e-com-outline

8/7/2019 E-COM-outline

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E-BANKING

Internet banking or E-banking:Internet banking (or E-banking) means any user with a personalcomputer and a browser can get connected to his banks website to

perform any of the virtual banking functions. In internet bankingsystem the bank has a centralized database that is web-enabled. All

the services that the bank has permitted on the internet are displayedin menu. Any service can be selected and further interaction is dictated

by the nature of service. The traditional branch model of bank is nowgiving place to an alternative delivery channels with ATM network.

Once the branch offices of bank are interconnected through terrestrial

or satellite links, there would be no physical identity for any branch. It

would a borderless entity permitting anytime, anywhere and anyhowbanking.The network which connects the various locations and gives

connectivity to the central office within the organization is called

intranet. These networks are limited to organizations for which theyare set up. SWIFT is a live example of intranet application.


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Internet banking in India:The Reserve Bank of India constituted a working group on Internet

Banking. The group divided the internet banking products in India into3 types based on the levels of access granted. They are:

i) Information Only System: General purpose informationlike interest rates, branch location, bank products and their

features, loan and deposit calculations are provided in thebanks website. There exist facilities for downloading various

types of application forms. The communication is normallydone through e-mail. There is no interaction between the

customer and bank's application system. No identification of

the customer is done. In this system, there is no possibility ofany unauthorized person getting into production systems of

the bank through internet.

ii) Electronic Information Transfer System: The system

provides customer- specific information in the form of account

balances, transaction details, and statement of accounts. The

information is still largely of the 'read only' format.Identification and authentication of the customer is through

password. The information is fetched from the bank'sapplication system either in batch mode or off-line. The

application systems cannot directly access through theinternet.

iii) Fully Electronic Transactional System: This systemallows bi-directional capabilities. Transactions can be

submitted by the customer for online update. This system

requires high degree of security and control. In thisenvironment, web server and application systems are linked

over secure infrastructure. It comprises technology coveringcomputerization, networking and security, inter-bank

payment gateway and legal infrastructure.

iv) Automated Teller Machine (ATM):

ATM is designed to perform the most important function ofbank. It is operated by plastic card with its special features.

The plastic card is replacing cheque, personal attendance ofthe customer, banking hours restrictions and paper based

verification. There are debit cards. ATMs used as spring boardfor Electronic Fund Transfer. ATM itself can provide

information about customers account and also receive

instructions from customers - ATM cardholders. An ATM is an


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Electronic Fund Transfer terminal capable of handling cashdeposits, transfer between accounts, balance enquiries, cash

withdrawals and pay bills. It may be on-line or 0ff-line. Theon-line ATN enables the customer to avail banking

facilities from anywhere. In off-line the facilities are confined

to that particular ATM assigned. Any customer possessingATM card issued by the Shared Payment Network System can

go to any ATM linked to Shared Payment Networks andperform his transactions.

v) Credit Cards/Debit Cards:The Credit Card holder is empowered to spend wherever and

whenever he wants with his Credit Card within the limits fixed

by his bank. Credit Card is a post paid card. Debit Card, onthe other hand, is a prepaid card with some stored value.

Every time a person uses this card, the Internet Bankinghouse gets money transferred to its account from the bank of

the buyer. The buyers account is debited with the exact

amount of purchases. An individual has to open an accountwith the issuing bank which gives debit card with a Personal

Identification Number (PIN). When he makes a purchase, heenters his PIN on shops PIN pad. When the card is slurped

through the electronic terminal, it dials the acquiring bank

system - either Master Card or VISA that validates the PINand finds out from the issuing bank whether to accept or

decline the transactions. The customer can never overspendbecause the system rejects any transaction which exceeds the


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balance in his account. The bank never faces a defaultbecause the amount spent is debited immediately from the

customers account.

vi) Smart Card:

Banks are adding chips to their current magnetic stripe cardsto enhance security and offer new service, called Smart

Cards. Smart Cards allow thousands of times of informationstorable on magnetic stripe cards. In addition, these cards are

highly secure, more reliable and perform multiple functions.

