Internet Banking: Reliability and Accessibility Issues

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  • Topic: Bank, Online banking, Credit union
  • Pages : 15 (4370 words )
  • Download(s) : 131
  • Published : August 10, 2008
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Abstract
Internet banking renders location and time irrelevant, and empowers customers with greater control of their accounts. Banks achieve cost and efficiency gains in a large number of operational areas. This paper addresses the aspects of reliability and accessibility from a banking enterprise point of view and puts forth present day solutions to problems involving these issues. An Indian perspective of Internet banking is also looked at in order to gaining a better perspective regarding the situation.

Table of Contents

1. Introduction … … …3
2. Problem Description… … …4
2.1 Internet Banking: Definition… … …4
2.2 Internet Banking Risks: Focus on Transactional Risk… … …42.3 Synopsis of the Problem… … …6 3. A Closer Look at Reliability and Accessibility … … …6
3.1 Reliability … … …6
3.2 Accessibility … … …7
4. Solution Architecture… … …8
4.1 Reliability… … …8
4.1.1 Secure Socket Layer (SSL) … … …11
4.1.2 Public key Infrastructure … … …13
4.1.3 Identity Authentication … … …13
4.2 Accessibility14
4.2.1 Availability … … …14
4.2.2 Scalability… … …14
4.3 N-Tier Architecture … … …14
5. Internet Banking: The Indian Perspective… … …15 5.1 Emergence of Internet Banking in India and its Impact… … …15 5.2 What deters Internet Banking in India… … …15
5.3 Factors determining the success of internet banking… … …165.4 The Four Step Approach… … … 16 5.5 Case Study: ICICI Bank’s Internet Banking Strategy… … …17 6. Impact of Internet Banking on E-commerce… … …18 7. Conclusion … … …18

1. Introduction
With the rapid diffusion of the Internet, banking in cyberspace is fast becoming an alternative channel to provide banking services. Banks view online banking as a powerful "value added" tool to attract and retain new customers while helping to eliminate costly paper handling and teller interactions in an increasingly competitive banking environment.

Banks have experimented with various forms of online banking for many years. Some of the early experiments involved closed systems where the customers accessed banks through a dial-in or cable TV connection. These systems limited a bank’s potential customer base because they required out-of area customers to either incur long-distance charges on their phone bills or subscribe to a particular cable TV service to access the bank. With the widespread growth of the Internet, customers can use this technology anywhere in the world to access a bank’s network. The Internet, as an enabling technology, has made banking products and services available to more customers and eliminated geographic and proprietary systems barriers.

Internet banking sites are available around the clock and are only a mouse click away. Moreover, the ubiquitous nature of the internet enables access to all banking services in any part of the world. Online bank sites generally execute and confirm transactions at or quicker than ATM processing speeds making it a preferable choice for customers. One can access and manage all personal bank accounts, including IRAs, CDs, and securities, from one secure site. Improvements in information management are enabling banks to take advantage of expanded powers and reductions in geographic restrictions. More complete and speedier access to customer information is allowing banks to more effectively manage complex customer relationships and to “cross-sell” additional financial services. Many online banking sites now offer sophisticated tools, including account aggregation, stock quotes, rate alerts and portfolio managing programs to help one to effectively manage assets.

This brief background about Internet banking sets the stage for the consideration of risks and related problems involved in the implementation and are examined in the form of a problem statement in the following section.

2. Problem...
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