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An Introduction to Internet Banking

An Introduction to Internet Banking SSGRR 2001. 2 of 110. Presentation Outline . Introduction to E-Banking. Internet bank demo ? customer's point of view. Setting up an Internet bank channel . Security issues. Internet bank demo ? small community bank . Conclusions. Searching for financial infor

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An Introduction to Internet Banking

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    1. An Introduction to Internet Banking Milos Kovacevic, milos@grf.bg.ac.yu Nikola Klem, klem@grf.bg.ac.yu Veljko Milutinovic, vm@etf.bg.ac.yu University of Belgrade, Yugoslavia

    2. An Introduction to Internet Banking SSGRR 2001 2 of 110 Presentation Outline Introduction to E-Banking

    3. Introduction to E-Banking The basis

    4. An Introduction to Internet Banking SSGRR 2001 4 of 110 Introduction to E-Banking Introduction to E-Business

    5. An Introduction to Internet Banking SSGRR 2001 5 of 110 Introduction to E-Business

    6. An Introduction to Internet Banking SSGRR 2001 6 of 110 Introduction to E-Business Buy gifts for your childs birthday

    7. An Introduction to Internet Banking SSGRR 2001 7 of 110 Introduction to E-Business

    8. An Introduction to Internet Banking SSGRR 2001 8 of 110 European E-Business momentum

    9. An Introduction to Internet Banking SSGRR 2001 9 of 110 European E-Business momentum

    10. An Introduction to Internet Banking SSGRR 2001 10 of 110 European E-Business momentum

    11. An Introduction to Internet Banking SSGRR 2001 11 of 110 What is E-Bank? customer desk at banks building working time from 8.00 am to 19.00 pm

    12. An Introduction to Internet Banking SSGRR 2001 12 of 110 What is E-Bank E-Bank is transforming banking business into E-Business thru utilizing various E-Channels

    13. An Introduction to Internet Banking SSGRR 2001 13 of 110 What is E-Bank? E-Channels enable financial transactions from anywhere working time is non-stop

    14. An Introduction to Internet Banking SSGRR 2001 14 of 110 Why to do E-Banking

    15. An Introduction to Internet Banking SSGRR 2001 15 of 110 Some facts about E-Banking in Europe

    16. An Introduction to Internet Banking SSGRR 2001 16 of 110 Some facts about E-Banking in Europe

    17. An Introduction to Internet Banking SSGRR 2001 17 of 110 Some facts about E-Banking in Europe

    18. An Introduction to Internet Banking SSGRR 2001 18 of 110 Some facts about E-Banking in Europe

    19. An Introduction to Internet Banking SSGRR 2001 19 of 110 Some facts about E-Banking in USA

    20. An Introduction to Internet Banking SSGRR 2001 20 of 110 Some facts about E-Banking in USA

    21. An Introduction to Internet Banking SSGRR 2001 21 of 110 Internet Banking

    22. Internet Bank Demo Customers point of view

    23. An Introduction to Internet Banking SSGRR 2001 23 of 110 Internet Bank Demo customers point of view

    24. An Introduction to Internet Banking SSGRR 2001 24 of 110 Customer should have a

    25. An Introduction to Internet Banking SSGRR 2001 25 of 110 Equifax demo primer

    26. Security Issues How security works in Internet communications

    27. An Introduction to Internet Banking SSGRR 2001 27 of 110 Security issues What are the security problems in Internet communication

    28. An Introduction to Internet Banking SSGRR 2001 28 of 110 Security problem Spoofing How can I reassure customers who come to my site that they are doing business with me, not with a fake set up to steal their credit card numbers?

