Welcome

VIRTUAL BANKING

Prepared By Hari

Virtual Banking

• Bank with a very small or nonexistent branch

network

• services through the Internet or other electronic

channels

Origin

• Security First Network Bank (SFNB) – Oct 18,1995 -

Atlanta,Georgia,USA.

• Asia’s first virtual bank was FinatiQ – a division of

the Bank of Singapore - April 2000

Features of Virtual Banking

• Online Banking

• E-Mail Banking

• Phone Banking

• Mobile Banking

• Automatic Teller Machine

Online Banking ?

• Customer to conduct financial transactions on a

secure website operated by their virtual bank.

Features of Online Banking

• Any Time 24*7*365

• Any where

• Bill payments

• Investment (Online Trading)

• Fund Transfers (Inter & Intra bank)

• Request for Demand draft, Pay Order etc...

Email Banking ?

• The service which can be done for specific

transaction though Registerd Email ID.

Features of E-Mail Banking

• Receive daily, monthly statements through registered

email id.

• Cheque book request.

• PIN request.

Phone Banking ?

• Customers to perform transactions over the telephone

• Most telephone banking use an automated phone

answering system with phone keypad response or

voice recognition capability

Features of Phone Banking

• Balance Inquiry

• Account Statement (For the day or any specific

period on Fax)

• Transaction Details

• Cheque Related Information

Mobile Banking ?

• The service which can be done for specific

transaction through Registerd Mobile Number.

Features of Mobile Banking

• Automatic Alerts

• SMS Requests

ATM ?

• An Automated Teller Machine is a computerised

telecommunications device that provides the

customers to access financial transactions in a public

space without the need for a human clerk or bank

teller.

Features of ATM

• Withdraw cash instantly.

• Withdraw cash across the world through internationalcards.

• View mini statement.

• Cheque Book Request.

• Deposit cash and cheque for collection.

• Card to Card Transfer

Advantages of Virtual Banking

• Convenience

• Ubiquity

• Transaction speed

• Efficiency

• Effectiveness

Disadvantages of Virtual Banking

• Fraud

• Start-up may take time

• Learning curve

• Bank site changes

• The trust thing

history

• Online services started in New York in 1981 when

four of the city’s major banks :

Citibank

Chase Manhattan

Chemical

Manufacturers Hanover

• offered home banking services using the videotext

system.

What is internet banking

o Internet Banking allows you to conduct bank

transactions online, instead of finding a bank and

interacting with a teller.

o In a broad sense, it is the use of electronic means to transfer funds directly from one account to another, rather than by cheque or cash.

definition

A system of banking in which customers can view

their account details, pay bills, and transfer money by

means of the internet.

The remote delivery of new and traditional banking

products and services through electronic delivery

channels.

TYPES

PC Banking

Digital TV Banking

Text Phone Banking

Internet Banking

Uses of types of banking

SERVICES

Bill Payment

Credit Card

Insurance

Customer services

Recharging your prepaid phone

Shopping

Who can use internet banking

• Step 1: Access Internet Banking - Obtain your User

ID and Passwords.

• Step 2: Create your Own Unique User ID.

• Step 3: Link the Account Number to your User ID

Application Service Providers

First step in the setup process is making a plan.

1. What are the services to be installed?

2. What services bank could implement

in-house?

3. What services we could implement

through ASPs (out-of-house)?

4. Who are technology partners?

advantages

Cost less

Transaction speed

Efficiency

Speed banking

Vast coverage

Issues in internet banking

Security

Learning difficulties

Lack of skilled personnel

Technical breakdowns

Long start up time

inexpensive

Security risks

Increasing number of fraudulent websites

Fake emails purporting to be sent from banks

Use of trojan horse programs to capture user ids and

password

conclusion

The strategy of bank is to provide value added

services and products to the consumer, utilizing the

internet extensively.

The main aim of E-banking is to making transactions

through online poses and make customer more

beneficial