electronic banking project

8/3/2019 Electronic Banking Project

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University of Matej Bel, Banska Bystrica

FACULTYOF ECONOMICS

ELECTRONICBANKING

( English project for the final state exam )

Year: 2008


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Contents

1. LIST OF TABLES ................................................................................................................................. ........ .....3

2. INTRODUCTION ...............................................................................................................................................4

3. THE CURRENT POSSIBILITIES OF USING INTERNET ................................................................ .........5

4. THE ELECTRONIC BANKING ................................................................................................................ ......5

5. CASE STUDY 1 THE USING ELECTRONIC BANKING BY CORPORATE CLIENT ....................... ...7

5.1 The characteristic of Datalock- corporate client of electronic banking ............................8

5.1.1 Competitor identification ...........................................................................................95.1.2 SWOT analysis ........................................................................................................ 10

5.2 The using electronic banking by corporate client- Datalock .......................................... 115.2.1 Tatra bank ................................................................................................................ 125.2.2 Slovensk sporitea ................................................................................................145.2.3 VB bank ................................................................................................................ 155.2.4 Characteristics of some specific e-banking services ................................................ 15Investment Navigator ........................................................................................................15

6. CASE STUDY 2- THE USING ELECTRONIC BANKING BY INDIVIDUAL CLIENT ......... ........ ..... .18

7. SECURITY ISSUES OF E-BANKING ...........................................................................................................19

7.1 Phishing ...........................................................................................................................20

7.2 Keystroke logging ........................................................................................................... 21

7.3 Password cracking .......................................................................................................... 21

7.4 Pharming ........................................................................................................................ 21

8. CONCLUSION ..................................................................................................................................................22

9. ENCLOSURES ..................................................................................................................................................23

B) IF YOU DONT USE INTERNET BANKING, PLEASE FILL THESE QUESTIONS: ............. ......... ...24

10. SOURCES ....................................................................................................................................................... .25

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1. List of tables

CHART 1 MARKETSHAREOF DATALOCKANDITSCOMPETITORS..10SAMPLE 1 PHISHING- FALSEMAIL.21

TABLE 1 THEPOSSIBILITIESFORCLIENTTOCONTACTBANK.10

TABLE 2 ELECTRONICBANKING- ADVANTAGESANDDISADVANTAGES.6

TABLE 3 TURNOVER, REVENUEANDEMPLOYEESOF DATALOCK..9

TABLE 4 TATRA CORPORATE PREMIUM, SERVICEPACKAGE.12

TABLE 5 MODELSITUATION, TATRABANK...............................................................................13

TABLE 6 MODELSITUATION, SLSP..14TABLE 7 MODELSITUATION, VUB BANK ....15

TABLE 8 COMPARISONOFUSING EB BYCORPORATECLIENT...20

TABLE 9 COMPARISONOFUSING EB BYINDIVIDUALCLIENT...23

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2. Introduction

Electronic banking is term used to describe a service that allows an account holder to obtain

account information and manage certain banking transactions through a personal computer via

the financial institution's Web site on the Internet and other telecommunication equipments

such as telephone, mobil and fax.

The usage of e-banking has been risen rapidly in the recent last years as the consequence ofdevelopment of society, mainly the sector IT (information technology).

For this reason I decide to apply the using of Internet, especially electronic banking, in the IT

company Datalock. I try to describe its position on market, market share and its competitors.

The main aim of this work isnt to persuade you about some kind of product or services. It

should only display and compare offers of three Slovak banks. Then in my two case studies Iwill try to compare the services, fees and terms of e-banking by banks for Datalock as

corporate client and individual client, too. At the conclusion there will be pointed the threats

for Internet banking users and some questionnaire for potential clients. Please note that needs

of everyone are various and it depends on your specific sight which product you regard the

most appropriate or what kind of information are the most significant for you.

Case studies represent my own research.

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3. The current possibilities of using internet

The current situation

In the current time the modern IT technology play the significant role in the whole world, but

mainly in business. Introduction new products, advertising, marketing, selling products and

services, electronic banking- these all we can do by Internet. We did not imagine that it could

be possible 15-20 years ago.

