it. The flow of authentication messages in SSL is shown in Fig.http://bba-mba-arena. Public key cryptography uses two electronic keys: a public key and a private key.. and the reasons for such protection. and network security are considerably more difficult. Once the clients and server have authenticated each other.html 46 . Physical Security: Physical security is a vital part of any security plan and is fundamental to all security efforts--without it. Basic approach to information security measures. vandalism.blogspot. user access security.6. Access control broadly provides the ability to grant selective access to certain people at certain times and deny access to all others at all times. The diagram above shows flow of messages in SSL. The public key can be known by anyone while the private key is kept secret by its owner. manmade catastrophes and accidental damage (e. As long as there is strong binding between the owner and the owner’s public key. from electrical surges. software security. 2. http://bba-mba-arena.blogspot. The information and information systems that must be protected.g. authentication. The security policy should address the following items: 1. digital signatures and integrity. natural disaster. Public Key Infrastructure (PKI): Public key cryptography can play an important role in providing needed security services including confidentiality. A Public Key Infrastructure (PKI) provides the means to bind public keys to their owners and helps in the distribution of reliable public keys in large heterogeneous they establish a session key for encryption of messages.

3 Personnel infrastructure Successful application of e-banking demands not only availability of technology and infrastructural facilities but also a skilled manpower that can appreciate and apply it. 5. the communication is constrained by the quality of verbal and written communication skills in English. 4. However. Computers are primarily used for word processing.http://bba-mba-arena. 15.html 47 . Involvement and responsibility of management and establishment of an information security coordination division. Procedures for periodic review of the policy and security measures.html 3. Business continuity Plans. disabling an account after three unsuccessful logins may result in denial of service when it is done by somebody else mischievously or when restoration takes unduly long time). Security awareness will teach people not to disclose sensitive information such as password file names. 4. The use of outside consultants. Procedures for revising information security measures. Responsibilities of each officer and employee and the rules (disciplinary action etc) to be applied in each case. Impact of security policies on quality of service to the customers (for example. 8. User awareness and training regarding information security. security administration. Auditing of the compliance to the security Identification of information security risks and their management. 9. 13. executive management. e-mails in selected formal sector business establishments. 7. Bangladesh lacks skilled manpower and knowledgeable managers in the IT sector. This may require special management level even among university graduates. The top management of the bank must express a commitment to security by manifestly approving and supporting formal security awareness and training. which is mediocre at best. 12. If Bangladesh aims to interact closely http://bba-mba-arena. making presentations. IS personnel and legal counsel.blogspot. Priorities of information and information systems that must be protected. Checks by legal department and compliance with laws / regulations. 14. Decision making process of carrying out information security measures. 11. Security guidelines. should have the support and suggestions of end users. 6. policies and procedures affect the entire organization and as such. 10.

a level of knowledge for those designing. After incorporating our experience to date. Regardless of the actual number.blogspot. In the private sector.a basic. Various studies state divergent figures for the “trained” population. improved communication and computer skills among various segments of the society are imperative. word processing.we can break the discussion into three separate but related ideas: • Awareness . and their application in e-commerce. practical level of knowledge of ICT necessary for those utilizing technologies such as email. a span of 5. but must also be broadbased and incorporate awareness and user basics. At the higher levels of training a focus http://bba-mba-arena. Simply put. significantly handicaps policy reforms in this sector. viable IT sector projects fail to obtain financing due to the lack of understanding of the investors.a level of knowledge and understanding as necessary for those in the position to make policy and set the course of government involvement • User . software and connectivity that are the backbone of the global information economy All are necessary to support the growth of a domestic market as well as make inroads into the international market.blogspot.000 depending on the internet. with a close look at this population of “trained” graduates relative to the three areas presented above we can discern the challenges. JOBS has arrived at the singular conclusion that all paths to effective and sustainable ICT-led development lead first to e-HRD.banking.http://bba-mba-arena. The lack of knowledge among public officials about the Internet and its potential. or society to join the technology revolution and the resulting global economy – hinge on the presence of an IT savvy population and highly skilled workforce. e-Policy. A good understanding of the current benefits and future opportunities of e-banking is essential for the advancement of e-banking. in government. building and maintaining the complex structures of interrelated hardware.000 to Power Point. all recommendations for e. Looking at e-HRD . country. e-Governance and eCommerce – the very ability of a population. opportunities and benefits at each level as well as identify the key players important to any improvement.. etc.html with the international markets and seeks growth through exports. HRD cannot be limited to the upper reaches of professional skill.html 48 . as previously mentioned. and academia – across all sectors • Professional .the creation of said “workforce” . the private sector. spreadsheets.

Isolation of Dial Up Services: All the systems supporting dial up services through modem on the same LAN as the application server should be isolated to prevent intrusions into the network as this may bypass the proxy server. PKI is the most favored technology for secure ebanking services. However. The Global Information Technology Report 2004. While PKI infrastructure is strongly recommended. libraries.html 49 . banks should use the proxy server type of firewall so that there is no direct connection between the Internet and the bank’s system. Usage of SSL. http://bba-mba-arena. system software. encryption of sensitive data like passwords in transit within the enterprise itself. during the transition period. Logical access control techniques may include user-ids. etc. in addition. application software. telecommunication passwords. The use of at least 128-bit SSL for securing browser to web server communications and. systems. It facilitates a high level of control and in-depth monitoring using logging and auditing tools. There should be a separate Security Officer / Group dealing exclusively with information systems security. until IDRBT or Government puts in the PKI infrastructure. The Information Systems Auditor will audit the information systems. Security Infrastructure: At present. The Information Technology Division will actually implement the computer systems while the Computer Security Officer will deal with its security.2005 provides evidence of the dire state in which Bangladesh currently finds itself in this regard. Requirements for infrastructure development Security Organization: Organizations should make explicit security plan and document it. the following options are recommended 1.blogspot.html on networking and operating systems allows for the advantages of the “flattening” of the world as discussed in the Thomas Friedman article. Firewalls: At the minimum.blogspot. which ensures server authentication and the use of client side certificates issued by the banks themselves using a Certificate Server. Access Control: Logical access controls should be implemented on data. 2. smart cards or other biometric technologies. utilities. it is not yet commonly available.

Search for back door traps in the programs. physical access controls should be strictly enforced. These tools should be used regularly to avoid security breaches. Security Log (audit Trail): All computer accesses. Penetration Testing: The information security officer and the information system auditor should undertake periodic penetration tests of the system. Back up & Recovery: The bank should have a proper infrastructure and schedules for backing up data. Monitoring against threats: The banks should acquire tools for monitoring systems and the networks against intrusions and attacks. The penetration testing may also be carried out by engaging outside experts (often called ‘Ethical Hackers’). The application server should be isolated from the e-mail server. Attempt to overload the system using DdoS (Distributed Denial of Service) & DoS (Denial of Service) attacks.blogspot. These facilities should also be tested periodically. which should include: 1. Business continuity should be ensured by having disaster recovery sites where backed up data is stored. Attempting to guess passwords using password-cracking tools. The backed-up data should be periodically tested to ensure recovery without loss of transactions in a time frame as given out in the bank’s security policy. Physical Access Controls: Though generally overlooked. telnet should be disabled.http://bba-mba-arena.html Isolation of Application Servers: It is also recommended that all unnecessary services on the application server such as ftp.html 50 . Check if commonly known holes in the software. especially the browser and the email software exist. 5. The physical security should cover all the information systems and sites where they are housed both against internal and external threats. All computer access and security violations (suspected or attempted) should be reported and follow up action taken as the organization’s escalation policy. including messages received. 3. Education & Review: The banks should review their security infrastructure and security policies regularly and optimize them in the light of their own experiences and changing http://bba-mba-arena. should be logged.blogspot. 2.

