E-Banking

Introduction
 E-Banking or Electronic Banking is a major innovation in
the field of Banking.
 Earlier Banking was conducted in a very
traditional manner, there were no such
innovations.
 Information revolution led to the evolution of internet ,
which lead to E-Commerce continued by evolution of E-
Banking.
 History Of E-Banking

 E-Banking History dates back to 1980s.

 The term online became popular in the late '80s and
referred to the use of a terminal, keyboard and TV
(or monitor) to access the banking system using a
phone line
 Stanford federal credit union was the first who offer
online internet banking services to all of its members
in 1994.
 Later on snapped up by other banks like
Well Fargo, Chase Manhattan and Security First Bank.
 What Is an E-Bank?
 Traditional banking business assumes:
Customer desk at bank’s building
Office hours from 8.00 am to 7.00 pm

 Customers have:
Their job during the day Collision!
Family or other activities after the job

What can we do about it?

What Is an E-Bank?
 Logical answer is to use e-channels:
 Internet
 WAP based mobile network
 Automated telephone
 ATM network
 SMS and FAX messaging
 Multipurpose information kiosks
 Web TV and others …

 E-channels enable financial transactions from anywhere

and allow non-stop working time.
 E-BANKING
 Modern banking is virtual banking.
 Virtual Banking means a customer cannot see the bank
but with the help of technology he can conduct the
banking activities anywhere in the world.
 The major types of virtual banking services includes:
 Automated Teller Machines (ATMs)
 Smart Cards
 Phone banking
 Home banking
 Internet banking
 Electronic Delivery Channels
 Today’s banks are offering various delivery channels to
provide products & services to their customers.
 The IT has helped banks in increasing the range of
their products & services and also in marketing them
more effectively
 The major channels are :-
1. ATMs
2. Smart Cards
3. Telebanking
4. Internet banking
Automated Teller Machines (ATMs)

 ATMs are widely used electronic channels in banking.

 It is a computer controlled device at which the customers
can make withdrawals, check balance without involving any
individuals.
 To use this system customers are given a plastic card which
contains the customer’s name & account no.
 Customer is given a pin number. Whenever he wants to use it
he needs to enter pin number.
 Mostly ATMs are near to branches but nowadays ATMs are
available at places like malls, theaters, stations etc.
Smart Cards

 It is a chip based card (micro chip containing

monetary value)
 When a transaction is made using the card, the
value is debited & balances comes down.
 It is used for making purchases without the
need of any pin.
 It is a powerful card which carries out functions
of ATM card , Credit Card , Debit Card.
Tele-
banking
 It means banking over phone.
 Mainly used for marketing banking services.
 A customer can do entire Non-Cash related
banking over phone anywhere at anytime
 With fall in mobile phone rates mobile banking
will emerge as one of the most cost effective
delivery channel.
Internet Banking
 It has helped in banking at the click of a
mouse.
 In internet banking , customer of a bank
with a pc can log on to the bank website &
conduct basic functions.
Advantages of E-Banking
 Round the clock banking.
 User friendly.
 Low cost.
 Portable banking.
 Quality banking.
 Speed banking.
Limitations of E-Banking
 Start-up cost.
 Training & maintenance.
 Security.
 Legal issues.
 Online Banking Frauds

 While online banking has been around for

many years, but no cases of fraud have been
reported until recently. Since the beginning of
the year 2004, reports of fraud cases nearly
explode.
Password + Fishing

 The "phishing" scheme involves using fake emails and/or

fake websites. Criminals send emails that appear to be from
the customer's bank that direct customers to a fake website.
 The first half of 2008 alone has seen 20,000 reported
phishing incidents – where users are sent phony emails
taking them to fake banking websites trying to get hold of
their account details – compared with just over 5,100 cases
two years ago.
Phishing
Spyware
is generally considered to be software that is secretly installed
on a computer and takes things from it without the
permission or knowledge of the user

Trojan horse
The "Trojan horse" scheme is based on embedding a computer
virus type software program onto the customer's PC. Trojans
often tie themselves into the keyboard driver and record
keystrokes
Skimming

 Skimming is a more advanced version of an identity theft.

Fraudsters illegally copy the information from the magnetic
strip on the back of your plastic without interfering with
the legitimate payment transaction.