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Project Report On Internet Banking
Prepared By:Ravinder Singh BBA (5th Sem.)
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ACKNOWLEDGEMENT I take the opportunity to express our gratitude to all the concerned people who have directly or indirectly contributed towards completion of this Project. I extend my sincere gratitude towards HOD for providing the opportunity and resources to work on this project. I am extremely grateful to Prof. Manpreet Singh faculty of (GBS Department) GNA University whose insight encouraged me to go beyond the scope of the project and learning on this project. I also want to know my gratitude to whose insight me to complete this project.
Ravinder Singh
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DECLARATION I Ravinder Singh student of GNA University here By solemnly declare that the project title Internet Banking is my original as on the information, Facts and figures in this project is based on my Own experience and study during my training Procedure. Ravinder Singh
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INDEX Sr. No.
Contents
Page No.
1.
Introduction, Meaning & Definition of organization
5-6
2.
Features
7-9
3.
History
9-11
4.
Advantages
12-16
5.
Security
17-20
6.
Objectives
21-22
7.
Attacks
23-24
8.
Countermeasures
25
9.
Regulations
26-27
10.
Benefits and Challenges
28-31
11.
Types
32-36
12.
Scope
37-40
13.
Disadvantages
41-42
14.
Conclusion
43-44
15.
Reference
45
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INTRODUCTION A system allowing individuals to perform banking activities at home, via the internet. Some online banks are traditional banks which also online banking, while others are online only and have no physical presence. Online banking through traditional banks enable customers to perform all routine transactions , such as account transfer , balance inquiries, bill payments ,stop-payment requests and some ever offer online loan and credit card application .
MEANING Internet banking is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution’s website .The online banking system will typically connect to or be part of the core banking system operated by a bank and is in contrast to branch banking which was the traditional way customers accessed banking services. Today’s, many banks are internet-only institutions. The customer’s visits the financial institution’s secure website, and enters the online banking facility using the customer numbers and credentials previously set up. Internet banking is also known as online banking, e-banking or virtual banking.
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DEFINITION According To, "Famous Writer’’ “Internet banking is use of the electronic technology towards the transfer of funds through an electronic terminal computer or magnetic tape ,telephonic instruments through as to order, instruct an authorize financial institution to credit or debit an account.”
“Internet banking is defined as the automated of new and traditional banking products and services directly to customers through electronic, interactive communication channels, E-banking includes the system that enable financial institution customers, individuals of business, to access accounts, transact business or obtain information on financial products and services through a public or private network, including the Internet.”
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FEATURES There was a time when the only way to open a bank account was in person .Now a days , It’s possible to complete the enrollment process from start to finish without ever leaving your home .Depending on the bank ,the application forms can take less than ten minutes to fill out. All you have to do is input a few details and send out photocopies of whatever forms 0of identification the bank requires. It will still take a few days or weeks before your account is ready, but that’s to be expected regardless.
ELECTRONIC STATEMENTS Traditional bills statements are annoying on two fronts. First, they unnecessarily clog up your physical mail box. Second, they are a tremendous waste of paper. May be you don’t are too much about the second point, but for the most part paper bills have become a messy inconvenience.
AUTOMATIC BILL PAYMENT Most online banks allow you to link your bills directly to your account and have them paid on time automatically. For every bill you set up that’s one less thing you need to juggle every month. That can add up to a lot of reduced stress.
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MOBILE CHECK DEPOSITS Many banks offer a feature called mobile check deposits through the precise name might differ from bank to bank. The concept is simple instead of physically visiting your local bank branch to deposit a check; you can do it from home by uploading a photo.
SECURE MESSAGE ALERTS One of the better reasons to use online banking is that you can receive notifications in close to real-time .These notifications can be trivial or annoying at time ,but they can also save your life .For example you can be notified when;Transactions are completed or denied .A bill payment data is approaching details of your account were changed.
REPORTS AND MANAGEMENT TOOLS Online banking, it was not exactly easy to get on-demand reports and summaries for your account activity .Depending on the bank, there might even have been a fee associated with retrieving that info.
