internet banking 254.docx
Content
Index 1. Introduction What is internet banking Features of internet banking Benefits of internet banking Services offered by internet banking 2. Advantages of internet banking 3. Disadvantages of internet banking 4. security 5. Future of internet banking 6. Conclusion
Introduction Internet banking (or online banking or E-banking) allows customers of a financial institution to conduct financial transactions on a secure website operated by the institution, which can be a retail or virtual bank, credit union or building society. To access a financial institution's online banking facility, a customer having personal Internet access must register with the institution for the service, and set up some password (under various names) for customer verification. The password for online banking is normally not the same as for telephone banking. Financial institutions now routinely allocate customer numbers (also under various names), whether or not customers intend to access their online banking facility. Customer numbers are normally not the same as account numbers, because a number of accounts can be linked to the one customer number. The customer will link to the customer number any of those accounts which the customer controls, which may be cheque, savings, loan, credit card and other accounts. To access online banking, the customer would go to the financial institution's website, and enter the online banking facility using the customer number and password. Some financial institutions have set up additional security steps for access, but there is no consistency to the approach adopted. Internet banking (or E-banking) means any user with a personal computer and a browser can get connected to his banks website to perform any of the virtual banking functions. Internet banking system the bank has a centralized database that i s w e b - e n a b l e d . A l l t h e s e r v i c e s t h a t t h e b a n k h a s p e r m i t t e d o n the internet are displayed in menu. Any service can be selected and further interaction is dictated by the nature of service. Once the branch offices of bank are interconnected through terrestrialo r s a t e l l i t e l i n k s , t h e r e w o u l d b e n o p h y s i c a l i d e n t i t y f o r a n y branch. It would a borderless entity permitting anytime, anywhere and anyhow banking. The delivery channels include direct dialup connections.
private networks, public networks, etc. with the popul a r i t y o f computers, easy access to Internet and World Wide Web (WWW),Internet is increasingly used by banks as a channel for receiving i n s t r u c t i o n s a n d d e l i v e r i n g t h e i r p r o d u c t s a n d services to theirc u s t o m e r s . T h i s f o r m o f b a n k i n g i s g e n e r a l l y r e f e r r e d t o a s Internet Banking, although the range of products and services offered by different banks vary w i d e l y b o t h i n t h e i r c o n t e n t a n d sophistication. United Online is the name of Internet Banking service of United Bank of India. The service is highly secure as it uses 256 bit SSL encryption for the data transmission through internet. internet banking is the electronic bank that provides the financial service for the individual client by means of Internet. different services, queries in their account balances, etc. but do not permit any fund-based transactions on their accounts;3. The third level of Internet banking service are offered by Fully Transactional Web sites which allow the customers to operate on their accounts for transfer of funds, payment of different bills, subscribing to other products of the bank and to transact purchase and sale of securities, etc. The above forms of Internet banking service the customer or by new banks, who deliver banking service primarily through Internet or other electronic delivery channels as the value added services. Some of these banks are known as „Virtual‟ banks or„ Internet only‟ banks and may not have physical presence in a country despite offering different banking services. The Indian Scenario: •Internet banking, both as a medium of delivery of banking services and as a strategic tool for business development. • At present, the total internet users in the country are estimated at 9 lakh. However, this is expected to grow exponentially to 90
lakh by 2003. Only about 1 percent of Internet users did banking online in 1998. This is increased to16.7 percent in March 2000.(India Research, May 29, 2000, Kotak Securities) • Cost of banking service through the Internet from a fraction of costs through conventional methods. Rough estimates assume teller cost at Re.1 per transaction, ATM transaction cost at 45 paise, phone banking at 35 paise, debit cards at 20paise and Internet banking at 10 paise per transaction
Features
1. Bill Pay Service - One of the biggest reasons for going with an online bank is to get really good bill payment services. Different banks handle bill payment different ways. Here are some things to think about: a. How many bills are you allowed to pay per month? b. What are the fees for going over the limit? c. Can the bill payment send physical checks to merchants who aren’t set up to take electronic payments? d. Do checks come from your account or from a third party service? For privacy reasons, it might be better to be able to pay someone without giving them your bank account number on the check. On the other hand, if the checks actually come from your account, the money doesn’t get taken out until the check is cashed. e. Can you set up reoccurring payments? 2. Electronic Bill Notification – With electronic bills, your merchant (credit card company, gas company, electric company, etc.) sends an electronic bill to your bank. You can set it up to pay automatically or notify you for approval. This can be particularly good for people who are on the road because it reduces the amount of physical mail you have to somehow get read or forwarded to you. 3. Online Check Images – Most banks will show you an image of the check, which makes it really easy to balance your account if you can’t remember what a particular payment was for. (Ideally, you should minimize the number of physical checks you write to reduce fraud.) 4. Online Deposit Slip Images – Most banks just record the total with no image. It will let you see an image of each deposit slip. Having the images available can be very helpful if you ever have to prove something for tax purposes or need to remember where that $2581 deposit came from. 5. Ease of Opening New Accounts – Once you have an account at the bank, you should be able to open additional accounts entirely online and just transfer money into it. For example, I set up a traditional IRA last year and it took me about 3 minutes to set up, deposit my money from checking and invest it in an index fund. 6. Reporting Tools – Most banks offer basic reporting tools that will let you see how much you have spent in each category you’ve created.