    29. An Introduction to Internet Banking SSGRR 2001 29 of 110 What do we have to achieve Authentication no spoofing

    30. An Introduction to Internet Banking SSGRR 2001 30 of 110 Solutions are . . . Digital certificates for Web servers, to provide authentication and data integrity

    31. An Introduction to Internet Banking SSGRR 2001 31 of 110 Cryptography basis Asymmetric approach

    32. An Introduction to Internet Banking SSGRR 2001 32 of 110 Symmetric approach Both sides use the same key for encryption and decryption

    33. An Introduction to Internet Banking SSGRR 2001 33 of 110 Asymmetric approach Sender uses public key for encryption receiver uses private key for decryption

    34. An Introduction to Internet Banking SSGRR 2001 34 of 110 Hybrid approach Using symmetric approach for data encryption

    35. An Introduction to Internet Banking SSGRR 2001 35 of 110 Key management problem Key distribution (in symmetric approach)

    36. An Introduction to Internet Banking SSGRR 2001 36 of 110 Digital Signatures To provide authentication and data integrity of electronic documents

    37. An Introduction to Internet Banking SSGRR 2001 37 of 110 Digital Signatures

    38. An Introduction to Internet Banking SSGRR 2001 38 of 110 Digital Certificates An electronic file that uniquely identifies communication entities on the Internet

    39. An Introduction to Internet Banking SSGRR 2001 39 of 110 Digital Certificates

    40. An Introduction to Internet Banking SSGRR 2001 40 of 110 Secure Sockets Layer

    41. An Introduction to Internet Banking SSGRR 2001 41 of 110 SSL handshaking phase (simplified)

    42. An Introduction to Internet Banking SSGRR 2001 42 of 110 SSL data exchange phase (simplified)

    43. An Introduction to Internet Banking SSGRR 2001 43 of 110 Verification of DCs in user browser

    44. An Introduction to Internet Banking SSGRR 2001 44 of 110 About SSL strength

    45. An Introduction to Internet Banking SSGRR 2001 45 of 110 Useful links to visit

    46. Setting up an Internet Bank Channel Bankers point of view

    47. An Introduction to Internet Banking SSGRR 2001 47 of 110 Setting up an Internet Bank Channel Required tasks after initial introduction of new channel

    48. An Introduction to Internet Banking SSGRR 2001 48 of 110 Internet bank architecture

    49. An Introduction to Internet Banking SSGRR 2001 49 of 110 In-house architecture (CustomerLink primer)

    50. An Introduction to Internet Banking SSGRR 2001 50 of 110 Out-of-house architecture (CustomerLink primer)

    51. An Introduction to Internet Banking SSGRR 2001 51 of 110 Banking software architecture

    52. An Introduction to Internet Banking SSGRR 2001 52 of 110 Banking software architecture

    53. An Introduction to Internet Banking SSGRR 2001 53 of 110 Presentation logic

    54. An Introduction to Internet Banking SSGRR 2001 54 of 110 Application logic

    55. An Introduction to Internet Banking SSGRR 2001 55 of 110 Planning phase in setup process What are the services to be installed? What services we (bank) could implement in-house? What services we could implement thru ASPs (out-of-house)? Who are technology partners?

    56. An Introduction to Internet Banking SSGRR 2001 56 of 110 Application service providers ASP offers standardized packages of applications, necessary infrastructure, and certain degree of service

    57. An Introduction to Internet Banking SSGRR 2001 57 of 110 Application service providers division

    58. An Introduction to Internet Banking SSGRR 2001 58 of 110 Application service providers pros and cons

    59. An Introduction to Internet Banking SSGRR 2001 59 of 110 Planning phase in setup process (revisited) Complexity of a problem: telecommunications infrastructure security multi-tier software infrastructure maintenance

    60. An Introduction to Internet Banking SSGRR 2001 60 of 110 Required services for Internet banking Services offered by ASPs: Online personal banking (account information, transfers, deposits) Online cash management for companies Bill payment Check payment Card payment solutions Insurance services Web presentation design Web presentation hosting Web presentation administration Security Testing of electronic business software Remote administration of banks servers

    61. An Introduction to Internet Banking SSGRR 2001 61 of 110 Choosing strategic and technology partners Choosing the right ASP is the most important task in setup procedure An ASP must: be an expert for Internet access have experience in electronic business have a secure and fault-tolerant local area network have a good software solution have well-educated IT staff accessible 24 hours, 365 days

