DIGITAL BUSINESS APPLICATIONS IN ONLINE BANKING AND

PERSONAL FINANCE

• Made By Roll No .s
06. Mayuri Pimple
10. Aakriti Kumar
11. Gaurav Thakur
17. Parag Bajaj
18. Atul Aade
56. Pooja Gaikwad
 WHAT IS DIGITAL BUSINESS ?

A digital business is one that uses technology as an advantage in its internal and external
operations. It is the creation of new business designs by blurring the digital and physical
worlds. Internet has turned out to be the most powerful medium of communication in the
modern era. Internet and economy digitalization has transformed the overall process of
doing business. This transformation has profoundly changed the way businesses conduct
their day to day operations. This transformation is to such an extent that even all business
firms are compelled to make internet as the centre of consideration while planning their
business strategies.
 APPLICATIONS OF DIGITAL BUSINESS IN – ONLINE BANKING

Electronic banking, e-banking, online banking, Net banking or Internet

banking is banking that takes place through internet. In this the bank maintains a
web enabled centralised database. All operations that a bank offers are listed in a
menu. Through this any banking transaction is processed online without
transferring them to branch. It can be done anywhere , anytime. It deals with some
electronic based products. Some of these products include telephone banking,
credit cards, ATMs, direct deposits etc.
 SERVICES PROVIDED BY ONLINE BANKING

A bank customer can perform non transactional as well as transactional tasks

through online banking:
• Viewing A/c balance and recent transactions
• Downloading bank statements in pdf format, and downloading periodic A/c
statements
• Viewing images of paid cheques & ordering cheque books
• Funds transfer between customer’s linked accounts & bill payments
• Loan applications and transactions
• Credit card applications
• Investment purchase or sale and shopping etc……..
 ADVANTAGES OF ONLINE BANKING

• Convenient: It is flexibly used and offers great comfort to the customers who can
perform their banking operations from homes and offices using PCs and Laptops.
• Unlimited Services: online banking and its various services are available 24*7, which
allows customers to do banking anytime with just computer and internet connection
facility.
• No Time Constraints: Online banking does not suffer from time constraints like
traditional banking. Traditional banks have specific hours of operations.
• Speed and Efficiency: No need to typically stand and wait in line. As long as you can
login, you can access your accounts, request a new credit card, or perform nearly any
banking transaction you desire without waiting.
 DISADVANTAGES OF ONLINE BANKING

• Technology issues: If there is a power outage, or server goes down then access to
accounts gets disrupted. Some banks offer a tollfree no. service, which might be
overwhelmed if online access is down.
• Security issues: There is a risk of identity or actual theft if someone gains
unauthorized access to your account via, hacked or stolen password or log-in
credentials.
• No relationship with Personal Banker: Having a relationship with someone
who can help and who knows you well can be a major advantage over a strictly online
banking relationship.
• Inconvenient to make deposits: For making deposits we have to personally
visit at bank, we can’t simply drop off cash or a cheque at a local branch.
• Inefficient at complex transactions and trust issues …….
 MOBILE BANKING

It is another type of internet banking system that allows it’s customers to do any
type of financial transactions via mobile device. It allows users to access, perform
and enjoy all types of banking services over a wireless network through
smartphones. It is also called m-banking or SMS banking.
 SERVICES / ADVANTAGES OFFERED BY MOBILE BANKING

• Getting mini statements & checking a/c status and history.

• Getting alerts for all types of a/c activities and transaction limits, reducing fraud.
• Managing and controlling term deposits, insurance & pension plans.
• Getting summary of loan and card statements, requesting for a new cheque book.
• Changing a/c pin & blocking lost or stolen cards.
• Managing micro payments, recharging mobiles & processing commercial as well
as peer-to-peer bill payments.
• Go Green Go Paperless: Delivers paperless statements directly into customer’s
email while saving cost of printing. Less wastage of paper makes it environment
friendly & it allows you to use money without leaving home.
 DISADVANTAGES OF MOBILE BANKING

• Users may get fake messages and scams forwarded by hacker to him.
• If a person loses their smartphone, anyone can get access to information like PIN,
and other sensitive information.
• Modern mobile devices like Smartphones and Tablets are better suited for mobile
banking than old keypad models.
• Regular use of Mobile Banking may lead to extra charges levied by the bank for
providing the service.
 PURE VIRTUAL BANKS

Virtual banking in simple terms is availing banking services over the internet
without going to bank or its branch office .It is any financial institution that allows
it’s customers to pay bills, check balance, get loans and transfer funds online
anytime and anywhere. Common forms of virtual banking include ATMs, use of
MICRs, electronic clearing services, electronic fund transfers (RTGS or NEFT),
computerized settlement of transactions and centralized fund management services
etc….
Virtual banks conduct all transactions online because they do not have any physical
locations.
 ADVANTAGES OF VIRTUAL BANKING