This may not be an issue if you use desktop money management software, but it still can be handy if you are traveling and want to see how much you’ve paid on your mortgage over the past 12 months. 7. Linked Accounts – Can you link your bank account with a brokerage account? Can you add your minor children as custodial accounts and manage them all centrally? If you and your spouse both set them up IRAs, is it easy to view them both along side the rest of your finances, or do you have to have a separate login for each IRA to keep them on separate SSNs? These are small things that many banks don’t support, but it starts getting really complicated when you have to manage a bunch of accounts instead of having a single place to manage all of your money. 8. Convenient Deposit Methods - Since you may not be anywhere near the physical location of your bank, make sure you understand how to deposit money. Payroll can be set up on direct deposit, but there will be times when you need to deposit checks. Does the bank provide postage paid envelopes and deposit slips? Some banks work with FedEx or UPS stores to allow you to send in a deposit overnight for free. 9. Low ATM Fees and Convenient Locations – If you need to get cash, will the bank refund the ATM fees? Are there only certain ATMs that are free, and if so, are they located near places you normally go? Are the ATMs available nation wide so you can use them on vacation? What are the fees for using the ATM internationally and how is the exchange rate handled? 10. Integration with Desktop Software – If you use Microsoft Money, Quicken or something similar, you’ll want to make sure your bank supports it. Make sure you understand if downloading transactions require you to login and manually download a file, or if your money management software can directly connect and download new transactions. If you are using Quicken on a Mac, make sure the bank is paying Quickens extortion fee so the files will work with Mac users. 11. Many Account Types – Some banks only offer basic checking and savings accounts. Ideally you want a bank that makes it easy to open money market accounts, IRAs, health savings accounts, etc. If you have to go to another institution to open a different type of account, it is more difficult to manage–especially if you are on the road. You want to be able
to easily open a CD to take advantage of a higher interest rate, easily open an IRA to help reduce your tax liability, etc. 12. Free Money Transfers – Be sure to consider how easy it is to move money in and out of the account. You should be able to set up links with your accounts from other institutions to transfer money back and forth as necessary. Make sure you understand what type of fees are associated with these transfers. Good banks should allow a certain number of transfers per month with no fee. 13. Security Balanced with Convenience - Some banks spend so much effort trying to keep things secure that you’ll find yourself automatically logged out of their website while you try to balance your account. You want security but you don’t want it to get in the way of you doing your banking. Also check into what type of additional security features are available. For example, some banks will offer you an RSA keychain with a number that changes every 60 seconds. In addition to your password, you will need the number from that key in order to get access to your account. 14. Ease of Use – This is something that most banks seem to struggle with. Right now I have my personal account with one online bank and my business accounts with another. I dread using the business accounts and I absolutely love using my personal account. At first I thought I was just more familiar with the bank where my personal accounts are, but I finally realize that it comes down to the ease of use. One is ok and the other is superb, but it makes a big difference. FEATURES OF INTERNET BANKING Transactional (e.g., performing a financial transaction such as an account to account transfer, paying a bill, wire transfer... and applications... apply for a loan, new account, etc.). – This is the most common functionality that is extensively used by banking consumers. Non-transactional (e.g., online statements, check links, chat) Financial Institution Administration - features allowing the financial institution to manage the online experience of their end users ASP/Hosting Administration - features allowing the hosting company to administer the solution across financial institutions Online banking facilities offered by various financial institutions have many features and capabilities in common, but also have some that are application specific. The common features fall broadly in to several categories
A bank customer can perform some non-transactional tasks through online banking, including viewing account balances viewing recent transactions downloading bank statements, for example in PDF format viewing images of paid cheques ordering cheque books Bank customers can transact banking tasks through online banking, including Funds transfers between the customer's linked accounts Paying third parties, including bill payments (see, e.g., BPAY) and telegraphic/wire transfers Investment purchase or sale Loan applications and transactions, such as repayments of enrollments
Financial institution administration Management of multiple users having varying levels of authority Transaction approval process Some financial institutions offer unique Internet banking services, for example
Personal financial management support, such as importing data into personal accounting software. Some online banking platforms support account aggregation to allow the customers to monitor all of their accounts in one place whether they are with their main bank or with other institutions.
Benefits of internet banking
Internet banking is all about making life easy. You can use technology to automate tedious tasks and save time for the more important things. As an added benefit, you often experience fewer errors and have an easier time of tracking things. Online banks allow you to have more choice and flexibility. You can do things on a computer, and you often get more competitive rates from online banks. They claim that they do not have the overhead and expenses associated with brick-and-mortar banks, so they can pass the savings on to you. Online banking makes our lives easier. However, it also makes a few things easier for criminals. For the most part, online banking actually makes you safer. While you can enjoy better returns and more convenience, online banking isn’t perfect. Set your expectations on what you have to give up in order to enjoy the benefits of online banking.
BENEFITS OF INTERNET BANKING CONVENIENCE –
available 24x7 (except for site maintenance) FREE (for most transactions) FAST (depends on internet bandwidth) RELIABLE (relies on security settings instituted by the bank) SECURE (two-level log-in measure)
There are many benefits of using net banking like
• • • • • • • •
It saves a lot of time and effort. Can transact with the click of a button. Completely safe and secure. Fewer fees with most of the services rendered free. Can coordinate with your financial software. Easy to understand and to use. Scores more points over traditional banking. Useful for everyone.
That's why internet banking is a popular service now used by millions of account holders worldwide. Now with the fast growth in the number of users opting for it, a number of online banks are building up to provide service to the customers.
These online only banks are virtual but provide quality service to customers offering them with many new and exciting features. However, when you apply for service from a particular bank, try to get as much as information about it before doing business with them. Ask questions till the time you get satisfied with the service record of the company.
Services offered by internet banking
Queries
Check Balance See Statement Inquire about cheque status Ask for a Statement Ask for a Cheque Book Inquire about Fixed Deposit Inquire about TDS details See Demat Account Update profile
Transactions
Stop a Cheque Pay Bills Ask for a Demand Draft Transfer funds between your accounts Transfer funds to a third party Request for a new Fixed Deposit Shop Online
Pay Bank Credit Card Dues There are four types of plastic cards being used as media for making payments. These are: Plastic Cards as Media for Payment: 1. 2. 3. 4. Credit Card Debit Card Smart Card ATM Card
1. Credit Cards: - The credit card enables the cardholders to Purchase any item like clothes, jewelery, railway/air tickets,
etc. Pay bills for dining in a restaurant or boarding and lodging in hotel Avail of any service like car rental, etc. 2. Debit Cards: -A debit card is issued on payment of a specified amount by the issuing company like a telephone company to a customer on cash payment or on debiting his account by a bank. Thus it is like an electronic purse, which can be read and debited by the required amount. It may be noted that while through a credit card, the customer first makes a purchase or avails service and pays later on, but for getting the debit card, a customer has to first pay the due amount and then make a purchase or avail the service. For this reason, debit card are not as popular as credit cards. 3. Smart Cards: -Smart Cards have a built-in microcomputer chip, which can be used for storing and processing information. For example, a person can have a smart card from a bank with the specified amount stored electronically on it. As he goes on making transactions with the help of the card, the balance keeps on reducing electronically. When the specified amount is utilized by the customer, he can approach the bank to get his card validated for a further specified amount. Such cards are used for paying small amounts like telephone calls, petrol bills, etc. 4. ATM Cards: - The card contains a PIN (Personal Identification Number) which is selected by the customer or conveyed to the customer and enables him to withdraw cash up to the transaction limit for the day. He can also deposit cash or cheque.
Mobile banking
Transfer money, pay bills, authorize payments, view your transaction history all from the convenience of your mobile phone.
With BOQ's latest electronic banking offering your mobile phone can now act as your own portable bank working with Internet banking to provide access to and control of all your accounts
Transfers
Transfer funds between your accounts and credit cards. Transfers between your nominated accounts are subject to any deposit and withdrawal limits that would normally apply. A transfer from your credit card will be treated as a cash advance. Withdrawal transfers are not allowed from some home loans, business loans, personal loans and Premier term investment accounts.
Pay bills with BPAY®
You can use BPAY to pay many of your household bills (e.g. gas, electricity, telephone). Just look for the distinctive BPAY logo on your bill to tell if it can be paid using Internet Banking. You can also keep the payment details for bills that you pay regularly on a frequent billers list. You can make a BPAY payment from your account or your credit card. If the biller does not accept credit card payments then the payment may be treated as a cash advance. Before you can use this service, you will need to choose your Daily Limits package. Any BPAY payments will be subject to your daily BPAY limit.
Receive bills online with BPAY View®
Using the BPAY View facility, you will have the ability to view bills electronically from participating billers through Internet Banking. Once you register with the relevant billers, you will be advised each time you log on if any new bills are available. You can also be notified via Internet email and/or via secure mail when a new BPAY View bill is delivered.
