Internet
banking, also known as online banking, is an electronic payment system
that allows customers of banks or other financial institutions to carry
out various financial transactions, payments and other transactions
through the financial institution's website that is equipped with a
security system. The online banking system will usually be connected or
become part of the core banking system operated by banks and is
different from branch banking which is the traditional way for customers
to access banking services.
Information technology applications in internet banking will increase efficiency, effectiveness, and productivity while increasing revenue through a sales system that is far more effective than conventional banks. Without the application of information technology in internet banking, internet banking will not work and be utilized by the banking industry. In general, in the provision of internet banking services, banks provide information about their products and services via a portal on the internet, giving customers access to transactions and updating their personal data. The business requirements of internet banking include: easy to use the application, services can be reached from anywhere, cheap, can be trusted and reliable.
Internet banking software provides personal and corporate banking services that offer features such as viewing account balances, getting reports, checking current transactions and making payments. Internet banking has provided benefits to banks, including:
Business expansion. In the past, a bank must have a branch office to operate in a certain place. Then this is made easier by simply putting the ATM machine so that he can be present at the place. Then there is phone banking which begins to eliminate physical limits where customers can use the telephone to carry out banking activities. Now there is internet banking which makes it even easier because it eliminates time and space.
Customer loyalty. Especially customers who are mobile (mobile), will feel more comfortable to do banking activities without having to open accounts at different banks in various places. He can use only one bank.
Revenue and cost improvement. The cost of providing banking services through Internet Banking can be cheaper than opening a branch office or making an ATM machine.
Competitive advantage. Banks that have internet banking will have an advantage compared to banks that do not have internet banking. In the near future, people do not want to open an account at a bank that does not have Internet Banking facilities.
New business model. Internet Banking enables a new business model. New banking services can be launched via the web quickly.
Information technology applications in internet banking will increase efficiency, effectiveness, and productivity while increasing revenue through a sales system that is far more effective than conventional banks. Without the application of information technology in internet banking, internet banking will not work and be utilized by the banking industry. In general, in the provision of internet banking services, banks provide information about their products and services via a portal on the internet, giving customers access to transactions and updating their personal data. The business requirements of internet banking include: easy to use the application, services can be reached from anywhere, cheap, can be trusted and reliable.
Internet banking software provides personal and corporate banking services that offer features such as viewing account balances, getting reports, checking current transactions and making payments. Internet banking has provided benefits to banks, including:
Business expansion. In the past, a bank must have a branch office to operate in a certain place. Then this is made easier by simply putting the ATM machine so that he can be present at the place. Then there is phone banking which begins to eliminate physical limits where customers can use the telephone to carry out banking activities. Now there is internet banking which makes it even easier because it eliminates time and space.
Customer loyalty. Especially customers who are mobile (mobile), will feel more comfortable to do banking activities without having to open accounts at different banks in various places. He can use only one bank.
Revenue and cost improvement. The cost of providing banking services through Internet Banking can be cheaper than opening a branch office or making an ATM machine.
Competitive advantage. Banks that have internet banking will have an advantage compared to banks that do not have internet banking. In the near future, people do not want to open an account at a bank that does not have Internet Banking facilities.
New business model. Internet Banking enables a new business model. New banking services can be launched via the web quickly.
Various types of technology include:
Automated Teller Machine
Banking Application System
Real-Time Gross Settlement System
Online Banking (Internet Banking)
Electronic Clearing System
At present most electronic banking services are directly related to bank accounts. Types of electronic banking that are not account related are usually in the form of monetary values stored in the database or in a card (chip on a smart card). With the development of technology and the complexity of transactions, various types of electronic banking are increasingly difficult to distinguish because their functions and features tend to be integrated or experience convergence. For example, a plastic card might have a "magnetic strip" that allows transactions to be linked to a bank account, and also has monetary values stored on a chip. Sometimes both types of cards are called "debit cards" by merchants or vendors.
Online banking is basically a combination of two basic terms, namely online and banking. Today the internet has connected more than 100,000 computer networks in the world with more than 100 million users. Can do banking transactions (financial and non-financial) through computers connected to the bank's internet network.
Transaction type:
Transfer of funds,
Balance information
Exchange rate information
Bill payment (eg credit cards, telephone accounts, electricity accounts, insurance)
Purchases (eg cellphone credit, airplane tickets, shares)
To
access a financial institution's online banking facility, a customer
with internet access will need to register with the institution for the
service, and set up a password and other credentials for customer
verification. The credentials for online banking is normally not the
same as for telephone or mobile banking. Financial institutions now
routinely allocate customers numbers, whether or not customers have
indicated an intention to access their online banking facility. Customer
numbers are normally not the same as account numbers, because a number
of customer accounts can be linked to the one customer number.
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. The
customer visits the financial institution's secure website and enters
the online banking facility using the customer number and credentials
previously set up.
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. Most banks set limits on the amounts that may be transacted and other restrictions. Most banks also enable customers to download copies of bank statements, which can be printed at the customer's premises (some banks charge a fee for mailing hard copies of bank statements). Some banks also enable customers to download transactions directly into the customer's accounting software. The facility may also enable the customer to order a cheque book, statements, report loss of credit cards, stop payment on a cheque, advise a change of address and other routine actions.
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. Most banks set limits on the amounts that may be transacted and other restrictions. Most banks also enable customers to download copies of bank statements, which can be printed at the customer's premises (some banks charge a fee for mailing hard copies of bank statements). Some banks also enable customers to download transactions directly into the customer's accounting software. The facility may also enable the customer to order a cheque book, statements, report loss of credit cards, stop payment on a cheque, advise a change of address and other routine actions.
E-banking Safe Tips:
Do not notify your SMS Banking personal code/number to others.
Every time you make a transaction via SMS Banking, wait a while until you receive a response back to the transaction.
Do not notify your SMS Banking personal code/number to others.
Every time you make a transaction via SMS Banking, wait a while until you receive a response back to the transaction.
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