Page 223 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes 7. E-commerce applications (e.g., bill payment, lending, brokerage)
8. Internal network servers
9. Core processing system
10. Programming support

11. Automated decision support systems
These components work together to deliver e-banking services. Each component represents a
control point.

With cyber-cafes and kiosks springing up in different cities access to the Net has 'become easy.
Internet banking (also referred as e- banking) is the latest in this series of technological wonders
in the recent past involving use of Internet for delivery of banking products and services.
Internet banking is changing the banking industry and is having the major effects on banking
relationships.
Thus, banking is now no longer confined to the branches were one has to approach the branch in
person, to withdraw cash or deposit a cheque or request a statement of accounts. In true Internet
banking, any inquiry or transaction is processed online without any reference to the branch
(anywhere banking) at any time. Providing Internet banking is increasingly becoming a "need
to have" than a "nice to have" service.

11.3 Features of Online Banking Solutions

Online banking solutions have many features and capabilities in common, but traditionally
also have some that are application specific.
The common features fall broadly into several categories:
1. Transactional: (e.g., performing a financial transaction such as an account to account
transfer, paying a bill, wire transfer... and applications... apply for a loan, new account,
etc.)
(i) Electronic bill presentment and payment (EBPP)

(ii) Funds transfer between a customer's own checking and savings accounts, or to
another customer's account
(iii) Investment purchase or sale

(iv) Loan applications and transactions, such as repayments
2. Non-transactional: (e.g., online statements, check links, cobrowsing, chat)
(i) Bank statements
(ii) Financial Institution Administration - features allowing the financial institution to
manage the online experience of their end users
(iii) Hosting Administration - features allowing the hosting company to administer the
solution across financial institutions.
Online banking platforms support account aggregation (combination) to allow the customers to
monitor all of their accounts in one place whether they are with their main bank or with other
institutions.
Security token devices are used to keep the information secure e.g. - passwords, security devices,
encryption of data.

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