Pay Anyone Payments
Use Pay Anyone to make payments to a BOQ account or to accounts held at most other Australian financial institutions. You can also keep the payment details for payees that you pay regularly on a frequent payees list. Before you can use this service, you will need to choose your Daily Limits
package. Any Pay Anyone Payments will be subject to your daily Pay Anyone limit. You can make a Pay Anyone Payment from your account or your credit card. A credit card payment will be treated as a cash advance.
Multi Payments
You can make up to 100 payments in one request to BOQ accounts or accounts held at most other Australian financial institutions. You can also save the payment details for payees that you pay regularly. Before you can use this service, you will need to choose your Daily Limits package. Any Multi Payments will be subject to your daily Pay Anyone limit. You can make a Multi Payment from your account or your credit card. A credit card payment will be treated as a cash advance.
Foreign Currency Calculator
A currency calculator that allows you to convert foreign currencies to and from the Australian dollar based on the current exchange rates.
International and RTGS (Real Time Gross Settlement) payments
You can request both international payments and domestic currency RTGS payments from within Internet Banking. Internet Banking will also store your frequently used beneficiaries for future use as well as display a payment history.
Open or Apply for new accounts
You can request a new account (selected products only) be opened for you from within Internet Banking with no need to attend a BOQ branch (currently personal customers only). You also have access to BOQApply where you can apply for a number of different BOQ products.
Direct Debits
Once registered as a Debit Payment user you will be able to create, save and edit a group of Direct Debits online. This feature is ideal for collecting gym subscriptions as an example. You are also able to save a list of payers for future use.
Daily Limits package for BPAY and Pay Anyone payments
When you register for Internet Banking you will be offered a number of daily limits packages to choose from. These will define the daily transaction amount limit for Pay Anyone (including Multi Payments) and BPAY transactions performed via Internet Banking. The limit package can be set by the branch as part of the initial registration, and be effective immediately. You can also choose or change your limits package online – decreases are activated immediately and any increases will automatically be applied after 2 calendar days.
Extra online security using the BOQ Security Token
Protecting the integrity of our customers‟ financial information is our top priority, so we have introduced a superior level of online security using the BOQ Security Token. The BOQ Security Token is a small electronic device which generates a pass code that continually changes – this ensures maximum protection for your transactions. The BOQ Security Token will be provided to Internet Banking customers that have a daily Pay Anyone limit of $10,000 or greater. Note: all Payments File Upload Facility (PFUF) users must use the BOQ Security Token irrespective of their daily limit.
SMS banking services
You can register to receive SMS banking alerts and /or SMS account enquiries. SMSs will be sent to the mobile number you nominate in your Internet Banking registration.
SMS enquiries – enables you to request balances for accounts listed on your profile and which have been assigned a Quick Access Number (QAN) or view a list of the last 5 transactions for a specified account. Request and response are via SMS. The BOQ SMS number is 042 745 7272. SMS Alerts – enables you to elect to receive alerts (from a predefined list) to let you know when a specific event has occurred (e.g. Internet Banking payments greater than an amount specified by you has been made from one of your accounts).
Business features
Internet Banking is a great tool for businesses. It takes the hassle out of paying your employees and keeping records of all your transactions.
Multi Payments
You can use Multi Payments to make up to 100 payments in one request. This is ideal for payroll payments. You can also save the details of regular payees. Before you can use this service you need to choose your Daily Limits Package (if you haven't already chosen one). Multi Payments will be subject to your daily Pay Anyone limit. You can make a Multi Payment from a nominated account or your credit card. A credit card payment will be treated as a cash advance.
Direct Debits
Once registered as a Debit Payment user you will be able to create, save and edit a group of Direct Debits online. This feature is ideal for collecting gym subscriptions as an example. You are also able to save a list of payers for future use.
Mobile banking
Transfer money, pay bills, authorize payments, view your transaction history all from the convenience of your mobile phone. With BOQ's latest electronic banking offering your mobile phone can now act as your own portable bank, working with internet banking to provide access to and control of all your accounts.
Payments File Upload
The Payments File Upload Facility is a fast and easy way to process your direct debits, subscriptions, salaries, wages and other credits direct to your employees‟ (or other recipients) accounts anywhere in Australia. Use your own accounting package to create a file of payments, then transmit the file to us using Internet Banking.
Apply for Payments File Upload Facility (PFUF):
To process direct credits via the Payments File Upload Facility please complete the Payments File Upload Facility Application (PDF 415KB). To process direct debits you will need to complete the Debit User Pack (PDF 660KB). If you want to process both direct credits and direct debits please complete both forms. Then take the completed form(s) to your local BOQ branch or Business Banking Centre.
Daily Limits package for BPAY® and Pay Any one payments
When you register for Internet Banking you will be offered a number of daily limits packages to choose from. These will define the daily transaction amount limit for Pay Anyone payments (including Multi Payments) and BPAY transactions via Internet Banking. Your Daily Limits Package can be set or changed by the branch and be effective immediately. You can also choose or change your limits package online. Any decreases requested online are immediate and increases will automatically be applied after 2 calendar days.
Extra online security using the BOQ Security Token
Protecting the integrity of our customers‟ financial information is our top priority, so we have introduced a superior level of online security using the BOQ Security Token. The BOQ Security Token is a small electronic device which generates a password that continually changes – this ensures maximum protection for your transactions. The BOQ Security Token will be provided to Internet Banking customers that have a daily Pay Anyone limit of $10,000 or greater. Note: all Payments File Upload Facility (PFUF) users must use the BOQ Security Token irrespective of their daily limit.
SMS banking services
You can register to receive SMS banking alerts and/or SMS account enquiries. SMSs will be sent to the mobile number you nominate in your Enhanced Internet Banking profile.
SMS enquiries – allows you to request balances for accounts listed on your profile or view a list of the last 5 transactions for a specified account. Request and response are via SMS. SMS Alerts – allows you to elect to receive alerts (from a predefined list) to let you know when a specific event has occurred (e.g. Internet Banking transactions greater than an amount specified by you has been made from one of your accounts)
Multi user transaction authorization and privilege delegation
Using the multiple account user and privilege delegation features you can enforce dual or multiple authorizations for transactions. For example, the accounts clerk could create the payroll template with the actual payment being authorized by the payroll manager.