The situation in Europe

There are more than 122 million daily users of Internet over 15 in Europe. They usually

connect to Internet at work(64 %), at school (18 %), at home (51 %), in Internet cafes (16 %) or

by friends and family (19 %). The average European connects monthly approximately 16, 5

days and is connected 24 hours by watching 2662 internet pages. The biggest share of

connected people has Netherlands where the share is 83% of the all citizens. Norway, Sweden

and Denmark about 70% share of internet connectors. On the contrary, the smallest share has

Russia, where only 11% of citizens use Internet. There is the share of internet connectors over

40% in others European countries.

The percentage of individuals aged 16 to 74 in the EU27 who ordered goods or services overthe internet increased from 24% in 2005 to 30% in 2007. The highest proportions of internet

shoppers in 2007 were recorded in Denmark (55% in 2006), the Netherlands (55%), Sweden

and the United Kingdom (both 53%), and the lowest in Bulgaria and Romania (both 3%) and

Lithuania (6%)

4. The electronic banking

The world witnesses an information and technological revolution. This revolution has touched

every aspect of peoples life including banking. Such changes and development have impacts

on services quality, future of banking activities, and consequently, its continually

competition ability in the world markets since going along with technology is one of the most

important factors of economic organizations success in general and banks in particular. This

motivates banks to spend more on technology and information to achieve maximum returns

and attracting large number of clients. Furthermore banks have to provide an excellent serviceto customers who are sophisticated and will not accept less than above average service. Thus,

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the issue of service marketing in general, and banking services in particular has become one

of the most important and modern directions which have witnessed a substantial expansion

during the last years in almost all societies. This is because the increasingly significant role

which banking services have with the widening and variety that these services are

characterized with, thus banking services have touched most aspects of contemporary

societies life and activities.

In the current time people have a lot of possibilities to communicate with their banks, besides

the personal contact, the banks offer them very interesting, popular and comfortable services

realized by telephone, mobil phone, computer and computer with Internet. It can expect that

there will be significant increase of these modern forms of communication in the near future,

because these services are very attractively for customers (clients) for many reasons, firstly

the new superior services and the lower expenses.

According to the results of the studies Electronic banking which was made by TNS SK in

2007 76% of Slovak population use electronic banking and the most popular internet activities

are: Internet banking utilize 72% users of Internet, 24% Mobile banking, more than 9% GSM

banking, 8% Phonebankig, from active operations the WAP banking is utilized 10 % at the

least. The most important factors by choosing bank are offered e-banking services, working of

personal account and the image of the bank.

From passive operations is the most utilize e-mail banking (22%), then GSM banking (13%),

internet banking (8%) and fax banking.

There are the basic possibilities of communicate on between client and bank:

Table 1 The possibilities for client to contact bank

The bank1,personal

visit

2,Telephone 3, mobil 4,PC 5,credit card

payphone,dial telephone system

SMS ,voice,GSM SIM Toolkit

Homebanking,Internet, www

e- mailSource1: Kala V., Padka M.: Elektronick bankovnctv, Praha 2000, page 5

In the EU27 internet users, meaning individuals aged 16 to 74 who had used internet in the

last three months, increased from 52% of all individuals aged 16 to 74 in 2006 to 57% in

2007. During the same time period, the proportion of internet users who used internet banking

grew from 38% to 44%. In 2007, this proportion was highest in Finland (84%), Estonia (83%)and the Netherlands (77%) and lowest in Bulgaria (5%), Romania (7%) and Greece (12%).

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Table2Electronic banking- advantages and disadvantages

Advantages Disadvantages

Effectiveness Start-up time

Start-up time Learning

Convenience Site changes

Ubiquity SecuritySpeed PC with Internet

Efficiency Basic IT knowledgeSource: 2 Own data processing

5. Case study 1 The using electronic banking by corporate client

In this part I try to describe the Slovak IT company Datalock a.s. (joint stock

company), its objectives, position on market, the market share, the main competitors and the

main purpose of my case study is compare the using the electronic banking services by

corporate entity as Datalock and natural person as a typical customer. It compares three

Slovak banks:

1. VUB bank2. Slovensk sporitena

3. Tatra bank

Case study represents my own research.

After Slovakia has become a member of the EU a pressure from competitors has increased

almost in all the production and the consumption areas that the market subjects must face to.