reliability. recoverability.) Certified Products: The banks should use only those security solutions/products which are properly certified for security and for record keeping by independent agencies (such as IDRBT). and upgrade to newer versions which give better security and control.html 51 . Log of Messages: The banking applications run by the bank should have proper record keeping facilities for legal purposes. The bank should upgrade the systems by installing patches released by developers to remove bugs and loopholes. and other important aspects of the services.blogspot. Security Architecture. Maintenance of Infrastructure: Security infrastructure should be properly tested before using the systems and applications for normal technologies.http://bba-mba-arena. They should educate on a continuous basis their security personnel and also the end-users. it should be possible to decrypt the information for legal purpose by obtaining keys with owners’ consent. (When stored in encrypted form. availability. The application for approval should clearly cover the systems and products that the bank plans to use as well as the security plans and Well Trained Personnel http://bba-mba-arena. RBI may provide model documents for Security Policy. auditability. Standing Committee: RBI may set up a standing Committee to monitor security policy issues and technologies. RBI may call for various documents pertaining to security. to review prescribed standards.blogspot. It may be necessary to keep all received and sent messages both in encrypted and decrypted form. and Operations Manual. Approval for I-banking: All banks having operations in India and intending to offer Internet banking services to public must obtain an approval for the same from RBI. and to make fresh recommendations on a regular basis.

com/p/internship-reports_06.blogspot.blogspot.http://bba-mba-arena.html Chapter-5 E-Banking in Southeast Bank http://bba-mba-arena.html 52 .com/p/internship-reports_06.

html 53 .com/p/internship-reports_06.  Attract and retain quality human resource.  Steady return on shareholders' equity.1.blogspot.  Fast and accurate customer service.1.html 5.1.  Follow ethical standards in business.3 Core Values  Integrity  Fairness  Harmony  Courtesy  Commitment  Insight and Spirit  Enthusiasm for Work  Business Ethics  Respect  Team Spirit  Service Excellence 5.1.blogspot.2 Mission  High quality financial services with the help of the latest Vision To be a premier banking institution in Bangladesh and contribute significantly to the national economy.1 About southeast bank 5.http://bba-mba-arena.  Balanced growth strategy.  Innovative banking at a competitive price. 5.  Commitment to Corporate Social Responsibility 5.4 Core Competencies  Transparent and swift decision making http://bba-mba-arena.

754.45 2.870.00 3.338.56 81.20 4.47 11.462.708.250.83 6.500.15 32.26 12.724. 790.800.669.706.614.00 1.008.20 1.874.24 2.79 4.47 38.18 41.76 4.18 46.81 http://bba-mba-arena.221.125.77 42.828.http://bba-mba-arena.09 5.216.500.299.html 54 .470.294.00 2.74 23.5 Five years performance at a glance Particulars Authorized Capital Paid up Capital Reserve Fund / Others Deposit Advance Investment Import Business Export Business Guarantee Business Remittance Business Total Income Total Expenditure Operating Profit Net Profit after Tax and Provision Fixed Assets Total Assets 2009 10.10 7.703.27 2.97 1.25 9.05 48.html      Professional team of performers Satisfied clients Internal control Experienced risk administration Diversification 5.474.62 43.916.13 7.551.67 60.479.370.32 11.11 64.497.12 25.00 2.17 8.60 8.37 1.178.656.265.66 1.670.500.1.087.53 2007 3.222.12 2005 2.702.44 374.181.19 4.147.00 2.062.57 21.61 8.422.012.14 29.60 15.39 53.804.00 3.500.079.66 909.23 69.81 68.34 28.511.685.582.975.916.87 10.55 96.92 46.714.237.300.36 55.113.11 4.05 77.99 15.61 58.98 2008 3.771.507.55 35.64 6.30 13.180.350.258.74 2.35 112.164.40 4.056.55 3.056.80 13.00 13.69 2006 1.078.blogspot.689.58 887.504.852.47 5.11 1.28 6.86 38.

Cash withdrawal facility is also available from any of our branches across the country.html 55 .1 Dual Currency VISA Credit Card Features and Benefits  Single Card-Dual Use (Local & International): SEBL Visa (Dual) Credit Card has unique feature of allowing limits both for local and international usage in a single card.  Auto Payment facility: If a cardholder maintains an account with any of the SEBL branches. Cash may be drawn from all ATMs or payment counters having Visa logo.2 E-banking services in Southeast Bank Transaction mode of Card Cheque will be treated as Purchase  Easy Repayment: Cardholder has also the option of paying a minimum of 5% of his / her bill amount every month and thus can enjoy the flexibility to plan repayment in installment basis.blogspot.  50% Cash Drawing Facility at ATMs and any Southeast Bank Branch: SEBL Credit Cardholder can draw cash up to 50% of the credit limit against his / her card. he / she can instruct us to realize the monthly bill against his / her credit card from his / her SB/CD/STD account automatically.  100% Cash Drawing Facility at purchase mode through Card Cheque: Cardholders can issue Account Payee Card Cheque against local limit.  Widely Accepted at Merchants & ATMs Worldwide  Competitive Annual / Renewal Fee  20 .com/p/internship-reports_06.html 5. However. SEBL Visa (Dual) Credit Card is accepted at any merchant locations or payment counters displaying Visa logo in any part of the world.http://bba-mba-arena. one may opt for separate cards if he / she finds the same convenient for him / her. No interest free grace period is available for any cash advance.blogspot. http://bba-mba-arena.2.50 Days Interest Free Credit Facility: SEBL Visa Credit Card allows free credit facility on purchase up to minimum 20 days and maximum 50 days without any interest if there is no outstanding amount on the card account in the previous month's bill.

Statement status 3. Transaction alert 2.blogspot. USD.00 30.50% per month will be charged and calculated on daily basis from the date of transaction until cash advance is paid in full. In case of cash advance.holder's credit limit. Fees & Charges Southeast Bank VISA Credit Cards 01. • Push services: 1.html  Payment of International Roaming Bill of Mobile Phone: Cardholder can pay his / her international roaming bill of cell phone through Credit Card.holder's account. the expenses will be charged to the principal card . Separate limit but not exceeding the principal may be fixed for each supplementary card. Principal Card Annual / Renewal Fee: Local International / Dual 02. Last transaction enquiry • 24 hours Customer Service.50% per month calculated on daily basis from the date of transaction until the entire amount is paid in full. the interest @ 2. Rate of Interest Any amount that remains outstanding after the payment due date will attract an interest @ 600. Tk.html 56 .Pull Service: Cardholder can enquire about his / her credit card status through his / her cell phone.http://bba-mba-arena.00 60.  Auto Debit Facility of Mobile Phone Post Paid Subscribers  Free Supplementary Cards: Supplementary cards are issued against a Principal Card.00 Gold Card Classic Card Supplementary Card Annual Fee / Renewal Fee : http://bba-mba-arena.  SMS Push . While each supplementary cardholder will have his / her own independent usage within the principal card . Bill status • Pull services: 1. Balance enquiry 2. Minimum due status 1200.blogspot.

00 200.html Local 03. 350.00 Tk. USD. 500. 50. 15 per leaf 5.00 10.00 Tk.00 50. 300. 100 which is higher 2% of advance fee or $ 3 which is higher International / Dual 12. USD.00 5.00 15.00 5.00 100. they are the ambassadors of goodwill for Bangladesh.issuance Fee : Local International / Dual Tk.00 10.00 10. They also spread the richness of our cultures across the globe. Tk. 2% of advance fee or Tk.00 10.2. USD.2 Remittance Business Our over six million expatriates are a source of pride for Bangladesh.00 Tk.00 10. In that sense.blogspot.00 300. USD.http://bba-mba-arena.00 10.00 10.00 250.00 500. Charge Slip Retrieval Fee : Local International / Dual 08. USD. Nil Nil Nil Nil 11.00 Tk. They represent us abroad by building our image.00 Tk. Statement Retrieval Fee: Local International / Dual 07. 250.00 10. USD.html 57 . 350.00 10. Late Payment Fee : Local International / Dual 05. Cash Withdrawal Fee: Local Tk. Free Free Personal Identification Number (PIN) Re . USD. Tk. 100. Return Cheque Fee : Local International / Dual 06. Outstation Cheque Collection Fee : Local International / Dual 09.00 10. Excess Limit Charge : Local International / Dual Tk.00 200.00 15. Replacement Card Fee : Local International / Dual 04. Cheque Honor Fee: Local International / Dual 13.00 10. USD.blogspot. 1% of the drawn amount N/A N/A Tk. Cheque Book Issue Fee: USD. Their http://bba-mba-arena.