DESKTOP SOFTWARE INTEGRATION The online banking might make that area of your life even easier. As long as your bank supports your tool, you should be able to integrate your bank account seamless with whatever desktop software you use. Integration can involve a direct connection between your bank account
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and your software, but if not, the other possibility is exporting your transaction history as a file download and importing it into the software like that.
HISTORY PRECURSORS The precursor for the modern home online banking services were the distance banking services over electronic media from the early 1980s.The term ‘online’ became popular in the late 1980s and referred to the use of a terminal, keyboard and TV (or monitor) to access the banking system using a phone line. ‘Home banking’ can also refer to the use of a numeric keypad to send tones down a phone line with instructions to the bank. Online services started in NEW YORK in 1981 when four of the city’ major bank offered home banking services using the videotext system. INTERNET AND CUSTOMER RELUCTANCE When the clicks-and-bricks euphoria hit in the late 1990s, many banks began to view web- based banking as a strategic imperative. The attraction of banks to online banking are fairly obvious: diminished transaction costs, easier integration of services, interactive marketing capabilities, and other benefits that boost customer lists and profit margins. Additionally, online banking services allow institutions to bundle more services into single packages, thereby luring customers and minimize overhead. A mergers-and-acquisitions wave swept the financial industries in the mid-and late 1990s, greatly expanding banks’ customer bases. Following this, banks Web as a way of maintaining
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their customers and building loyalty. A number of different factors are causing bankers to shift more of their business to the virtual realm.
FIRST ONLINE BANKING SERVICES IN THE UNITED STATES Online banking was first introduced in the early 1980s in NEW YORK, United States. Four major banks-Citibank, Chase Manhattan, Chemical Bank and Manufactures Hanover-offered home banking services. Chemical introduced its Pronto services for individuals and small businesses in 1983, which enabled individuals and small-business clients to maintain electronic checkbook registers, see account balances, and transfer funds between checking and savings accounts. Pronto failed to attract enough customers to break even and was abandoned in 1989. Other banks had a similar experience. FIRST ONLINE BANKING IN THE UNITED KINGDOM Almost simultaneously with the United States, online banking arrived in the United Kingdom. The UK’s first home online banking services known as Home link was set up by Bank of Scotland for customers of the Nottingham Building Society in 1983. The system used was based on the UK’s Prestel view link system and used a computer, such as the BBC Micro, or keyboard connected to the telephone system and television set. The system allowed on-line viewing of statements, bank transfer and bill payments. In order to make bank transfer and bill payments, a written instruction giving details of the intended recipient had to be sent to the NBS who set the details up on the Home link system. Typical recipients were gas, electricity and telephone companies and accounts with other banks. Details of payment to be made were input into the NBS system by the account holder via Prestel.
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FIRST ONLINE BANKING IN FRANCE After a test period with 2500 users starting in 1980, online banking services were launched in 1984, using minutely terminals that were distributed freely to the population by the government. Eventually, 6.5 millions minutely were installed in households in 1990. Online banking was one of the most popular services. Online banking services later migrated to Internet BANKS AND THE WORLD WIDE WEB Around 1994, banks saw the rising popularity of the internet as an opportunity to advertise their as another brochure, without interaction with the customer. Early sites featured pictures of the bank’s officers or buildings, and provided customers with maps of branches and ATM locations phone numbers to call for further information and simple listings of products. INTERACTIVE BANKING ON THE WEB In 1995, Wells Fargo was the first U.S. bank to add account services to its website, with other banks quickly following suit. That same year, Presidential became the first U.S. bank to open bank accounts over the internet. According to research by Online Banking Report, at the end of 1999 less than 0.4% of households in the U.S. were using online
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banking. At the beginning of 2004, some 33 million U.S. households were using some form of online banking. Five years later, 47% of Americans used online banking, according to a survey by Gartner Group. Meanwhile, in the UK online banking grew from 63% to 70% of internet users between 2011 and 2012.
ADVANTAGES OF INTERNET BANKING Internet banking, which includes any transaction you perform using the internet or a mobile device, is becoming more common. Making electronic payment, paying bills and transferring money between accounts are all elements of internet banking, which can be done from your cell phone or computer.
