MODERN BANKING

This Paper Is Prepared to Fulfill Group Assignments Subjects

Economic English

Lecturer: Zakiyah, M.Pd.

Arranged by : Group 8

Hendra Suganda 1951010360

Indah Kurnia ningsih 1951010367
Irvan Haryadi 1951010373
Karisma Yoga Febrianto 1951010381
Lulu Rumzanah 1951010393

Class / Semester : E / 3

ISLAMIC ECONOMICS
FACULTY OF ECONOMICS AND ISLAMIC BUSINESS
RADEN INTAN LAMPUNG STATE ISLAMIC UNIVERSITY
2020/2021
 FOREWORD

Praise always we climb to Allah SWT., because for His blessing and mercy we can
finish this paper in a timely way. Sholawat and greetings are always poured out to his
Majesty the Messenger of Allaah saw., may we as his people get his intercession in the final
yaumul later. Thank you to Mrs. Zakiyah, M.Pd. as a Lecturer of Pengampu who
participated in guiding us so as to complete this paper in accordance with the appointed time.
And not forgetting I thank the friends who participated in completing this paper.
This paper entitled "Money Its Functions" was created in order to deepen
knowledge and understanding of its money functions, this paper was also created to fulfill
the course assignments of English Economics.
We recognize that in this paper there are still flaws and errors. Therefore, we highly
expect constructive criticism and suggestions for future improvements. Thus, hopefully
this paper can benefit its readers.

Bandar Lampung, 07 Desember 2020

Author
 TABLE OF CONTENTS

COVER
FOREWORD………………………………………………………………………...ii
TABLE OF CONTENTS…………………………………………………………....iii
CHAPTER I INTRODUCTION
A. Background………………………………………………………………1
B. Formulation Of The Problem……………………………………………1
C. Purpose Of Writing……………………………………………………...2
CHAPTER II DISCUSSION
A. Definition of Electronic Banking……………………………………..….3
B. Electronic Banking services…………………………………………..….3
C. The existence of internet banking……………………………………..…4
D. Factor Interest in the use of e-banking…………………………………..4

CHAPTER III CLOSING

A. Conclusion ……………………………………………………………...7
B. Suggestion ………………………………………………………………7
REFERENCE
 CHAPTER 1
INTRODUCTION

A. Background
The development of the world of technology is currently increasing rapidly, both
information technology and communication technology and has influenced the development
of both economic and social activities in the community, including financial transaction
activities, either directly or indirectly. One of the most widely used information technologies
is the internet. The internet can be used in all fields including education, government and
banking. In accordance with the development of increasingly advanced and modern
technology, effective and efficient communication is increasingly needed so that many people
want to create tools that can help humans overcome their problems with communication so
that the creation of the internet.
Internet (short for interconnection-networking) is an entire computer network that is
connected to each other using the global system standard Transmission Control Protocol /
Internet Protocol Suite (TCP / IP) as a packet switching protocol (packet switching
communication protocol) to serve billions of internet users around the world. The Internet has
broadcast access throughout the world and is the medium that is can interact between
individuals and computers without being limited by space, time, energy, and cost.
The advancement of internet technology was adopted by the banking industry to
develop services. This opportunity is used by banks in Indonesia, both government banks and
private banks. This is because the internet media is an innovation that provides quite a
challenging opportunity in its development, by providing technology-based banking services
in the form of internet banking that can attract major attention and a strategic revolutionary
weapon for bank operations in delivery and competition between bank.
Banking is not only an institution that only seeks profit but as an institution that puts
forward good service for its customers. In addition, banks provide services that are tailored to
the evolving needs of today's technological developments and lifestyles. To answer the
growing needs of society, banks are trying to provide services through a technology system
called electronic banking (e-banking). The presence of e-banking is to minimize physical
interaction between customers and bank employees.

