2. Introduction
Definition:-
• The provision of banking service through electronic channels
and the customer. It can access the data without time and
geographical limitation.
• Combination of the two term Electronic technology & Banking.
• Process by which a customer performs banking transactions
electronically.
3. What is E-banking?
E-Banking denotes the provision of banking and
related services through extensive use of information
technology.
Delivery of bank’s services to a customer at his office
or home by using electronic technology.
5. Development of E-banking
• ICICI was the first bank to initiate the Internet
banking revolution in India as early as 1997 under
the brand name 'Infinity'.
• ICICI Bank kicked off online banking way back in
1996 . But even for the Internet as a whole, 1996 to
1998 marked the adoption phase, while usage
increased only in 1999-due to lower ISP online
charges, increased PC penetration and a tech-
friendly atmosphere.
7. Internet Banking
Sample Internet Banking Architecture
• More and more banks are coming to realize that internet is a part of banks'
alternative delivery channel strategies activities concentrated in the business-
to-consumer segment, focused on retaining clients
• In Internet banking, security is a primary concern. Security concerns have
been addressed from every angle within the architecture of the Internet
banking application.
8. Technology-based Banking
Products & Services
◦ Balance inquiry
◦ Transaction
information
◦ Funds transfer
◦ Cash Management
◦ Bill payment
◦ Bill presentment
◦ Loan applications
◦ Stored Value
◦ Aggregation
◦ Electronic Finder
◦ Automated
clearinghouse (ACH)
transactions
◦ Internet Payments
◦ Wireless Banking
◦ Certification Authority
◦ Data Storage
9. SMS Banking
Basic banking inquiry transactions(balance inquiry, funds,
exchange rate inquiry…) are performed by the cooperation of
bank and the GSM operator
Security is the main problem
Bank SMS
Gateway
Bank
SMS
DB
Leased line
GSM
Operator
Application
Server
GSM
Operator
SMS DB
GSM
Network
Bank
Host
10. WAP Banking
Wireless application protocol (WAP) is an
application environment and set of communication
protocols for wireless devices designed to enable
manufacturer-, vendor-, and technology-
independent access to the Internet and advanced
telephony services.
WAP is a global standard and is not controlled by
any single company
Various banking transactions offered in WAP
environment by banks.
Similar architecture with SMS banking
11. Television Banking
Digital television (DTV) is the transmission of television signals using
digital rather than conventional analog methods.
Advantages of DTV over analog TV include:
Superior image resolution (detail) for a given bandwidth
Smaller bandwidth for a given image resolution
Compatibility with computers and the Internet
Interactivity
Superior audio quality
Consistency of reception over varying distances
Banks offer their banking transaction in this new environment
T-commerce in the near future.
14. E-commerce - B2C
E-commerce is the buying and selling of goods and services
on the Internet.
Main feature of e-commerce
◦ 24-hour availability
◦ a global reach
◦ the ability to interact
◦ provide custom information and ordering
◦ and multimedia prospects,
The Web is rapidly becoming a multibillion dollar source of
revenue for the world's businesses.
Banks provide secure payments infrastructure - virtual POS
15. M-commerce
Mobile commerce applications involve using a
mobile phone to carry out financial transactions-
this usually means making a payment for goods or
transferring funds electronically.
As content delivery over wireless devices becomes
faster, more secure, and scalable, there is wide
speculation that m-commerce will surpass wireline
e-commerce as the method of choice for digital
commerce transactions.
16. B2B
A thousands of companies that sell products to other
companies have discovered that the Web provides not only a
24-hour-a-day showcase for their products but a quick way to
reach the right people in a company for more information.
In the B2B, the bank role is to provide a reliable payment
infrastructure that add value to corporate business
This infrastructure should cover:
◦ Bill presentment
◦ Bill payment
◦ Different payment types(credit card, deposit account, loan)
◦ Information after payment
17. E-Security
To improve the e-business, all the users should feel secure to
perform the transaction this environment
The main concepts in e-security are:
◦ PKI (public key infrastructure) enables users of a basically unsecure
public network such as the Internet to securely and privately exchange
data and money through the use of a public and a private cryptographic
key pair that is obtained and shared through a trusted authority.
◦ Public key is a value provided by some designated authority as a key that,
combined with a private key derived from the public key, can be used to
effectively encryption messages and digital signature.
◦ Private or secret key is an encryption/decryption key known only to the
party or parties that exchange secret messages. Public key is used
together with a private key
18. E-Security - continued
◦ Digital certificate is an electronic "credit card" that establishes your
credentials when doing business or other transactions on the Web. It is
issued by a certification authority (CA).
◦ CA (certificate authority) is an authority in a network that issues and
manages security credentials and public key for message encryption. As
part of a public key infrastructure, a CA checks with a registration
authority to verify information provided by the requestor of a digital
certificate
◦ An RA (registration authority) is an authority in a network that verifies user
requests for a digital certificate and tells the certificate authority to issue it.
19. Smart Cards
About the size of a credit card, a smart card is a plastic card with an
embedded microchip that can be loaded with data, used for telephone
calling, electronic cash payments, and other applications, and then
periodically "recharged" for additional use.
smart card contains more information than a magnetic stripe card and it
can be programmed for different applications. Some cards can contain
programming and data to support multiple applications and some can be
updated to add new applications after they are issued
Benefit of smart cards:
◦ enhanced security
◦ off line transaction
◦ programmable card
loyalty
customer information
Editor's Notes
Banks can offer almost anything electronically that they offer thru branch networks. Moreover, e-banking facilitates new products and services such as aggregation, certification authorities, and electronic data storage.
