Content What is E-banking? Development of E-banking Advantages of the E-Banking Disadvantages and...
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ContentContent
• What is E-banking?
• Development of E-banking
• Advantages of the E-Banking
• Disadvantages and Risk of E-banking
• Precaution of risk and security
• Persecutions
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What is E-banking?What is E-banking?
Definition:
The provision of banking service through electronic channels and the customer can access the data without any time and geographical limitation.
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Development of E-bankingDevelopment of E-banking
1980s :
- Rapid development of the Internet
- TCP/IP system (communication system)
- E-commerce
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Development of E-bankingDevelopment of E-banking
Early 1980s :
- Access to their accounts with the computer of the bank .
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Development of E-bankingDevelopment of E-banking
May 1995 :
Wells Fargo - the first bank in the world to offer customer access to their accounts over the internet .
• Allows customer to see their accounts online
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Development of E-bankingDevelopment of E-banking
Hong Kong (September 1999 ):
Bank of East Asia - first launched Internet banking
• Mortgage applications , personal loans and stock trading
• Basic banking functions
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Distribution of Three Types of Internet Distribution of Three Types of Internet BankingBanking
• 35 institutions- 80% of total
customer deposits
- 60% of total assets of Hong Kong banking sector
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Growth of Internet Banking AccountsGrowth of Internet Banking Accounts
• Personal internet banking accounts grew 12.5%
• Business internet banking accounts grew 53.3%
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Distribution of Internet Banking among Distribution of Internet Banking among 35 Institutions35 Institutions
• Six major institutions are serving :- 78% of all personal internet banking accounts- 66% of all business internet banking accounts
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Advantages of E-bankingAdvantages of E-banking
• Benefits for Banks
• Benefits for Small to Medium Businesses
• Benefits for Customers
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Benefits for BanksBenefits for Banks
• Larger customer coverage
• Reducing the costs of operations
• Promoting their services and products internationally
• Increasing the customer satisfaction and providing a personalized relationship with customers
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Benefits for Small to Medium BusinessesBenefits for Small to Medium Businesses
• To run its operations more effectively
• Lower cost than traditional financial management mechanisms
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Benefits for CustomersBenefits for Customers
Convenience- 24 hours a day, seven days a week
Cost- Reducing transfer fees
Speed- Faster circulation of assets
Competitiveness- Fostering competition in financial market
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Benefits for CustomersBenefits for Customers
Communication- communicate easily
Environmental- Abolishing the uses of paper
Others - Offering one-stop-shop solutions
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Brokerage ServicesBrokerage Services
• To create a group of investment to observe
• To learn about companies’ financial performance online
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Automatic Teller Automatic Teller Machine( ATM )Machine( ATM )
• First electronic channel introduced to HK
• Accepting deposits and dispenses cash
• Convenient in handling
accounts
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A Demonstration of Paying Tax Online of HSBC
Step 1
- Click “Add New Merchant”
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A Demonstration of Paying Tax Online of HSBCA Demonstration of Paying Tax Online of HSBC
- Choose the category, merchant and bill type - Insert the bill payee account number
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A Demonstration of Paying Tax Online of HSBCA Demonstration of Paying Tax Online of HSBC
• Choose the account that you want to transfer from• Insert the amount of fund that you would like to transfer• Choosing the date of transfer
Step 2Step 2
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Disadvantages on E-bankingDisadvantages on E-banking
•A need for customer skill to deal with A need for customer skill to deal with computers and browsers. computers and browsers.
E.g. Elderly, Housewives → InconvenientE.g. Elderly, Housewives → Inconvenient
•Site change it will make the customer Site change it will make the customer have some confusion or delay. have some confusion or delay.
•Security RiskSecurity Risk
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Security RiskSecurity Risk
• Increasing number of fraudulent bank websites
• Fake emails purporting to be sent from banks
• Use of Trojan Horse programs to capture user IDs and passwords
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Fraudulent Bank WebsitesFraudulent Bank Websites
• A suspicious bank website:www.onlinebea.com
• Original bank websitewww.hkbea.com
• The website was believed to aim to trick persons into disclosing their sensitive personal information.
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Fake EmailsFake Emails
• Email send fromFraudulent bank
• Verify the personal information
• Guide customerenter the fraud link
• Disclosing their ATM card numbers and their passwords
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Viruses and WormsViruses and Worms--Trojan Horse ProgramTrojan Horse Program
• When we open some suspiciouswebsites or email
• Trojan Horse Programwill install our computer secretly
• Hidden in the computer• When you access
bank websites• Capture our
account andthe password
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PersecutionsPersecutions
For Bank:
• Should provide specific guidance to their customers
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For Customers :
• Should not disclose their customer IDs (e.g., account numbers) or passwords to anyone else.
• Periodically change their passwords
• Should promptly log out from the service
• Should regularly check their account balances and statements to identify unusual transactions.
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• Do not access Corporate Cyberbanking through public terminals.
• To safeguard your computer from any other hacker attack, install anti-virus and anti-spyware software on your computer and update it regularly.
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Case From NewspaperCase From Newspaper
• Don’t use the hyperlink to login to the website of banks
• Should deeply check the postscript of the website
• Observe that is it have the encryption and compare the login account of encryption cert is equal to the bank.
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Multiple Security Multiple Security ControlsControls
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Step 1Step 1
• Unique ID and PIN to login
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Step 2Step 2
• Unique Singer PIN to authorize transaction
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Step 3Step 3
• 128-Bit SSL & java applet guarantee end-to-end encryption
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Step 4Step 4
• Optional use of digital certificate to login and sign transaction
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TheThe End End