If they want to succeed in the conditions of keen competition they must obtain a competitive

advantage. But finding a suitable competitive advantage requires special attention to

competitors strengths and weaknesses. This advantage allows the market subject to satisfy

customers better than his competitors. It is necessary to work out the competitor analysis in

order to know who your competitor is. Because this factor is as important as to know who is

your customer i. e. companies can not win in the competitive struggle if they do not know

who stand opposite them.

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5.1 The characteristic of Datalock- corporate client of electronic banking

DATALOCK a.s. (joint stock company) is a leading company on the Slovak market of

information technology. It specializes on the development and deliveries of complex

information systems and provides IT services for the business sector and the public

administration. Due to its products, which the company has in its portfolio, it contributes to

the development and enhancing the competitive edge of companies in various branches of

business and activities. It helps to effectively manage their supply chain and optimize

company processes.

DATALOCK provides compact solutions on high technological level and its services are

guaranteed by professionalism and high quality. Up to now it provided solutions in form of

company management information systems for more than 5000 customers.

The company runs 10 filial companies, 9 in Slovakia and 1 in the Czech Republic. It has more

than 200 employees. In January 2007, the company DATALOCK became a part of Asseco

group that acquired 51 % of company market shares.

The object of business activity is:

To attain the position of the system integrator Maintain and strengthen the position of leader on the Slovak IT market

Spread the company influence on the middle European market with branch solutions

Provide the client with philosophy of company informatization and maximum

utilization of the potential of information technologies.

reach the bigger market share

Strategy and goals

Provide the customers with complex solutions and services.

Bring and implement new technologies for the benefit of the client, with emphasis on

process, strategic and project solution.

Establish firmer relationship with customers and partners as the basis for long-term

co-operation.

Gain reputation of a company that provides the newest IT trends to customers,together with quality of services and support

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Table 3 Turnover, revenue and employees of Datalock

YearRetail turnover

(in SKK)Growth index(retail trade)

revenue fromsales (in SKK)

Growth indexNumber ofemployees

2002 114 103 000 - 20 344 000 - 103

2003 166 628 000 146,03% 29 103 000 143,05% 1522004 159 424 000 95,67% 10 574 000 36,33% 2012005 206 989 000 129,83% 23 048 000 217,96% 1922006 247 211 000 119,43% 21 804 000 94,60% 1812007 271 790 000 109,94% 22 135 000 101,52% 177

Source: 3 Own data processing, Annual report of Datalock

Selected references

COOP Jednota Slovensko, spotrebn drustvo (co-op) GTS Nextra, a.s. HAWLE s.r.o. ISS Facility Services, spol. s r.o. Quelle spol. s r.o. TOMA INDUSTRIES, s.r.o SLOVAKTUAL s.r.o. A-Z LOKOMAT, s.r.o. IDOZ,a.s. ilina Hanil E-Hwa AUTOMOTIVE Slovakia s.r.o.

5.1.1 Competitor identification

In the current time has Datalock the third largest market share, in comparison with the last

year we can appreciate the increase from 8, 33% to the current 12,42%, which was reaches

mainly by offerening wide range of customer services. Actual market shares of Datalock

consumer cooperative and its competitors in percents are following:

o SAP Slovakia- 28,34%

o SOFTIP- 16,05%

o Datalock- 12,42%

o Siemens IT Solutions and Services- 8,66%

o GEMMA SYSTEMS- 5,86%

o KROS- 4,49%

o WBI- 4,30%

o EMEL BRATISLAVA- 4,17%o Tatra Soft Group- 2,69%

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o FLEX-IS- 2,07%

o other firms with market share smaller than 2%

Chart 1 Market share of Datalock and its competitors

Market share of Datalock

and its competitors

SAP Slovakia

SOFTIP

Datalock

Siemens IT Solutions and

Services

GEMMA SYSTEMS

KROS

WBI

EMEL BRATISLAVA

Source: 1 Own data processing

5.1.2 SWOT analysisINTERNAL ORGANIZATIONAL ANALYSIS

Strengths: relatively higher market share

great potential to rise market share by application new currency in Slovakia

high attention to customers

goodwill

highly educated staff

regular advertising activities

member of a worldwide group ASSECO willingness to satisfy customers ideas and needs

favour by small domestic companies

Weaknesses:

relatively delimited possibilities to satisfy big worldwide companies with various

requirements

commercial representation only in six Slovak cities

in comparison to competitors, e.g. SAP not so famous international brand andreputation