    62. An Introduction to Internet Banking SSGRR 2001 62 of 110 Choosing ASPs the cost of downtime

    63. An Introduction to Internet Banking SSGRR 2001 63 of 110 Choosing ASPs personal banking, cash management Equifax www.equifax.com www.efx-ebanking.com , CustomerLink

    64. An Introduction to Internet Banking SSGRR 2001 64 of 110 Choosing ASPs personal banking, cash management Digital Insight, www.digitalinsight.com, AXIS

    65. An Introduction to Internet Banking SSGRR 2001 65 of 110 Choosing ASPs personal banking, cash management Vifi, www.vifi.com, InternetBanker

    66. An Introduction to Internet Banking SSGRR 2001 66 of 110 Choosing ASPs bill payment CheckFree, www.checkfree.com

    67. An Introduction to Internet Banking SSGRR 2001 67 of 110 Choosing ASPs card payment processing RS2 Software Group , www.rs2group.com, BankWorks

    68. An Introduction to Internet Banking SSGRR 2001 68 of 110 Choosing ASPs web hosting Digex , www.digex.com

    69. An Introduction to Internet Banking SSGRR 2001 69 of 110 Choosing ASPs web design for banking DiamondBullet , www.diamondbullet.com, ,,,,,,,,,,,,,,,,,,,,,,,,;www.bankingwebsites.com

    70. An Introduction to Internet Banking SSGRR 2001 70 of 110 Required tasks after initial introduction of new channel

    71. An Introduction to Internet Banking SSGRR 2001 71 of 110 Education of staff Studies show that education of bank staff in using Internet channel is often incomplete Staff should provide answers to FAQ about using Internet channel to their customers Conclusions deduced from incompetence of staff are: we do it (Internet banking) because all do it we do it but we dont think it is important to us Education process can be done thru: courses after job by stimulating staff to use Internet Banking from home (participating in PC purchase, obtaining discounts from local ISP)

    72. An Introduction to Internet Banking SSGRR 2001 72 of 110 Permanent marketing We have a good solution for Internet banking but number of online users is very low after initial setup whats wrong?

    73. An Introduction to Internet Banking SSGRR 2001 73 of 110 How to do marketing Spreading enthusiasm among staff Utilizing common media for advertising (professional agencies) Organizing education about Internet technologies and new banking services among customers Agreements with local ISPs and resellers of PC equipment

    74. An Introduction to Internet Banking SSGRR 2001 74 of 110 Education of customers Studies show that 7% of bank users are technically advanced while 25% is open to new banking services but they lack technical experience

    75. An Introduction to Internet Banking SSGRR 2001 75 of 110 Education of customers In order to attract more online customers, bank should:

    76. An Introduction to Internet Banking SSGRR 2001 76 of 110 Monitoring activity on Internet channel In order to react fast we should gather information about channel use Different statistics should be made: number of visitors number of transactions which services are most/least used average time spend at Web site by common user Feedback support (customer forms, e-mail for additional questions/services)

    77. An Introduction to Internet Banking SSGRR 2001 77 of 110 Obtaining information about competition and potential customers (investors) To be successful in every business (banking services) you constantly need information about: competition (what they offer, what are the complaints of their customers) potential customers Among other ways to find information it is useful to monitor the Web and Web activity using search engines

    78. Internet Bank Demo Small community bank

    79. An Introduction to Internet Banking SSGRR 2001 79 of 110 Internet Bank Demo Small community bank primer The Bank of Northern Michigan (BNM)

    80. An Introduction to Internet Banking SSGRR 2001 80 of 110 BNM Profile Community bank from Petoskey, Michigan, USA Independent, full service financial institution More then 140 years of experience Strong customer-bank relationship Commitment to new banking technologies A FDIC member Contact addresses : Web www.bankofnorthernmichigan.com Email talktous@bankofnorthernmichigan.com