html 58 . Nationalized and private banks are the principal agents for bringing remittance to the country. Register data for later use for instant cash payment over the counters.html contribution is equally important. remittance will figure as the single largest source of foreign exchange for Mail transfer (MT). it has continuously strived to build its remittance business around quality service by making it easy for remitters to remit money through a network of agreements with reputed banks and remittance houses abroad and an extensive network in the country to deliver the money to the beneficiaries at their door in the quickest possible time and without hassles. In fact if we adjust import costs against export of the garments sector that overtly brings more foreign exchange to the national economy. Assist in opening Wage Earner Accounts. Initiate Remittance Card Service for use in ATM booths. The foreign exchange they send home is the second largest source of much needed foreign exchange for our economic UK (United Kingdom) based Money Transfer Companies: • AN Express Limited http://bba-mba-arena. in the contribution they make to the economy of the country. On line account credit to those who have accounts with branches of Southeast Bank. Assist in opening accounts under different types of savings schemes. Additional features of SEBL‘s one .com/p/internship-reports_06. Home delivery of remittance business where necessary and possible.blogspot.http://bba-mba-arena. SEBL deliverer money to the beneficiaries without service charges & assures confidentiality in transactions. Global Partners Western Union Money Transfer Services (www.westernunion.stop remittance delivery service are: • • • • • • • • • • • • • • • • • • • • • • Use of mobile and SMS to contact the beneficiary. if not more.blogspot. EFF/TT services. Provide anti money laundering advice. Account credit services using on line facilities of other banks. Although Southeast Bank has entered into remittance late compared to the other private banks. K.Fast Remittance LLC ( USA (United States of America) based Money Transfer Companies: • • • • Neno Money Transfer Wall Street Finance LLC Trans .com) Xpress Money Services Limited (www.LLC (www. Money Transfer UK ( • • • • • • • Rumana Money Services UK K.kfenterprises.B Money Transfer UK Eastern Money Transfer UK Limited ( UAE (United Arab Emirates) based Money Transfer Companies: • • • • • • • • Al Ahalia Money Exchange Bureau ( Smart Exchange ( Asia Express Exchange ( Al Fardan Exchange Wall Street Exchange Centre LLC ( Royal Exchange (www.transfast.blogspot. Bahrain based Money Transfer Company: • BexMoney Bahrain Exchange Company (www.LLC ( Lulu Exchange Habib Exchange Co.smartexchanze.html 59 .uk) Khan Money Transfer UK Bangladesh Money Transfer UK Limited First Solution Money Transfer UK Limited ( Al Ansari Exchange ( Sultanate of Oman based Money Transfer Companies: • • Oman & UAE Exchange Center & Company (www.

html 60 .com) Canada based Money Transfer Company: • Megna Exchange K. The Beneficiary does not have to pay any fee to receive the money National Commercial Bank (www. providing a high level of security.html • Continental Exchange Solution (Ria Financial Services).. Cyprus.alahli.. helps to send money to loved ones quickly and reliably with convenience and control through more than 245.A (Kingdom of Saudi Arabia) based Banking Partners: • • • Al Rajhi Banking Corporation (www. flexibility and reach with the fastest.000 Western Union Agent locations in over 200 countries and territories. Italy.. Canada.earned money through Western Union and their families and friends can receive the money in minutes by visiting any of the 56 branches and 10 SME locations of Southeast Bank Ltd. (www. it is a 3 step process: http://bba-mba-arena. With Western Union and Southeast Bank Ltd. Australia and other major destinations). With the signing of the Representation Agreement between Western Union Financial Services. Inc. Italy based Money Transfer Company: • National Exchange srl ( UK.blogspot. easiest money transfer solutions. Sweden. money transfer has never been so Western Union Money Transfer Services Western Union. U. Bangladeshi Wage Earners abroad can now send their hard . (Though incorporated in the USA. and Southeast Bank Ltd. Western Union money transfer service is ideal for transferring money virtually at any a global leader in money transfer service.nationalexchange. Ria is a global player as we receive Remittances through RIA from USA.S. France.banklalbilad. anywhere. all over Bank Al Bilad (www.blogspot.2.

5. to 12. Money transfers can be received from 9. The sender will receive money receipt with Money Transfer Control Number (MTCN) from any of the Western Union agent location outside Bangladesh after depositing money. ATM Booth Location SMS Registration information Help list of Keywords to send SMS Help message format to send SMS Fund Transfer Mobile Bill Payment Cheque Book Request I. by showing a valid Identification and filling a form.00 A.2. The sender will inform the money transfer detail (amount of money sent.M. sender's name. Messages are securely and reliably exchanged between banks and other financial institutions. 5.2.00 PM on Saturday in 17 Authorized Dealer branches.html 61 Request Services: . The receiver will receive the money from any of the 66 Branches of Southeast Bank Ltd.blogspot.5 SMS Banking Pull Services: • • • • • • • • • • • • • Account Balance Inquiry Last 3 Transactions Cheque Leaf Status Interest Rate for different deposit products Foreign Currency Exchange Rate Branch Location / Telephone No. to 3.http://bba-mba-arena.4 SWIFT Services The Society for Worldwide Inter Bank Financial Telecommunication ("SWIFT") operates a worldwide financial messaging network. and MTCN) to the receiver.blogspot.00 PM on Sunday through Thursday and from 9. III. The Bank's SWIFT address is SEBD BD DH. receiver's name. destination Southeast Bank Limited has SWIFT services.00 A. II.M.

com/p/internship-reports_06. Client has to inform the changed mobile number (if any) in writing by filling up the amendment form. Otherwise.html • • • • • • • • • • • Account Statement Print Request Account Statement Request by Courier Account Statement Request by E – mail Stop Payment Stopped Cheque Leaf Reactivation PIN Change Debit Alert Clearing Cheque Return Alert Loan / Time / Scheme Deposit Maturity Alert Registration form must be completed and submitted to the branch. Users' Responsibilities: • • The account holder(s) is solely responsible for any misuse of SMS Banking Service The client(s) is solely responsible for maintaining the confidentiality of his / her financial information by ensuring safe holding of the PIN and mobile phone assigned for the SEBL SMS Banking Service. shall not be responsible for any disruption in SMS Banking Service due to mobile phone service provider or any mechanical / electrical failure on the part of Southeast Bank Ltd. For any change in registration. all SMS received from lost mobile phone will be treated as client's authorized message. where the account(s) is / are maintained. exchanged with another individual or the PIN is Execution Services: Requirements: http://bba-mba-arena.http://bba-mba-arena. If the mobile phone is lost. account holder(s) has to complete a Registration Amendment Form. stolen. • The account holder(s) hereby agrees that Southeast Bank Ltd.blogspot.html 62 . the account holder shall immediately notify the Branch or Head Office (Tel: 02-9571050) to stop the service temporarily.blogspot.

SMS service will be discontinued.00 3.blogspot. http://bba-mba-arena. Eligibility We are issuing ATM card against SB.00 3. • Reply SMS charges are monthly payable with 15% VAT. CD & STD Account Fees & Charges TK 500 for annual / renewal fee. E-Cash has a network of 32 ATM's located in strategically important locations on five important cities / towns of the country namely: Dhaka.00 3.6 ATM Services Southeast Bank Limited is a member of the E-cash Shared ATM Network.00 3.00 25.2. Cox's Bazar and Rajshahi.00 5.00 3.00/page + courier charge - 205 - 3.00 - 3.html 63 .00 3. Fees & Charges: Service Code Service Name Pull Services 201 202 203 204 Fund Transfer Mobile Bill Payment Cheque Book Request Account Statement Print Request Account Statement Request by Courier Account Statement Request by E .blogspot. Account Statement Request is limited for previous 6 (six) months only.00 Other Charges Charge for cheque book Reply SMS 3.00/ page 5.html • Stop Payment and Cheque Leaf Reactivation for Payment services will be available during office hour only.00 206 25.http://bba-mba-arena. Chittagong. We are providing ATM service coverage to our 30 branches. If account holder does not pay due SMS charges for consecutive 3 (three) months.mail Execution Services Alert Services Execution Charge per Charge 50.

