A RESEARCH PROPOSAL ON THE IMPACT OF INTERNET BANKING ON CUSTOMER RETENTION by Umme Sauda Bente Morad ID: 0920284 An Internship Report Presented In Partial Fulfillment Of The Requirements of the Degree Bachelor of Business Administration INDEPENDENT UNIVERSITY, BANGLADESH May 2013 i Internship A RESEARCH PROPOSAL ON THE IMPACT OF INTERNET BANKING … 2. Such tie-ups can facilitate online payment of bills of electricity, telephone, mobile phone, credit card, insurance premium bills etc. Internet Gambling; Consumer Banking Consumer Banking Back. As per the recent study it is observed that: (a) A number of banks have already adopted internet banking and are offering varied kind of services through it, (b) These internet sites generally offer only most of the basic services. [28] Across Asia, more than 700 million consumers are estimated to use digital banking regularly, according to a 2015 survey by McKinsey and Company.[29]. In a recent survey conducted by the Online Banking Association, member institutions rated security as the most important issue of online banking. The first known deployment of home computer banking to consumers came in December 1980 at United American Bank, a community bank headquartered in Knoxville, Tenn. United American partnered with Radio Shack to produce a secure custom modem for its TRS-80 computer that would allow bank customers to access account information securely. A 2008 U.S. Federal Deposit Insurance Corporation Technology Incident Report, compiled from suspicious activity reports banks file quarterly, lists 536 cases of computer intrusion, with an average loss per incident of $30,000. [10] The system used Prestel viewlink system and a computer, such as the BBC Micro, or keyboard (Tandata Td1400) connected to the telephone system and television set. One successful example regarding the above-mentioned characteristics in Macedonia is “Stopanska Banka” AD Skopje. 6. Thus, a bank’s internet presence transforms from ‘brochure/ware’ status to ‘internet banking’ status once the bank goes through a technology integration effort so as to enable its customer to access information about his or her specific account details. Electronic banking, Use of computers and telecommunications to enable banking transactions to be done by telephone or computer rather than through human interaction. Computer intrusions increased by 150 percent between the first quarter of 2007 and the second. Nowadays, most leading banks offer both online banking and de-mat account facilities. with anyone, including employees of the bank. The development of Internet banking widens the scope for increased interaction between institutions and their customers and opens up new avenues for cross-border banking transactions exposing institutions to additional risks. [7] In comparison, larger national institutions, such as Citigroup claimed 2.2 million online relationships globally, while J.P. Morgan Chase estimated it had more than 750,000 online banking customers. Emerging Challenges 6. Besides, some banks provide its customers the facility to purchase mutual funds directly from the online banking system. The bank would just charge Rs 10 + 12.24 per cent of service tax. TABLE No 4.10 DISTRIBUTION OF RESPONDENTS ACORDING TO THEIR PERIOD OF USAGE OF INTERNET BANKING SERVICES: Period of usage of internet banking services Status No. In the United States in-home banking was "is still in its infancy" with banks "cautiously testing consumer interest" in 1984, a year after online banking went national in the UK. Internet banking or e-banking is changing the banking and its structure and is having major effects on banking relationships. can also be made with some arrangement with banks through Internet banking. Electronic banking 7. Internet banking has made banking transactions faster and more convenient. Students can always get online help by going to a website that specializes in topics like banking. There exist several countermeasures which try to avoid attacks. Recently, an authority of ICICI Bank observed, “Our Internet banking base has been growing at an exponential pace over the last few years. 5. Naturally, elderly clients use e-banking services less than younger people. (vii) Redesigning optimal channel port-folio. In 1997, the bank ING Direct Canada (now known as Tangerine Bank) was founded with almost entirely online banking using only small cafes for meetings and very few physical branches. PROJECT TOPIC- IMPACT OF INTERNET BANKING SYSTEM IN NIGERIA BANKING ENVIRONMENT. Trends in India 4. That adds up to a nearly $16-million loss in the second quarter of 2007. Internet Banking system is a project built using Java language and a database. Virtual banking first became a possibility in 1996 with the Bank of Montreal's mbanx. [10] At the time Chemical Bank in New York was "still working out the bugs from its service, which offers somewhat limited features". Financial institutions now routinely allocate customers numbers, whether or not customers have indicated an intention to access their online banking facility. Internet Banking Policy. There are essentially two different security methods in use for online banking: Attacks on online banking used today are based on deceiving the user to steal login data and valid TANs. The credit or debit card and internet banking related frauds in Maharashtra in the fiscal year 2017 was reported to be approximately 121 million Indian rupees. Moreover, some basic information on the transmission