Related Account Access
The Related Account Access feature can be used to authorize a person who is a signatory on the business account (and who has individual operating authority), to access the business account using his or her personal Internet banking profile. This avoids the need for the signatory to use two separate Customer Access Numbers and Personal Access Codes to access the personal account and the business account. Additionally, funds can be transferred to and from the personal and business accounts as funds transfers instead of Pay Anyone Payments. In order to be eligible for Related Account Access the following conditions must be met:
the person who is given access to the account must be a signatory on the account the account holder must apply for the person to have access to the account
Related Account Access in practice: ABC Pty Ltd has two directors and the company accounts have an “either to sign” operating authority. Additionally, both directors have personal accounts with BOQ and Internet Banking access for those personal
accounts. ABC Pty Ltd can apply for Related Account Access and allow both directors to access the company accounts from their personal Internet Banking profiles. Each director will need to use his or her own Customer Access Number and Personal Access Code to access the company‟s accounts. Apply for Related Account Access:
1. The account holder needs to complete the Related Account Access Application (PDF 500KB) 2. Take the completed form to your local BOQ branch or Business Banking Centre for processing. It should be noted that:
a separate application is required for each related account user the user‟s personal Pay Anyone payment limits and access restrictions apply
Internet banking is the new buzz word around the corner. Forget traditional banking and the way you used up to queue to get the transactions done. It is here to change that all. Now banking is no more taking out time from your schedule and to start with finding a place in the car park and then waiting for your turn to get to the counter. This new age banking gives you the freedom to do banking at your finger clicks. The easiest and the safest way of banking is here. Introduce yourself to net banking. Now you can do the transactions sitting right into your office cubicle or from your home. It can be said that with this the new era of banking has arrived and for the better of it. It is simple for anyone who has a access to internet. It certainly is beneficial compared to the traditional way of banking. You simply use internet instead of using paper or phone to access your account and can enjoy it from virtually anywhere, even if you are on a vacation to Bahamas. Secondly you can have the reports like your account information, monthly statements, reconciliation reports etc. whenever you want to access.
No calling up to the bank or the customer care to get a work done, everything is conveniently at the fingertips. The major concern of a few was the security of the net banking which is till now well addressed by the security applications or firewalls used by the banks providing this facility or the online banks. Every transaction made through it is completely safe and can be relied upon. Although there are some issues which one need to understand to keep the security levels high. You should try to avoid accessing your account from unsecured lines or machines. In any case do not revel your banking ID and password to anyone even if trying to pose a bank employee. These are the few things which make your overall experience wonderful and safe.
Advantages of internet banking
Advantages previously held by large financial institutions have shrunk considerably. The Internet has leveled the playing field and afforded open access to customers in the global marketplace. Internet banking is a costeffective delivery channel for financial institutions. Consumers are embracing the many benefits of Internet banking. Access to one’s accounts at anytime and from any location via the World Wide Web is a convenience unknown a short time ago. Thus, a bank’s Internet presence transforms from ‘brouchreware’ status to ‘Internet banking’ status once the bank goes through a technology integration effort to enable the customer to access information about his or her specific account relationship. The six primary drivers of Internet banking includes, in order of primacy are:
Improve customer access Facilitate the offering of more services Increase customer loyalty Attract new customers Provide services offered by competitors Reduce customer attrition It removes the traditional geographical barriers as it could reach out to customers of different countries/legal jurisdiction. This has raised the question of jurisdiction of law/supervisory system to which such transactions should be subjected. It has added a new dimension to different kinds of risks traditionally associated with banking, heightening some of them and throwing new risk control challenges. Security of banking transactions, validity of electronic contract, customers' privacy, etc., which have all along been concerns of both bankers and supervisors have assumed different dimensions given that Internet is a public domain, not subject to control by any single authority or group of users. It poses a strategic risk of loss of business to those banks who do not respond in time to this new technology, being the efficient and cost effective delivery.
Disadvantages of internet banking
INTERNET BANKING FRAUD : INTERNET BANKING FRAUD How to Spot Phishing Scams? It is easy to uncover a crude phishing scam. For example, if you get an email from a bank you’ve never opened an account at, then don’t follow the link and enter your personal information. Now, if you actually have an account at the institution it gets more interesting. You’ll want to look at the message carefully to see if it is a phishing scam. Are words misspelled? Sometimes scammers operate in a second language and they give themselves away by using poor grammar. The best way to avoid becoming a phishing scam victim is to use your best judgment. No financial institution with any sense will email you and ask you to input all of your sensitive information. In fact, most institutions are informing customers that “We will never ask you for your personal information via phone or email”. INTERNET BANKING FRAUD Why People Fall for Phishing Scams? Anybody can be tricked by a sophisticated phishing scam. Simple phishing scams are easy to spot, but the best scammers are actually pretty smart. They use a variety of tricks to make the phishing scam look like a legitimate process. For example, they might include a graphic from the bank right on the email message or website. Or, the link provided in the email may look like it goes to the bank’s website while the victim is actually sent to a very different site. INTERNET BANKING FRAUD Why Scammers Use Phishing Scams? Why would somebody do this? Well, you can gather a lot of juicy information with a phishing scam. First, you can get somebody’s account number and password. Then you can try to hijack their assets. Some phishing scams ask for all of your personal information (SSN, mother’s maiden name, date of birth, etc) so that they can steal your identity and open credit accounts in your name. Some victims of phishing scams have given up their credit card numbers only to find that the card was used fraudulently.
Security
The
Bank maintains the highest of standards as far as security technology is concerned, some of which are: 256 bit SSL encryption - This is the highest level of security available for communication and transactions on the Internet. SSL encryption allows the Bank to encrypt information, so that when it travels through the internet, it is encrypted and cannot be accessed by anyone.SSL also ensures that information is sent to the correct place and that it is not tampered with. Security of a customer's financial information is very important, without which online banking could not operate. Financial institutions have set up various security processes to reduce the risk of unauthorized online access to a customer's records, but there is no consistency to the various approaches adopted. The use of a secure website has become almost universally adopted. Though single password authentication is still in use, it by itself is not considered secure enough for online banking in some countries. Basically there are two different security methods in use for online banking.
The PIN/TAN system where the PIN represents a password, used for the login and TANs representing one-time passwords to authenticate transactions. TANs can be distributed in different ways, the most popular one is to send a list of TANs to the online banking user by postal letter. The most secure way of using TANs is to generate them by need using a security token.[ These token generated TANs depend on the time and a unique secret, stored in the security token (two-factor authentication or 2FA). Usually online banking with PIN/TAN is done via a web browser using SSL secured connections, so that there is no additional encryption needed. Another way to provide TANs to an online banking user is to send the TAN of the current bank transaction to the user's (GSM) mobile phone via SMS. The SMS text usually quotes the transaction amount and details, the TAN is only valid for a short period of time. Especially in Germany, Austria and The Netherlands, many banks have adopted this "SMS TAN" service as it is considered very secure.
Signature based online banking where all transactions are signed and encrypted digitally. The Keys for the signature generation and encryption can be stored on smartcards or any memory medium, depending on the concrete implementation.
Attacks Most of the 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 keylogger/Trojan horses can also be used to steal login information.
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 and faked 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.[4] The most recent kind of attack is the so-called Man in the Browser attack, where a Trojan horse permits a remote attacker to modify the destination account number and also the amount.
Countermeasures There exist several countermeasures which try to avoid attacks. Digital certificates are used against phishing and pharming, the use of class-3 card readers is a measure to avoid manipulation of transactions by the software in signature based online banking variants. To protect their systems against Trojan horses, users should use virus scanners and be careful with downloaded software or e-mail attachments.
Future of internet banking
Conclusion: The basic objective of my research was to analyze the awareness among customers for internet banking in India .it gives direction to research tools, research types and techniques. Although the findings reveal that people know about the services but still many people are unaware and many of them are nonusers so the bank should by promotion try to retain the customers. Banks should look forward to have some tie-ups with other financial institutions to increase the service base.