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EXTERNAL ENVIRONMENTAL ANALYSIS

Opportunities:

the application EURO in Slovakia and the obligation of all shops to introduce new

information systems

the possibility to obtain new domestic small customers

Threats:

large number of competitors, mainly from foreign countries

the trend of medium and big companies to use the ERP systems- mainly from SAP

5.2 The using electronic banking by corporate client- Datalock

In this part of my work I try to approach a briefly description of electronic banking

services, especially in the three Slovak banks: Tatra bank, VB bank, Slovensk sporitea.

Because the majority of these services are similar, I describe some specific services which are

offered by these banks and can be arranged in some service package with different high of

fees or fixation on other banking services. The bank charges can be various, they usually

depend on which group is client arranged. So, the Slovak banks recognize three basic types of

clients- individual clients, small business clients and corporate clients

For this purpose I create a model situation which can happen in the business- small and

medium enterprises. I will compare conditions, terms and fess by three Slovak banks-Tatra

bank, VUB bank, Slovensk sporitea:

Corporate card with insurance- Master card

ATM cash withdrawal- In the SR-2 times, average value 20 000 SKK

- Abroad (value 4500 Euro)

Opening and Account maintenance in SKK without minimum balance

on bank account(30.6.2008)- 25 000 000 SKK

Account statement - Delivery by post

Charging account activities- Accounting item

Services provided via electronic communication media - Internet banking, DIALOG

b-mail Telebanking - installation

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- use

- Client service

GRID card replacement and first

SECUR ID card advance payment E-card

First issued I:key complete

Daily account statements to the e-mail address

International cashless payments (clean payments)- via Internet banking and

Telebanking:

2 times- 77 000 SKK

400 000 SKK 2 times- 683 000 SKK

1 300 000 SKK

Payment order maintenance delivered:

- In form of payment order in writing and via DIALOG

- via Telebanking, Telebanking Light, Internet banking, Mobil banking

Cash transactions at the Bank's branches

Account deposits- 200 000 SKK

Cash withdrawals- 1 000 000 SKK

5.2.1 Tatra bankBecause headquarter of Tatra bank is in Bratislava and the annual turnover is from 40 million

up to 1 billion SKK, the company should contact Corporate Center in Bratislava.

According to the fact that it is relatively bigger company I recommend in this bank the service

package Tatra Corporate Premium, which represents a very cost-effective and comfortable

way of gaining a fullservice package of banking services with just one operation.

Table 4 Tatra Corporate Premium, service package

Tatra Corporate Premium SKK 999 per

month

Services provided via electronic

communication media**This package includes: Unlimited amount of SMS to b-mail service

Account maintenance in SKK without

minimum balance

Maintenance of standing orders andcollections via electroniccommunication media

12 account statements per month delivered by 50 charges for standard account credits per

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post in the country month

Annual charge for 6 VISA Electron debitpayment cardsexcluding insurance

250 accounting items per month executed viaInternet

banking, Telebanking, Telebanking Light,

Mobil banking,including incoming payments

Annual charge for 2 MasterCard debitpayment cardexcluding insurance*

* in case of fulfilled criteria stated by the Bank** Internet banking, DIALOG, Mobil banking, b-mail and

daily account statements

delivered to e-mail address

Overdraft provision* ** Internet banking, DIALOG, Mobil banking, b-mail anddaily account statements

delivered to e-mail address

Source: 4 Own data processing, Tatra bank

Table 5 Model situation, Tatra bank

Item- Tatra bank


fees

1090 SKKATM cash withdrawal- In theSR-2 times, average value 20 000 SKK 0 SKK ATM cash withdrawal- Abroad (value 4500 Euro) 2 033,505 SKK