of confidential data is presented in Security and Encryption on the web. A cheque was then sent by NBS to the payee and an advice giving details of the payment was sent to the account holder. [26] Financial institutions have set up various security processes to reduce the risk of unauthorized online access to a customer's records, but there is no consistency to the various approaches adopted. Strategies to be Adopted by Indian Banks for Introducing Internet Banking: Essay on the Objectives and Drivers of Internet Banking, Essay on the Trends of Internet Banking in India, Essay on the Facilities Available under Internet Banking in india, Essay on the Emerging Challenges of Internet Banking in India, Essay on the Main Concerns in Internet Banking, Essay on the Strategies to be Adopted by Indian Banks for Introducing Internet Banking. Technically, the customer number can be linked to any account with the financial institution that the customer controls, though the financial institution may limit the range of accounts that may be accessed to, say, cheque, savings, loan, credit card and similar accounts. Some online banking platforms support, Signature based online banking where all transactions are signed and encrypted digitally. What is important when it comes to e-banking is the trust in banks, usability of the platforms and the overall marketing for e-banking from banks. Since it first appeared in the United States, online banking has been federally governed by the Electronic Funds Transfer Act of 1978.[11]. (ii) Encryption techniques used by the bank (including the sophisticated public key encryption) would ensure that privacy of data flowing between the browser and the Infinity system is protected. Under this concept of banking, bank customers who have an account with any select branch can easily operate his account from different designated branches on the bank spread throughout the country. Microsoft ends Windows 7 support: What should you do? of. Cronin, Mary J. Initially, the facility was limited to Mumbai, Thane, Nashik, Surat and Pune. It is no longer needed to rush to the vendor to recharge prepaid phones as and when talk time runs out. 5. Internet banking was first proposed in the early 1990s. Additionally, online banking services allow institutions to bundle more services into single packages, thereby luring customers and minimizing overhead. 74–76. Features of On-Line/Internet Banking: On line or Internet banking has many features both for banks and for customers and Banks. Initially introduced by the foreign banks, the same concept in new increasingly adopted by public sector banks and also the private sector banks. Under this system, online banking is possible where every bank customer is provided with a personal identification number (PIN) for making online transactions with the bank through internet connections. Enhanced plan for the customers in future may include requests for demand drafts and pay orders and many more to bring in the ultimate in banking convenience. The system allowed users to "transfer money between accounts, pay bills and arrange loans... compare prices and order goods from a few major retailers, check local restaurant menus or real estate listings, arrange vacations... enter bids in Homelink's regular auctions and send electronic mail to other Homelink users. Efficiency of banks 2. The Keys for the signature generation and encryption can be stored on smartcards or any memory medium, depending on the concrete implementation (see, e.g., the Spanish. After a test period with 2,500 users starting in 1984, online banking services were launched in 1988,[12] using Minitel terminals that were distributed freely to the population by the government. Similarly the reputational risks to banks themselves are important. [17] In 2019 new banks began to emerge as the Conta Simples, focused only for companies. Observing that the country has made rapid strides as far as adoption of digital technology is concerned, he mentioned that as a result, India has the maximum number of mobile and internet banking users in the world. (v) Initiating senior management to transform the organisation from inward to outward looking. Online accounts management 5. (1997). The first group In India, initially a beginning was made in internet banking only in some big cities which was just in rudimentary stage. Online banking was one of the most popular services. Welcome to EconomicsDiscussion.net! Online Banking provides an overview of Internet Commerce and how one company can handle secure banking practices for its financial institution clients and their customers. BACS was later used to transfer the payment directly. [13] According to a poll conducted by Japanese Bankers Association (JBA) in 2012, 65.2% were the users of personal internet banking. A bank customer can perform non-transactional tasks through online banking, including: Downloading applications for M-banking, E-banking etc. Cross-site scripting and keylogger/Trojan horses can also be used to steal login information. Customer use grew slowly. Main Concerns in Internet Banking: Essay # 7. [9] Homelink was delivered through a partnership with the Bank of Scotland and British Telecom's Prestel service. Demand side pressure due to increasing access to low cost electronic services. Gandy, T. (1995): "Banking in e-space", The banker, 145 (838), pp. [21] This was completely different from how banks had operated in Canada previously. 6. In January 1997, the first online banking service was launched by Sumitomo Bank. A mergers-and-acquisitions wave swept the financial industries in the mid- and late 1990s, greatly expanding bank's customer bases. Following facilities are made available for customers under internet banking in India: Bill payment service is a utility service of internet banking. He must take simple precautions like changing the ATM, PIN and online login and transaction passwords on a regular basis. Share Your PDF File
