IT use in banking and electronic payment systems. will more and more be carried out by non- and near-banks. These facts represent big challenges for. Outline. Online or Internet banking is a way for customers of a bank to conduct a range of financial transactions through their online banking channel. Online. The first time you log in as a user of Internet Banking, after entering your given report on your personal computer in one of the formats – XML, DOC, PDF, XLS.
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𝗣𝗗𝗙 | The purpose is to note the likelihood of continued growth of internet banking and commerce as individual consumers download more and more products. Internet banking enables customers to save time, take control of their Strategy & Research, 61 million households regularly use Internet banking today, and Internet banking is a subject receiving great attention in the banking industry and the regulatory community. As with other areas of e-commerce, discussions.
For this booklet, e-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. E-banking includes the systems that enable financial institution customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet. Customers access e-banking services using an intelligent electronic device, such as a personal computer PC , personal digital assistant PDA , automated teller machine ATM , kiosk, or Touch Tone telephone. Accordingly, this booklet begins with a discussion of the two primary types of Internet websites: informational and transactional. Some websites are strictly informational, while others also offer customers the ability to perform financial transactions, such as paying bills or transferring funds between accounts. Wireless banking is a delivery channel that can extend the reach 19 and enhance the convenience of Internet banking products and services. Wireless banking services in the United States typically supplement a financial institution's e-banking products and services.
Helping Customers to Manage Accounts Internet banking enables a customer to manage his personal accounts easily and effectively. A secure and safe website helps a customer to manage all financial transactions effectively with a few clicks. They can manage their accounts with the help of personal secret information in form of their personal password, address and other important information Adams, Lamptey, Regular Updated Information A customer after competing transaction in a bank get sure about its completion or non completion but this facility is available in case of internet banking because in the mean time an updated information about the status of transaction that whether it is completed or not is received by the customer by means of SMS alert or from the web page of the bank.
The frequent updated information also ensures security to the customer which is highly demanded by the customer while using internet banking. As a result the risks involved in the transaction also get minimized. In this way communication between the bank and the customer is also improved Wang, User Friendliness or Customization Internet banking is playing a strong role in the development of banking sector and this concept is gaining popularity at a high rate in the bank customers.
One of the reasons of increased popularity of internet banking among people is the user friendly services which internet banking is offering to its customers.
The use of multi languages during transactions and use of biometric and voice mail system especially in the rural areas for the illiterate section proves the user friendly approach provided by the banks to their internet banking customers Sharma, Regularly up-to-date services with innovative features are provided to the customers who are using internet banking.
In this way a bank is able to retain their old customers and also tries to attract the new ones. Low Cost Structure The cost involved in the internet banking operations is also least as compared to traditional banking services. As internet banking provide its customers to complete their banking transactions from anywhere and anytime without making personal visit to the bank.
So on the one hand transactions are going on in the brick and mortar bank and on the other side by the customers using internet banking without help of banking staff. So the transaction rate has increased which has a positive impact on the operating performance of the banks. The banks also have to incur onetime cost to set up the internet banking system and enjoy long term benefit from this cost. From the customer point of view, a customer just with the help of an internet connection and desktop computer or laptop or smart phones can go for his banking transaction without incurring expenses of transportation etc.
So in this way internet banking is useful for the both banks and customers from the cost point of view Hassan, Environment Friendly Approach Internet banking avoids the use of paper documents which are very important in case you are completing your transaction in a physical branch of bank.
So internet banking helps to save papers which in turn help in saving environment. As a customer using internet banking can directly or indirectly participate in the environment protection scheme. Gender of Respondents Table 2: Profession of Respondents Frequency Percent Student 15 The respondents who are not using internet banking. A customer can enjoy banking services without disturbing their Bank staff has been replaced by the machines to perform the basic functions by the customers like withdrawal of cash, transfer The demand of customers is also increasing in the machines A person can avail fast and better services due to internet Internet banking enables a customer to manage his personal A secure and safe website helps a customer to manage all A customer gets updated information about the status of the Frequent updated information to the customers is provided by the Regular updated information helps in providing security to the Communication between bank and the customer is improved due Multi language facility is provided to the customers in internet Bio metric and voice mail services are provided for the illiterate Regularly up-to-date services with innovative features are A bank is able to retain their old customers with the help of Internet banking is used as medium to attract new customers.
Internet banking provides customers a wide variety of choice. The results show that from the total only The results prove that the income of the respondents is independents to the usage of internet banking.
The profession of maximum users of internet banking in this study are in service and after this student. Education has a positive role in the adoption of internet banking of the customers as the maximum users are either graduate or post graduate. Table 1 shows that most of the internet users i.
Only 2. As a result the majority of the respondents are in favor of the statement. Table 2 exhibits that maximum respondent i.
Only But These respondents include From the total From the total respondents The respondents who only agreed to the statement are Only 7. But the response of This is one of the question on which least positive response is collected in this study from respondents. This is the question on which least positive response is collected in this study from respondents as compared to other research questions.