SIMPLE AND EASY Internet banking is very simple and easy to use. Online account is simple to open and easy to operate.
CONVENIENCE The ability to do banking from home at any hour is one of the most common benefits of online , or e-banking .You can move money from checking to savings or make electronic payments 24/7 , even when the bank is closed. Some customers also appreciate the real-time banking information to check balances in checking and savings accounts. It is
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quite convenient as you can easily pay your bills, can transfer funds between accounts.
PORTABILITY Electronic banking also creates a more mobile bank for customers. Mobile apps allow customers to check balances and perform routine bank transactions from anywhere they can get phone reception. Alerts to low balances are offered by some bank apps.
INDUSTRY BENEFITS Banks can minimize labor and supply costs by allowing customers to self-service certain types of transactions, and save money on paper and postage by sending statements over the internet. While some people believe ATMs and Internet banking go against traditional, personalized banking, others point to the increased efficiency and flexibility.
COST SAVING Internet banking offers some cost-savings opportunities for customers. By paying bills online, you reduce the number of checks you have to write .This saves you on buying new check pads and paying for stamps and envelopes. Also, with broader access to banks operating online, you can price shop and find lower fees and more favorable interest rates.
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TRACK SPENDING Some bank customers who previously did little to no budgeting now monitor basic spending habits using spending trackers provided by online banks. When you make purchases with a debit card or pay bills online, programs update your spending chart by cataloging the expense as utility, car payment or another type of bill. These trackers are somewhat limited because they can’t directly monitor cash spending. However, some bank apps allow you to manually record grocery expenses or other cash outflows to fill those gaps.
ACTIVITY REVIEW Business owners, accounting staff and other approved employees can access routine banking activity such as deposits, cleared checks and wired funds quickly through an online banking interface. This ease of review helps ensure the smooth processing of all banking transactions on a daily basis, rather than waiting for monthly statements. Errors or delays can be noted and resolved quicker. Potentially before any business impact is felt.
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PRODUCTIVITY Internet banking leads to productivity gains. Automating routine bill payments, minimizing the need to physically visit the bank and the ability to work as needed rather than on banking hours may decrease the time involved in performing routine banking activities. Additionally, online search tools, banking actions and others programs can allow staff members to research transactions and resolve banking problems on their own, without interacting with bank employees. In some cases, month-end reconciliations for credit card transactions and bank accounts can be automated by using e-banking files.
REDUCED ERRORS Utilizing internet banking reduces banking errors. Automation of payments, wires or other consistent financial activities ensures payments are made on time and may prevent errors caused by keyboard slips or user error. Additionally, opting for electronic banking eliminates errors due to poor handwriting or mistaken information. In many cases, electronic files and daily reviews of banking data can be used to double or triple check vital accounting data, which increases the accuracy of financial statements.
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REDUCED FRAUDS
Increased scrutiny of corporate finances through audits and anti-fraud measures requires a high level of visibility for all financial transactions. Relying on internet banking provides an electronic footprint for all accounting personnel, managers and business owners who modify banking activities. Internet banking offers visibility into banking activities, which makes it harder for under-the-table or fraudulent activities to occur.
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SECURITY OF INTERNET BANKING Online banking is nice and convenient. But it does come with certain risks. Just as you hear of people being robbed at ATMs, or having their cards cloned, so online accounts are also a point of vulnerability. Follow these 8 tips and you can minimize the risks to your finances and bank safely online:
1. Choose an account with two factor authentication Try to get a bank account that offers some form of two factor authentication for online banking. These days many, but not all, banks offer a small device that can be used to generate a unique code each time you log in. This code is only valid for a very short period of time and is required in addition to your login credentials in order to gain access to your online account.
2. Create a strong password If your bank requires a user generated password in order to access online accounts make sure you choose one that is strong. The best way to achieve this is by making it long and a mix of upper and lower case letters, numbers and special characters. Always avoid using any common words or phrases and never create a password that contains your name, initials or your date of
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birth. If your bank allows it, change your password every few months. When setting up online banking, if your bank asks you to provide answers to some standard security questions remember that the answer you give does not have to be the real one.