The credentials for online banking is normally not the same as for telephone or mobile banking. In 1995, Wells Fargo was the first U.S. bank to add account services to its website, with other banks quickly following suit. Five years later, 47% of Americans used online banking, according to a survey by Gartner Group. Abdou, Hussein, English, John and Adewunmi, Paul, Learn how and when to remove this template message, Federal Financial Institutions Examination Council, European Union Agency for Network and Information Security, "Nine Young Bankers Who Changed America: Thomas Sudman", "Computer Giants Giving a Major Boost to Increased Use of Corporate Videotex", "Information Technology And The Banking Industry", "Is Your Digital Banking Vendor Hurting Adoption Rates? Leading banks have tied-up with various shopping websites. [16], In 1996, Banco Original SA launched its online-only retail banking. Online banking, also known as internet banking or web banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution's website. ", "Le minitel, l'arrivée de la banque à domicile", "New banking services for personal customers (銀行等の個人向け新サービス)", "China's First Online Bank Finally Launches", "Westpac Group celebrates 20 years of Internet banking", "ICICI bank completes 20 years of digital banking", "Brazil's first online bank ramps up innovation", http://www.sloveniatimes.com/more-than-900-000-use-online-banking-in-slovenia, https://history.bmo.com/category/innovation-in-banking/#product-service-innovations-2, https://web.archive.org/web/20131202232434/http://www.ingdirect.ca/en/aboutus/whoweare/history/index.html, https://marketer.ua/ua/the-best-innovative-banks-of-ukraine/, http://www.economyandsociety.in.ua/journal/13_ukr/206.pdf, https://www.researchgate.net/publication/325908154_An_empirical_study_of_customer_usage_and_satisfaction_with_e-banking_services_in_the_Republic_of_Macedonia, "EU: Online banking penetration by country", "Capitalizing on Asia's digital-banking boom", "THE PRAGMATIC REVIEW ON INTERNET BANKING AND ASSOCIATED SERVICES IN INDIA", "What is TAN (transaction authentication number)? Each financial institution can determine the types of financial transactions which a customer may transact through online banking, but usually includes obtaining account balances, a list of recent transactions, electronic bill payments, financing loans and funds transfers between a customer's or another's accounts. The customer visits the financial institution's secure website, and enters the online banking facility using the customer number and credentials previously set up. Thus, Internet banking would drive us into an age of creative destruction due to non-physical exchange; complete transparency is also giving rise to perfectly electronic market place and customer supremacy. Its features include electronic funds transfer for retail purchases, automatic teller machines (ATMs), and automatic payroll deposits Internet, a system architecture that has revolutionized communications and methods of commerce by allowing various computer networks around the world to interconnect. Banks: ADVERTISEMENTS: Banks have number of benefits by introducing I-Banking: 1. Quality customary service with personal attention. [43], In 2012, the European Union Agency for Network and Information Security advised all banks to consider the PC systems of their users being infected by malware by default and therefore use security processes where the user can cross-check the transaction data against manipulations like for example (provided the security of the mobile phone holds up) SMS TAN where the transaction data is sent along with the TAN number or standalone smartcard readers with an own screen including the transaction data into the TAN generation process while displaying it beforehand to the user (see chipTAN) to counter man-in-the-middle attacks.[44]. Since that time it has been developing rapidly together with the increased use of Internet. Moreover, it's also important to constantly update the e-banking services. The deregulation of the banking industry along with emergence of new technologies are enabling the new competitors in the banking sector to enter the financial services market quite efficiently and quickly. Internet banking or e-banking is the latest in this series of technological wonders in the recent past which involves use of internet for delivery of banking products and services. Another kind of attack is the so-called man-in-the-browser attack, a variation of the man-in-the-middle attack where a Trojan horse permits a remote attacker to secretly modify the destination account number and also the amount in the web browser. LACK OF SECURITY; The second challenge is the issue of security: Resent research carried out in Africa shows that companies consider the biggest obstacle of being used the internet for financial transaction to the lack security. (iv) Enabling handling multiplicity with simplicity. 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