ELECTRONIC AND MOBILE

BANKING

PRESENTED BY

S.A. Bilal Malick

&

S. Sumathi

Electronic Banking

The provision of banking service through electronic channels and the customer can access the data without time and geographical limitation. It is also know as E-banking or EFT (Electronic Fund Transfer). 

MOBILEBANKING

Mobile banking (also known as M-Banking, SMS Banking) is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA).

Current Mobile Banking Applications:

– SMS Banking

– WAP Banking

– STK (Sim Toolkit) Banking

EVoLUTION OF ELECTRONIC AND MOBILE BANKING

Online services started in New York in 1981 when four of the city’s major banks (Citibank, Chase Manhattan, Chemical and Manufacturers Hanover) offered home banking services using the videotex system.

May 1995: Wells Fargo – the first bank in the world offer customer access to their accounts over the internet.

The earliest mobile banking services were offered over SMS.

With the introduction of the 1st primitive smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer mobile banking.

Role of Banking in 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

– M-commerce

ADVANTAGES OF E-BANKING AND

M-BANKING:

Benefits for Banks

Benefits for Small to Medium Businesses

Benefits for Customers

Benefits for Banks

Large 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

Convenience

Cost

Speed

Competitiveness

Communication

Environmental

Others (offering one-stop-shop solutions)

Disadvantages of online and mobile banking

• Security

• Fraudulent Bank websites

• Ignorance

• Illiteracy

• Poor and/or lack of technological infrastructure and reliable power supply

• Preference to paper money, as opposed to “virtual” cash in transactions

Internet banking in indiaICICI was the first bank to initiate the Internet banking revolution

in India as early as 1997 under the brand name ‘Infinity’.

The Reserve Bank of India constituted a working group on Internet Banking. The group divided the internet banking products in India into 3 types based on the levels of access granted. They are: 

Information Only SystemElectronic Information Transfer System Fully Electronic Transactional System

o  Automated Teller Machine (ATM)o Credit Cards/Debit Cardso Smart Card

Mobile Banking in India

Reserve Bank of India had set up the Mobile Payments Forum Of India (MPFI), a ‘Working Group on Mobile Banking’ to examine different aspects of Mobile Banking (M-banking). The Group had focused on three major areas of M-banking, i.e.,

Technology and security issues,

Business issues and

Regulatory and supervisory issues.

LATEST ON MOBILE BANKING IN INDIA• Mobile Banking: Nokia Partners with Union Bank

of India

• Airtel Gets RBI’s Nod for Mobile Payment Services [First Step to Mobile Currency]

• Nokia Mobile Money Transfer Services in India

• SEBI mulls Mobile Trading, RBI Increases Daily Transaction Limits [mCommerce Boost]

INTERNET AND MOBILE BANKING IN INDIA

Presently, India has 700 million+ mobile subscribers, just 240 million individuals with bank accounts, 20 million credit cards, 88,000 bank branches, and 70,000 ATMs. Of the households without a bank account, 42 percent have at least one mobile phone.

By 2015, $350 billion in payment and banking transactions could flow through mobile phones, compared with about $235 billion of total credit- and debit-card transactions today.

(Source : World Bank, The Boston Consulting Group)

India World

Internet Users 8.4% 32.7%

Mobile Users 74.15% 79.86%

Avail the following services through E-Banking AND M-BANKING:

Bill payment service 

 Fund transfer

Credit card customers 

Railway pass

Investing through Internet banking 

Recharging your prepaid phone

Shopping 

Mini-statements and checking of account history

Alerts on account activity or passing of set thresholds

Monitoring of term deposits

Access to loan statements

Access to card statements

Mutual funds / equity statements

Insurance policy management

Pension plan management

Status on cheque, stop payment on cheque

Ordering cheque books

Balance checking in the account

Recent transactions

Due date of payment (functionality for stop, change and deleting of payments)

PIN provision, Change of PIN and reminder over the Internet

Precautions for Electronic and mobile Banking:

For Bank:

Should provide specific guidance to their customers

For Customers:

Should not disclose their customer IDs or Passwords to anyone else.

Periodically change their passwords

Should promptly log out from the service

Should regularly check their account balances and statements to identify unusual transactions.

Don’t access Corporate Cyber banking through public terminals

To safeguard the Computer and Phone from hackers install anti virus and anti spywares

Conclusion:

In this busy world computer and mobiles are playing vital role. Every good thing has some bad corners. Likewise Electronic and Mobile banking also have many benefits and some drawbacks. It’s all based on the user. If we use electronic and mobile banking properly then it is very useful for the people. It is helpful to improve the economy of the country.

 

Any Queries?

THANK YOU