Final E-Banking Concept Paper.rtf

7/30/2019 Final E-Banking Concept Paper.rtf

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CONCEPT PAPER: E-Banking

1. INTRODUCTION

Telephones and televisions are used daily by many people; alongside

these media the Internet has become more important and useful for anincreasing number of people. The Internet has existed since the late 1960s

but for most of that time it was only accessible to governments and for

scientific research purposes. By the mid 1990s, as web interfaces

improved, it became available to the public and E-commerce developed,

allowing businesses to offer their products and services on the web. E-

banking became possible in early 1990s when the Internet was opened to

commercial use. With the 24\7 availability of Internet commerce websites, it

has become very important to the users to trace and track their

transactions, as they occur to ensure the account status and stability.

Thus, it has become very important to have banks that can serve, supportand work with e-commerce companies and consumers 24\7. They provide

banking services and systems that connect to e-commerce websites

allowing customers to check their transactions online, allow businesses to

accomplish their goals, and allow customers to intra-move money around

to accomplish their financial transactions. Banking customers can access

many different services online, which makes physical banks open even after

office hours. In means offline banking is becoming to be online banking

while physical banks are not opened (out of office hours), so clients do not

need to go to the banks or call them any more unless there is an issue thatcannot be handled online. Internet banking can be conducted either by

accessing the Internet with a computer or by using a phone that has

Internet features.

2. PROJECTS OBJECTIVE AND PURPOSE:

2.1 Internet banking provides benefits for the bank and for the customers

using it. Because an automated website can be accessed 24 hours a day, E-

Banking provides cost savings for banks because they dont need human

operators to keep the bank services functioning. As mentioned, Internet

banking has reduced phone calls billings, mailing and paper costs for the

monthly bank statement, gas billings, less labor, etc. Therefore, e-banking

has reduced the cost of doing business and made organizations more

profitable even though it does involve other costs to allow it to be

established.

2.2. More transactions are carried out over the Internet than in the physical


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branches.

2.3. Banks are offering more than banking services; they are offering

services on the bank website allowing customers to fill out application forms

on line.

2.4. People can bank from any place that has Internet, so it is not limited to

a time or a place as it was with physical banking.

2.5. With Internet banking people can check their account status and

use other services while phone-banking users can only hear this

information. Therefore, Customers are moving from phone banking to

Internet banking.

2.6. E- Banking allows customers to be alerted via email and phone

every update and change that occurs in their account, which

differentiates it from physical banking where customers have to go to the

bank to check for updates.

2.7. Internet banking may be more cost effective for a bank.

3. SCOPE OF THE PROJECT:

The basic features to develop and offer:

3.1 Balances on-line - allows the client to check his previous and presentbalance via internet.

3.2Intra -Transfer of funds(Debit and Credit) - Customers can easily to

log in to their accounts, check their balances, and transfer funds in between

their accounts to cover any shortage in their other accounts.

3.3 View and Print Statement of Account - clientscan access through

their accounts to check the record of their transactions. This service allows

customers to go over the previous transactions and make sure that their

accounts have not been compromised. This document could be printedonline or saved as a word or PDF document on their computers for

future evidence. The number of months allowed customers to review their

statement shall be based the existing policies and procedures of the bank.

Other services to offer:

3.4 Payroll Service - the service shall be allowed clients to auto credit


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payroll, benefits and incentives.

3.5 Bills Payment - The service is limited payments intended solely to Zest-

Airways and as we enroll various merchants perhaps we could upgrade the

bills payment facility.

3.6 Checkbook re-order -enables the client to order check books on-line.

3.7 Change passwords this service is a security issue that allows account

holders to ensure that their accounts are safe from fraud or intruders. They

can change their personal passwords as many times as they want.

This service requires the customer to answer some questions, to enter their

old password, and to the new one, to verify their identity, then allowing them

to change their personal password.

3.8 Alerts - This is reminder or a notification for customers to inform them

of any new or processed transactions have occurred. This service also

informs customers about balance issues, new products that have been

initiated, and about transactions that have been completed.

3.9 Bills Collection-payments will be credited centrally to the

billers/merchants account line, real time either in local currency or USD. A

daily collection report summarizing all collections received may be

transmitted electronically via email, or may be viewed through the PBB's e

-Banking Internet Facility.

3.10 Post-dated Check Payables- warehouses account payables until duedate and automatically process on the effective date

3.11 PDC Warehousing-- Future checks from customers shall be safe keptand shall be deposit upon maturity by the bank, a summary of inventory ofcheck shall be provided.

3.12 Auto Debit Arrangement- our corporate accounts may require theircustomers to open account with PBB for the auto debit payment of thecompany's receivables from them.EX.-loan payments of our borrowing accounts

-other form of payments to other institutions maintaining accounts with PBB

3.13 One-way depository arrangement- sales representatives orcollection agents of company accounts may deposit their collections to anyPBB branches for credit to the main depository account of the company.(Existing)EX.-tuition fee payment done over the counter will fall under this channel


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3.14 Auto credit facility - ensure checkless collections from yourcustomers to effect their payment via debit their account and credit youraccount, covered by an agreement between the supplier and the customer.

3.15 Auto - sweep accounts- institutional or national accounts operating

nationwide may avail of this facility. Transitory accounts can be maintained inany branch of PBB where balances at the end of the day can be transferredto the mother account via SWEEP.

3.16 Payroll File Uploaded through Pbb E-banking - Auto credit ofpayroll, benefits and incentives.

3.17 Check Cutting or MC Writer Arrangement - personalized checkprinting system which prepare, manage and print large volume of checks foreasy disbursements.