They hold a large amount of personal information,from medical and health history to personal banking and

personal preferences.

You can avail the following services through E-Banking.

i) Bill payment service

You can facilitate payment of electricity and telephone bills,mobile phone, credit card and insurance premium bills as

each bank has tie-ups with various utility companies, service

providers and insurance companies, across the country. Topay your bills, all you need to do is complete a simple one-

time registration for each biller. You can also set up standinginstructions online to pay your recurring bills, automatically.

Generally, the bank does not charge customers for online bill

payment.

ii) Fund transferYou can transfer any amount from one account to another of

the same or any another bank. Customers can send money

anywhere in India. Once you login to your account, you needto mention the payees's account number, his bank and the

branch. The transfer will take place in a day or so, whereas ina traditional method, it takes about three working days. ICICI

Bank says that online bill payment service and fund transferfacility have been their most popular online services.

iii) Credit card customers

With Internet banking, customers can not only pay their

credit card bills online but also get a loan on their cards. Ifyou lose your credit card, you can report lost card online.


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iv) Railway passThis is something that would interest all the aam janta.

Indian Railways has tied up with ICICI bank and you can nowmake your railway pass for local trains online. The pass will

be delivered to you at your doorstep. But the facility is limited

to Mumbai, Thane, Nashik, Surat and Pune.

v) Investing through Internet banking

You can now open an FD online through funds transfer.Now

investors with interlinked demat account and bank accountcan easily trade in the stock market and the amount will be

automatically debited from their respective bank accounts and

the shares will be credited in their demat account. Moreover,some banks even give you the facility to purchase mutual

funds directly from the online banking system.Nowadays, most leading banks offer both online banking and

demat account. However if you have your demat account with

independent share brokers, then you need to sign aspecial form, which will link your two accounts.

vi) Recharging your prepaid phone

Now just top-up your prepaid mobile cards by logging in toInternet banking. By just selecting your operator's name,

entering your mobile number and the amount for recharge,

your phone is again back in action within few minutes.

vii) ShoppingWith a range of all kind of products, you can shop online and

the payment is also made conveniently through your account.You can also buy railway and air tickets through Internet

banking.

Advantage of Internet banking:

As per the Internet and Mobile Association of India's report on online

banking 2006, "There are many advantages of online banking. It is

convenient, it isn't bound by operational timings, there are nogeographical barriers and the services can be offered at a miniscule

cost."Through Internet banking, you can check your transactions at any

time of the day, and as many times as you want to. Where in a

traditional method, you get quarterly statements from the bank. If thefund transfer has to be made outstation, where the bank does not


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have a branch, the bank would demand outstation charges. Whereaswith the help of online banking, it will be absolutely free for you.

Security Precautions:Customers should never share personal information like PIN numbers,

passwords etc with anyone, including employees of the bank. It isimportant that documents that contain confidential information aresafeguarded. PIN or password mailers should not be stored, the PIN

and/or passwords should be changed immediately and memorised

before destroying the mailers.Customers are advised not to provide sensitive account-related

information over unsecured e-mails or over the phone. Take simpleprecautions like changing the ATM PIN and online login and transaction

passwords on a regular basis. Also ensure that the logged in session is

properly signed out.

Benefits of Electronic Banking:

Electronic banking or online banking is now the most popular form of

e-commerce for millions of Americans. Most mainstream banks and

even credit unions now offer a host of products and services over the

Internet. Investment by banks in secure-transaction technologies and

robust IT practices has made electronic banking more reliable and

popular.

Convenience:

You can shop, pay bills, buy items at auction, and transfer

money from anywhere at any time.

Features:

Electronic banking can be carried out at any time of the day or

night as long as one has access to a PC (or other hand-held device)

and Internet connectivity.