7 Export Southeast Bank Limited offers a wide range of export services.html 64 . With our expertise and experience. lower cost. Bank Guarantee facility is available. faster processing Export LC transfer facility (full or partial) is available with competitive fee. Southeast Bank Limited facilitates its customers with FOREIGN DOCUMENTARY BILL PURCHASE (FDBP) and FOREIGN DOCUMENTARY BILL FOR COLLECTION (FDBC) for export bill  Export Bill Negotiation: We negotiate export bills drawn under Letter of Credit.  Negotiation commission for export bills in local currency: http://bba-mba-arena.blogspot. if the documents are found to be strictly in terms with LC conditions. All these facilities come to at competitive rates and world class service standards Provide confirmation (If LC issuing Bank is not well known) to the exporter.  Export Packing Credit: We provide pre .shipment finance in the form of Export Packing Credit (PC) to assist cash flows for manufacturing or packing goods for export from Bangladesh. Provide complete documentation. Export finance requirements are carefully taken by the Bank and allowing to enjoy competitive interest rates and timely credit. Retention quota facility for the exporter. Interest on overdue period will be applied as per our lending rate. we can structure and customize solutions for specific requirements. Routing all export related transactions through Southeast Bank Limited could eliminate many of exporting hassles.html 5. Fees & Charges  Negotiation commission for export bills in foreign currency: No charges for Features and Benefits  Export LC Advising: Southeast Bank Limited allows prompt advising of export letter of credit from a wide international network.

com/p/ LC ( BTB & Inland): Taka 750/.000/.per instance for other bank's clients  Transfer of LC: Transfer Charge . http://bba-mba-arena. • Charge for issuance of Export Performance Certificate @ Taka 200/.000/-. Advising of guarantee in our own format or on the format supplied by the opening bank with our full engagement . Adding confirmation charge @ 0.500/2nd mail at actual or minimum Taka 800/Advising of guarantee to the beneficiary in original without any engagement on our part @ Taka 500/. Advising of Guarantee in original by adding our confirmation.50% per quarter or part thereof minimum Taka 1.http://bba-mba-arena. Taka 1. • Issuing Bid Bond / Performance Bond favoring overseas beneficiary through foreign correspondent at client�s request .blogspot.per instance for our Bank client.html • • • • • • • • • • • • • • • • @0.Taka 500/.25% per quarter Foreign Bank's guarantee commission against discrepant bills At actual Collecting Bank's charges from abroad At actual  Processing of documents under collection in local currency: Full waiver of handling charges. Advising Foreign Bank LCs to the local beneficiary @ Taka 1. Postage / Swift / Mail / Telex / Courier charges to be realized at actual. As per agency agreement or @ 0.flat.As per agency agreement or @ 0.blogspot. Commission for transfer of amendment .and stationary charge Taka 50/-.per instance for our Bank's clients.50% per quarter or part thereof minimum Taka 1.html 65 .plus interest for the period the bill remain outstanding.per instance for our Bank's client.000/.  Mailing of Export Document: 1st mail at actual or minimum Taka 1.25% per quarter or part thereof along with SWIFT / Mail charge.As per agency agreement or @ 0.25% flat or minimum Taka 1.000/.000/.per instance  LC advising charge .000/-.Taka 1.

blogspot.Taka 200/.50% . Post shipment finance such as  Import Collection Bill Services: Documentary Collections are a common and flexible method of payment for goods purchased from suppliers in abroad.25% http://bba-mba-arena.http://bba-mba-arena.Taka 500/. Charge for issuance of C&F Certificate .Minimum 0.8 Import Features and Benefits  Import Services: Southeast Bank Limited offers comprehensive range of Import services.30% .specially for Jute Sector Charge for issuance of Back to Back LC Certificate .per instance Taka 200/.Taka 500/. Fees & Charges  LC Opening Commission under cash: • • • 1st Quarter: Maximum 0.50% .Minimum 0.Minimum 0. Through our expertise and experience. 5.html  Charge for issuance of Proceeds Realization Certificate (PRC) / PRC for Cash Incentive / Custom Purpose: • • • • • Taka 500/. Southeast Bank Limited is highly respected in the world of international finance and cross border transactions. Back to Bank L/C facility against Export LC. Shipping Guarantee & Bank Guarantee are also available.blogspot. EXP issuing charge . • • • • Supply advance payments towards Imports. Our experts can advise in drafting the LC terms and conditions so as to protect customers' interests. we can structure and customize solutions suited to specific business requirements. LTR etc for your immediate liquidity.25% Each subsequent quarter or part thereof: Maximum 0.  Import Letters of Credit: We issue Import Letters of Credit on behalf of our customers. Rely on our expertise in efficient and prompt handling of Import collection documents.per instance.15%  LC Opening Commission under AID / Loan Credit / Barter: 1st Quarter: Maximum 0.html 66 .per instance.

25% .25% Each subsequent quarter or part thereof: Maximum 0.15%  LC Opening Commission for Back to Back LC on account of export oriented  LC Opening Commission for Back to Back LC other than export oriented  LC Opening Commission where 100% margin is received: 1st Quarter: Maximum 0.25% Each subsequent quarter or part thereof: Maximum 0.Minimum 0.40%  Acceptance commission under deferred payment LC: • • • • • • 1st Quarter: Maximum 0.0.15% Charge for LC transmission by mail (Charge will cover cost of registered mail of LC to the Advising Bank and copy to the Reimbursement Bank) – At actual Charge for LC transmission by Telex / SWIFT – At actual Charge for amendment LC transmission by mail – At actual Charge for amendment LC transmission by Telex / SWIFT – At actual  Charge for our arranging confirmation from a Third Bank: • • For Sight LC on Opener's Account – 0.25% along with foreign correspondent's actual commission and charges of mailing / courier / telex / SWIFT at actual.html 67 .30% .15% garments or specialized textile industries: • • 1st Quarter: Maximum 0.Minimum 0.blogspot.25% along with foreign correspondent's actual commission and charges of mailing / courier / telex / SWIFT at actual.25% .40% .Minimum 0.30% .50% . For DP LC up to 180 days on Opener's Account .blogspot.Minimum 0.50% .30% .Minimum 0.60% Each subsequent quarter or part thereof: @ 0. • Each subsequent quarter or part thereof: Maximum 0.25% .15% garments or specialized textile industries: • • • • 1st Quarter: Maximum 0.25% Each subsequent quarter or part thereof: Maximum Each subsequent quarter or part thereof: Maximum 0.Minimum 0.Minimum 0.15%  LC Opening Commission under deferred payment: • • 1st Quarter: @ 0.Minimum 0.http://bba-mba-arena.Minimum 0.

Taka 750/.com/p/ Application set for any type of foreign LC – Taka 200/. For DP LC up to 180 days on Beneficiary Account . • Foreign correspondent charge for all types of LC – At actual as per the schedule of charges of foreign correspondent.along with cost of stamp.25% along with foreign correspondent's actual commission and charges of mailing / courier / telex / SWIFT at actual. Indemnity for shipping guarantee (or NOC Issued) in absence of original documents .http://bba-mba-arena.per LC Foreign correspondent charge for amendment LC – At actual or minimum $15 as per the schedule of charges of foreign correspondent. Endorsement of copy documents for assessment of goods / consignment against all types of LC – Full waiver.0. Handling charges for amendment of LC (except local LC) – Taka 500/.  Handling charges for all types of LC: • • • • • • • • • • • • • • • • • For Foreign LC – Taka 1.per LC  LC cancellation charges: By Telex / SWIFT – Full waiver By Air Mail – Full waiver Mailing / Courier / Telex / SWIFT charge – At actual Charge for collection of Credit Report on the Beneficiary of the LC by Telex / SWIFT – At actual along with service charge (Minimum Taka 750/-) IRC Renewal Fee – Govt. fee at actual along with service charge of Taka 300/-.blogspot.25% along with foreign correspondent’s actual commission and charges of mailing / courier / telex / SWIFT at actual.0.000/.blogspot.html • • For Sight LC on Beneficiary Account .per LC For Local LC – Taka 500/.html 68 .(Flat). PSI handling charge – Taka 200/SWIFT charge against acceptance (Foreign) – Taka 500/Postage charge against acceptance (Local) – Taka 100/-  Payment against collection of documents (Import without LC): $15 for collection of documents valued $5000 $30 for collection of documents valued above $5000  SWIFT and other charges against Payment Instruction (Cash LC): http://bba-mba-arena.