Introduction Internet banking (or online banking or E-banking) allows customers of a financial institution to conduct financial transactions on a secure website operated by the institution, which can be a retail or virtual bank, credit union or building society. To access a financial institution's online banking facility, a customer having personal Internet access must register with the institution for the service, and set up some password (under various names) for customer verification. The password for online banking is normally not the same as for telephone banking. Financial institutions now routinely allocate customer numbers (also under various names), whether or not customers intend to access their online banking facility. Customer numbers are normally not the same as account numbers, because a number of accounts can be linked to the one customer number. The customer will link to the customer number any of those accounts which the customer controls, which may be cheque, savings, loan, credit card and other accounts. To access online banking, the customer would go to the financial institution's website, and enter the online banking facility using the customer number and password. Some financial institutions have set up additional security steps for access, but there is no consistency to the approach adopted. Internet banking (or E-banking) means any user with a personal computer and a browser can get connected to his banks website to perform any of the virtual banking functions. Internet banking system the bank has a centralized database that i s w e b - e n a b l e d . A l l t h e s e r v i c e s t h a t t h e b a n k h a s p e r m i t t e d o n the internet are displayed in menu. Any service can be selected and further interaction is dictated by the nature of service. Once the branch offices of bank are interconnected through terrestrialo r s a t e l l i t e l i n k s , t h e r e w o u l d b e n o p h y s i c a l i d e n t i t y f o r a n y branch. It would a borderless entity permitting anytime, anywhere and anyhow banking. The delivery channels include direct dialup connections.
private networks, public networks, etc. with the popul a r i t y o f computers, easy access to Internet and World Wide Web (WWW),Internet is increasingly used by banks as a channel for receiving i n s t r u c t i o n s a n d d e l i v e r i n g t h e i r p r o d u c t s a n d services to theirc u s t o m e r s . T h i s f o r m o f b a n k i n g i s g e n e r a l l y r e f e r r e d t o a s Internet Banking, although the range of products and services offered by different banks vary w i d e l y b o t h i n t h e i r c o n t e n t a n d sophistication. United Online is the name of Internet Banking service of United Bank of India. The service is highly secure as it uses 256 bit SSL encryption for the data transmission through internet. internet banking is the electronic bank that provides the financial service for the individual client by means of Internet. different services, queries in their account balances, etc. but do not permit any fund-based transactions on their accounts;3. The third level of Internet banking service are offered by Fully Transactional Web sites which allow the customers to operate on their accounts for transfer of funds, payment of different bills, subscribing to other products of the bank and to transact purchase and sale of securities, etc. The above forms of Internet banking service the customer or by new banks, who deliver banking service primarily through Internet or other electronic delivery channels as the value added services. Some of these banks are known as „Virtual‟ banks or„ Internet only‟ banks and may not have physical presence in a country despite offering different banking services. The Indian Scenario: •Internet banking, both as a medium of delivery of banking services and as a strategic tool for business development. • At present, the total internet users in the country are estimated at 9 lakh. However, this is expected to grow exponentially to 90
lakh by 2003. Only about 1 percent of Internet users did banking online in 1998. This is increased to16.7 percent in March 2000.(India Research, May 29, 2000, Kotak Securities) • Cost of banking service through the Internet from a fraction of costs through conventional methods. Rough estimates assume teller cost at Re.1 per transaction, ATM transaction cost at 45 paise, phone banking at 35 paise, debit cards at 20paise and Internet banking at 10 paise per transaction
Features
1. Bill Pay Service - One of the biggest reasons for going with an online bank is to get really good bill payment services. Different banks handle bill payment different ways. Here are some things to think about: a. How many bills are you allowed to pay per month? b. What are the fees for going over the limit? c. Can the bill payment send physical checks to merchants who aren’t set up to take electronic payments? d. Do checks come from your account or from a third party service? For privacy reasons, it might be better to be able to pay someone without giving them your bank account number on the check. On the other hand, if the checks actually come from your account, the money doesn’t get taken out until the check is cashed. e. Can you set up reoccurring payments? 2. Electronic Bill Notification – With electronic bills, your merchant (credit card company, gas company, electric company, etc.) sends an electronic bill to your bank. You can set it up to pay automatically or notify you for approval. This can be particularly good for people who are on the road because it reduces the amount of physical mail you have to somehow get read or forwarded to you. 3. Online Check Images – Most banks will show you an image of the check, which makes it really easy to balance your account if you can’t remember what a particular payment was for. (Ideally, you should minimize the number of physical checks you write to reduce fraud.) 4. Online Deposit Slip Images – Most banks just record the total with no image. It will let you see an image of each deposit slip. Having the images available can be very helpful if you ever have to prove something for tax purposes or need to remember where that $2581 deposit came from. 5. Ease of Opening New Accounts – Once you have an account at the bank, you should be able to open additional accounts entirely online and just transfer money into it. For example, I set up a traditional IRA last year and it took me about 3 minutes to set up, deposit my money from checking and invest it in an index fund. 6. Reporting Tools – Most banks offer basic reporting tools that will let you see how much you have spent in each category you’ve created.
