DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : Raja Sekhar Koduru
Designation : Lecturer In CCP
Branch : Commercial & Computer Practice
Institute : Govt. Polytechnic For Women,
Kakinada, E.G. District
Year / Semester : 3rd Year – VI Semester
Subject Coce : Ccp-604(b)
Topic : Customer Services Offered By Bank
Duration : 50 Mts.
Sub Topic : Need For Networking
Teaching Aids : Power Point & Pictures
CCP604(B).22 1
Recap
 In the session we have learnt about
E-Banking services

CCP604(B).22 2
Objectives:

 On completion of this topic you

will be able to
 Explain the advantages of E-
Banking
 List the Challenges and risks of
E-banking

CCP604(B).22 3
Structure

 E-Banking challenges
 Benefits to the customers
 E-Banking Risks
 Risks-Remedial steps
 Summary
 Quiz

 Assignment

CCP604(B).22 4
Known to Unknown
1. Do you know the usage of Computers
and internet in Banking

CCP604(B).22 5
E- Banking - Challenges

 What are basic requirements of E-

Banking?
 Computerization of Banks
 Internet Connectivity
 Internet security
 Standardized software
 Standardized hardware

CCP604(B).22 6
E- Banking

 E-Banking Challenges to Banks

 According to the Committee on Technology
upgradation in the Banking Sector (1999), Indian
Banks face the following challenges on the E-
banking front
 Need for standardization of hardware, operating
systems, systems software, application software
to facilitate interconnectivity of systems across
branches

CCP604(B).22 7
E- Banking

 Need for high levels of Internet security.

 Need for a technology plan with periodical up-
gradation
 Need for business process re-engineering.
 Need to address the issue of human relations in
a computerized environment.
 Sharing of technology experiences

CCP604(B).22 8
E- Banking
Need for communication and net- working
 Use of networks which would facilitate centralized
databases and distributed processing
 Computer security audit is an activity which is
one of the best tools available for combating
computer crime

CCP604(B).22 9
E- Banking - Benefits

Benefits to customers
 More convenience in transacting business
 Better knowledge of state of accounts
 Wider range products/services available to
the customers

CCP604(B).22 10
E- Banking - Benefits

Benefits to customers
 Possible lower cost of accessing
banking services
 Access to virtual services in locations
beyond the bank’s normal operating
base through the mechanism of
shared network

CCP604(B).22 11
E- Banking - Benefits

Benefits to banks & suppliers

 Large number of satisfied customers
 Higher retention rate as regards loyalty
 Possibility of attracting new customers

CCP604(B).22 12
E- Banking - Benefits

Benefits to banks & suppliers

 More scope of offer differential services
 Greater opportunity to cross-sell
 Opportunity for expanding banks’ operational
base by participation in shared networks

CCP604(B).22 13
E- Banking - Benefits

Benefits to banks & supplier

 Opportunity for cost saving in developing
technology initiatives through participation in
shared networks.
 Opportunity for banks to deliver a dynamic
range of virtual financial services

CCP604(B).22 14
E- Banking - Benefits

Benefits to banks & suppliers

 Opportunity for banks to offer services at a
lower cost
 Revenue potential through higher customer
service charges

CCP604(B).22 15
E- Banking - Benefits

 Better customer relationship management

 Increase the volume of business done by the
existing staff
 Reduced the cost in developing system through
sharing technology network
 Better quality of services to customer and higher
customer retention rate.

CCP604(B).22 16
E- Banking - Benefits

 It ensures accuracy of the work and prevents

clerical errors and omissions.
 Strengthening retail banking base.
 Timely flow of information to the branch network
located all over world.
 More secrecy is observed as compared to
manual file system.

CCP604(B).22 17
E- Banking - Risks

Risks
 Migration from paper based payment
system to electronic (and other) systems,
which is taking place at a fast pace also
exposes bank to the risk of frauds

CCP604(B).22 18
E- Banking - Risks

Risks
 In order to tackle the above menace, the banking
system should develop the regulatory, control
and supervision over these frauds.
 Banks have to take the best possible risk control
measures.

CCP604(B).22 19
E- Banking - Risks

Risks
 Banks should ensure that adequate risk
reduction mechanisms are in place
before any new system is in place
 Large-scale adoption of technology also
has many challenges to be overcome.

CCP604(B).22 20
E- Banking - Risks

Risks-Remedial Steps
 As part of efforts towards facilitating
inter-bank communications, the RBI
would provide standardized message
formats for all applications of bank

CCP604(B).22 21
Summary

Today consumers demand more financial

services, 24 hour access and remote
access
 They require their financial activities to fit
into their busy schedules without
disrupting them.
 The E-Banking provide effective enabling
technologies.

CCP604(B).22 22
Summary
Customers can interact with a bank at all
hours, from home, office or on the road and
perform almost any transaction.
 E-banking offers tremendous benefits for
both the bank as well as customers.
 The cost banking services is considerably
reduced.

CCP604(B).22 23
Summary

Security is especially important in any

business where money is the principal
‘commodity’ being moved
 The security of E-banking is one of the
key issues discussed by banking
consortiums and technology forms and
there are solutions available now

CCP604(B).22 24
Quiz

Tick the correct answers

2. Basic requirements of e- Banking
a) Computerization of Banks
b) Internet connections
c) Standard hardware and software
d) All of the above

CCP604(B).22 25
Assignment

1. Briefly explain the advantages of E-

Banking to the customers.(4 marks)
2. Explain the advantages of E-Banking to
the Banks.(4 marks)

CCP604(B).22 26