Attractive Rates and Incentives:

Banks offer attractive interest rates for CDs that are openedonline. Many others also offer incentives, giveaways and special

offers to customers for opening accounts online.
http://www.ehow.com/internet/http://www.ehow.com/internet/http://www.ehow.com/internet/http://www.ehow.com/internet/


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Consolidated Portfolio Interface:

Most banks offer a seamless and consolidated interface to

customers for managing their debt and credit accounts, mortgages,

investment portfolio and other financial assets.

Time Saving:

Time saved from traveling to brick-and-mortar bank

branches for conducting banking transactions and other keybanking activities can be used productively for other pursuits.

Traditional banking and e-banking are two way for getting the benefitsfrom bank. Both have benefits and disadvantages.

1. Basic Introduction:

(a)TraditionalBanking

In traditional banking system, a customer can open any bank account

in banks, take the facility of saving his money by depositing money inlocal bank. He can withdraw his money through check, counter

payment and through bank draft. He can meet the bank manager andask his problem. He can take the physical help for getting loan from

bank.

(b)E-banking

E-banking means Internet banking or modern banking or online bill. Inthis method, customer gets his bank account ID and password and he

can check his account, pay his bill and print his receipt through hishome personal computer which is connected with Internet. E-banking

is development of today banking system. In other words, e-banking is

electronic banking whose facility, you can take through your regularbroadband Internet connect.

2.Benefits

(a) TraditionalBanking

Traditional banking has totally improved from previous face. Few days

ago, I went to State bank of India for withdrawing my money where


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I saw many monitoring cameras. My one friend is also doing duty inthat bank. I asked question from my friend why have these cameras

been attached here? Are these on? My friend explained me that it ismore than Rs. 500,000 cost project per branch of SBI. We do not want

to take risk of customer's money. Customer's loss is our loss. We

deduct fraud case by monitoring the activities through this surveillancecameras. I feel happy because now traditional banking has improved

and there is minimum change of fraud.

(b)E-banking

(i)Convenient

I think e-banking is convenient because we can use e-banking for

tracking my money in bank without going to bank. I am already

changing everything from traditional to online. I am tracking mycourier letter by opening the site of courier and writing the track no.

after this I can easily know when my letter will come from foreigncountry.

(ii)Protection

of Environment

If we all start to use e-banking, we can also protect our environment.

Suppose, you have to withdraw Rs. 500,000 from HDFC bank anddeposit it to SBI. What will you do? You will start your vehicle and go

to HDFC bank and withdraw the money and then go to SBI fordepositing this money. By using vehicle, you are increasing thepollution in the environment. Today is 5th June 2010, the day of world

environment. We can protect our environment by using e-banking.Just within 5 minute, we can transfer our money from HDFC bank to

SBI bank through home e-banking facility.

3.Disadvantages

(a)TraditionalBanking

(i)Robbery

Open any day newspaper, you will see the new bank robbery case.


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This is the disadvantages. Two and more thieves came and takenbank's money is general news. No one can do same thing in e-

banking.

(ii)Time

limitation

Banks are opened from 9: 00 to 5:00 p.m. But, it may possible thatwe have to pay at 11:00 p.m. which can be done through e-banking

not traditional banking.

(b)E-banking

Hacking, spyware program, computer virus and breaking onlinepassword are the weakness of e-banking or online banking. Online big

hackers are using computer virus and after spreading it, theycompromise your computer. After this, they know all detail of your

computer and banking password and illegally transfer all your money.

Next day, your bank account may be zero. Even you can stop thiscrime by writing strong password but you can not remove it totally.

E-MARKETING


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E-marketing:

e-Marketing or electronic marketing refers to the application ofmarketing principles and techniques via electronic media and more

specifically the Internet. The terms e-Marketing, Internet marketingand online marketing, are frequently interchanged, and can often be

considered synonymous. e-Marketing is the process of marketing a

brand using the Internet. It includes both direct response marketingand indirect marketing elements and uses a range of technologies to

help connect businesses to their customers. By such a definition, e-Marketing encompasses all the activities a business conducts

via the worldwide web with the aim of attracting new business,

retaining current business and developing its brand identity.When implemented correctly, the return on investment (ROI) from e-

Marketing can far exceed that of traditional marketing strategies.Whether youre a bricks and mortar business or a concern operating

purely online, the Internet is a force that cannot be ignored. It can be

a means to reach literally millions of people every year. Its at theforefront of a redefinition of way businesses interact with their

customers.