This may not be an issue if you use desktop money management software, but it still can be handy if you are traveling and want to see how much you’ve paid on your mortgage over the past 12 months. 7. Linked Accounts – Can you link your bank account with a brokerage account? Can you add your minor children as custodial accounts and manage them all centrally? If you and your spouse both set them up IRAs, is it easy to view them both along side the rest of your finances, or do you have to have a separate login for each IRA to keep them on separate SSNs? These are small things that many banks don’t support, but it starts getting really complicated when you have to manage a bunch of accounts instead of having a single place to manage all of your money. 8. Convenient Deposit Methods - Since you may not be anywhere near the physical location of your bank, make sure you understand how to deposit money. Payroll can be set up on direct deposit, but there will be times when you need to deposit checks. Does the bank provide postage paid envelopes and deposit slips? Some banks work with FedEx or UPS stores to allow you to send in a deposit overnight for free. 9. Low ATM Fees and Convenient Locations – If you need to get cash, will the bank refund the ATM fees? Are there only certain ATMs that are free, and if so, are they located near places you normally go? Are the ATMs available nation wide so you can use them on vacation? What are the fees for using the ATM internationally and how is the exchange rate handled? 10. Integration with Desktop Software – If you use Microsoft Money, Quicken or something similar, you’ll want to make sure your bank supports it. Make sure you understand if downloading transactions require you to login and manually download a file, or if your money management software can directly connect and download new transactions. If you are using Quicken on a Mac, make sure the bank is paying Quickens extortion fee so the files will work with Mac users. 11. Many Account Types – Some banks only offer basic checking and savings accounts. Ideally you want a bank that makes it easy to open money market accounts, IRAs, health savings accounts, etc. If you have to go to another institution to open a different type of account, it is more difficult to manage–especially if you are on the road. You want to be able
to easily open a CD to take advantage of a higher interest rate, easily open an IRA to help reduce your tax liability, etc. 12. Free Money Transfers – Be sure to consider how easy it is to move money in and out of the account. You should be able to set up links with your accounts from other institutions to transfer money back and forth as necessary. Make sure you understand what type of fees are associated with these transfers. Good banks should allow a certain number of transfers per month with no fee. 13. Security Balanced with Convenience - Some banks spend so much effort trying to keep things secure that you’ll find yourself automatically logged out of their website while you try to balance your account. You want security but you don’t want it to get in the way of you doing your banking. Also check into what type of additional security features are available. For example, some banks will offer you an RSA keychain with a number that changes every 60 seconds. In addition to your password, you will need the number from that key in order to get access to your account. 14. Ease of Use – This is something that most banks seem to struggle with. Right now I have my personal account with one online bank and my business accounts with another. I dread using the business accounts and I absolutely love using my personal account. At first I thought I was just more familiar with the bank where my personal accounts are, but I finally realize that it comes down to the ease of use. One is ok and the other is superb, but it makes a big difference. FEATURES OF INTERNET BANKING Transactional (e.g., performing a financial transaction such as an account to account transfer, paying a bill, wire transfer... and applications... apply for a loan, new account, etc.). – This is the most common functionality that is extensively used by banking consumers. Non-transactional (e.g., online statements, check links, chat) Financial Institution Administration - features allowing the financial institution to manage the online experience of their end users ASP/Hosting Administration - features allowing the hosting company to administer the solution across financial institutions Online banking facilities offered by various financial institutions have many features and capabilities in common, but also have some that are application specific. The common features fall broadly in to several categories
A bank customer can perform some non-transactional tasks through online banking, including viewing account balances viewing recent transactions downloading bank statements, for example in PDF format viewing images of paid cheques ordering cheque books Bank customers can transact banking tasks through online banking, including Funds transfers between the customer's linked accounts Paying third parties, including bill payments (see, e.g., BPAY) and telegraphic/wire transfers Investment purchase or sale Loan applications and transactions, such as repayments of enrollments
Financial institution administration Management of multiple users having varying levels of authority Transaction approval process Some financial institutions offer unique Internet banking services, for example
Personal financial management support, such as importing data into personal accounting software. Some online banking platforms support account aggregation to allow the customers to monitor all of their accounts in one place whether they are with their main bank or with other institutions.
Benefits of internet banking
Internet banking is all about making life easy. You can use technology to automate tedious tasks and save time for the more important things. As an added benefit, you often experience fewer errors and have an easier time of tracking things. Online banks allow you to have more choice and flexibility. You can do things on a computer, and you often get more competitive rates from online banks. They claim that they do not have the overhead and expenses associated with brick-and-mortar banks, so they can pass the savings on to you. Online banking makes our lives easier. However, it also makes a few things easier for criminals. For the most part, online banking actually makes you safer. While you can enjoy better returns and more convenience, online banking isn’t perfect. Set your expectations on what you have to give up in order to enjoy the benefits of online banking.
BENEFITS OF INTERNET BANKING CONVENIENCE –
available 24x7 (except for site maintenance) FREE (for most transactions) FAST (depends on internet bandwidth) RELIABLE (relies on security settings instituted by the bank) SECURE (two-level log-in measure)
There are many benefits of using net banking like
• • • • • • • •
It saves a lot of time and effort. Can transact with the click of a button. Completely safe and secure. Fewer fees with most of the services rendered free. Can coordinate with your financial software. Easy to understand and to use. Scores more points over traditional banking. Useful for everyone.
That's why internet banking is a popular service now used by millions of account holders worldwide. Now with the fast growth in the number of users opting for it, a number of online banks are building up to provide service to the customers.
These online only banks are virtual but provide quality service to customers offering them with many new and exciting features. However, when you apply for service from a particular bank, try to get as much as information about it before doing business with them. Ask questions till the time you get satisfied with the service record of the company.
Services offered by internet banking
Queries
Check Balance See Statement Inquire about cheque status Ask for a Statement Ask for a Cheque Book Inquire about Fixed Deposit Inquire about TDS details See Demat Account Update profile
Transactions
Stop a Cheque Pay Bills Ask for a Demand Draft Transfer funds between your accounts Transfer funds to a third party Request for a new Fixed Deposit Shop Online
Pay Bank Credit Card Dues There are four types of plastic cards being used as media for making payments. These are: Plastic Cards as Media for Payment: 1. 2. 3. 4. Credit Card Debit Card Smart Card ATM Card
1. Credit Cards: - The credit card enables the cardholders to Purchase any item like clothes, jewelery, railway/air tickets,
etc. Pay bills for dining in a restaurant or boarding and lodging in hotel Avail of any service like car rental, etc. 2. Debit Cards: -A debit card is issued on payment of a specified amount by the issuing company like a telephone company to a customer on cash payment or on debiting his account by a bank. Thus it is like an electronic purse, which can be read and debited by the required amount. It may be noted that while through a credit card, the customer first makes a purchase or avails service and pays later on, but for getting the debit card, a customer has to first pay the due amount and then make a purchase or avail the service. For this reason, debit card are not as popular as credit cards. 3. Smart Cards: -Smart Cards have a built-in microcomputer chip, which can be used for storing and processing information. For example, a person can have a smart card from a bank with the specified amount stored electronically on it. As he goes on making transactions with the help of the card, the balance keeps on reducing electronically. When the specified amount is utilized by the customer, he can approach the bank to get his card validated for a further specified amount. Such cards are used for paying small amounts like telephone calls, petrol bills, etc. 4. ATM Cards: - The card contains a PIN (Personal Identification Number) which is selected by the customer or conveyed to the customer and enables him to withdraw cash up to the transaction limit for the day. He can also deposit cash or cheque.
Mobile banking
Transfer money, pay bills, authorize payments, view your transaction history all from the convenience of your mobile phone.
With BOQ's latest electronic banking offering your mobile phone can now act as your own portable bank working with Internet banking to provide access to and control of all your accounts
Transfers
Transfer funds between your accounts and credit cards. Transfers between your nominated accounts are subject to any deposit and withdrawal limits that would normally apply. A transfer from your credit card will be treated as a cash advance. Withdrawal transfers are not allowed from some home loans, business loans, personal loans and Premier term investment accounts.
Pay bills with BPAY®
You can use BPAY to pay many of your household bills (e.g. gas, electricity, telephone). Just look for the distinctive BPAY logo on your bill to tell if it can be paid using Internet Banking. You can also keep the payment details for bills that you pay regularly on a frequent billers list. You can make a BPAY payment from your account or your credit card. If the biller does not accept credit card payments then the payment may be treated as a cash advance. Before you can use this service, you will need to choose your Daily Limits package. Any BPAY payments will be subject to your daily BPAY limit.
Receive bills online with BPAY View®
Using the BPAY View facility, you will have the ability to view bills electronically from participating billers through Internet Banking. Once you register with the relevant billers, you will be advised each time you log on if any new bills are available. You can also be notified via Internet email and/or via secure mail when a new BPAY View bill is delivered.