16. 15.A.A.3 Foreign Correspondents of Southeast Bank SI. 5. Mashreqbank psc Citibank AG Commerzbank AG Zurcher Kantonalbank The Bank of Nova Scotia Standard Chartered Bank American Express Bank Ltd. 13. 2. 14. 4. Currency Correspondents USD USD USD USD USD USD USD EUR EUR CHF CAD ACU $ ACU $ ACU $ ACU $ ACU $ ACU $ ACU $ ACU $ ACU $ ACU EUR AUS $ GBP Standard Chartered Bank Habib American Bank JPMorgan Chase Bank N. 22. 9. 7. Wachovia Bank N. HSBC Bank Citi Bank NA. 19. (ABE) United Bank Limited Nepal Bangladesh Bank Ltd.http://bba-mba-arena. 18. 17.05-15 http://bba-mba-arena. Arab Bangladesh Bank Ltd. 23.blogspot.blogspot.html • • • • $15 for the value of $5000 $30 for the value of above $5000  SWIFT and other charges against Payment Instruction (Back to Back LC): $15 for the value of $5000 $30 for the value of above $5000 3. ICICI Bank Limited Bank of Bhutan Mashreqbank psc National Australia Bank HSBC Bank plc City New York New York New York New York New York New York New York Frankfurt Frankfurt Zurich Toronto Kolkata Kolkata Karachi Kathmandu Colombo New Delhi Mumbai Mumbai Account No. 10.html 69 . Standard Chartered Bank The Bank of Tokyo Mitsubishi Ltd. 6. No. 11. 20. 21. 1. 8.362 527120311618 32205072554 42705427087 0680015-5 011031 D 15-9908498-93 9000010 5001-000015-155 000406000179 Phuenstholing 34020 Mumbai Melbourne London 61049657 1803-088048-500 67033073scn: 40. 3582-088281-001 20729474 811165059 000-05176-4 36143302 2000193002832 70120852 4116042008 400871531000EUR 0700-01102.

So. The results show that the mean satisfaction score of the female respondents were 3. JPY UBAF 10 282760 001 00 0 The results of the survey are shown below according to the gender category of the respondents: Q-5 1 Male Female - Score Frequency % 2 13 1 3 18 5 4 36 14 5 9 4 Total 76 24 Mean Score 3. The respondents were asked to rate their overall satisfaction with the bank on 5 points scale where 5 represented the highest satisfaction score & 1.blogspot.87 whereas the male respondents had a mean score of only 3.4 Findings from Southeast bank Analysis of the survey Gender & Customer Services of SEBL Among the respondents were surveyed.32.87 Using ATM card http://bba-mba-arena.html Tokyo & Osaka 76% were male and the rest 24% were female.blogspot. these imply females are more satisfied with the service compared to the males.html 70 . the lowest.32 3.

blogspot. 43% male and 12% female use ATM card from 100% male and female Among the respondents were surveyed.html 71 .blogspot. The results of the survey are shown below according to the gender category of the respondents: Q-11 Male Female (%) 43 12 Gender basis Age group basis Youngest people are the core user of ATM card then the oldest people and it is showed in below: http://bba-mba-arena.

http://bba-mba-arena.html Age group 20-29 30-39 40-49 50-59 60-69 (%) 45% 32% 20% 2% 1% Online service compare with traditional services Much better Better 68% 18% 72 .blogspot.

blogspot.html Same Worse 11% 3% Responses on the phone Q-20 1 24 Score Frequency % 2 3 4 16 43 11 5 6 Total 100 SWOT Analysis of SEBL E-Banking SWOT analysis is one of the most acceptable yardsticks to measure the gigantic performance of the management and provides notion about the opportunity and threat of the company or company’s project. router and PIX firewall.99% security about customer’s privacy.html 73 . PBL Data Center is equipped with world’s number ‘one’ networking equipment from CISCO. such as switch. SWOT analysis of SEBL’s E-Banking is Strength  Strong security counters measurement to provide 99.blogspot.

So their system may collapse due to overload any time.http://bba-mba-arena.html  Well trained employees  SEBL’s Online Banking web server is certified by 128 bit data encryption SSL (Secure Socket Layer) server certificates issued by Verisign. There is no one ATM booth in the rural http://bba-mba-arena.    Due to large number of customers they may face security problem There is no ATM booth in the University campus as NBL has. But student may be profitable customers in near future. o Expansion of mobile network over the country creates scope for online business applications. But the authority has no headache to increase the capacity of the server. is to open offices in Bangladesh to offer e-commerce services to exporters and so banking application will be aloofted. a Dubai based online Opportunities o Customer’s psychological impression to use debit and credit card will be positive aspects of exploring online banking. Some companies already provided mobile internet services in the country.  Educated customers whose have positive notion about the changing technology.blogspot. Few number of ATM booth located in the only urban area.html 74 . o Tejari. o Of late expansion of fiber optic cable in Chittagong intensifies this opportunity much more.blogspot. So this is the main threat for SEBL’s online banking. Threats  Now NCBs as well as PCBs are going to provide e-banking services. Weakness  SEBL’s focus more now increasing the number of customers.

http://bba-mba-arena. http://bba-mba-arena. So it’s a technological threat for SEBL’s online banking system because the end users take the updated technological advantage.blogspot. software as well as server capacity has been updated over the  As e-banking is wholly IT based. The installation cost is also high.blogspot.html 75 .

1 million Fig-6.1: Telecommunication Status In Bangladesh 6. United Commercial Bank Ltd.html 76 .com/p/internship-reports_06. The use of online banking in the national bank is zero. four banks (like Premier Bank Ltd. Exim Bank Ltd. NCC Bank The scenario in PCB is better. First Security Bank ltd. Prime Bank Ltd. Eastern Bank Ltd. Participant banks are Dutch Bangla Bank Ltd.2 Status of Computerization and Electronic Banking System in Bangladesh To draw an assumption about the current condition of OB. The City Bank Ltd. Exim Bank Ltd) are only applying minor activities of online banking services. Uttra Bank Ltd and BRAC Bank Ltd. Dhaka Bank Ltd.92 million 3. Premier Bank Ltd.blogspot. Only the service of linking A/Cs online is present in Public Bank. http://bba-mba-arena. Dhaka Bank Ltd.5 million 7000 1600 3 3700 10 mb 31 70 195 1800 km 0. Among 14 surveyed banks.html Chapter-6 Data Analysis 6. but other services are absent in both the NCBs. Jamuna Bank Ltd.http://bba-mba-arena. Trust Bank Ltd.blogspot.1 Telecommunication Status in Bangladesh No of land lines No of cellular phones Paging and radio trunking subscribers Telex subscribers International trunk exchange Total international circuits International internet backbone V-sat provider V-sat user Number of ISP’s Fiber optic cable network(under railway) Internet users 0. a survey is conducted in 2 national and 14 private banks. First Security Bank Ltd.