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The benefits of eMarketing over traditional

marketing:

1. Reach:The nature of the internet means businesses now have a truly

global reach. While traditional media costs limit this kind of reach to

huge multinationals, e-Marketing opens up new avenues for smallerbusinesses, on a much smaller budget, to access potential

consumers from all over the world.

2. ScopeInternet marketing allows the marketer to reach consumers in a

wide range of ways and enables them to offer a wide range ofproducts and services. eMarketing includes, among other things,

information management, public relations, customer service andsales. With the range of new technologies becoming available all

the time, this scope can only grow.

3. InteractivityWhereas traditional marketing is largely about getting a brands

message out there, eMarketing facilitates conversations between

companies and consumers. With a two way communication channel,


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companies can feed off of the responses of their consumers, makingthem more dynamic and adaptive.

4. ImmediacyInternet marketing is able to, in ways never before imagined,

provide an immediate impact. Imagine youre reading yourfavourite magazine. You see a double-page advert for some newproduct or service, maybe BMWs latest luxury sedan or Apples

latest iPod offering. With this kind of traditional media, its not thateasy for you, the consumer, to take the step from hearing about a

product to actual acquisition. With eMarketing, its easy to make

that step as simple as possible, meaning that within a few shortclicks you could have booked a test drive or ordered the iPod. And

all of this can happen regardless of normal office hours. Effectively,Internet marketing makes business hours 24 hours per day, 7 days

per week for every week of the year.By closing the gap betweenproviding information and eliciting a consumer reaction, the

consumers buying cycle is speeded up and advertising spend can

go much further in creating immediate leads.

5.Demographics and targetingGenerally speaking, the demographics of the Internet are a

marketers dream. Internet users, considered as a group, havegreater buying power and could perhaps be considered as a

population group skewed towards the middle-classes. Buying power

is not all though. The nature of the Internet is such that its userswill tend to organise themselves into far more focussed groupings.

Savvy marketers who know where to look can quite easily findaccess to the niche markets they wish to target. Marketing

messages are most effective when they are presented directly tothe audience most likely to be interested. The Internet creates the

perfect environment for niche marketing to targeted groups.

6.Adaptivity and closed loop marketingClosed Loop Marketing requires the constant measurement andanalysis of the results of marketing initiatives. By continuously

tracking the response and effectiveness of a campaign, the

marketer can be far more dynamic in adapting to consumers wantsand needs. With eMarketing, responses can be analysed in real-

time and campaigns can be tweaked continuously. Combined withthe immediacy of the Internet as a medium, this means that theres

minimal advertising spend wasted on less than effective campaigns.


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Maximum marketing efficiency from eMarketing creates newopportunities to seize strategic competitive advantages.The

combination of all these factors results in an improved ROI andultimately, more customers, happier customers and an improved

bottom line.


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E-SHARE TRADING

Online share trading: The next big thing online

India is a traditional society. Indian's are more conventional in nature.When it comes to technology we are far behind than rest of the world.

Although we are having tradition for centuries we are enjoying

freedom only for 62 years. Thanks to our white skin masters forimparting education upon us. Our culture is unique and we celebrate

unity in diversity. We are forerunners among developing countries.India is a major player in the region economically we are more fit

(thanks to the visionaries who had marched ahead). We are a thick

populated society. India also holds a a unique stature in the worldwhich is we are the youngest country in the world. Half of our

population is in between the bracket 18-23. Which means we havehuge potential in terms of everything.