3. Secure your computer and keep it up-to-date Security software is essentials these days, regardless of what you use your computer for. As a minimum, make sure you have a firewall turned on and are running antivirus software. This will ensure you are protected from Trojans, key loggers and other forms of malware that could be used to gain access to your financial data. You will also want to keep your operating system and other software up to date. To ensure that there are no security holes present.
4. Avoid clicking through emails
No financial institution worth their salt will send you an email asking you to provide any of your login details. If you receive an email that appears to be from your bank that asks for such details then treat it with suspicion as it may well be a phishing attempt to trick you into handing your credentials over. Likewise, be aware of links in emails that appear to be from your bank. This is a trick often employed by the bad guys to get you onto a website that looks like your bank. When you login to�your account“they will steal your username and password ultimately your cash.
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5. Access your accounts from a secure location It’s always best practice to connect to your bank using computers and networks you know and trust. But if you need to access your bank online from remote locations you might want to setup a VPN “virtual Private Network” so that you can establish an encrypted connection to your home or work network and access your bank from there. Look for a small padlock icon somewhere on your browser and check the address bar that URL of the site you are on should begin with https. Both act as confirmation that you are accessing your account over an encrypted connection.
6. Always log out when you are done It is good practice to always log out of your online banking session when you have finished your business. This will lessen the chances of falling prey to session hijacking and cross its cache at the end of each session.
7. Set up account notifications
Some banks offer a facility for customers to set up text or email notifications to alert them to certain activities on their account. For example, if a withdrawal matches or exceeds a specified amount or the account balance dips below a certain point then a message will be sent.
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Such alerts could give quick notice of suspicious activity on your accounts.
8. Monitor your accounts regularly It should go without saying that monitoring the your bank statement each month is good practice as any unauthorized transactions will be sure to appears there. But why wait a whole month to discover a discrepancy? With online banking you access 24/7 so take advantage of that and check your account on a regular basis. Look at every transaction since you spot any anomalies, contract your bank immediately. The above tips should go a long way to ensuring that you enjoy the advantages offered by online banking without experiencing any of the pitfalls.
OBJECTIVES OF INTERNET BANKING The main aim and objective for the nearest period is a dynamic development of the bank and achievement of a qualitatively new level with the standards of the Basel Committee on Banking Supervision. The
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development strategy of the bank is based on the components, which together will ensure strengthen of the financial and economic situation of the bank and the preservation of its credibility with its customers. Main strategic aims of Joint Stock Commercial Bank are: 1. Increase of authorized capital, raising size of own capital. 2. Expansion of activity of the Bank by obtaining a License Providing right to carry out transactions in foreign currencies and Further entry into the deposit insurance system. 3. Constant expansion of customer base with a priority on Attracting small and micro-businesses.
Viewing account balance Viewing current transactions Downloading bank statement Viewing paid cheques Ordering cheque books Download periodic account statement
4. Formation of a diversified and sustainable resource base. 5. Commencement and active development of cooperation with Financial institutions and mortgage systems. 6. The increase in capitalization of the Bank. 7. The introduction of international standards of banking operations.
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8. The introduction and development of modern methods of marketing and PR. 9. Improvement of risk management system. 10. Improving the quality and diversity of the range of services for individuals, small and medium-sized businesses, in raising the volume of transactions and the pursuit of cost reduction of managing business, increasing its level of technology and control. Final result should be the creation of modern technologically Bank, which will posses by an optimal required network of service centers, provide high quality services to clients and enjoy significant authority in the market.
ATTACKS Attacks on online banking used today are based on deceiving the user to steal login data and valid TANs. Two well known examples for those attacks are phishing and pharming . Cross-site scripting and key logger/Trojan horses can also be used to steal login information.
