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- 1. On-Line Banking Global Trends and Local Prospects RITUL SONANIA 2005H124416 BITS-Pilani 4 thMarch 2006
- Definition of Online banking
- The difference between PC banking and Internet Banking
- The Importance of Online banking
- Pros & Cons
- Past, Present & Future
- Services Offered
- Usage Rates
- Faced Problems, and problems solved
- Online banking in India
- Current scenario
3. What is On-line Banking
4. Why is it Important
- For Customers:
- No need to mess up in queues.
- They need bank to be always available.
- For Banks:
- The most important reason being ECONOMICS.
- Each Internet transaction typically costs the bank one cent.
- Compare that with 27 cents for each ATM transaction.
- USD 1.07 every time user visits to a tellers window !!!
5. Cost per Transaction 6. PC vs. Internet Banking
- PC Banking(also known as Home Banking):
- The use of proprietary financial software running on a computer in the home.
- Direct dial-in into the banks servers.
- Internet Banking:
- Similar in functionality to PC Banking
- Allows access through a browser eliminating the need for proprietary software
- Can be accessed through a regular Internet connection, through the sites public web site.
7. Past, Present & Future
- No automated services
- Interactive Bank(Includes formatted email service, online calculator)
- Intermediate Cyberbank(Lets customers consult accounts online)
- Advanced Cyberbank(Fully transactional for transfers, payments, sales)
- Interfaced Services
[ a] Services Offered 8. Past, Present & Future Past Present Future SimpleBrochure Interfaced Services Advanced Cyberbank Intermediate Cyberbank Interactive Bank Advanced Brochure [ A] Services Offered 9. Services Presently Available Product / Function Standard Services ATMs Checking Credit Cards Customer Services Home Equity Loans ATM locator with addresses Balance & transactionhistory Download to OFX enabledsoftware Available credit & Tn. History FAQs and Emails/contacts Rates & pay. Calculators Balance & Trans. History Investments Yields, Prospectus & Sign-up Forms 10. Services of the Future
- PUSH services -
- alerts, emails, webcasting, outbound messaging
- Cellular Financial Processors
- Linking Banking with GSM
- Privacy Protection
- & Fraud-prevention services
11. Past, Present & Future
- [ b] On-line Banking Penetration in U.S Households
5MM 1997 9MM 1998 15MM 1999 22MM 2000 28MM 2001 12. Online banking Problems
- On-line bankers need & want the following 5 features :
- A sophisticated security system
- Low fees
- Real-time information & detailed account info.
- 24 Hour customer service features
- Wide array of products
13. Indian Scenario
- Started ATM service in mid 90s.
- Banking masters, ICICI & Citibank were on top in 2001.
- By 2002, 50% major private sector banks were online (partially).
- By 2003, SBI started Internet Banking (on lower level).
- By 2005 all major banks are providing full Internet Banking.
- There is no Internet-only bank in India.
- Presently less than 2% of all Indian customers are using this.
14. On-Line Banking is the kind of breakthrough service, like ATMs, that will change the defition of banking but most certainly traditional banking survives in India. Conclusion