Some online statisticsOnline world is another world for everyone. As they showed us inmatrix we will be confused which one is real. Internet offers so many

facilities to it's users, we must congratulate bill gates and company for

offering such a splendid facility to the mankind (or should we thanksomeone else). There may be difference of opinions but one thing is

sure that once online world will become more prominent than the real


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world (will all of us become machines speaking only 1&0, I simplycan't imagine. Only 2 years before the internet using population in the

world crossed 1 billion mark (oh my god 100 crores). Which simplymeans one in every six of world's population is clicking and the

number is going up drastically. In India, the traditional and

conventional, 50 million people uses internet and it grows likeanything. By 2012 the number will be 81.3 million. (of course even

more). Indian union also taken steps to encourage students to beonline, internet education is part of curriculum in almost all the states.

At least all of our people even heard about internet which is a big plus

in this regard.

Are you bull or bear

Now a days everyone (most probably) is aware about bull and bear, at

least they can identify these terms as cliches related to stock market.More and more people in India, especially young people, are turning

towards stock exchanges for investment. But statistics says that of it's

massive population only less than 10 percent is involved in any kind ofinvestment and who are investing in capital market the percentage is

below 2. The capital market investment population in India is less than2 crore. It seems more and more literacy is needed in this avenue of

investment.

The stock market investment crowd is concentrated in the upper classand upper middle class pie of the society. (Oh I heard someone saying

to include the middle class-OK agreed). The rest 113 crore of the


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people may or may not invest but they do not invest in stock marketsas of now, but in the future we will be forced to redraw the picture.

Online share trading

During the early years of 90s National Stock Exchange of India started

trading using v-sat connections. Those days which was a revolutionarychange and was referred as online trading. (now also some

misunderstands online trading with internet trading).In late 90 internetbecame popular in India and when 20 century became past internet

use in India increased at it's maximum pace.

With the emergence of new generation jobs people looked for newvenues for investing and stock markets came first in the list. In 2004

when UPA government came into power stock market in india gainedmore popularity and lot of confidence had been imposed on it. During

all these days ans now also offline share trading is the house full show.

The traditional way of trading by visiting the branch, calling a callcentre executive etc is called offline trading in which you need a

persons assistance. Online trading (internet trading now refers)removed the second person before the screen and you and the system

became the characters. This is the easiness that have been provided tothe customer. If your bank also provides online facility you will be

more relieved man. You don't want to step into a brokers office for

anything everthing you want to do you can do at your home/office inyour PC with internet connection.

Within just three years online trading in NSE increased an unbelievable13 percent. With in 3 years it is believed that the number of internet

using facility will be double. On an average 34 percent of booking inrailway is done through internet and 80 percent of airline booking havealso gone online (online masthi isn't it). Reliance money, ICICI Direct,

India Infoline, Geojit BNP Paribas, Sharekhan, Kotak Securities are themajor brokers who are offering online trading facility to their clients.

Some are offering online trading facility only otherwise customer have

to call the call centre where as some otheres are offering both onlineand offline trading facilities.

High speed execution, greater flexibility and control are the mainadvantages of online trading. The brokerage charges are less in online

compared to offline trading. Customer can place orders even after thetrading hours is another advantage of online trading. Real timetracking of stock prices is another advantage (you can easily skip the

time delay in online trading-time means money honey)


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Disadvantages:The band width menace is the main menace considering online trading

(it is believed that which will be solved when we enter 3G).When somebig happenings in the stock market the brokers server will be down

and the beloved customer will be at sea, staring at the monitor. Thecustomer needs specific browsers and web configurations to view allthe facilities provided by the broker like charts etc. If the customer is

net savy he can deal online trading smoothly otherwise there will beno first aids from the broker.

In this fast forward life online share trading is the need of the hour.

The internet using community will increase day by day. Online sharetrading is aiming a long innings for sure (at least it is a cost effective

method for the broker also-no need to pay an employee). Whenmobile and internet convergence take place things will drastically

change. Mobile share trading will function full fledgly with in years.

Convergence of technology only means advantage to the customer.


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