B. Formulation Of The Problem

Based on the background of the problems that are discussed in this paper, namely:
1. What is the definition of Electronic banking?
2. How about Electronic Banking services?
3. How about Factor Interest in the use of e-banking?
B. Purpose Of Writing
The purpose of writing this paper, namely:
1. To know the definition of Electronic banking
2. To know Electronic Banking services
3. To know Factor Interest in the use of e-banking
 CHAPTER II
DISCUSSION

A. Definition of Electronic Banking

Electronic banking (e-banking) is one of the bank services that allows customers to
obtain information, communicate, perform payment transactions equipped with a security
system. E-banking services are banking services that include internet banking, sms banking,
and phone banking. The application of information technology in electronic banking is a form
of internet media use by banks to promote and simultaneously conduct online transactions,
both from old and new products. Where the existence of electronic banking will also increase
efficiency, effectiveness, productivity as well as increase revenue through a much more
effective sales system.
B. Electronic Banking services
E-banking services are provided by banks with the main objective of providing
convenience to customers. Banking services via the internet are in the form of sites from a
particular bank that provide direct banking services without the need to come to the bank
concerned. By utilizing e-banking there are many benefits that will be obtained by its users,
especially when viewed from the amount of time and energy that can be saved because e-
banking can clearly be done anywhere as long as the user has the supporting facilities to
perform the e-banking service.
The high level of competition between similar businesses inevitably makes producers
continue to improve and continue to improve product quality in accordance with consumer
values and desires. For that producers must really take advantage of technological
developments that exist at this time.
One of the companies engaged in the service sector is the banking industry. To
support the operational success of a financial / banking institution such as a bank, it is certain
that a reliable information system that can be accessed easily by its customers will ultimately
depend on online information technology. Many bank customers in Indonesia still use
internet banking just to view balances, withdraw money wherever the customer is as long as
there is ATM service from the bank, and transfer money to other accounts in just a matter of
minutes. Therefore, banks need to improve strategies so that more customers use the internet
in order to increase the value provided by bank customers. E-payment transactions can be
further developed in business activities so that bank customers really feel the benefits of this
internet banking.
Banking and financial institutions have been strongly influenced by product
developments in information technology. This sector requires product development in
information technology to provide their services to their customers. Therefore, in order to
meet the demands of technological developments, many banking industries provide IT-based
services. One of which is the use of e-banking, although a fairly expensive investment, is not
a new thing on the internet anymore. However, in Indonesia this service has only been
applied for a few years by banks which have been growing faster and are well known among
the public.
C. The existence of internet banking
The existence of internet banking also affects the face of Indonesian banking. There
are many factors that cause customers to put money in their preferred bank. Starting from
proximity to location, satisfying service, level of security, ease of transaction facilities, to
several other factors. When a bank is able to provide security for its customers, trust will be
obtained from the customer. Trust in an e-banking service system will determine the
consumer's decision to implement this system.
Understanding consumer behavior and getting to know customers is an important task
for producers, for that the producers or companies that produce and sell products aimed at
consumers must have an accurate strategy. For this reason, companies must understand the
concept of consumer behavior so that consumers can fulfill their needs and desires by making
purchase transactions and feeling satisfaction with the products offered so that consumers
become single (loyal) customers. In this case, producers must understand the concept of
consumer motivation in making purchases. The producers are mostly incomprehensible the
deeper motivation regarding the consumer, they may respond to influences that change their
mind at the last minute. However, marketers or producers must study the wants, perceptions,
preferences, and shopping and purchasing behavior of the target market customers.

D. Factor Interest in the use of e-banking

Interest in the use of e-banking is based on various factors, including the perceived
convenience, risk and trust factors. So in this study, these factors will become research
variables. These three factors are very important and need to be considered by researchers, to
determine the percentage of enthusiasts in using e-banking.