Opening and Account maintenance in SKK without minimum balance on

bank account(30.6.2008)- 25 000 000 SKK

79 SKK per month

Account statement - Delivery by post 5 times per month Part of service

packageCharging account activities- Accounting item 12 SKK

Services provided via electronic communication media - Internet banking,

DIALOG

9 SKK

b-mail 9 SKK/one e-mail addressor telephone

number/ monthTelebanking - installation

- use

- Client service

2,500 SKK

6,000 SKK per

year

1,500 SKKGRID card replacement and first 50+500 SKKSECUR ID card advance payment 500 SKKE-card 200 SKKFirst issued I:key complete 200 SKKDaily account statements to the e-mail address Free of chargeInternational cashless payments (clean payments)- via Internet banking and

Telebanking: 2 times- 77 000 SKK 600 SKK

400 000 SKK 600 SKK

2 times- 683 000 SKK 1800 SKK 1 300 000 SKK 1200 SKK

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In form of payment order in writing and via DIALOG

via Telebanking, Telebanking Light, Internet banking, Mobil banking

13 SKK

0 SKK

Cash transactions at the Bank's branches:

Account deposits- 200 000 Skk Cash withdrawals- 1 000 000 Skk

28 SKK28 SKK

18 951, 500 SKK


5.2.2 Slovensk sporitea

Table 6 Model situation, SLSP

Item- SLSP


fees

1457 SKKATM cash withdrawal- In theSR-2 times, average value 20 000 SKK 8 SKK ATM cash withdrawal- Abroad (value 4500 Euro) 2 711,34 SKK


bank account(30.6.2008)- 25 000 000 SKK

50 SKK per month

Account statement - Delivery by post 5 times per month Free of chargeCharging account activities- Accounting item 12 SKK


DIALOG

50 SKK per month


number/ monthlyTelebanking - installation

- use

- Client service

2 000 SKK

6,000 per year

-GRID card replacement and first 50+50 SKKSECUR ID card advance payment 500 SKKE-card 200 SKKFirst issued I:key complete Dont offerDaily account statements to the e-mail address Free of chargeInternational cashless payments (clean payments)- via Internet banking

and Telebanking: 2 times- 77 000 SKK 500 SKK 400 000 SKK 550 SKK 2 times- 683 000 SKK 2000 SKK 1 300 000 SKK 1100 SKK




13 SKK

0 SKK


Account deposits- 200 000 Skk

Cash withdrawals- 1 000 000 Skk

24 SKK

24 SKK17 319,34 SKKSource: 6 Own data processing

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5.2.3 VB bank

Table 7 Model situation, VUB bank

Item- VUB bank


fees

1400 SKKATM cash withdrawal- In theSR-2 times, average value 20 000 SKK Free of chargeATM cash withdrawal- Abroad (value 4500 Euro) 2 711,34 SKK


bank account(30.6.2008)- 25 000 000 SKK

84 SKK per month

Account statement - Delivery by post 5 times per month Free of chargeCharging account activities- Accounting item 12 SKK


DIALOG

50 SKK per month


number/ monthlyTelebanking - installation

- use

- Client service

Free of charge

6,000 per year

-GRID card replacement and first Free of chargeSECUR ID card advance payment 500 SKKE-card Dont offerFirst issued I:key complete Dont offerDaily account statements to the e-mail address Free of charge

International cashless payments (clean payments)- via Internet bankingand Telebanking:

2 times- 77 000 SKK 450 SKK 400 000 SKK 500 SKK 2 times- 683 000 SKK 2100 SKK 1 300 000 SKK 1400 SKK




10 SKK

0 SKK


Account deposits- 200 000 Skk

Cash withdrawals- 1 000 000 Skk

25 SKK100 SKK

15 597,34 SKK


5.2.4 Characteristics of some specific e-banking services

Investment Navigator

This service offers on-line comments to the events in local and foreign financial markets byTatra bank analysts, as well as a review of current exchange rate values, interest rates, and

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prices of bonds. These values may be followed also in the form of diagrams. You have

available also investment analyses of financial markets in Europe and the U.S.A., and selected

action titles.

b-mail

b-mail enables to generate messages according to the criteria defined by the client, and send

them:

a) In the form of SMS message to your GSM mobile phone - b-mail in the form of SMS

message

b) In the form of electronic mail message - b-mail in the form of e-mail

c) In the form of encoded e-mail - PGP b-mail

Possibilities to define the criteria for generating a message:

Every day, the morning balances on the account

Overdraft/fall of the level of the balance available on the account

Credits and debits (movements) on the account

Failed Payment Advice

Information on credit card

I: deposit

It is a supplementary service to your current account. It is a deposit in SKK with certain term

(1 month, 3 months, 6 months, and 12 months) which may be activated via the Internet

Banking.