2005). Private Banks were allowed to enter the market and two nationalized commercial banks (NCBs) were decentralized and another nationalized bank was converted into a limited liability company and partially privatized.blogspot.. Besides these. bank statement. The banking system of our fund transfer. the task of branch transactions.) Partially computerized (iii) Not computerized. paying utility bills and checking account balances can be done through online in these banks. the government of Bangladesh began to reform the financial sector. City Bank NA.html Linking A/Cs online and foreign exchange rate update-these two services are provided by remaining 10 banks. The overall picture of computerization in the banking sector of our country presented in the following table (Raihan ). American Express Bank.http://bba-mba-arena. depending on computerization can be classified into three categories: (i. like most developing five specialized banks (DFIs) have 1311 branches.html 77 . Here there are four state owned commercial banks (Nationalized Commercial Banks-NCBs) have 3496 branches. Banks at early stages of history of Bangladesh were nationalized and there was mismatch between assets and liabilities. All privates and state owned banks are partially computerized and not computerized. There are a total of 49 scheduled public and private banks in the country.2. five government-owned specialized banks dealing with development finance in specialized sectors.86 22% 76% % Table-6. the banking sector comprises of four NCBs.)Completely computerized (ii. is dominated by banking enterprises. 30 private commercial banks (PCBs) and ten foreign commercial banks (FCBs) (Ahmad.blogspot. In the early 1980s. Branches with various facilities Availability in Banks NCBs PCBs FCBs Computerized Branches 19% 38% 100% Number of Branches Linked within branches 3% 1% 76% Number of Branches Linked with other branches 0. Financial sector of Bangladesh. 30 local private commercial banks (Private Commercial Banks-PCBs) have branches of the scheduled banks in the country. Currently. HSBC etc are completely computerized banks in our country. Standard Chartered Grindlays Bank Ltd.1 Computerized Branches in different types of Commercial Banks http://bba-mba-arena.

low-cost. Sl. fund transfers. In our country different banks are offering electronic banking services in different ways.blogspot.html The overall computer density in the banking sector is 1. 1.html 78 . but now most of the private banks of our country are using electronic banking systems. . Recently a number of commercial banks of Bangladesh have become the member of Belgium based Society for Worldwide Interbank Financial Telecommunication (SWIFT).64. For foreign commercial banks (FCBs) the computer density is 45. where as for NCBs the ratio is only 0. speedy and reliable connectivity for L/C transmission. With the activation of the SWIFT system banks enjoy instant. The specialized bank scenario is almost same as the NCBs. 2. Electronic Banking Services 2004 25 2005 34 48 2006 ATM Merchant account service to merchant Internet Banking --------------------------27 13. some are tele-banking and some are electronic fund transfer. A. credit card etc. private commercial banks have comparatively higher ratio. 3. they are invested a lot for their automation banking services.41. A. 6. They are the pioneer of implementing electronic banking systems in Bangladesh. 2001).94. all of the foreign banks of our country are using online banking system.81 percent bank does not have any local area network (LAN). For this reason. 9.34. Earlier only foreign banks of this country were availing this facility(Rahman. 0. At present.43. 4. 30 percent have WAN (Wide Area Network) but for some banks many branches are outside of WAN connectivity.13 28 Electronic Fund Transfer (EFT) Online corporate banking Credit card ---------10 ------- Any Branch Banking http://bba-mba-arena. The following table shows the different electronic banking services in our country ( 2001).com/p/internship-reports_06. some are offering ATM (Automatic Teller Machine) services. 4.blogspot. 7. 5. As a whole 81. 8. they are increasing market share every year. On the other hand. For international payment settlement 33 percent of banks are using now SWIFT. debit card.8 16 -------13 25 17 23 ---------- 21 22 ------28 36 28 ----------- SMS Banking Debit card --. message communication and worldwide financial activities.

Remittance (Electronic Way) 31 . female 22. 14.blogspot.825 09.3%) are male and 48 (14. Internet Banking and WAP 21 . Tele-banking Point Of Sales (POS) Service Remittance (Electronic Way) Call Center SWIFT Channel Web Shopping On Internet 35 ------------------------46 --------------------54 -----------------30 ----- Table-6.525 06. Call Center 7 .com/p/internship-reports_06.4 Demography of Users And Non-Users Of Online Banking Services Out of 300 consumers of online banks 252 (85.html 10.3 Male Female Profession Business Service http://bba-mba-arena.55 04.175 05.3 219 44 14.775 10.3 Present Status E-Banking in Bangladesh Present Status of Various forms of E-Banking in Bangladesh: Total 40 banks (both public and Pvt. 12.875 07. Variables Gender Category’s Combined Users Frequency % Frequency 256 85.9% are found non user which is nearly 10% greater than user’s family.7%) are female.1 32.525 08.2 Electronic Banking Services in Bangladesh [% of Banks] (---= service not significant Amount) The above table shows the different electronic banking services are increasing day by day in Bangladesh.9 11 22. A= Not Available in BD 6. 15. 6.175 11.html 79 . Electronic Fund Transfer (EFT) 22 .1 11 22. Tele-banking 21 . SWIFT Channel 40 1 12.5 37. ATM 30 .9 13. In comparison of user and non-user based on gender.2.7 33 93 31 82 123 41 95 % 86. 11. 13.9 28 58.475 03. Any Branch Banking 35 .http://bba-mba-arena. Point Of Sales (POS) Service 35 .75 02.7 Non users Frequency % 37 77. SMS Banking 19 .blogspot. Commercial banks) were surveyed and the results are summarized as below: Sl.3 Position of E-Banking in Bangladesh. Various Forms of E-Banking Services Number of Banks having on line modes of service Delivery=N % N/40 01. Web Shopping On Internet A A Virtual Banking 7 .

http://bba-mba-arena. 6.2 4.html Student House wife 70 14 23.5 6.4: Demography of Users and Non-Users Of Online Banking Services. These estimates are based on knowledge gained through activity in the sector over the last four years as well as interviews with all three industry associations.5 Estimated ICT Human Resource Demand over the Next Five Years Table 6. branches and its dept) 5 Financial Institutions (1 per branch) 6 Telecomm Service Providers. ISPs.5% and 37.blogspot. Cafes (per estimate of ISPBA) 7 Industry and other private enterprises (for large industries and ICT SMEs) 8 NGOs and Missions (1 per) 4000 10000 30000 30 10000 30000 3000 2000 10000 2000 10000 2000 2000 20000 20000 http://bba-mba-arena.html 80 .4 4.We may expect that with in very near future the using rate will be reached in a satisfactory level.3 Fig-6.4 64 11 25.4 6 3 gives a rough idea of the demand for skilled labor over the next few years. Sector Number of Institutions (rounded) Estimated Number of Professionals Needed 8000 1 Universities and Tertiary Institutions (2 @ each institute) 2 Secondary Schools (1 @ each) 3 Primary schools (1 @ each) 4 Government/armed forces (100 per Ministry. below.5. Business & service groups are the dominant users of online banking among the professionals that belongs to 32.

html Total Need 85. Expanding Banking Business As no of private as well as foreign banks are increasing continuously. Regulatory Support http://bba-mba-arena. Expansion of ISPS The number of ISPS has grown to 195 with individual band with ranging from 34 KBPS to 2 MBPS. No of IT Educated People Increased The number of computers in the country is about 0. Digitized Shopping Mall and Air Lines Shopping malls and air lines are transformed into digital million with about 0.6.000 Table 6. Prospects of the e-banking in Bangladesh A magnificent prospect of dispelling the e-banking in Bangladesh prevails due to the following foreheads: Expansion of Mobile Network Expansion of mobile network over the country creates scope for online business applications. offering broad band internet services through DSL/HDSL.blogspot.html 81 .5: Estimated ICT Human Resource Demand over the Next Five Years Some companies already provided mobile internet services in the country. Internet Coverage by BTCL through Dial up Connections All 65 districts and 35% Upazillas in Bangladesh have been brought under internet coverage by BTCL through dial up connections.http://bba-mba-arena.1 million internet users that is increasing at an increasing rate.blogspot. NCBs are compelled to introduce online banking to sustain in the market.

