e - banking onkar sule roll no: - 54. what is e - banking electronic banking, also known as...

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E - BANKING Onkar Sule Roll no: - 54

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  • Slide 1
  • E - BANKING Onkar Sule Roll no: - 54
  • Slide 2
  • What is E - BANKING Electronic banking, also known as electronic funds transfer (EFT), it is simply the use of electronic means to transfer funds directly from one account to another, rather than by cheque or cash.
  • Slide 3
  • Technology Commencement in Banking In 70s, banks started to establish centralized data processing centers. Essentially the roles of these data processing centers are: Collect the handwritten documents from branches Compile the documents Manual data entry by the operators Generate reports for the bank staff and the central bank Execute some banking transactions In 70s, banks started to establish centralized data processing centers. Essentially the roles of these data processing centers are: Collect the handwritten documents from branches Compile the documents Manual data entry by the operators Generate reports for the bank staff and the central bank Execute some banking transactions
  • Slide 4
  • Branch Automation In 80s, banks started technology investments for the branches. The first step is offline branches. Terminals connected to local branch computer Second step is online branches connected centrally. Most of the transactions started to be performed in the central mainframe. In 80s, banks started technology investments for the branches. The first step is offline branches. Terminals connected to local branch computer Second step is online branches connected centrally. Most of the transactions started to be performed in the central mainframe.
  • Slide 5
  • Uses of EFT Have your check deposited directly into your bank or credit union checking account. Withdrawal of money at your convenience using your PIN Online Bill Payment Buy goods using plastic money instead of cash
  • Slide 6
  • Various forms of E Banking. Internet Banking ATMs TELE BANKING Plastic Money E - Cheque
  • Slide 7
  • Process of all forms of E Banking Internet Banking ATMs TELE Banking Plastic Money E - Cheque
  • Slide 8
  • Internet Banking Sample Internet Banking Architecture More and more banks are coming to realize that internet is a part of banks' alternative delivery channel strategies activities concentrated in the business-to- consumer segment, focused on retaining clients In Internet banking, security is a primary concern. S ecurity concerns have been addressed from every angle within the architecture of the Internet banking application.
  • Slide 9
  • ATM..... In the mid-1980s, that cash dispensers truly became a worldwide phenomenon. It took 16 years for the first 100,000 cash dispensers to be installed, but only four years more for the next 100,000 and 3 months for the next 100,000. Now, ATM became the electronic face of banking for most customers. Beside cash withdrawal, there exist various transaction options from transfer to fund buying/selling. Now there are 1217463 ATM installed in and around Mumbai
  • Slide 10
  • ATM and POS Application Architecture Credit Card Authorization Debit Card Authorization Switch System
  • Slide 11
  • Point of Sale New habits in shopping Increased the use of plastic cards Now there are 313140 POS installed in India (Ref: www.moneylife.in)
  • Slide 12
  • Main components Switch IVR CTI(Computer Telephony Integration) Manage each call using the computer Pop up the user information while transferring the call Agent Desktop Application Win32,ActiveX, HTML Host Application
  • Slide 13
  • Telephone Banking Infrastructure Telecom IVRCTIHOST Telecom
  • Slide 14
  • Interactive Voice Response (IVR) is a software application that accepts a combination of voice telephone input and touch-tone keypad selection and provides appropriate responses in the form of voice IVR has come into our life at the beginnings of 90s. First step in Telephone Banking Peak transaction volume in salary payment days for balance inquiry Integrated with ATM system IVR
  • Slide 15
  • Plastic Cards The plastic card usage grown enormously in last 2 decade. Plastic card became the main media for bank customers. Number of credit card in India:
  • Slide 16
  • Mobile Banking Current Mobile Banking Applications: SMS Banking WAP Banking STK (Sim Toolkit) Banking
  • Slide 17
  • SMS Banking Basic banking inquiry transactions(balance inquiry, funds, exchange rate inquiry) are performed by the cooperation of bank and the GSM operator Security is the main problem Bank SMS Gateway Bank SMS DB Leased line GSM Operator Application Server GSM Operator SMS DB GSM Network Bank Host
  • Slide 18
  • WAP Banking Wireless application protocol (WAP) is an application environment and set of communication protocols for wireless devices designed to enable manufacturer-, vendor-, and technology-independent access to the Internet and advanced telephony services. WAP is a global standard and is not controlled by any single company Various banking transactions offered in WAP environment by banks. Similar architecture with SMS banking
  • Slide 19
  • SIM Toolkit SIM card enables to keep and load different applications. SIM Application Toolkit has been agreed as a GSM standard SIM Application Toolkit is independent of phone manufacturers and designs. SIM Application Toolkit allows the flexibility to update the SIM to alter the services and download new services over the air SIM Application Toolkit is designed as a client-server application. On the server side, SimCard platform and the client side, phone that supports the SIM Application Toolkit In the near future, banks will start to offer banking transactions in this platform.
  • Slide 20
  • Banking Application Architecture
  • Slide 21
  • Data Warehouse Electronic repositories of summarized historical data The main idea behind data warehouse is get all company data working together so users can see more,learn more, and make the organization work better Data Warehouse helps users to identify trends, find answers to business questions and derive meaning from historical and operational data. Data access is easier and less costly Decision support solutions run faster and are more accurate.