.

Databanking

Databanking is very specific service which is offered by Slovensk sporitea, Slovensk

sporitea offers this service as the first bank in the Slovak republic.

The Databanking service is a simple, secure and very efficient way of integrating Slovensk

sporitea electronic banking directly into your accounting or financial administration system.

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Databanking works via a standardized interface enabling the secure automated exchange of

data between the client and the bank.

Advantages of Databanking compared to Homebanking and Internetbanking:

automation of data exchange between the bank and the client,

possibility to reduce operating costs connected with administering the Homebanking

service

reduction in the risk of error occurrence thanks to automation

possibility to concurrently use and combine various channels for access to the same

bank account (an order to settle an invoice input via Databanking can be signed

additionally, e.g. via Internetbanking) connectivity of electronic banking also to other systems (possibility of system

integration)

Mailbanking - Electronic account statement(by Slovensk Sporitea)

This service uses the public communications network, the internet. Its aim is to provide the

client prompt information on operations realized on his/her account in electronic form.

Client can receive an electronic account statement in the form of a:

daily statement- Slovensk sporitea will send client an e-mail statement for each

day when there is at least one movement on your account. The file is sent as standard

in a text format. If client is interested in using an electronic signature for automated

processing - for example importing into your accountancy, they can provide clint also

with another format to suit your need - Homebanking, ABO, clearing,

monthly statement- on the first day of each month client will have available a

complete summary of movements on your account for the preceding month. They will

send client an electronic statement for any current account administered in Slovak

koruna or for foreign exchange account.

If client already have the Mailbanking service activated, client can adjust the statement

(layout, change to the definition or termination of its sending) by means of the

Internetbanking service or Sporotel.

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The purpose of my Case studies was to approach and describe the e-banking services which

are usually used by middle and big companies and by individual clients.

Compared banks were VUB bank, Tatra bank and Slovensk sporitea.

In simple case study, they were compared in field of expenses, fixation on other banking

services, and accessibility by clients. As we can see the most e-banking services offered by

the all compared banks are in Tatra bank. In spite that they charge the most expensive I

recommend the service package of this bank for many reasons. Firstly they offer full service

for corporate business in the form Service Packages for corporate clients. Secondly, the main

reason is that they have very good experiences with electronic banking and biggest portfolio

of service and they can adapt requirements of their customers. The very interesting service is

Databanking in SLSP, clients who are interested in investment are assigned Investment

Navigator and I:key.

6. Case study 2- The using electronic banking by individual client

These types of potential bank clients are offered the similar e-banking services as the

corporate clients. For this reason I will compare the fees and terms by three banks in my

second model situation.

Table 8 Comparison of using EB by individual client

Tatra bank VB bank SLSPTelephone

banking

Dialog

Gridcard

9 SKK per

month

50 SKK

Kontakt

Gridcard

25 SKK per

month

Free of

charge

Electronic

Personal

Key

Gridcard

2 500 SKK

50 SKK

Internet

banking

SECUR

ID card

advance

payment

E-card

First

issued

i:key

complete

500 SKK

200 SKK

1000 SKK

GPK

16000

chip card

Chip card

reader

GEM

410SL

Cancellati

on of

ServiceInternet

1 035 SKK

1216 SKK

Free of

charge

Electronic

Personal

Key

Gridcard

PIN

password

Previous

service

Previous

service

50 SKK

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bankingMobilbanking GSM

banking

9 SKK per

month

GSM

banking

Previous

service

Service

package of

EB(Mobilba

nking, SMS

BANKING)

30 SKK

total 1768SKK(

58,6868E

URO

2276

SKK(75,54

93EURO)

2630SKK(87

,3000

EURO)Source: 8 Own data processing

7. Security issues of e-banking

The typical user of Internet banking- in my case Datalock can meet not only with benefits of

this type of communications with his bank, but he must be watchful in front of some potential

threatens. By using electronic banking is very important security. Based on a survey, an

estimated 600,000 from a total of 15m subscribers have abandoned online banking as a direct

result of security fears. The British public fear phishing more than car theft, burglary, and

even mugging, according to figures unveiled by government-backed campaign Get Safe

Online. The most dangerous threats from Internet are Phishing, Keystroke logging, Password

cracking and pharming.

