(with examples from Developed vs Developing Countries)
Presented to: Bert Lind Presented by: Group No.1 • S101417 Shahid Javed • S104503 Mumtaz Ali • S104451 Asif Iqbal • S101291 Mm Mudassar • S101659 Muhammad Shahzad Abstract
We have discussed internet banking and security issues. Then we have given comparison of internet banking in developed countries and developing countries on the basis of security and infrastructure issues. Examples of banks are given from Pakistan (HSBC) and Sweden (Nordea). And services of both banks are compared on the basis of infrastructure and security issues.
Internet banking enables users to make financial transactions on a secure website operated by their bank. Banking some around or yet in some underdeveloped countries, bank transaction is done by paper work e.g. using cheaque Book to withdraw cash, but with the passage of time when Information Technology is so much in, then this paper work is seem to be hazard for an organization to maintain numbers of customer and also customer have no to stand in queue to just with draw cash then the Internet-Banking come to in origin.
Internet-Banking is easy to maintain by Bankers as well as by customer. Now a day’s customer also preferred those banks which provide Inter-Banking facility. So we can say that when IT and Bank work to gather then this terminology is called Internet-Banking.
At the beginning Internet banking was used mainly as an information presentation medium in which banks advertised their products and services on the Web sites. With the advancement of information technology and secured electronic transaction technologies, banks have started Internet banking both as a transactional as well as for advertisement purpose. Now writing checks, paying bills, transferring funds, printing statements, and inquiring about account balances is possible onlie. Internet banking is now “one stop service and information unit” that is giving great benefits to both banks and consumers. Internet banking services are necessary for survival of banks in the world of electronic commerce. Internet banking is spreading fastly in developing countries, affecting the competitive advantage enjoyed by traditional branch banks. Due to advancement in information technology banking without internet banking seems nothing. So, every bank in the world wants to give services online as much as possible. Internet banking is developed countries has support of better infrastructure while in developing countries support of better infrastructure is not available. So, giving internet banking in developing countries is difficult for a bank. Some banks are providing better ebanking services in developed countries but same banks are not proving better ebankin services in developing countries.
Internet banking is increasing day by day. Mostly bank now switch there system from paper work to Online scenario but some how of the activity is still available in hard form because underdeveloped countries still not fully equipped with Internet-Banking as the strength of usage of Internet Banking in European/Scandinavian region is much high.
Features of online Banking
The common features of online banking fall into several categories Transactional • • • • Applications such as applying for a loan, opening a new account, etc. Utility and electronic bills payment Money transfer between user’s own accounts or to another person’s account Purchase or sale anything from internet
Non-transactional • • • • Bank statements Financial Institution Administration Support of multiple users with different levels of authority Transaction approval process
Personal financial management support Some online banks allow the customers to manage all of their accounts in one place whether they are with their main bank or with other institutions. These are common ways to perform a transaction. • • • Debit cards (Atm machine, shoping on stores etc.) Credit cards...
References: 1. 2.
http://en.wikipedia.org/wiki/Online_banking (October 2010) Internet Banking in Pakistan by Shahzad Shariz 2006. Factors Influencing the Adoption of Internet Banking by Margaret Tan and Thompson S. H. Teo National University of Singapore.
Finance & Development by Saleh M Nsouli and Andrea Schaechter Washington.
5. 6. 7.
The Ethics Of Ebanking by Dr. Lisa Harris and Dr. Laura J. Spence. http://www.hsbc.com.pk http://www.nordea.se
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