  • Slide 22
  • Data Warehouse Process Design Transform ExtractDeliver Transaction Data Extraction Data Scrubbing and Cleansing Load, index and Aggregate Publish and Subscribe Data Mapping Data Replication Data Histories and Summaries Data Access Tools Integrated Data Warehouse Infrastructure Partial Solutions Life Cycle Complete Integrated Solution
  • Slide 23
  • Channel Costs
  • Slide 24
  • Channel Integration Evolution Channel Integration evolution Reuse Efficiencies of Scale Reduction of Redundancies
  • Slide 25
  • The Role of Banks in the New Economy Internet and mobile devices have brought new rules to economy and shaped the way to do business Banks has also evolved according to the new economy and took their places in this new world to add value to their customer The new ways to do business are : e-commerce (B2C) m-commerce B2B
  • Slide 26
  • E-commerce - B2C E-commerce is the buying and selling of goods and services on the Internet. Main feature of e-commerce 24-hour availability a global reach the ability to interact provide custom information and ordering and multimedia prospects, The Web is rapidly becoming a multibillion dollar source of revenue for the world's businesses. Banks provide secure payments infrastructure - virtual POS
  • Slide 27
  • M-commerce Mobile commerce applications involve using a mobile phone to carry out financial transactions- this usually means making a payment for goods or transferring funds electronically. As content delivery over wireless devices becomes faster, more secure, and scalable, there is wide speculation that m- commerce will surpass wireline e-commerce as the method of choice for digital commerce transactions.
  • Slide 28
  • B2B A housands of companies that sell products to other companies have discovered that the Web provides not only a 24-hour-a-day showcase for their products but a quick way to reach the right people in a company for more information. In the B2B, the bank role is to provide a reliable payment infrastructure that add value to corporate business This infrastructure should cover: Bill presentment Bill payment Different payment types(credit card, deposit account, loan) Information after payment
  • Slide 29
  • E-Security To improve the e-business, all the users should feel secure to perform the transaction this environment The main concepts in e-security are: PKI (public key infrastructure) enables users of a basically unsecure public network such as the Internet to securely and privately exchange data and money through the use of a public and a private cryptographic key pair that is obtained and shared through a trusted authority. Public key is a value provided by some designated authority as a key that, combined with a private key derived from the public key, can be used to effectively encryption messages and digital signature. Private or secret key is an encryption/decryption key known only to the party or parties that exchange secret messages. Public key is used together with a private key
  • Slide 30
  • E-Security - continued Digital certificate is an electronic "credit card" that establishes your credentials when doing business or other transactions on the Web. It is issued by a certification authority (CA). CA (certificate authority) is an authority in a network that issues and manages security credentials and public key for message encryption. As part of a public key infrastructure, a CA checks with a registration authority to verify information provided by the requestor of a digital certificate An RA (registration authority) is an authority in a network that verifies user requests for a digital certificate and tells the certificate authority to issue it.
  • Slide 31
  • Advantages of E-banking Benefits for Banks Benefits for Small to Medium Businesses Benefits for Customers
  • Slide 32
  • 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
  • Slide 33
  • Benefits for Small to Medium Businesses To run its operations more effectively Lower cost than traditional financial management mechanisms
  • Slide 34
  • Benefits for Customers Convenience - 24 hours a day, seven days a week Cost - Reducing transfer fees Speed - Faster circulation of assets Competitiveness -Fostering competition in financial market
  • Slide 35
  • Benefits for Customers Communication - communicate easily Environmental - Abolishing the uses of paper Others -Offering one-stop-shop solutions
  • Slide 36
  • Disadvantages OF E-banking A need for customer skill to deal with computers and browsers. E.g. Elderly, Housewives Inconvenient Site change it will make the customer have some confusion or delay. Security Risk
  • Slide 37
  • 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
  • Slide 38
  • Fraudulent Bank Websites A suspicious bank website: www.sbionline.com www.sbionline.com Original bank website www.onlinesbi.com www.onlinesbi.com These website are believed to aim to trick persons into disclosing their sensitive personal information
  • Slide 39
  • Fake e-mails Email send from Fraudulent bank Verify the personal information Guide customer enter the fraud link Disclosing their ATM card numbers and their passwords
  • Slide 40
  • 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
  • Slide 41
  • Case From Newspaper Dont use the hyperlink to login to the website of banks Should deeply check the postscript of the website Observe that is it have the encryption and compare the login account of encryption cert is equal to the bank.
  • Slide 42
  • Precautionary Measures For Bank: Should provide specific guidance to their customers
  • Slide 43
  • For Customers : Should not disclose their customer IDs (e.g., account numbers) or PIN to anyone else. Periodically change their PIN Should promptly log out from the service Should regularly check their account balances and statements to identify unusual transactions.
  • Slide 44
  • Do not access Corporate Cyber banking through public terminals. To safeguard your computer from any other hacker attack, install anti-virus and anti-spyware software on your computer and update it regularly.
  • Slide 45
  • Alternative Delivery Channels Anytime, anywhere banking Telephone Banking Internet Banking Mobile Banking Television banking Next ???
  • Slide 46
  • What is the Next channel Microwave Banking ???
  • Slide 47
  • THANK YOU