Pay Anyone Payments
Use Pay Anyone to make payments to a BOQ account or to accounts held at most other Australian financial institutions. You can also keep the payment details for payees that you pay regularly on a frequent payees list. Before you can use this service, you will need to choose your Daily Limits
package. Any Pay Anyone Payments will be subject to your daily Pay Anyone limit. You can make a Pay Anyone Payment from your account or your credit card. A credit card payment will be treated as a cash advance.
Multi Payments
You can make up to 100 payments in one request to BOQ accounts or accounts held at most other Australian financial institutions. You can also save the payment details for payees that you pay regularly. Before you can use this service, you will need to choose your Daily Limits package. Any Multi Payments will be subject to your daily Pay Anyone limit. You can make a Multi Payment from your account or your credit card. A credit card payment will be treated as a cash advance.
Foreign Currency Calculator
A currency calculator that allows you to convert foreign currencies to and from the Australian dollar based on the current exchange rates.
International and RTGS (Real Time Gross Settlement) payments
You can request both international payments and domestic currency RTGS payments from within Internet Banking. Internet Banking will also store your frequently used beneficiaries for future use as well as display a payment history.
Open or Apply for new accounts
You can request a new account (selected products only) be opened for you from within Internet Banking with no need to attend a BOQ branch (currently personal customers only). You also have access to BOQApply where you can apply for a number of different BOQ products.
Direct Debits
Once registered as a Debit Payment user you will be able to create, save and edit a group of Direct Debits online. This feature is ideal for collecting gym subscriptions as an example. You are also able to save a list of payers for future use.
Daily Limits package for BPAY and Pay Anyone payments
When you register for Internet Banking you will be offered a number of daily limits packages to choose from. These will define the daily transaction amount limit for Pay Anyone (including Multi Payments) and BPAY transactions performed via Internet Banking. The limit package can be set by the branch as part of the initial registration, and be effective immediately. You can also choose or change your limits package online – decreases are activated immediately and any increases will automatically be applied after 2 calendar days.
Extra online security using the BOQ Security Token
Protecting the integrity of our customers‟ financial information is our top priority, so we have introduced a superior level of online security using the BOQ Security Token. The BOQ Security Token is a small electronic device which generates a pass code that continually changes – this ensures maximum protection for your transactions. The BOQ Security Token will be provided to Internet Banking customers that have a daily Pay Anyone limit of $10,000 or greater. Note: all Payments File Upload Facility (PFUF) users must use the BOQ Security Token irrespective of their daily limit.
SMS banking services
You can register to receive SMS banking alerts and /or SMS account enquiries. SMSs will be sent to the mobile number you nominate in your Internet Banking registration.
SMS enquiries – enables you to request balances for accounts listed on your profile and which have been assigned a Quick Access Number (QAN) or view a list of the last 5 transactions for a specified account. Request and response are via SMS. The BOQ SMS number is 042 745 7272. SMS Alerts – enables you to elect to receive alerts (from a predefined list) to let you know when a specific event has occurred (e.g. Internet Banking payments greater than an amount specified by you has been made from one of your accounts).
Business features
Internet Banking is a great tool for businesses. It takes the hassle out of paying your employees and keeping records of all your transactions.
Multi Payments
You can use Multi Payments to make up to 100 payments in one request. This is ideal for payroll payments. You can also save the details of regular payees. Before you can use this service you need to choose your Daily Limits Package (if you haven't already chosen one). Multi Payments will be subject to your daily Pay Anyone limit. You can make a Multi Payment from a nominated account or your credit card. A credit card payment will be treated as a cash advance.
Direct Debits
Once registered as a Debit Payment user you will be able to create, save and edit a group of Direct Debits online. This feature is ideal for collecting gym subscriptions as an example. You are also able to save a list of payers for future use.
Mobile banking
Transfer money, pay bills, authorize payments, view your transaction history all from the convenience of your mobile phone. With BOQ's latest electronic banking offering your mobile phone can now act as your own portable bank, working with internet banking to provide access to and control of all your accounts.
Payments File Upload
The Payments File Upload Facility is a fast and easy way to process your direct debits, subscriptions, salaries, wages and other credits direct to your employees‟ (or other recipients) accounts anywhere in Australia. Use your own accounting package to create a file of payments, then transmit the file to us using Internet Banking.
Apply for Payments File Upload Facility (PFUF):
To process direct credits via the Payments File Upload Facility please complete the Payments File Upload Facility Application (PDF 415KB). To process direct debits you will need to complete the Debit User Pack (PDF 660KB). If you want to process both direct credits and direct debits please complete both forms. Then take the completed form(s) to your local BOQ branch or Business Banking Centre.
Daily Limits package for BPAY® and Pay Any one payments
When you register for Internet Banking you will be offered a number of daily limits packages to choose from. These will define the daily transaction amount limit for Pay Anyone payments (including Multi Payments) and BPAY transactions via Internet Banking. Your Daily Limits Package can be set or changed by the branch and be effective immediately. You can also choose or change your limits package online. Any decreases requested online are immediate and increases will automatically be applied after 2 calendar days.
Extra online security using the BOQ Security Token
Protecting the integrity of our customers‟ financial information is our top priority, so we have introduced a superior level of online security using the BOQ Security Token. The BOQ Security Token is a small electronic device which generates a password that continually changes – this ensures maximum protection for your transactions. The BOQ Security Token will be provided to Internet Banking customers that have a daily Pay Anyone limit of $10,000 or greater. Note: all Payments File Upload Facility (PFUF) users must use the BOQ Security Token irrespective of their daily limit.
SMS banking services
You can register to receive SMS banking alerts and/or SMS account enquiries. SMSs will be sent to the mobile number you nominate in your Enhanced Internet Banking profile.
SMS enquiries – allows you to request balances for accounts listed on your profile or view a list of the last 5 transactions for a specified account. Request and response are via SMS. SMS Alerts – allows you to elect to receive alerts (from a predefined list) to let you know when a specific event has occurred (e.g. Internet Banking transactions greater than an amount specified by you has been made from one of your accounts)
Multi user transaction authorization and privilege delegation
Using the multiple account user and privilege delegation features you can enforce dual or multiple authorizations for transactions. For example, the accounts clerk could create the payroll template with the actual payment being authorized by the payroll manager.