    81. An Introduction to Internet Banking SSGRR 2001 81 of 110 BNM web presence

    82. An Introduction to Internet Banking SSGRR 2001 82 of 110 BNM online banking services

    83. An Introduction to Internet Banking SSGRR 2001 83 of 110 Login to online bank

    84. An Introduction to Internet Banking SSGRR 2001 84 of 110 Who is the real online bank provider? BNM uses Equifax as an ASP for online bank services www.efxibank.com/clkpcb/072414006/default1.asp

    85. An Introduction to Internet Banking SSGRR 2001 85 of 110 Security is essential Customer session is established thru 128-bit SSL connection SSL between client browser and online bank ASP (Equifax)

    86. An Introduction to Internet Banking SSGRR 2001 86 of 110 Security is essential

    87. An Introduction to Internet Banking SSGRR 2001 87 of 110 Services

    88. An Introduction to Internet Banking SSGRR 2001 88 of 110 Services

    89. An Introduction to Internet Banking SSGRR 2001 89 of 110 Pay Bill option thru CheckFree Customers pay their bills thru CheckFree Online bank software redirects us automatically to www.checkfree.com

    90. An Introduction to Internet Banking SSGRR 2001 90 of 110 Front end system architecture

    91. An Introduction to Internet Banking SSGRR 2001 91 of 110 Out-of-house architecture (BNM)

    92. An Introduction to Internet Banking SSGRR 2001 92 of 110 Distribution of services Web design Diamond Bullet Design Web hosting Local ISP Web administration Diamond Bullet Design Core online bank services Equifax Paying bills and e-bills CheckFree

    93. Searching for financial information on the Web A necessary step to be successful in banking business

    94. An Introduction to Internet Banking SSGRR 2001 94 of 110 Searching the Web Importance of web search (WS) in banking business

    95. An Introduction to Internet Banking SSGRR 2001 95 of 110 Financial data on the Internet

    96. An Introduction to Internet Banking SSGRR 2001 96 of 110 Nature of the financial data on the Web Among others, we can find information about:

    97. An Introduction to Internet Banking SSGRR 2001 97 of 110 Importance of WS in banking business Internet Banking market is very dynamic

    98. An Introduction to Internet Banking SSGRR 2001 98 of 110 Importance of WS in banking business

    99. An Introduction to Internet Banking SSGRR 2001 99 of 110 Searching services on the Web

    100. An Introduction to Internet Banking SSGRR 2001 100 of 110 Subject directories Links to web sites are collected according to topics they treat

    101. An Introduction to Internet Banking SSGRR 2001 101 of 110 Search engines They try to collect as many as possible pages from the Web and store them locally for later keyword search

    102. An Introduction to Internet Banking SSGRR 2001 102 of 110 Search engines how do they work?

    103. An Introduction to Internet Banking SSGRR 2001 103 of 110 Meta-crawlers They utilize other search engines concurrently by sending users query to them

    104. An Introduction to Internet Banking SSGRR 2001 104 of 110 Search engines comparisons

    105. An Introduction to Internet Banking SSGRR 2001 105 of 110 Searching financial data by using focused crawling Focused crawlers versus classic crawlers (solve currency problem)

    106. An Introduction to Internet Banking SSGRR 2001 106 of 110 Useful links to visit www.searchenginewatch.com , search engine comparisons

    107. Conclusions

    108. An Introduction to Internet Banking SSGRR 2001 108 of 110 Final words Every bank should implement its Internet channel (reduced cost of transaction, global connectivity )

    109. An Introduction to Internet Banking SSGRR 2001 109 of 110 Final words

    110. An Introduction to Internet Banking SSGRR 2001 110 of 110 Final picture

    111. An Introduction to Internet Banking Milos Kovacevic, milos@grf.bg.ac.yu Nikola Klem, klem@grf.bg.ac.yu Veljko Milutinovic, vm@etf.bg.ac.yu University of Belgrade, Yugoslavia

    112. An Introduction to Internet Banking SSGRR 2001 112 of 110 Evaluating important pages (links) Important metrics for evaluating pages(links) in searching process are:

    113. An Introduction to Internet Banking SSGRR 2001 113 of 110 Evaluating important pages (links) Important metrics for evaluating pages(links) in searching process are:

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