The study shows with the response of Internet banking is used as medium to attract new customers as per the But 2. Maximum respondents are agreed with the research question that internet banking also helps in environment protection as wastage of papers is avoided. Table 7 shows the positive reliability test with value.
Hence it can be concluded that the items reliably measure the defined constructs. Calculated values i. As null hypothesis has been rejected and alternate hypothesis has been accepted. It adversely affects the use of traditional banking services. Customers find it convenient and easy to use internet banking for availing various banking services instead of going personally in the bank. A study also reveals that the transaction cost is also a main factor which encourages customers to use internet banking as compared to traditional banking services Huang, He found that an limited physical access to a facility to bonafide users.
As appreciation of the factors that securities encompass is users began to dial in from their PCs and terminals at important to understand security for electronic banking home, these measures are being considered insufficient. For example, take a simple With the advent of remote users on inter-networks for illustration of Bank Vault, as most would consider a bank conducting commercial transactions on mobile vault highly secure.
It draws its security from number of computers and through wireless technologies, simple factors. The vault is built of strong material and is password schemes are not sufficient to prevent attacks located in a secure building that offers considerable from sophisticated hackers.
However, there are certain physical security. Access to the vault is controlled by a peculiarities to the issue of security.
The first issue is that sophisticated door and locking mechanism that would security is never absolute. The bank vault though can be require special technical skills and expensive equipment breached but is still considered secured. The physical and The second peculiarity of security is that there is an technical characteristics of the vault mean that it would economic trade-off among the cost of security, take considerable time and resources to breach it.
Since expectation of loss, and the cost of breaching security. The likelihood of an more than the same amount. When security spending attempt on vault is very low. Further, any deposits held reaches the point where the cost of additional security in the bank are not actually in the vault so that even if a exceeds the incremental loss reduction, then it offers no robbery occurs, there is no loss of the deposits.
Thus, the more value protection and security is considered vault has low expected loss. Despite all these factors, adequate. From other perspective, security is adequate from time to time, a bank vault is breached, even then when the expected yield is less than the cost of breaching they are widely considered to be secure.
Credit card is security. For rational asset holders and opponents, the another such example as most consumers use credit notions are equivalent. The characteristics that define cards and are reasonably comfortable in using these security are two viz. These are considered acceptably secured. Credit card companies deploy sources of data, collection of data and characteristics of sophisticated mechanisms such as analyzing spending analysis followed: While forging a single credit Sample Selection: Banks are selected on the basis of credit card holder is protected from loss by laws which availability of data and convenience in data collection.
Credit card Nature and sources of data: The study is based mainly fraud is widespread and a card issuer is certain to on secondary data like annual reports of the selected encounter fraud, even though the instance of fraud is commercial banks, relevant research studies done earlier, low compared to the total number of transactions.
From and publications of Bangladesh Bank. The following aspects widespread use that the likelihood of an individual of information are highlighted: Further, the lack of 1. Benefits and constraints of E-Banking such as mobile of merchants trying to spur commerce on the global banking, fast track, ATM services and the absence of network. Internet where the possibility of the number falling into 3. Different services provided by the commercial banks the wrong hands is relatively high.
Managerial performance such as equipping human shopping. In short, the lack of business transaction resources, central MIS, automated clearing house etc. OTPs are the latest tool used by financial and banking service providers in the fight against cyber Now-a-days State owned commercial banks SCB , fraud.
Instead of relying on traditional memorized Private commercial banks PCBs and foreign passwords, OTPs are requested by consumers each time commercial banks FCBs follow modern technology in they want to perform transactions using the online or e-banking services.
The significant features of such mobile banking interface. When the request is received services are as follows: An automated teller The password is expired once it has been used or once its machine ATM , also known as a automated banking scheduled life-cycle has expired.
Examples of pull messages for information or bank teller. In most of the modern ATMs, the include an account balance enquiry, or requests for customer is identified by inserting a plastic card which is current information like currency exchange rates and known as ATM card with a magnetic stripe or a plastics deposit interest rates, as published and updated by the smart card with a chip, that contains a unique card bank.
This functionality to customer entering a personal identification number choose activities can be done either by integrating to the PIN. If the currency Banking: Depending on the selected extent of SMS being withdrawn from the ATM is different from that banking transactions offered by the bank, a customer can which the bank account is denominated in e.
SMS banking solutions offer customers a wholesale exchange rate, Thus, ATMs often provide the range of functionality, classified by push and pull best Possible exchange rate for foreign travelers and are services. Typical push services would include - Periodic heavily used for this purpose as well 7. SMS Banking is a service that allows credits to the bank account, Successful or un-successful customers to access their account information via mobile execution of a standing order, Successful payment of a phone.
SMS Banking services are operated using both cheque issued on the account, Insufficient funds, Large push and pull messages. Pull messages are those that are initiated by activity on a credit card and One time password and the customer, using a mobile phone, for obtaining authentication.
On the other hand typical pull services information or performing a transaction in the bank include - Account balance enquiry, Mini statement account.