1. The perceived convenience factor

The perceived convenience factor is one of the important factors for users to
transact using e-banking with the flexibility of time, place, because it can be done
anytime and anywhere. To access online banking, customers must have an internet
connection and a computer. This is a problem faced by developing countries because
not everyone has a computer with an internet network, there are many obstacles in
using e-banking such as difficulty getting a signal to access online, especially in
remote areas. However, with the convenience provided by banks so that people
understand and understand using e-banking, it has an impact on behavior, the higher
the perception someone about the ease of using the system, the higher the level of
utilization of information technology.
One of Bank Syariah Mandiri service products that provides convenience for
banking transactions for customers is BSM Net Banking. This service is perfect for
institutions and individuals who need easy, fast and secure banking services. BSM
Net Banking provides various features ranging from money transfers, balance
information to account mutation information. Realtime money transfers can be made
through BSM Net Banking, both transfers between BSM accounts and transfers of
 more than 80 banks. In addition, proof of transfer can be printed for customer
convenience. With the existence of e-banking, customers are sufficiently connected to
the machine to carry out their banking activities, there is no need to make any more
effort to come to the bank office because the scope of e-banking is quite wide. We can
see, for example, from the perspective of the channels used by e-banking, including
ATMs, internet banking, e-banking, sms banking, phone banking, and EDC
(Electronic Data Capture). Meanwhile, if viewed from the media, e-banking includes
ATM / debit cards, credit cards, and prepaid cards. The most obvious benefit for
customers is that e-banking provides convenience and practicality because customers
can continue to do most of their banking activities anytime and anywhere quickly,
safely and at low cost. Meanwhile, for BSM, e-banking is very important because in
principle, customers must be given the widest possible access to stay close to his
account at the bank.

2. Risk factors
The services offered by banking institutions include the ease in conducting
transactions, but also the ease and efficiency provided by e-banking services do not
necessarily guarantee their security. Therefore, the issue of risk is very important to
be anticipated. There are also many crimes that occur via e-banking. The use of
information technology for the banking industry in the innovation of bank service
products is also overshadowed by the potential risk of system failure and / or the risk
of electronic crime (cybercrime) committed by irresponsible people. System failures
can be caused due to system failure (such as server downtime), and on a large scale
due to natural disasters. Meanwhile, cybercrime that occurs in the banking industry in
Indonesia tends to increase, such as identity theft, hacking (taking customer data),
viruses (damage to files in data), cybersquating, ATM fraud (fraud in ATM
transactions). Based on Bank Indonesia data, there has been a significant increase in
e-banking fraud in the last 2 years. In 2006 there was a report volume of 57,766 with
a value of Rp. 36.5 trillion, while at in 2007 there were 532,533 report volumes with a
value of Rp. 45.7 Trillion. Related to cyber crime that is currently happening in
Indonesia is the level of security which includes a sense of physical, financial and
confidential security that can be guaranteed by the company.
The level of risk that a person feels can be influenced by the product category.
This can happen because consumers feel that making decisions about the use of
services has a higher risk of the product. Likewise in the use of e-banking, when
banks are able to provide a good system service, the risks involved are low. A risk
posed by e-banking can at least provide a sense of security for e-banking service
users.
3. Perception factor of trust
The perceived trust factor in using e-banking services is shown through the
safety and benefits provided by the bank's product. It is also hoped that there will be a
good relationship between the customer and the bank so that it can produce something
positive and provide benefits and interest for the users. How trust affects attitudes
towards brands and how attitudes toward brands affect behavior will make the
marketer the main because it will determine a successful marketing strategy and
consumers will be more likely to have a positive attitude and buy or use the product.
Trust can also be said as that belief someone will find what he wants in accordance
with his expectations, trust is the action or belief of a party in establishing a
relationship with another party that the action taken will produce something positive.
 CHAPTER III
CLOSING

A. Coclusion
Based on the explanation above, it can be seen that good e-banking services greatly
affect the trust and interest of customers in using e-banking services. Ease of use can provide
a special attraction for its users. Thus it can also be concluded that good e-banking service
will provide confidence and guarantee security or reduce the risk of using e-banking services.
B. Sugstion
We are just human beings who never disappear from error, because perfection
belongs only to Allah SWT. Therefore, in the making of this paper is still far from perfect,
so we should expect constructive criticism or suggestions from readers so that we can
improve in making the next paper so that it can be better in the future.
 REFERENCES

Roger LeRoy Miller and David D. VanHoose. 1993. Modern Money and
Banking.
Dudley G. Luckett trans. Paul C. Rosyadi. 1994. Money and Banking