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A method to attack signature based online banking methods is to manipulate the used software in a way, that correct transactions are shown on the screen on the screen and transactions are signed in the background. A 2008 U.S. Federal Deposit Insurance Corporation Technology Incident Report, compiled from suspicious activity reports banks file quarterly, lists 536 cases of computer intrusion, with an average loss per incident of $30,000. That adds up to a nearly $16-million loss in the second quarter of 2007. Computer intrusions increased by 150 percent between the first quarter of 2007 and the second. In 80 percent of the cases, the source of the intrusion is unknown but it occurred during online banking, the report states. Another kind of attack is the so-called man-in-the-browser attack, a variation of the man-in-the-middle attack where a Trojan horse permits a remote attacker to secretly modify the destination account number and also the amount in the web browser.
As a reaction to advanced security processes allowing the user to crosscheck the transaction data on a secure device there are also combined attacks using malware and social engineering to persuade the user himself to transfer money to the fraudsters on the ground of false claims. Users should therefore never perform bank transfers they have not initiated themselves.
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Countermeasures There exist several countermeasures which try to avoid attacks. Digital certificates are used against phishing and pharming, in signature based online banking variants (HBCI/FINTS) THE USE OF “Secondary� card
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readers is a measurement to uncover software side manipulations of the transaction data. To protect their systems against Trojan horses, users should use virus scanners and be careful with downloaded software or e-mail attachments. In 2001, the U.S. Federal Financial Institutions Examination Council issued guidance for multifactor authentication(MFA). In 2012, the Europeon Union Agency for Network and Information Security advised all banks to consider the PC systems of their users being infected by malware by default and therefore use security processes where the user can cross-check the transaction data against manipulations like for example (provided the security of the mobile phone holds up) SMS TAN where the transaction data is sent along with the TAN number or stand alone smart card readers with an own screen including the transaction data into the TAN generation process while displaying it before hand to the user (see chip TAN) to counter man-inthe-middle attacks.
REGULATIONS Internet Banking in India The financial products and services have become available over the internet, which has thus become an important Distribution channel for
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a number of banks. Banks boost technology investment spending strongly to address revenue, cost and competitiveness concerns. The purpose of present study is to analyze such effects of IB in India, where no rigorous attempts have been undertaken to understand this aspect of the banking business. A study on internet users, conducted by Internet and Mobile Association of India (IMAI), found that about 23% of the online users prefer IB as the banking channel in India, second to ATM which is preferred by 53%. Out of the 6,365 Internet users sampled, 35% use online banking channels in India. This shows that a significant number of online users do not use IB, and hence there is a need to understand the reasons for not using it. Until the advent of ATMs, people were unaware and not directly affected by the technological revolutions happening in the banking sector. ATMs became the major revolution for customers, since it offered the facility
to avoid long queues in front of the cashiers in banks. It also provided them the flexibility of withdrawing money- anytime, anywhere.
In the study by IMAI, it was found that the people are not doing financial transactions on the banks’ Internet sites in India because of reasons such as security concerns (43%), preference for face-to-face transactions (39%), lack of knowledge about transferring online (22%),
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lack of user friendliness (10%), or lack of the facility in the current bank (2%). The group divided the internet banking products in India into 3 types based on the levels of access granted. They are:
Information Only System: General purpose information like interest rates, branch location, bank products and their features, loan and deposit calculations are provided in the banks website. There exist facilities for downloading various types of application forms.
Electronic Information Transfer System: The system
provides customers- specific information in the form of account balances, transaction details and statement of accounts. The information is still largely of the ‘read only’.
Fully Electronic Transactional System: This system
allows bi-directional capabilities. Transactions can be submitted by the customer for online update. This system requires high degree of security and control. In this environment, web server and application systems are linked over secure infrastructure. It
comprises technology covering computerization, networking and security, inter-bank payment gateway and legal infrastructure
Benefits of internet banking
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The main benefit from the bank customer’s point of view is significant saving of time by the automation of banking services processing and introduction of an easy maintenance tools for managing customer’s money. The main advantages of e-Banking for corporate customers are as follows (Bank Away 2001; Gurau, 2002 Reduces costs in accessing and using the Banking Services Increased comfort and time saving – transactions can be made 24 hours a day, without requiring the physical interaction with the bank. Quick and continuous access to information – corporations will have easier access to information as, they can check on multiple accounts at the click of a button. Better cash management – E-Banking facilities speed up cash cycle and increases efficiency of business processes as large variety of cash management instruments are available on internet sites of Estonian Banks. For example – It is possible to manage companies shot terms cash via internet banks In Estonia (investments in over-night, short and long term deposits, in commercial papers, in bonds and equities, in money market funds). Reduces costs – this is in terms of the cost of availing and using the various banking products and services. Convenience – all the banking transaction can be performed from the comfort of the home or office or from the place a customer wants to. Speed – the response of the medium is very facts, therefore, customers can actually wait till the last minute before concluding a fund transfer.