 Guaranteeing open access to networks on a discriminatory basis. Government Policy of E-Banking In order to expansion of e-banking. and ensuring interconnection at fair prices. a Dubai based online in august 2001.  Central bank should provide some market incentive for the banks to implement ICT in the financial sector.  Citi’s global transaction services business announced a set of cross border remittance services for the corporate and banking markets. http://bba-mba-arena.  The automation of Bangladesh and other financial institutions should be based on comprehensive strategic plan.  Of late expansion of fiber optic cable in Chittagong intensifies this opportunity much more.  Bangladesh bank can set up mandate for the banks to recruit new entrants with compulsory ICT education. Some others clues are:  Customer’s psychological impression to use debit and credit card will be positive aspects of exploring online banking.  Tejari. Expansion ICT A considerable number of manpower’s are available who have a potent ICT knowledge.blogspot.html 82 .  There should be a comprehensive plan to modernize the operation of the central bank to support automated clearing service and update supervisory and regulatory rules for absorbing ICT-based banking.7. 6.blogspot. the evidence act have the capability of facilitating the scope of online banking in Bangladesh. so that users have access to the broadest range of information and services. is to open offices in Bangladesh to offer e-commerce services to exporters and so banking application will be includes:  Promoting and preserving competition by introducing competition to monopoly phone markets. center for policy dialogue (CPD) articulated several principles that could be the foundation for government policy in Bangladesh.html Certain regulations such as IPR bill.http://bba-mba-arena.

html  An awareness campaign should be organized through workshop and seminar on the importance and business value of ICT in financial institutions for creating awareness among the top management.8.  Bangladesh bank should work out an efficient information infrastructure for banks using different technology to ensure network connectivity among the commercial banks and financial institutions in Bangladesh.  A pilot project should be undertaken immediately to set up a payment server within country for receiving payment for e-commerce.  For attracting foreign currency through e-commerce and online banking Bangladesh bank should undertake a pilot project to experiment the crosscutting issues. amendment in evidence act. dispute settlement law.blogspot.blogspot.8 SWOT Analysis of E-banking Infrastructure Development in BD 6.html 83 .  Permit low limit international credit card (ICC) for individuals against passport. Bangladesh bank along with the concerned agencies should work out a plan to develop and enact the following regulatory documents: e-banking regulation. 6. digital signature law.http://bba-mba-arena. Educational institutions will be facilitated to procure books and other educational materials using ICT. Central bank may form a "center for online banking technology and management" to support the banks with latest technological development in the banking world and provide expert support for ICT implementation.1 Strength for E-banking Infrastructure Development in BD • • • • • • • Rapid Growth of Telecommunication Opportunity for Mobile Banking Growth of Internet Rapid popularity of Electronic medium Export-Oriented Industry Growth of International Trade and Transactions Non Resident Bangladeshi (NRB) People http://bba-mba-arena.  Legal infrastructure is a must for implementing ICT-based banking services.

blogspot.html 84 .com/p/internship-reports_06.http://bba-mba-arena.2Weakness of E-banking Infrastructure Development in BD • • • • • • • • • • • • • • • • • • • • • Lack of Technological Advancement Lack of ability to copy with the latest Technology High start up cost Mass Illiteracy Level Lack of ICT Knowledge and Skills Power Disruption Establishment Expenses Lack of Awareness and Understanding of the Value of E-Banking Unavailability of E-Business Practices Legal Framework Socio-Cultural Aspects Security Standardization of Software Lack of Initiative from Central Bank Lack of Compliance Lack of ATM Employment Issue ATM’s fall short of money Slow bandwidth of internet may delay the transfer rate. http://bba-mba-arena.blogspot.8.html • • • • • Government Initiatives Sound Banking Sector Information Infrastructure Telecommunications ICT Penetration in Financial Sector 6. (radio link and cable are used for internet) Bankers make delay to provide PIN number whenever client lose his Credit or Debit card Charges are higher for the

This fiber optic network covers almost every important parts of the country. Ranks ITT of Bangladesh have already started to use this high-speed optical fiber network and they are providing their services even in rural area. In Bangladesh there is a large gap between the computerization of foreign banks and that of local commercial banks (the gap is particularly great in respect of local public commercial banks) and as regards the state of their intra. Virtually all banks use banking software at their head offices and during the past few years around one third of local banks has become SWIFT members. So we can utilize this opportunity in case of E-banking in Bangladesh. Wi-MAX license to two companies in Budget 2010-11 are great opportunity for E-Banking http://bba-mba-arena. while ATM and internet banking are expanding rapidly especially in major cities. Proposed 2nd infrastructure expansion & development 6. Next Generation Network (NGN) Project. Credit card and point of sale services (POS) are already provided by a quarter of local banks.blogspot. However. But it’s a matter of huge investment for a country like Bangladesh.http://bba-mba-arena. 75 per cent of local banks are planning to introduce So. it is an opportunity to use it as the backbone network of electronic banking in Bangladesh.4Threats of E-Banking Infrastructure Development in Bangladesh: • • • • • • • System design. Some of the multinational companies like Grameen mobile phone 6.5 Gbps.8.html 85 . implementation and maintenance Customer misuse of products and services Strategic risk from management perspective Security risks Reputational risk Credit risk Liquidity risk Submarine cable.8. which implies very dynamic improvements in their ICT use indicators.3 Opportunities of E-Banking Infrastructure Development in Bangladesh: The infrastructure covers the major cost of any electronic banking system. But fortunately Bangladesh Railway has a high-speed optical fiber network parallel to the railway path owned by Bangladesh Railway which has a total capacity of about 2.and inter branch online networks.

blogspot. liquidity risk and market risk are also present in e-banking sectors http://bba-mba-arena.html 86 .html • • • Operational risk Market risk Legal risk Traditional banking risks such as credit

1. Principles of Cost-Benefit Analysis One of the problems of CBA is that the computation of many components of benefits and costs is intuitively obvious but that there are others for which intuition fails to suggest methods of measurement. There Must Be a Common Unit of Measurement 2. The Analysis of a Project Should Involve a With Versus Without Comparison 6. CBA Valuations Should Represent Consumers or Producers Valuations As Revealed by Their Actual Behavior as well as those that can be expressed in monetary terms. 7. 1. Benefits Are Usually Measured by Market Choices 4. Decision Criteria for Projects http://bba-mba-arena.blogspot. Definition of CBA Cost-Benefit Analysis (CBA) estimates and totals up the equivalent money value of the benefits and costs to the community of projects to establish whether they are worthwhile. 7. Double Counting of Benefits or Costs Must be avoided 8.html Chapter-7 Cost Benefit Analysis Cost-benefit analysis is mainly.http://bba-mba-arena.2. environmental damage).g. used to assess the value for money of very large private and public sector projects. The Analysis of a Project Should Involve a With Versus Without Comparison 7. Some Measurements of Benefits Require the Valuation of Human Life 5.html 87 . This is because such projects tend to include costs and benefits that are less amenable to being expressed in financial or monetary terms (e. Therefore some basic principles are needed as a but not exclusively.blogspot. 7.3 Some Examples of CBA For SCBA I consider the following variables

 Transferring fund from remote area  Letter of credit(L/C)  Reduce Charge  CIB report generation  Connectivity with the port authority  Assuring exchange rate
7.3.1. Transferring Fund from Remote Area These are one of the most vital activities of bank. It is particularly very important for businessmen. For example, a person having an account in branch X at capital city (C) wants to draw cash from branch Y located at some remote area (R).In the case of existing system followings are steps followed for the above service. -Branch Y receives application from customer and prepares required papers. -Then branch Y sends those papers to branch X (at C) usually by courier service. -Branch X then receives papers, checks them and finds correct. -Branch X finally sends OK report (by courier service) favoring the person. -Branch Y then transfer cash to the customer. In case of transferring fund from a bank to another bank requires some sort of steps plus the overhead of ‘clearing house’, which is governed by Bangladesh Bank. Using the above steps roughly estimated time for inter branch/bank fund transfer ranges from 3 days to 20 days depending upon the efficiency of the bank and distance between two banks. To make the calculation simple, we consider that each such transaction on an average takes a period of 7 days. It is to note that during this transferring period the fund is not being utilized by any of the banks. Now we consider the following real example to find out the benefit of the proposed system. We consider that the above process comes under the proposed e-banking infrastructure. So it performs all remittance functions in real time. The long delay of 7

88 days is absorbed to nil. Assuming yearly interest rate as 13% we can find out the net profit calculated over this delay of 7 days. Net profit = (7x13x25480) / (365x100) = 63.52 (amount in lac TK.) Concluding Remarks: If the above function is done with the traditional banking system society will incur a loss amount to tk 63.52 (lac).But under the online banking system society will gain by expediting the transaction. So from the social perspective the online banking project is acceptable. 7.3.2. Letter of Credit (L/C) In general an L/C operation consists of two parts. They are dealing with the payments and other one is shipment of goods. The total process typically takes 25 days (it is subject to change due to many factors) in the following way (shown in figure 6.1) (A) 6 days (pre-shipment) (B) 4 days (goods delivery from ports) ©15 days (goods shipment process) Through internet banking delay due to pre-shipment and post-shipment process is fully eliminated. That means only15 days requires to entire process. On an average, online L/C processing reduces the total time period by 60%. Consequently, it increases the number of L/C by the same ratio. Reduced Charge Followings are the charges for L/C operation by the bank using traditional system: (amount in TK) 1. Commission .5% 2. VAT 15% on commission 3. SWIFT charge 3500/= 4. Foreign Courier Charge 1000/= 5. Stamp 150/= 6. Securities & others 200/= 1 USD=taka 69(approx.) Through the online, it can now send or receive any information in a secured way within a fraction of seconds .As now the total process comes under electronic transfer there is almost no need to prepare and scrutinize papers manually. So it becomes easier and 89 convenient to process an L/C operation. Therefore, bank now can lower its commission at least at .25% instead of .5%. Foreign Courier Charge will be sharply reduced to TK.100/= (including some electronic message transfer charge. Suppose other charges remain same). Under E-Banking System Commission VAT on commission SWIFT charge Foreign Courier Charge Stamp Securities & others .25% 15% 3500 100 150 200 Traditional Banking System .5% 15% 3500 1000 150 200