Usually, the common services like Account Stop payment instruction on a cheque, Requesting for an balance Inquiry, Transaction Inquiry, Cheque status ATM card or credit card to be suspended, Dc-activating a Inquiry, Password Change, Transfer fund between own credit or debit card when it is lost or the PIN is known to accounts within the bank, Mini Statement, Requisition be compromised, Foreign currency exchange rates for cheque book etc.
Most SMS since To ensure better computer and communications environment. As most customer service, the bank is upgrading its core banking banks have multiple backend hosts, the more advanced software from its present version to Flexcube Universal SMS banking systems are built to be able to work in a Banking Solution UBS. In parallel, the whole setup of multi-host banking environment; and to have open hardware is being upgraded to cope with the increased interfaces which allow for messaging between existing volume of transactions from different delivery channels.
A remarkable environment. As such, it is operation. Depending on the volume of messages that equally important to have strong switching software to are required to be pushed, means to connect to the SMSC handle different types of transactions as well as high could be different, such as using simple modems or volume of transactions.
Considering this, the bank is connecting over leased line using low level upgrading its switching software too. The EMV which is essentially the delivery of branch financial security policy has been introduced by Europay, services via telecommunication devices where the bank MasterCard and VISA jointly to protect capturing card customer can perform retail transactions by dialing a data and duplication of a card.
The use of Tele- banking is easy EMV compliant chip cards of all the banks in the world, and confidential. Tele-banking customer support to a new height by setting another provides services like Checking account balance, Interest milestone in the history of banking sector by adding two rates related information etc8. To bring such a huge customers. DBBL has Introduced Fast Tracks for the first time in the With this facility any person having a mobile number is country to ensure better and wider range of services to able to use his number as a bank account.
In this mobile the customer. Within six months, the number of Fast account customers can get the services like Cash deposit Tracks has reached at All these have been possible Tuition fee payment, Air time top-up, Receive remittance with the help of a well-trained, highly professional work from home and abroad, Salary disbursement, force and a strong IT infrastructure.
To run all the Disbursement of Govt. The truly largest ATM network in the country. All banking modules Request, Statement Request, and Bill Payment for have been fully integrated in elBS running at all branches different credit cards, Electricity Bill etc. Eighteen other banks are Online Banking: On an average, was Taka To provide uninterrupted quick and faster the Branches with volume of approx.
Since , Deposit Kiosks and Customer Service help desk officers. IBBL started for providing ATM service to its customers The customers have the facility to deposit cash or from 55 branches through a consortium of financial cheque, withdraw cash, pay utility bills etc. Cash Withdrawal: Customers can withdraw money from Remittance Card has been rolled out into service. To accelerate of Head Office. Currently, the DC setup is being customer service and to offer new products through extended to incorporate new systems, hardware and embracing innovative technologies and ideas, IBBL has other components.
Restructuring of the existing WAN always been a front runner. To list a few of the achievements, the Bank in case the default one goes offline.
For country. Integrated Banking System: The total workforce of the Bank is now equipped Easy to Apply: To sign up for SMS Banking, all the with computer. And whenever new recruits are engaged prospective customers need to fill-out the enclosed form in service, they are being provided with computers as and submit it to their nearest branch. It now contains necessary information i. They offices for supervising and monitoring related issues.
IBBL account information promising a better service, free gifts has developed a system as per guidelines of Bangladesh or promotional activities. Through its in these link web sites they are stored and used for implementation, same day clearing of instruments is fraudulent purpose by the hackers IBBL has been one of the few banks to contribute socio-economic development of the country.
The Bangladesh Bank. Now, all branches of IBBL are capable Bank provides a broad range of financial services to its of sending and receiving electronic funds through customers and corporate clients. The bank is which is also capable of providing person to person operating with 86 branches through countrywide. The following e-banking services are practicing by the bank.
Online Banking has been activated in banking service provider in Bangladesh. The bank has all Branches of the Bank from January 01, Online begun its operations since July 4, At present the service is now available for all customers - Both Cash bank has 86 braches, 70 SME service centers, zonal deposit and withdrawals, Cheque Deposits and Transfer offices and unit offices of SME. Like in many other countries, people in services through internet.
Bangladesh started believing in mobile banking. With SMS Banking: In Mobile Banking system, basic mobile maturity alarm, High value transaction alert, Accounts handsets are being used as bank accounts and will serve status charging alert, Welcome alert for account as a wallet for the transaction of money, especially for opening , Payment loan failure alert and Cheque the un-banked people. As 99 percent of the people of clearing failure alert etc. The benefits of SMS banking are Bangladesh are under the mobile phone network, almost as follows: With SMS Banking, the bank banks can reach out to the un-banked people, the dream sends statement to a customer by mail through internet.
These services SMS Banking: With the passage of time, life style undergoes changes. The banking service is convenient, safer, cheap and faster. Last 3 transaction inquiry, Cheque status inquiry, etc We may E-banking is now a global phenomenon. Apart from the wonder if our transaction went through successfully or if developed countries, the developing countries are we clicked on the correct button.