• High Rate of Interest and Low Mortgage and Loan Rates: Online-only
banks don’t pay overhead for physical branches or the employees to staff them.
Instead, they pass those cost savings to customers in form of higher interest rates
and lower rate of mortgages or loans.
• Free checking: Most virtual banks allow customers to check a/c statements
without taking annual charges.
• Convenience & Mobility: VB’s do not close and a/c is accessible around the
clock.
• More Advanced Web Technology: Virtual banks usually come with a more
robust, comprehensive set of features and online tools for customers than
traditional banks.
• Environment Friendly: There are no paper statements, no additional space
needs for staffing or housing of operations.
 DISADVANTAGES OF VIRTUAL BANKING

• Slow Deposits: Because there is no physical branch to deposit money, so adding money
to a/c can be delayed sometimes if a cheque has to be mailed.
• Website Outages: Websites do go down at times, due to planned or unplanned
glitches. If that happens, there is no physical place to go as a backup.
• Lack of Relationship: Personal Interaction lacks in virtual banking.
• Less Flexibility With Transactions: For some transactions it is invaluable to head to
a bank branch. Depositing a cheque is possible with a direct bank by using it’s banking
app to capture an image of cheque, both back and front. However, depositing cash is
downright cumbersome at many online banks.
 ONLINE STOCK TRADING

Online stock trading is simply buying and selling assets through a brokerage’s
internet-based proprietary trading platforms….. Stocks, bonds , mutual funds etc…
Just like shopping for groceries online , you can buy and sell stocks online. You can
place trade orders at your will. It allows user to make his own decision with regards
to trading , without any interference of the broker. This process is also called e-
trading or self-authorised investment.
Major online stock traders in India are: Zerodha , RKSV (RK for Ravi and Raghu
Kumar and SV for Shrinivas Viswanath) , Tradejini , Tradeplus , Sharekhan , Angel
Broking, Motilal Oswal Group, India Infoline.
 BENEFITS OF ONLINE STOCK TRADING

• Eliminates Middleman: It lowers the chances of wrong execution of trading

resulting in misunderstanding.
• More Control And Easily Accessible: Speed of using online trading portals
can execute a trade almost immediately, without hanging on phone with brokers.
• Ability To Avoid Brokerage Bias: By taking trade in own hands user can
avoid brokerage bias sometimes given by brokers for their own benefits. Like…
commission for selling specific mutual funds and other products.
• Faster transactions: this allows user to place trade orders from any convenient
location across the universe.
• Access to Online tools: A lower cost not necessarily means a shoddy product.
Many online trading companies offer users an impressive suite of tools providing
valuable info. And helping optimize trades.
 DISADVANTAGES OF ONLINE STOCK TRADING

• Risk of Excessive Trading: Due to it’s easiness there is always risk of excessive
investment mistakes. Users must understand the stocks they are buying & setting up
safeguards. Placing a limit order is one way to control what to buy and how much.
• No personal Relations with Brokers: Experts often stress, importance of research,
for new traders and the need to learn as much as about companies in which users invest.
•Addictive Nature: Structure of Gambling and Trading is very close. Study noted some
investors choose short term trading strategies which involves investing in risky stocks
offering potential for large gains and significant losses too.
•Internet Dependent: Users are on the mercy of internet, if it’s slow or interrupted, they
can loose a lucrative order.
•Buying Errors: Uncompleted trade can cost money and again doing it can end up
investing twice. Completing trade without seeing confirmation is also a mistake.
 ONLINE INSURANCE

Despite slow acceptance of E-commerce in insurance industry, in some countries

there are increasing no. of companies that provide the insurance policies like home,
life or health at significant discount over internet. With growing popularity of EC,
many insurance sponsors are now utilizing both sales through agents and direct
sales in their business models.
These growing online connections have lowered transaction costs for other
insurance policies like travel, burial, or credit insurance, which by traditional
methods charged high costs. It is also influencing customers to buy high valued
insurance products. Customers can track the speed at which their policies are
growing. Customers have evolved from traditional paperwork and human approach
to PCs and Laptop lifestyle.
 FEATURES

• Availability of self service model by which customers can now buy insurance
policies & mortgages at the click of a button. For e g: In several countries
customers use their smartphones to upload a picture of something they would like
to ensure and request a policy for the same.
• In past if one got into car accident , process of getting claim was painful and long
with lengthy and complicated documents plus several hours on mobile with the
insurance agent. However now all of that can be done through our mobile or
online banking thereby reducing processing time for claims.
 OTHER MOBILE FINANCE APPLICATIONS

• Mobile stock trading: Many brokerage companies provide their users with
extensive mobile services and tools that enable the users to do stock trading using
mobiles. M-trade is used by customers to track and manage portfolios and trade
in quick manner. Users can easily receive updates and news related to stocks,
trading indices, position of their stocks.
• Real Estate Mobile Applications: As a real estate agent, users are always on
the go meeting new clients, viewing the property and signing contracts. Time is of
the essence and having the right information available when users need it, mean
the difference between signing contract and loosing valuable customer. Some of
the mobile apps for real estate agents are : OPENHOME PRO, PREMIER AGENT,
DOTLOOP, SPOTIO, RPR MOBILE, DOCUSIGN, GOCONNECT, EVERNOTE etc…..
THANK YOU