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E-banking PowerPoint PPT Presentation


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E-banking. Content. 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. What is E-banking?. Definition:

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E-banking

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E-banking


Content

  • 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


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.


Development of E-banking

1980s :

- Rapid development of the Internet

- TCP/IP system (communication system)

- E-commerce


Development of E-banking

Early 1980s :

-Access to their accounts with the computer of the bank .


Development 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


Development 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


Distribution of Three Types of Internet Banking

  • 35 institutions

  • 80% of total customer deposits

    - 60% of total assets of Hong Kong banking sector


Growth of Internet Banking Accounts

  • Personal internet banking accounts grew 12.5%

  • Business internet banking accounts grew 53.3%


Distribution of Internet Banking among 35 Institutions

  • Six major institutions are serving :

  • - 78% of all personal internet banking accounts

  • - 66% of all business internet banking accounts


Advantages of E-banking

  • Benefits for Banks

  • Benefits for Small to Medium Businesses

  • Benefits for Customers


Benefits 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


Benefits for Small to Medium Businesses

  • To run its operations more effectively

  • Lower cost than traditional financial management mechanisms


Benefits 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


Benefits for Customers

Communication

  • communicate easily

    Environmental

  • Abolishing the uses of paper

    Others

    -Offering one-stop-shop solutions


Brokerage Services

  • To create a group of investment to observe

  • To learn about companies’ financial performance online


Automatic Teller Machine( ATM )

  • First electronic channel introduced to HK

  • Accepting deposits and dispenses cash

  • Convenient in handling accounts


A Demonstration of Paying Tax Online of HSBC

Step 1

- Click “Add New Merchant”


- Choose the category, merchant and bill type

- Insert the bill payee account number

A 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

A Demonstration of Paying Tax Online of HSBC

Step 2


Disadvantages on E-banking

A need for customer skill to deal with computers and browsers. E.g. Elderly, Housewives → Inconvenient

Site change it will make the customer have some confusion or delay.

Security Risk


Security 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


Fraudulent 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.


Fake Emails

  • Email send fromFraudulent bank

  • Verify the personal information

  • Guide customerenter the fraud link

  • Disclosing their ATM card numbers and their passwords


Viruses and Worms-Trojan 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


Persecutions

For Bank:

  • Should provide specific guidance to their customers


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.


  • 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.


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.

Case From Newspaper


Multiple Security Controls


Step 1

  • Unique ID and PIN to login


Step 2

  • Unique Singer PIN to authorize transaction


Step 3

  • 128-Bit SSL & java applet guarantee end-to-end encryption


Step 4

  • Optional use of digital certificate to login and sign transaction


The End


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