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Funds management – customers can download their history of different accounts and do a “what if: analyses on their own PC before effecting any transaction on the web. This will lead to better funds management.
Internet Banking-Benefits and Challenge in an Emerging Economy 23 Broadly accepted e-payment systems are another such example. Many corporate and consumers in some developing countries either do not trust or do not have access to the necessary infrastructure to be able to process e-payments. The ability to strengthen public support for e-finance: Historically, most e-finance initiatives in developing countries
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have been the result of cooperative efforts between the private and public sectors. For example, Singapore’s successful Trade Net system was a government-sponsored project. If the public sector does not have the necessary means to implement the projects it is essential that cooperative efforts between public and private sector, along with the multilateral agencies like the World Bank, be developed to facilities public support for refinance related initiatives. Confidentiality, integrity and authentication are very important features of the banking sector and were very successfully managed the world over in pre-internet times. Communication across an open and thus insecure channel such as the internet might not be the best base for bank – client relations as trust might partially be lost. E-Banking has created many new challenges for bank management and regularity and supervisory authorities. They originate not just from increased potential for cross border transactions but also for domestic transactions based on technology applications which raise many security related issues (Hawkins 2002). The Basel Committee on Banking Supervision’s Electronic Banking Group (EBG) (2001) has defined risk management principles for electronic banking. They primarily focus on how to extend, adapt and tailor the existing risk-management framework to the electronic banking setting. It is necessary to know whether the efforts
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undertaken by the RBI are sufficient to ensure a reasonable level of security.
Types of Internet Banking
1. Account Management Internet banking systems allow you to log in through their website and view your account information. There may be several passwords or log-in codes you have to input to gain access to your account. You can check your current balance and balance history, initiate transfers between accounts and view account activity. You can also order checks and view check images with this type of banking service.
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2. Deposits and Payments Direct deposit is a type of banking that allows you to provide a routing number so money can be transferred into your account automatically. For example, employers often use direct deposit paychecks. This is an electronic deposit done online. It is also possible to set up automatic payments so that you can pay bills and have the amount withdrawn electronically from your account. This type of banking is an easy way to pay recurring bills like utility payments and insurance premiums.
3. Debit Cards
Debit cards work like credit cards except that they automatically withdraw money from your bank account and are one of the most common types of internet banking transactions. When you use a debit card, information about the purchase is put into a computer system and then transmitted online to your bank, where the transaction is processed within your account.
4. Automated Teller Machines (ATMs) ATM is a modern device introduced by the banks to enable the customers to have access to money day in day out without visiting bank branches in person. The system is known as ‘Any Time Money ’or ‘Any Where Money’ because it enables the customers to withdraw money from the bank from any of its ATMs round the clock. ATM has become the most popular and convenient delivery channel throughout entire country. An ATM is an Electronic Fund
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Transfer terminal capable of handling cash deposits, transfer between accounts, balance enquiries, cash withdrawals and pay bills. It may be on-line or Off-line. The on-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 possessing ATM card issued by the Shared Payment Network System can go to any ATM linked to Shared Payment Networks and perform his transactions.
5. SMART CARD Banks are adding chips to their current magnetic stripe cards to enhance security and offer new service, called Smart Cards. Smart Cards allow thousands of times of information storable on magnetic stripe cards. In addition, these cards are highly secure, more reliable and perform multiple functions. They hold large amount of personal information, from medical and health history to personal banking and personal preferences.