T- Charges for LC under The Both System Let a business man needs L/C to import rice amount to tk 7500000.The cost of the businessman under the both system will be: Under Ob System =(7500000*.25%)+(18750*15%) +3500+100+150+200) =18750+2812.5+4850 =25512.5 Concluding Remarks: I may conclude that online banking could able to provide optimum benefit to the members of the society. As a whole society is benefited insinuately and the extra amount that was charged under traditional banking system can be invested to the productive sectors and benefits derive from that project to the society. So, online banking project is viable for the society. Traditional Banking System =(7500000*.5%) + (37500*15%) + 3500+1000+150+200 =37500+5625+4850 =479750

7.3.3. CIB Report Generation Bangladesh Bank has the access to all other banks so it is very easy task to maintain an integrated database of all customers specifying their credit and debit information with each bank. At present one wishing to go for any project first seeks bank for loan. The bank then first verifies the viability of the project from different points of view. Then the


Depending upon the report sent from CIB the bank either accepts or rejects to sanction loan for the person/persons. -Every day 100 people travel from Golapgonj to Sylhet So the amount paid by 100 people is = (25 X 100X30) = tk75000 Time required = (100X1X30) = 300 hours But the Central Bank can generate the CIB report within seconds using its integrated database for the customers. 7. disbursement of goods from ports requires much time http://bba-mba-arena. This delay is due to the manual procedure of By contrast the proposed electronic banking system is capable to do same job in an efficient way.4 Connectivity with the Port Authority Under the proposed configuration every bank is directly connected with the ports authority (sea and air).html bank contacts Credit Information Bureau (CIB) at central bank .com/p/internship-reports_06. Currently. If all things are positive it will take two days to provide the loan by the TBL.blogspot. So the amount paid by 100 people is = 5 X 100X30 = 15000 Time required = 100X15X30 = 4500/60=75 hours Social cost = (75000 – 15000) = tk50000 Time lost = (100-75) = 25 hours] Concluding Remarks: If online banking services are available the social benefit would be tk50000 and time saved 25 hours.html 91 . The social cost of that community will be like this: Assumptions -The people have to expend an hour and to pay tk25.CIB checks all related papers and other documents regarding the person and finally send a reply stating the summery of his past transactions.3. Above process of generating CIB report requires on an average of 20 days. -If car moves the cost would be tk5 per person and take 15 minutes. No doubt about the social benefit of the online banking. TBL will send it to the CIB to discern the application that will take one month due to the manual procedure of verification.blogspot. Mr X wants to take a car loan from TBL in Sylhet branch.http://bba-mba-arena. The Central Bank can generate the CIB report within seconds using its integrated database for the customers. After completing the application form.

Lack of proper documents the fossil fuel has not been released by the ports authority of Chittagong.5. The unexpected delay will be removed using a direct communication channel with the port authority. 7.html due to processing and clearing of required the beginning of the day.blogspot. Suppose. declares major exchange rate. Each Head Office (HO) collects that information from the Central Bank usually over the telephone. The proposed system can very well establish the requirement of the floating exchange rate using online message broadcast from the central bank. has made a contract to Y an exporter of India. Result is that the price of fossil fuel will rise from tk 48 to tk 55 due to more demand over supply. the importer could submit their documents properly and society could enjoy the fruits. he knows the exchange rate is $1= tk 68 from the bank by which he will make his transaction. to purchase 1000 metric ton rice at the current exchange rate. Assuring Floating Exchange Rate This is one of the important role that the proposed system will play currently the Central Bank. Let an example. X. So there is no debate regarding ebanking from the society’s view point. an importer of Barisal. And it will take 7 days to submit the necessary documents as no online banking services are present in the country.html 92 .com/p/internship-reports_06. After some interval the rate might change but due to the lack of online connectivity with the Central Bank each HO gets the changed exchange rate information with some significant delay. Under this state the scenario will be Total rice = 1000*1000 = 1000000 KG Total Price = 1000000 * 32 = tk 32000000 Importer pays to exporter = 32000000/68 http://bba-mba-arena. The trader now sometimes gets the papers from his bank and deposits them to the port authority. When X is going to make payment. Here lies the necessity of assuring floating point exchange rate. So society suffers tk 7 more in per litter. This delay might cause heavy loss for the bank or for the customer. Concluding Remarks: If online banking facility prevails in the country.3.http://bba-mba-arena.blogspot.

html 93 . Under the new exchange rate importer will pay to exporter = 32000000 / 69.html =$470588 Now assume that the importer will charge per kg at tk 36 after considering all costs. Concluding Remarks: If E-banking services are available in Barisal.5 = $460432 and the rice per kg would be priced to tk 40 by the importer adding all costs. So the common people would have to pay more tk 4 (40-36) per kg now. the fluctuating exchange rate will reach in time. But within mean time the exchange rate has been changed from tk 68 to tk So e-banking again proves itself healthful to the society.5 that was not available to the office of Barisal due to lack of information system. And the society is benefited by paying tk 4 less per kg.http://bba-mba-arena.

Bangladesh bank can play a major role at this juncture by highlighting the benefits of online banking to the schedule banks and encourage them to use customized software for their day to day operations.1 Findings The findings of my study are In the context of Bangladesh.2 RECOMMENDATIONS Creating awareness among the NCBs and local PCBs management  regarding online banking is essential. lack of security and privacy.  Internet network is not available over the whole country. it is expanding rapidly.  Sometimes people are aware and interested enough to replace the traditional method with the IT. both educated and uneducated people are very much unaware about the IT .  In SEBL.  Most of the people of our country are reluctant to change the traditional personalized procedures. we see that female participants are very poor and needless to say of rural and most of the urban housewives. major city corporations and port area.  No initiatives have been taken to attract the female users. http://bba-mba-arena.  SEBL has provided online banking services only the but do not have enough money and infrastructure support.http://bba-mba-arena.blogspot.blogspot. there is no ATM booth in the University campus as 3% of the total users are student.  If we observe the consumer behavior of online banking either Bangladesh perspective or SEBL perspective.html Chapter-8 Findings & Recommendations 8. 8.  The server capacity is not the latest version.  Conspicuous aspects of SEBL e-banking consumers are highly educated who are very much optimistic about change.html 94 .This unconsciousness creates the other hindrances like techno phobia.  Though the online banking in Bangladesh is infancy stage.

html  Technological and infrastructural barriers can be overcome if existing laws Barrier of cost can be resolved through lessening the dependency on and regulations are implemented. If these recommendations are followed perfectly by the concerned.  Both NCBs and PCBs should extend their online banking services. it is not so far that Bangladesh will embrace the benefits of IT in the full extent and get one of highest rates in the adoption of IT as well as OB through out the CONCLUSION E-banking means today.  imported technology from foreign countries. Although in late Bangladeshi commercial banks put forward themselves to gain that competitive advantage.blogspot. http://bba-mba-arena.html 95 .http://bba-mba-arena. web based banking. Today banks are embracing web technology to offer more services at a cost effective rate.blogspot. 8.  Government policy should be favorable for the online banking expansion.

fnc.html?from=moreStories&oneclick=true http://www.bccbd.html 96 .blogspot.html net_res.html http://bba-mba-arena.html References http://h71028.isoc.htm http://www.htm 1m/2005/04/29/1114635721380.pdf

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