REVIEWER MAM GUMBANSKIE THE GREATE

Global Finance - Refers to the system of financial activities and transactions that take place on
an international scale.
ATM – June 27 1967
Electronic Banking - Often referred to as e-banking or online banking, is a digital service
provided by financial institutions that allows customers to conduct various banking transactions
and manage their accounts through electronic means, typically over the internet.
Security and Privacy - Electronic banking emphasizes security measures such as encryption,
two-factor authentication, and biometrics to protect customer data and transactions.
Regulatory Framework - Governments and regulatory bodies in various countries have
established regulations to ensure the security, privacy, and integrity of electronic banking
systems.
Future Trends - Electronic banking continues to evolve, with ongoing developments in financial
technology (fintech), mobile payments, and digital currencies (cryptocurrencies).
Financial Markets - Are platforms or mechanisms where individuals, businesses, and
governments trade financial instruments and assets.

Key Components and Aspects of Global Finance

1. International Financial Markets - These markets include foreign exchange (Forex or FX)
markets for trading currencies, global bond markets, stock exchanges, and commodity markets.
2. Foreign Direct Investment - FDI involves the cross-border investment by individuals or
entities in physical assets such as businesses, factories, and real estate.
3. International Banking - Global banks and financial institutions provide a range of services,
including cross-border lending, trade finance, and investment banking.
4. Cross Boarder Capital Flows - Flows: Capital flows refer to the movement of money
between countries.
5. Exchange Rate - Exchange rates determine the value of one currency relative to another and
play a vital role in international trade and finance.
6. Global Finance Institution - Organizations like the International Monetary Fund (IMF),
World
Bank, and Bank for International Settlements (BIS) play crucial roles in providing financial
stability, development assistance, and regulatory guidance at the international level.
7. Derivatives and Financial Instruments - Financial derivatives, such as options and futures
contracts, are used for hedging against currency and commodity price fluctuations.
8. Regulatory Frameworks - International financial markets are subject to regulatory
frameworks
and international agreements aimed at promoting stability and preventing financial crises.
9. Financial Innovation - The global finance sector continually evolves through innovation.
10. Financial Crises - Global finance is also characterized by financial crises that can have
widespread economic repercussions.
Key Features and Services Associated with Electronic Banking
1. Account Access
2. Fund Transfers
3. Bill Payment
4. Mobile Banking
5. Online Loan Application
6. E-Statement
7. Account Management
8. Investment Services
9. Online Costumers Support
10. Security Features
11. ATM and Branch Locator
12. Currency Exchange
13. Peer to Peer
14. Account Customization
15. Budgeting and Financial Management Tool
Activities in Electronic Banking
• Checking account balances
• Transferring funds between accounts
• Paying bills online
• Depositing checks through mobile apps
• Monitoring transaction history
• Applying for loans and credit
• Managing investments
• Accessing customer support services
KEY COMPONENTS OF ELECTRONIC BANKING
• Online Banking: Customers can access their accounts, view balances, and initiate transactions
through secure websites or mobile apps provided by their banks.
• Mobile Banking: Mobile apps enable users to perform banking tasks on smartphones and
tablets, offering convenience and on-the-go access.
• Automated Teller Machines (ATMs): While not strictly online, ATMs allow for electronic
access to accounts, including withdrawals, deposits, and account inquiries.
• Electronic Funds Transfer (EFT): EFT systems enable the electronic transfer of money
between accounts and institutions, making transactions quicker and more efficient.
• Digital Wallets: Digital wallets like Apple Pay, Google Pay, and PayPal allow users to store
payment information securely and make contactless payments.
ADVANTAGES OF ELECTRONIC BANKING
1. Convenience
2. Cost Savings
3. Efficiency
4. Accessibility
EVOLUTION OF FINANCE AND ITS ROLE IN THE MODERN WORLD
1. Early Financial System (Ancient time to Pre Industrial Revolution)
2. The Birth of Modern Banking (17th to 19th Century)
3. Industrial Revolution and Capital Formation (19th Century)
4. World Wars and Bretton Woods System (20th Century)
5. The Rise of Financial Markets (Late 20th Century)
6. Financial Deregulation and Globalization (Late 20th Century)
7. Financial Crises and Regulatory Response (Late 20th Century to 21st Century)
8. Digital Revolution and FinTech (21st Century)
9. Sustainable Finance and ESG Investing (21st Century)
10. Central Bank Policies (21st Century)
EVOLUTION OF ELECTRONIC BANKING
1. Emergence of Electronic Funds Transfer (EFT) Systems (1960s)
2. Advent of Telephone Banking (1970s - 1980s)
3. Introduction of Online Banking (1990s)
4. Proliferation of Mobile Banking (2000s)
5. Expansion of Electronic Payment Systems (2000s - 2010s)
6. Rise of Digital Wallets (2010s)
7. Integration of Advanced Security Measures (Ongoing)
8. Fintech and Innovation (Ongoing)
9. The Impact of COVID-19 (2020s)
10. Future Trends and Developments (Ongoing)
GLOBAL FINANCE IN THE 21ST CENTURY
1. Technological Transformation
2. Globalization and Interconnectedness
3. Regulatory Changes
4. Monetary Policy
5. Sustainable Finance
6. Geopolitical Influences
7. Financial Inclusion
8. Risk Management
9. Evolution of Banking
10. Future Challenges
Key Aspects of Post-Crises Finance
1. Stricter Regulations
2. Increased Oversight and Supervision
3. Risk Management
4. Monetary Policy
5. FinTech Innovation
6. Sustainable Finance and ESG Investing
7. Digital Currencies and Blockchain
8. Cybersecurity
9. Globalization and Emerging Markets
10. Financial Inclusion
TYPE OF FINANCIAL MARKET
1. Capital Markets – Long term Debt Securities
2. Money Markets – Short Term Debt Securities
3. Derivative Markets – Used for Hedging and Speculation
4. Forex Markets – Exchange of one currency for another
5. Commodity Markets – Agricultural like oil and gold
6. Real Estate Markets – Use of Property
Key Players in Global Financial Markets
1. Investors – Represent in Financial Market as Seller and Buyers of assets.
2. Financial Institutions - Banks, investment firms, insurance companies, and other financial
institutions provide services, facilitate transactions, and manage financial assets.
3. Regulators - Government agencies and regulatory bodies oversee financial markets
4. Centrals Banks - play a crucial role in monetary policy, currency management,
and lender-of-last-resort functions.
5. Market Makers - makers provide liquidity by facilitating trades and offering bid-ask
spreads in various markets.
Functions of Financial Markets
1. Price Discovery - Determine the prices of assets based on supply and demand.
2. Capital Allocation - Allocate funds from savers and investors to businesses and
governments in need of capital.
3. Risk Management - Financial markets provide tools for hedging against financial risks, such
as interest rate fluctuations and currency exchange rate movements.
4. Liquidity Provision - Markets offer liquidity, enabling investors to buy and sell assets with
ease.
5. Efficient Allocation - They contribute to the efficient allocation of resources in the economy.