6. E- Statement
E-statements or electronic statements are your regular bank statements made available online. According to GSA Federal Credit Union, e- statements are guarded by electronic safe guards and are actually less likely to obtain by identity thieves than a paper statement sent through the mail. Many banks and credit unions recommend this type of online banking for security reasons.
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7. Fund Transfer You 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 need to mention the payees’ account number, his bank and the branch. The transfer will take place in day or so, where as in a traditional method, it takes about three working days. ICICI Bank says that online bill payment service and fund transfer facility have been their most popular online services.
Four Different Types of Service /Banking A bank’s job is to provide customers with financial services that help people better manage their lives. As technology advances and competition increases, banks are offering different types of services to stay current and attract customers.
1. Individual Banking- Banks typically offer a variety of services to assist individual in managing their finances, including: Checking accounts Savings accounts Debit & credit cards Insurance Wealth management
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2. Business Banking- Most banks offer financial services for business owners who need to differentiate professional and personal finances. Different types of business banking services include: Business loans Checking accounts Savings accounts Debit and credit cards Merchant services Cash management 3. Digital Banking- The ability to manage your finances online from your computer, tablet, or smart phone is becoming more and more important to consumers. Banks will typically offer digital banking services that include: Online, mobile, and tablet banking Mobile check deposit Text alerts E-Statements Online bill pay
4. Loans- Loans are a common banking service offered, and they come in all shapes and sizes. Some common types of loans that banks provide include: Personal loans Home equity loans Home equity lines of credit
Home loans
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Future Scope of Improvement The “Banking Online System is a big and ambitious project. I am thankful for being provided this great opportunity to work on it. As already mentioned, this project has gone through extensive research work. On the basic of the research work, we have successfully designed and implemented banking online System. This system is based upon 2-tier client server architecture. The tools used for development were as follows.
Content management system 1. Type of Functionality: If your website will feature logins, online chat, rates databases and more, you’ll need a CMS to support that functionality. Delivering a powerful and interactive experience to your audience will require a greater investment in your CMS. If your functionality is simpler, you might be better served with a less expensive CMS option.
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2. Ongoing Costs: A larger, more interactive and powerful website requires a budget to maintain it properly. If your marketing budget doesn’t allow for ongoing maintenance and updates after you launch, you may need to reconsider the size and type of your site’s CMS. Annual CMS license fees also should be taken into consideration. For the sake of your brand, you will benefit more if you deliver a better user experience with a scaled-down site that you can maintain regularly, than if you launch a huge site with all the bells and whistles that you cannot keep updated and functioning efficiently.
3. Flexibility and Scalability: As you develop strategies for the website you want today, keep in mind the website you will need in the future. Your product lines and service offerings will grow with your business, and you will need a website capable of adjusting easily and efficiently. Maybe you want to add a blog. Maybe you want to add new product pages or create landing pages for a targeted marketing campaign. A CMS that can scale to fit your marketing strategies will be an ideal fit so you can augment your site without creating a massive project.
4. Third-Party Integration: If you offer online chat functionality, calculators or any other integrated third-party applications, your CMS will need to be up to the task. Take a hard look at the functionality and applications you want to include and then figure out which CMS will allow you to deliver these online experiences to your audiences.
5. Digital Agency Involvement: Do you plan to manage all aspects of your website in-house after launch? With your marketing and IT departments juggling various responsibilities, the task of updating a
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robust website could prove to be a significant strain that leads to missed deadlines on projects and/or a lag in keeping your website’s content current. With a large website project, you’ll find great value in partnering with a digital agency that can manage your support requests and guide you with recommendations on achieving the best ROI from your primary digital asset.
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Compliance Considerations: For most banks and credit unions, compliance is a primary concern. The CMS you choose should provide the features, safeguards and functionality you need to ensure compliance at all turns. This includes keeping a history of revisions made to your website so you can track all activity to a specific date and time.
