Internet Banking 1

8/8/2019 Internet Banking 1

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Group J

INTERNET BANKING


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Group Members

Sandeep Bhagwat

Keshav Modi

Neha Birari

Nikhil Mehra

SanilYadav

Wasifkhan


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Timeline

y In 80s, banksstartedto establish centralizeddata processing

centers.

y Essentiallythe roles ofthesedata processing centersare:

y Collectthe handwrittendocumentsfrom branches

y Compilethedocuments

y

Manualdataentry bythe operatorsy Generate reportsfor the bankstaffandthe central bank

y Executesome bankingtransactions


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Timeline (Branch Automation)

y In 90s, banksstartedtechnology investmentsfor thebranches.

y Thefirststep is offline branches-

Terminals connectedto local branch computer

y

Thesecondstep is online branches-Connected centrally. Most ofthetransactionsstartedto be

performedinthe central mainframe.


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Sample Internet Banking Architecture


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Pervasive Branch

Network

Global Operations

Complex Credit

Calculations

Innovative RiskManagement

Mass Transaction

& Items Processing


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Features1. Transactional

y Fundtransfer

y Electronic bill presentmentand payment

y

Investment purchase or saley Loanapplicationsandtransactions

2. Nontransactional

y Onlinestatements

yChecklinks

y Co-browsing

y Chat

3. Personal ManagementService


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Benefits of Internet Banking

y Quality customer service

y Organized customer data

y Minimaltransaction costs

y Facilitatethe offering ofmoreservices

y Attractsnew customers


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Benefits to Customers

y More convenience & flexibletimings

y Better awareness ofproducts & services

y Up-to-dateinformation onaccounts

y Low cost ofaccessingtheaccounts

y Accessibility

y

Value


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y Transfer funds online

y Requestfor cheque book

y Stop cheque or payments

y Payment ofcredit card or other utility bills

y Managefixeddeposit

y Tax calculationand payment

y Debit card online

y Secure mailbox


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Onlinesecurity

Complete control

over theaccounts

Save money [demand

draft] Account balance

enquiry

Openfixeddeposit

Linkyourbank/demat/card

accounts

Prepaid mobile

recharge

Senda money order Subscribefor mobile

banking

Requesta change of

address

Monthly banka/cstatement

Re-issue or upgrade

your ATM card

Ticket booking

Customizeyour

profilefor safety

Definelimits

Interfacewith

merch

antsfor

railwayandairline

reservations


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Core BankingSystem (CBS)y Itsanintegration of-

Bankemployees head office, regional offices & branches.

Bank Management:Executives/Managersat respectivelocations

head office, regional offices & branches.

Bank customers:Personal banking, corporate banking &

international banking.

BankAuditors,internalandexternalauditorswho needto

verifysystemsand procedures.

BankRegulators: Mandatory reportingto central bankand

other financial bodies.

Bankshare holders:Providingthedesired returnto

shareholdersfrom banking operations.


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Components of CBSy GeneralLedger

y Customer InformationSystem

y DepositSystem

y LoanSystem

y ManagementInformationSystem (MIS)

New Components (Add-on)-

yBranch Automationsystem

y ATM Switch and connectedATM

y Call center system

y Internet BankingSystem


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Impact of CBS(1)y Bank Employee: Head office, regional offices, branches

etc:UsingCore bankingSystem.With appropriateauthority

employeeasgivenabove can help customersdo their

financialtransaction.

y Bank management: Executives/ managersat respective

locations, head office, regional offices, branchesetc. can

obtainthefinancial positionfrom Core BankingSystems

relatedthe respectivesphere ofbanking operationsandthus

help pinpoint potential problemsso asto avoid crises.

y Bank Customers: Can operateany oftheir accountsfrom

any branch or preferreddelivery channeland haveaccessto

hisfundsanytime24 hoursaday.


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Impact of CBS(2)y Bank Auditors : Onesaccountsaudited,they operatethe

sameyear onyear thusenablingauditorsto focus more on

systemsand proceduresatdelivery channelslike branches,

call center etc.

y Bank regulators: CBS producethe required reportsfor

regulatory bodieslikethe central bank,financialstatement,

assetandliability reports,NPA reports,large currency &

transaction reports.areall produced byeither thedeposits,

or theloan or a combination ofdeposit,loan.

y Bank Share Holders: C.B. providingthedesired returnto

shareholdersfrom banking operationsTrends overtime on

such datainformsS.H.about howthe banksisdoingand help

taketimelyactionto accelerate or improve performance.


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Communication Networks

y BankNet

y INFINet

ySWIFT

y Electronic DataInterchange (EDI)

y Electronic FundsTransfer (EFT)System

y Electronic ClearingServices (ECS)

y ATM network- SWADHAN (SharedPaymentNetworkSystem -SPNS)

y RTGS


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Issues with Internet Banking

y Issues ofConfidentiality

y HackingandFraud prone

y Scopefor failure ofTechnology

y Resultantdenial ofServices


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HOW TOOVERCOME IT??

1. Firewalls

2. Filtering routers

3. Encryptiontechniques


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Where does INDIA stand??

y Competitionfrom non-traditionalinstitutions

y Indian banks retail banking

y Emerging phase

y Provide only basic servicesas comparedto foreignand

private banks


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THANK YOU

Internet Banking 1

Documents

Transcript of Internet Banking 1