Technology of offering electronic banking

In order to provide effective and secure banking transactions, there are four technology issues

needed to be resolved. The key areas are:

1. SecuritySecurity of the transactions is the primary concern of the Internet-based industries. The lack

of security may result in serious damages.

2. Anonymity (Privacy)

Generally speaking, the privacy issue is a subset of the security issue. By strengthening the

privacy technology, this will ensure the secrecy of senders personal information and further

enhance the security of the transactions. The examples of the private information relating to

the banking industry are: the amount of the transaction, the date and time of the transaction,

and the name of the merchant where the transaction is taking place.

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3. Authentication

Encryption may help make the transactions more secure, but there is also a need to guarantee

that no one alters the data at either end of the transaction.

4. Divisibility

Electronic money may be divisible into different units of currency, similar to real money. For

Example, electronic money needs to account for pennies and nickels.

7.1 Phishing

In computing, phishing is a criminal activity using social engineering techniques. Phishers

attempt to fraudulently acquire sensitive information, such as usernames, passwords and

credit card details, by masquerading as a trustworthy entity in an electronic communication.The financial clerk (financial director) can receive this trustworthy mail:

Sample1 Phishing- false mail

Source: 1 http://www.theregister.co.uk/security

A fraudster sends out a fake email designed to appear as if it comes from a reputable source.The email can also include a link to a site that apparently leads to a reputable website address,

but which in fact is a counterfeit site. After logging on to this bogus site, the customer is

asked to enter personal information such as name, address, account number and credit card

number. Any information keyed in on this page is passed on to the fraudsters.

Anti-phishing measures:

Helping users identify legitimate sites

Alerting users to fraudulent websites Augmenting password logins

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Eliminating phishing mail

Monitoring and takedown

7.2 Keystroke logging

Is a diagnostic used in software development that captures the user's keystrokes. It can be

useful to determine sources of error in computer systems and is sometimes used to measure

employee productivity on certain clerical tasks. Such systems are also highly useful for law

enforcement and espionagefor instance, providing a means to obtain passwords or

encryption keys and thus bypassing other security measures. However, keyloggers are widely

available on the internet and can be used by anyone for the same purposes.

Prevention: Anti-virus software

Anti-Spyware

Firewall

7.3 Password cracking

Is the process of recovering passwords from data that has been stored in or transmitted by a

computer system. A common approach is to repeatedly try guesses for the password. The

purpose of password cracking might be to help a user recover a forgotten password (though

installing an entirely new password is less of a security risk, but involves system

administration privileges), to gain unauthorized access to a system, or as a preventive measure

by system administrators to check for easily crackable passwords

7.4 Pharming

Is a hacker's attack aiming to redirect a website's traffic to another, bogus website. Pharming

can be conducted either by changing the hosts file on a victims computer or exploitation

vulnerability in DNS server software. DNS servers are computers responsible for resolving

Internet names into their real addresses they are the "signposts" of the Internet

Compromised DNS servers are sometimes referred to as poisoned. The term pharming is a

word play on farming and phishing.

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8. Conclusion

In the next table are displayed and compared total expenses and some services which are usedby corporate and individual client in my model situations.Table 9 Comparison of using EB

Tatra bank VUB bank SLSP bank Total expenses by terms

of model situation

1(corporate client-

Datalock)

Total expenses by terms

of model situation

2(individual client)

18 951, 500 SKK

(629,0775 EURO)

1768 SKK

(58,6868 EURO)

17 319,34 SKK

(574,8968 EURO)

2276 SKK

(75,5493EURO)

15 597,34 SKK

(517,7368 EURO)

2630 SKK

(87,3000 EURO)

Telebanking + + +Internet banking + + +I: deal + - -Dialog + + +Telephone banking + + +I: deposit + - -

b- mail + - -Business banking - + -Mobil banking + + +SMS banking + + +Home banking - - +Data banking - - +Investment Navigator + - -Source: 9 Own data processing

The purpose of my Case studies was to approach and describe the e-banking services, which

are usually used by middle and big companies and by individual clients.