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Here’s why online Banks Are Better Than Traditional Banks? Its news we’ve heard before: online banks are the way of the future. Online banks seem to have it all: relatively high interest rates, stellar customer service, low fees, and the added bonus 24/7 access to your finances with the click of a button. Still, online banking isn’t for everyone, and the line between the two is becoming blurred as more banks ramp up their web presence to compete. To help you decide, we tapped Richard analyst at MoneyRates.com, to break down the pros and cons of keeping your cash in a traditional versus online bank.
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Disadvantages of Internet Banking Though there are many advantages of Internet banking, but nothing comes without disadvantages and everything has its pros and cons; same is with internet banking. It also has some disadvantages which must be taken care of. The disadvantages of online banking include the following:  Understanding the usage of internet banking might be difficult for a beginner at the first go. Though there are some sites which offer a demo on how to access online accounts, but not all banks offer this facility. So, a person who is new might face some difficulty.  You cannot have access to online banking if you don’t have an internet connection; thus without the availability of internet access, it may not be useful.
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Security of transactions is a big issue. Your account information might get hacked by unauthorized people over the internet. Password security is a must. After receiving your password, do change it and memorize it otherwise your account may be misused by someone who gets to know your password inadvertently. You cannot use it, in case; the bank’s server is down. Another issue is that sometimes it becomes difficult to note whether your transaction was successful or not. It may be due to a slow connection, or the bank’s server is down.
The complex encryption software is used to protect the account information, there are no perfect systems, and So, The accounts are prone to the hacking attacks, the phishing, the malware and the illegal activities. The internet banking is generally secure but it isn’t always secure, the identity theft is running rampant and the banks are by no means immune. And when your information is compromised, it can take months or even years to correct the damages, and it can cost you thousands of dollars. The customer service can be below the quality that you’re used to, some people take comfort in being able to talk to another human being face-to-face if they experience a problem, although most major banks employ a dedicated customer service department specifically for online users, going through the dreaded telephone menu can still be quite irritating to many.
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 Identity theft is a significant concern but some online banks take this risk more seriously than others, before opening an online account, thoroughly investigate the bank’s security policies and protections to ensure they meet your expectations.  The security is the biggest concern surrounding internet banks, with the consumers worrying that the hackers will get into their account and spend their money.
Conclusion In the preceding section of this report, we analyzed the attempts of two kinds of Internet banks to go globally: the merger of the two pure Internet banks, first-e and Uno-e, and merger of two multi- channel Internet banks, HSBC and Merrill lynch. Though it would be imprudent to draw absolute conclusion, from just these two examples, coupled with the information presented in section I and all, it is possible to assert that multi-channel Internet banking models are more viable than their pure cousins. Furthermore, multichannel banks, in general, have established reputations and global physical presences (which mean they have already successfully managed the respective regulatory challenges) and thus have a competitive advantage over pure Internet banks. Finally, in answer to our original question, we must conclude that Internet banking is not a disruptive technology.
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In this report, we discussed how the new payment methods impact on banks in three categories. Here, we summarize them and try to make suggestions to banks for survival. Transactions between the individuals would be made more convenient by the emergence of Mondex- type smart cards. On the other hand, banks will lose fees for ATM transactions. Though adaption rate of the smart cards cannot be predicted, banks have to look at other business functions by aggressively join smart cards projects. As the smart cards proliferate, they would make money by issuing the smart cards and transfer money from banking account to the cards.
Internet banking has become a necessary survival weapon and is fundamentally changing the banking industry worldwide. Today, the click of the mouse offers customers banking services at a much lower cost and also empowers them with unprecedented freedom in choosing vendors for their financial service needs. The Internet banking is redefining business relationship with the customers. The International scope of Internet banking provides new growth perspectives and Internet business is a catalyst for new technologies 13 and new business processes. The reach of Internet banking has rapidly increased due to the Telecommunication Infrastructure development in India.
In India, Internet banking is in a nascent stage. No doubt Indian banks are making sincere efforts for the adoption of advanced technology and installation of e-delivery channels but still masses are wary of the concept. Banks are making sincere efforts to popularize the e- banking services and products. Young generation is beginning to see the
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convenience and benefits if e-banking. In years to come, Internet banking will not only be acceptable mode of banking but will be preferred mode of banking.