3.18 Account Opening Form: - this feature allows a client to open newaccounts by accessing the bank website, logging in, filling in the application

online and either submitting it online or printing it and handling directly to

the nearest branch. With this time in opening accounts shall be lessen and

shall benefit the client and the bank as well.

3.19 Business Loan Application - Customers can log in, and request a

loan by filling in a form that requires them to enter their personal information

and loan requirements. They submit the form and receive a reply after the

bank processes the application. The application may be responded by email

or a phone call.

3.20 Consumer Loan Application - Internet banking allows clients to enjoy

filling via online application. This will benefit the bank and speedily review

the application of a borrower. Documents and other requirements shall still

be requested from proposed borrower and shall be subject to the present

policies and procedures of the bank.

4. CURRENT SET UP

CASH

MANAGEMENT

PROJECT

PRODUCT/SERVICES

RUNNINGON

MANUALAUTOMATE

D

FOR

AUTOMATION

NEED

ENHANCEMEN

T REMARKS


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Credit Arrangement Payroll

Arrangement PD ChecksPayables New Service

Check Cutting orMC Writer

Debit Card Payment to various

Govt Agencies Limited OnlyAuto Debit

Arrangement One wayDepository

Arrangement New Service

Bills Payment

Limited to ATM

only

PDC Warehousing Stand Alone

System

Auto Credit Facility New ServiceMotorized Check

Deposit Pick upServices

E-banking New ServiceAuto Sweep New ServiceCash deposit Pick

up Service New Service

5. PROPOSED SOLUTIONS

5.1. Easy Access of vital financial information needed in the business by clients of THE BANK.

5.2 Various solutions such as Payable, Receivables, Access & Information and Cash Flow

SOLUTIONS shall AIDE clients in the present business condition.

5.3 E-Banking shall address our limitation in granting convenient banking to

our customers.

5.4 Moreover, this shall be a very important tool in competing with the

Present Banking System.

5.5 A break through towards creating business solutions to our target market

segment, the Small and Medium Enterprises.


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6. BENEFITS

6.1 The BANK due to its massive expansion and branching out shall be equipped with automated

solutions in dealing with clients.

6.2 The BANK may now compete with THE COMPETITORS capitalizing on E-banking and

various Business Solutions.

6.3 Increase in CASA through ADB requirements.

6.4. Increase in fee-based income through availment of various business solutions

6.5 Variety of Products and Services to offer.

6.6 Cost effective for the bank.

7. PROPOSED COMPOSITION OF THE PROJECT TEAM

Project Team Leaders:

Felipe V. Friginal - BBG Head

Ronald Garcia - BGPDC Head

Members:

Keith Chan- ITG HEAD

Teodoro Enrico System and Support and Application and Development HeadRicardo Santos - Branch Technology Dev't Officer

Francklyn Aquino - SSAD-Branch Systems

Joyce Mesina - SSAD- Branch SystemTadeo Medrano- Information Security

Luningning Ramos- Systems and Methods Head

Corporate Affairs: Judith Songlingo

Secretariat- Aileen MacalindongJane Cayanga- IT Audit

Gerlie Ann Mendoza- BBG

Adviser:

Francis Posadas- ATM Head

8. ROLES AND RESPONSIBILITY

8.1 BBG- Acts as the project team leader. Coordinates with every unit for the smooth flow of the


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project processes during testing and upon implementation.

8.2 BOCG- Responsible in testing to determine if requirements are met by the system ensures thebank's current and planned infrastructure is sufficient to accomplish the project. Assure that the

recommended technology solution met the strategic requirements with reduced resources to

control capital expenditures and operating costs.

8.3 ITG- responsible for the system set up and supports the project team during testing and

system implementation.

8.4 ISU-responsible for overseeing the development, implementation, and maintenance of the

institution's information security program. Approve information security plans, policies and

programs; and review reports on the effectiveness of the information security program.

8.5 SYSTEMS AND METHODS- responsible in drafting of policies, guidelines and procedures

in coordination with concerned units.

8.6 IT AUDIT- ensures compliance with the system requirements and with the bank's policy.

8.7 SYSTEMS AND METHODS- responsible in drafting of policies, guidelines and procedures

in coordination with concerned units.

9. PROJECT TIMELINE

E-Banking Project Milestone

Activities Unit ResponsibleDays

needed Deadline Remarks

Building the Project Team

- Kick-off Meeting andProject Organizational Project Team 1 day 12/10/13

Submittion of URRF Sir Ronald-BBG 7 days 12/19/13

Drafting of Concept Paperand RFP

- Submission ofrequirements/functionalitieseach members

BBG, ISU, Risk,BOCG 5 days 01/03/13

- Concept Paper Initial

Draft

Ma'am Judith-

Product Dev't 10 days 01/07/13- RFP Initial Draft Project Team 10 days 01/07/13

Presentation/system walk-through of Vendors

- System Demo of Encore 1 day 01/15/13

- System Demo ofSystems Solution 1 day 01/16/13


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number of branches being set-up upon launching..

10.4 Various solutions to offer shall generate Income and Fees or Deposit

CASA equivalent shall be determined upon the submission of the RFP by

vendors.

11. RECOMMENDATION/CONCLUSION:

E-Banking shall be a great tool in competing with the Present Banking System. A vision cometrue in creating competitive Product and Services for our Customers and Potential Clients. E

-Banking shall grant convenience to our Customers, thus, producing more CASA and Fee-based

income for the Bank. Automation is part of our commitment in producing satisfaction,accordingly, gaining the trust and confidence not only our Customers, more preferably, our

Shareholders, Associates and Senior Officers.