Compared banks were VUB bank, Tatra bank and Slovensk sporitea.

In simple case study, they were compared e-banking services in field of expenses, fixation on

other banking services, and accessibility by clients. As we can see the most e-banking

services offered by the all compared banks are in Tatra bank. In spite that they charge the

most expensive I recommend the service package of this bank for many reasons. Firstly they

offer full service for corporate business in the form Service Packages for corporate clients.

Secondly, the main reason is that they have very good experiences with electronic banking

and biggest portfolio of service and they can adapt requirements of their customers. The very

interesting service is Databanking in SLSP, clients who are interested in investment are

assigned Investment Navigator and I:key.

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9. Enclosures

QUESTIONNAIRE

The purpose of a questionnaire is to find out the quality of the online banking services

according to experiences and expectations of users of electronic banking, mainly Internet

banking

Explanation:

1, 2 - The service quality does not at all live up to your expectations

3, 4, 5- The service quality matches your expectations

6, 7- The service quality exceeds to a high degree your expectations

1. Sex of the respondent:

Male

Female

2. Which age category of e-banking users do you belong in?

Younger than 18 years old

18 30 years

30 50 years

50 60 years

older than 60 years old

3. Length of Internet Banking Use:

< 3 months

3-12 months

> 12 months

4. Frequency of Internet Banking Transactions: per month:

< 3 times 3-7 times

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> 7 times

5. I feel safe in my transactions with the bank 1 2 3 4 5 6 7

6. It is quick to complete a transaction through the banks website 1 2 3 4 5 6 7

7. My online transactions with the bank are always accurate 1 2 3 4 5 6 7

8. The banks name is well-known and has good reputation 1 2 3 4 5 6 7

9. The site has customer service representatives available online 1 2 3 4 5 6 7

10. The website design is aesthetically attractive 1 2 3 4 5 6 7

11. The service delivered through the banks website is quick 1 2 3 4 5 6 7

12. The banks site makes accurate promises about the services being delivered 1 2 3 4 5 6 7

13. I have confidence in the banks service 1 2 3 4 5 6 7

14. The site is always available for business 1 2 3 4 5 6 7

15. This site launches and runs right away 1 2 3 4 5 6 7

16. I am able to get on the site quickly 1 2 3 4 5 6 7

17. The organization and structure of online content is easy to follow 1 2 3 4 5 6 7

18. The bank quickly resolves problems I encounter with my online transactions 1 2 3 4 5 6 7

19. It is easy to find what I need on the website 1 2 3 4 5 6 7

20. When the bank promises to do something by a certain time, it does so 1 2 3 4 5 6 7

21. The bank gives prompt responses to my requests by e-mail or other means 1 2 3 4 5 6 7

22. Using the banks website does not require a lot of effort 1 2 3 4 5 6 7

23. The bank does not misuse my personal information 1 2 3 4 5 6 7

24. The bank is easily accessible by telephone 1 2 3 4 5 6 7

b) If you dont use Internet banking, please fill these questions:

2. Why do you not use Internet banking?

3. Do you think that main reason is security?

4. Why do you prefer personal contact with bank employees?

5. Have you the possibility to make your bank operations by personal computer with Internet?

6. If you have, why do you not save your money and time?

7. What are the main reasons that you have not opened an Internet bank account yet?

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10. Sources

Kala V., Padka M.: Elektronick bankovnctv, Praha 2000

TREND TOP in finances. 24/2006 June

VB, inc.. Contracts and attached documents provide in branches

Slovensk sporitea, inc. Contracts and appended documents provide in branches

Tatra bank, inc. Contracts and appended documents provide in branches

http://www.nbs.sk

http://www.sba.sk

http://www.slsp.sk

http://www.theregister.co.uk/security

http://www.tb.sk

http://www.vub.sk

http://en.wikipedia.org/
http://www.nbs.sk/http://www.sba.sk/http://www.slsp.sk/http://www.theregister.co.uk/securityhttp://www.tb.sk/http://www.vub.sk/http://en.wikipedia.org/http://www.nbs.sk/http://www.sba.sk/http://www.slsp.sk/http://www.theregister.co.uk/securityhttp://www.tb.sk/http://www.vub.sk/http://en.wikipedia.org/

electronic banking project

Documents