ELECTRONIC BANKING
Payment and Infrastructure
1. Servers and Data Centers
- Processing Information
- Customer Numbers
- Type of Account
2. Internet Connectivity (Key element)
3. Website and Mobile App (Key element)
4. Authentication and Authorization
5. Encryption Protocols
6. Firewall Intrusion Protection System
7. Database Management System (store the costumer)
8. Payment Gateways and Processing
9. Customer Relationship Management
10. Tokenization
11. Multi Factor Authentication
12. Mobile Banking Infrastructure
13. Clouds Computing Services
14. Redundancy and Recovery System
15. Compliance and Regulatory System
16. The user report and Help Desk
17. Security audit and Penetration Testing
18. Training and Education Program
Role of Central Banks
1. Financial System Stability
2. Setting Standards and Regulations
3. Monetary Policies Formulation and Implementation
4. Currency Insurance and Management
5. Consumer Protection and Financial Education
6. Banking Supervision and Formation
7. Financial Services and Government
8. Data Collection and Economic Analysis
9. Payment and Settlement System Oversight
10. Foreign Exchange Reserve Management
11. International Cooperation
12. Interest Rate Controller
13. Independent and Transparency
Payment Instrument
1. Mobile Wallet
2. Digital Currency
3. Cash on Hand
4. Debit/Credit Card
5. Bank Transfers
6. Checks
Payment Network
1. SWIFT – Society for Worldwide Interbank Financial Telecommunication It is global payments
network that enables financial institutions to securely send and receive information about
financial transactions.
2. RTGS – Real Time Gross Settlement Is a system used for settling payment across the globe.
3. CHIPS – Clearing House Interbank Payment System a payment system used banks in US and
Canada.
4. SEPA – Single Euro Payment Area this is an area created by European Union.
5. ACH – Automated Clearing House this is a network used to process electronics payment.
Additional Learnings
1. Wire Transfers
2. Point of Sale
3. ATM
4. Gateways
5. Mobile Payment Services
6. Regulatory Framework
7. Gross Boarder Payment Infrastructure
8. Emerging Technology
9. Payment Security Measures
10. Peer to Peer