Related Account Access
The Related Account Access feature can be used to authorize a person who is a signatory on the business account (and who has individual operating authority), to access the business account using his or her personal Internet banking profile. This avoids the need for the signatory to use two separate Customer Access Numbers and Personal Access Codes to access the personal account and the business account. Additionally, funds can be transferred to and from the personal and business accounts as funds transfers instead of Pay Anyone Payments. In order to be eligible for Related Account Access the following conditions must be met:
the person who is given access to the account must be a signatory on the account the account holder must apply for the person to have access to the account
Related Account Access in practice: ABC Pty Ltd has two directors and the company accounts have an “either to sign” operating authority. Additionally, both directors have personal accounts with BOQ and Internet Banking access for those personal
accounts. ABC Pty Ltd can apply for Related Account Access and allow both directors to access the company accounts from their personal Internet Banking profiles. Each director will need to use his or her own Customer Access Number and Personal Access Code to access the company‟s accounts. Apply for Related Account Access:
1. The account holder needs to complete the Related Account Access Application (PDF 500KB) 2. Take the completed form to your local BOQ branch or Business Banking Centre for processing. It should be noted that:
a separate application is required for each related account user the user‟s personal Pay Anyone payment limits and access restrictions apply
Internet banking is the new buzz word around the corner. Forget traditional banking and the way you used up to queue to get the transactions done. It is here to change that all. Now banking is no more taking out time from your schedule and to start with finding a place in the car park and then waiting for your turn to get to the counter. This new age banking gives you the freedom to do banking at your finger clicks. The easiest and the safest way of banking is here. Introduce yourself to net banking. Now you can do the transactions sitting right into your office cubicle or from your home. It can be said that with this the new era of banking has arrived and for the better of it. It is simple for anyone who has a access to internet. It certainly is beneficial compared to the traditional way of banking. You simply use internet instead of using paper or phone to access your account and can enjoy it from virtually anywhere, even if you are on a vacation to Bahamas. Secondly you can have the reports like your account information, monthly statements, reconciliation reports etc. whenever you want to access.
No calling up to the bank or the customer care to get a work done, everything is conveniently at the fingertips. The major concern of a few was the security of the net banking which is till now well addressed by the security applications or firewalls used by the banks providing this facility or the online banks. Every transaction made through it is completely safe and can be relied upon. Although there are some issues which one need to understand to keep the security levels high. You should try to avoid accessing your account from unsecured lines or machines. In any case do not revel your banking ID and password to anyone even if trying to pose a bank employee. These are the few things which make your overall experience wonderful and safe.
Advantages of internet banking
Advantages previously held by large financial institutions have shrunk considerably. The Internet has leveled the playing field and afforded open access to customers in the global marketplace. Internet banking is a costeffective delivery channel for financial institutions. Consumers are embracing the many benefits of Internet banking. Access to one’s accounts at anytime and from any location via the World Wide Web is a convenience unknown a short time ago. Thus, a bank’s Internet presence transforms from ‘brouchreware’ status to ‘Internet banking’ status once the bank goes through a technology integration effort to enable the customer to access information about his or her specific account relationship. The six primary drivers of Internet banking includes, in order of primacy are:
Improve customer access Facilitate the offering of more services Increase customer loyalty Attract new customers Provide services offered by competitors Reduce customer attrition It removes the traditional geographical barriers as it could reach out to customers of different countries/legal jurisdiction. This has raised the question of jurisdiction of law/supervisory system to which such transactions should be subjected. It has added a new dimension to different kinds of risks traditionally associated with banking, heightening some of them and throwing new risk control challenges. Security of banking transactions, validity of electronic contract, customers' privacy, etc., which have all along been concerns of both bankers and supervisors have assumed different dimensions given that Internet is a public domain, not subject to control by any single authority or group of users. It poses a strategic risk of loss of business to those banks who do not respond in time to this new technology, being the efficient and cost effective delivery.
Disadvantages of internet banking
INTERNET BANKING FRAUD : INTERNET BANKING FRAUD How to Spot Phishing Scams? It is easy to uncover a crude phishing scam. For example, if you get an email from a bank you’ve never opened an account at, then don’t follow the link and enter your personal information. Now, if you actually have an account at the institution it gets more interesting. You’ll want to look at the message carefully to see if it is a phishing scam. Are words misspelled? Sometimes scammers operate in a second language and they give themselves away by using poor grammar. The best way to avoid becoming a phishing scam victim is to use your best judgment. No financial institution with any sense will email you and ask you to input all of your sensitive information. In fact, most institutions are informing customers that “We will never ask you for your personal information via phone or email”. INTERNET BANKING FRAUD Why People Fall for Phishing Scams? Anybody can be tricked by a sophisticated phishing scam. Simple phishing scams are easy to spot, but the best scammers are actually pretty smart. They use a variety of tricks to make the phishing scam look like a legitimate process. For example, they might include a graphic from the bank right on the email message or website. Or, the link provided in the email may look like it goes to the bank’s website while the victim is actually sent to a very different site. INTERNET BANKING FRAUD Why Scammers Use Phishing Scams? Why would somebody do this? Well, you can gather a lot of juicy information with a phishing scam. First, you can get somebody’s account number and password. Then you can try to hijack their assets. Some phishing scams ask for all of your personal information (SSN, mother’s maiden name, date of birth, etc) so that they can steal your identity and open credit accounts in your name. Some victims of phishing scams have given up their credit card numbers only to find that the card was used fraudulently.
Security
The
Bank maintains the highest of standards as far as security technology is concerned, some of which are: 256 bit SSL encryption - This is the highest level of security available for communication and transactions on the Internet. SSL encryption allows the Bank to encrypt information, so that when it travels through the internet, it is encrypted and cannot be accessed by anyone.SSL also ensures that information is sent to the correct place and that it is not tampered with. Security of a customer's financial information is very important, without which online banking could not operate. Financial institutions have set up various security processes to reduce the risk of unauthorized online access to a customer's records, but there is no consistency to the various approaches adopted. The use of a secure website has become almost universally adopted. Though single password authentication is still in use, it by itself is not considered secure enough for online banking in some countries. Basically there are two different security methods in use for online banking.
The PIN/TAN system where the PIN represents a password, used for the login and TANs representing one-time passwords to authenticate transactions. TANs can be distributed in different ways, the most popular one is to send a list of TANs to the online banking user by postal letter. The most secure way of using TANs is to generate them by need using a security token.[ These token generated TANs depend on the time and a unique secret, stored in the security token (two-factor authentication or 2FA). Usually online banking with PIN/TAN is done via a web browser using SSL secured connections, so that there is no additional encryption needed. Another way to provide TANs to an online banking user is to send the TAN of the current bank transaction to the user's (GSM) mobile phone via SMS. The SMS text usually quotes the transaction amount and details, the TAN is only valid for a short period of time. Especially in Germany, Austria and The Netherlands, many banks have adopted this "SMS TAN" service as it is considered very secure.
Signature based online banking where all transactions are signed and encrypted digitally. The Keys for the signature generation and encryption can be stored on smartcards or any memory medium, depending on the concrete implementation.
Attacks Most of the 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 keylogger/Trojan horses can also be used to steal login information.
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 and faked 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.[4] The most recent kind of attack is the so-called Man in the Browser attack, where a Trojan horse permits a remote attacker to modify the destination account number and also the amount.
Countermeasures There exist several countermeasures which try to avoid attacks. Digital certificates are used against phishing and pharming, the use of class-3 card readers is a measure to avoid manipulation of transactions by the software in signature based online banking variants. To protect their systems against Trojan horses, users should use virus scanners and be careful with downloaded software or e-mail attachments.
Future of internet banking
Conclusion: The basic objective of my research was to analyze the awareness among customers for internet banking in India .it gives direction to research tools, research types and techniques. Although the findings reveal that people know about the services but still many people are unaware and many of them are nonusers so the bank should by promotion try to retain the customers. Banks should look forward to have some tie-ups with other financial institutions to increase the service base.
