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Internet Banking

Presented byQazi Ejaz Ali, Assistant Professor
Deptt. Of Computer Science,
University of Peshawar, Peshawar

It is doing banking transactions through our

home P.C. The banks that do business through
net have Websites. The customer clicks into the
Website and gets the history of the bank. Then
he can demand the necessary application form
through the net. He fills in the form and passes
it on to the bank. The bank then sends a UPP
(Unique Personal Password) for accession to its
computer. Therefore, a customer must have a
P.C, a modem, an internet browser or a
password finance performance.

Information Technology has opened up immense new avenues for developing countries such as Pakistan to use the creativity of their young through bearing and working out and to make a blend use of their brilliant youth for national development. there are now over a billion pages and are being added to at the rate of about a million new pages a day. Some software companies are also offering network-banking facilities. . A few hundred thousand pages were on the Internet in 1994.The Online banking is fast gaining ground in Pakistan.

Some online banks are traditional banks which also offer online banking.What is Internet banking? A system allowing individuals to perform banking activities at home. via the internet. The automated delivery of new and traditional banking products and services directly to customers through electronic. while others are online only and have no physical presence. interactive communication channels. .

some time during the 1980's. The online shopping promoted the use of credit cards through Internet. Programmers working on banking data bases came up with ideas for online banking transactions. in October 1994. .Development of E-banking  The concept of Internet banking has been simultaneously evolving with the development of the world wide web. The first online banking service in United States was introduced.

which is a financial institution.the first bank in the world to offer customer access to their accounts over the internet(allows customer to see their accounts online) The online banking services are becoming more and more prevalent due to the well developed systems . In May 1995 : Wells Fargo .Development of E-banking Contd… The service was developed by Stanford Federal Credit Union.

E-Banking The internet banking products are divided into 3 types based on the levels of access granted.i) Information Only System:  ii) Electronic Information Transfer System: iii) Fully Electronic Transactional System: . They are:.

Information Only System General purpose information like interest rates. . branch location. bank products and their features. The communication is normally done through e-mail. There exist facilities for downloading various types of application forms. loan and deposit calculations are provided in the banks website.

No identification of the customer is done. there is no possibility of any unauthorized person getting into production systems of the bank through internet. .Contd. There is no interaction between the customer and bank's application system. In this system..

transaction details. and statement of accounts.  The application systems cannot directly access through the internet.  The information is still largely of the 'read only' format. Identification and authentication of the customer is through password.specific information in the form of account balances.Electronic Information Transfer System  The system provides customer.  The information is fetched from the bank's application system. .

networking and security. inter-bank payment gateway and legal infrastructure . In this environment. It comprises technology covering computerization. This system requires high degree of security and control. . web server and application systems are linked over secure infrastructure. Transactions can be submitted by the customer for online update.Fully Electronic Transactional System  This system allows bi-directional capabilities.

The plastic card is replacing cheque.Automated Teller Machine (ATM) ATM is designed to perform the most important function of bank. banking hours restrictions and paper based verification . personal attendance of the customer. It is operated by plastic card with its special features.

Utility payments.SHARED PAYMENT NETWORK SYSTEM  It is a large network of ATMS spread throughout the (SPNS): city. Balance enquiry. Standing instructions and statements of Account and Point of sale facilities. Cheque deposit. Request cheque book. the following services are offered: Cash transactions. Printing of statements of accounts. Extended hours service. The participating banks issue universal cards to the customers for transacting on this network. Under this system. . Across the bank payments.



Advantages of E-banking Benefits for Banks Benefits for Small to Medium Businesses Benefits for Customers .

Benefits for Banks B 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 .

Fostering competition in financial market Communicate easily Abolishing the uses of paper Offering one-stop-shop solutions . seven days a week Cost Reducing transfer fees Speed Faster circulation of assets Competitiveness .Benefits for Customers Convenience 24 hours a day.

. a simple mistake. Many people who are not comfortable with computers and the Internet. internet banking is really time consuming In many instances.Disadvantages OF E-banking A need for customer skill to deal with computers and browsers. like clicking a wrong button. may create a big problem. often find it difficult to use internet banking For beginners.

onlinesb.Security Risk Increasing number of fraudulent bank websites For Fake emails purporting to be sent from banks Email send from Fraudulent bank Verify the personal information Guide customer enter the fraud link Disclosing their ATM card numbers and their passwords .com Original bank websitewww. A suspicious bank website:www.

Persecutions For Bank Should provide specific guidance to their customers Should take the adequate measures to ward off any problems related to the security of internet banking Online banking tutorials should be provided to help familiarize people with internet banking .

Periodically change their passwords Should promptly log out from the service Should regularly check their account balances and statements to . account numbers) or passwords to anyone else.Persecutions For Customers Should not disclose their customer IDs (e..g.

© 2004 H.Assignment/Activity for this week LAB. 6. Decision Making . Weihrich Chap. -Prepare a brief report of all on-line Banking sectors in Pakistan.