On global scenario The term online became popular in the late '80s and referred to the use of

E-banking history

a terminal, keyboard and TV (or monitor) to access the banking system using a phone line. Online services started in New York in 1981 when four of the citys major banks (Citibank, Chase Manhattan, Chemical and Manufactures Hanover) offered home banking services using the videotex system. In India ICICI was the first bank to start The Internet Banking revolution in India as early as 1997 under the brand name Infinity. ICICI Bank kicked off online banking way back in 1996.But even for internet as whole, 1996 to 1998 marked the adoption phase, while usage increased only in 1999 due to lower ISP online charges , increased PC penetration and a tech-friendly atmosphere.

E-banking ?
In simple language it is defined as the provision of banking service through electronic channels and the

customer can access the data without time and geographical limitation.

Virtual banks
Virtual banks have no physical location, but only conduct

online transactions. The world's first fully-functional virtual bank was the Security First Network Bank (SFNB) These banks were designed without a traditional banking infrastructure.

Virtual Banks around the world are: ING Direct U Bank HSBC Direct First Direct

Electronic mediums of E-Banking

Internet banking
Phone Banking Mobile Banking

ATM

ATM

An automated teller machine (ATM), also known as automatic

banking machine (ABM), Cash Machine, or Cash point , is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller.

 On Most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip, that contains a unique card number and some security information

such as an expiration date. Authentication is provided by the customer entering a personal identification number (PIN).

Phone banking

Mobile Banking

Development in Ebanking
Growth of internet banking account
117% increase in transaction volume since April 2001 More than 1 million contacts in February 2002 Coverage across 100 locations in the country 103% increase in internet banking registrants since April 01 84% increase in transactions since April 01

Advantages of E-banking
Benefits to bank
Benefits to customer

Benefits to small to medium business

Benefits for Banks

Larger customer coverage

Reducing the costs of operations Promoting their services and products internationally Increasing the customer satisfaction and providing a personalized relationship with customers

Benefits for Small to Medium Businesses

To run its operations more effectively

Lower cost than traditional financial management mechanisms

Benefits for Customers

Communication
- communicate easily

- Abolishing the uses of paper

Environmental

- Offering one-stop-shop solutions

Others

Disadvantages on E-banking
E.g. Elderly, Housewives Inconvenient

A need for customer skill to deal with computers and browsers.

Site change it will make the customer have some confusion or delay. Security Risk

Security Risk
Increasing number of fraudulent bank websites
Fake emails purporting to be sent from banks

Use of Trojan Horse programs to capture user IDs

and passwords

Fraudulent Bank Websites

A suspicious bank website: www.onlinebea.com Original bank website www.hkbea.com The website was believed to aim to trick persons into disclosing their sensitive personal information.

Fake Emails
Email send from Fraudulent bank
Verify the personal information

Guide customer enter the fraud link

Disclosing their ATM card numbers and their

passwords

Viruses and Worms -Trojan Horse Program

When we open some suspicious websites or email .
Trojan Horse Program will install our computer secretly.

 Hidden in the computer When you access bank websites

Capture our account and the password

Persecutions

For Bank: Should provide specific guidance to their customers

For Customers: Should not disclose their Log In IDs(account number) or password to anyone else. Periodically change their passwords. Should regularly check their account balances and statements to identify unusual transactions