E-Commerce in Banking

A presentation made to describe about how E-Commerce works in the Banking sector.
This Presentation is easy to present with limited but useful content.
Each sector is described informatively with interesting animations and visuals.

1. E-Commerce In Banking

2. Electronic commerce is sharing business information, maintaining business relationships and conducting business transactions by means of telecommunications networks. E-Commerce is one of the most important facets of the Internet to have emerged in the recent times.

3. E-commerce or electronic commerce involves carrying out business over the Internet with the assistance of computers, which are linked to each other forming a network. To be specific ecommerce would be buying and selling of goods and services and transfer of funds through digital communications.

4. E- COMMERCE IN BANKING

5. E-banking (internet banking) is an E-commerce application which allows the customers to perform any of the virtual banking functions, financial functions online, in a protected and secure manner.

6. It involves using the Internet for delivery of banking products and services. E-banking functions include BFSI (Banking, Finance, Securities and Insurance). Banking concerns about providing the customers virtual banking functions, whereas financial functions include stock broking, payment gateways, mutual funds etc.

7. It is simply the use of electronic and telecommunications network for delivering various banking products and services. Through e-banking, a customer can access his account and conduct many transactions using his computer or mobile phone.

8. Importance of E-Commerce in Banking Banks Customers Businesses

9. Banks Lesser transaction costs – electronic transactions are the cheapest modes of transaction. A reduced margin for human error – since the information is relayed electronically, there is no room for human error. Lesser paperwork – digital records reduce paperwork and make the process easier to handle. Also, it is environment-friendly.

10. Customers Convenience – a customer can access his account and transact from anywhere 24x7x365. Lower cost per transaction – since the customer does not have to visit the branch for every transaction, it saves him both time and money. No geographical barriers – In traditional banking systems, geographical distances could hamper certain banking transactions.

11. Businesses Better productivity – Electronic banking improves productivity. It allows the automation of regular monthly payments and a host of other features to enhance the productivity of the business. Lower costs – Usually, costs in banking relationships are based on the resources utilized. If a certain business requires more assistance with wire transfers, deposits, etc., then the bank charges it higher fees.

12. E–Banking In India

13. In India, since 1997, when the ICICI Bank first offered internet banking services. Today, most new-generation banks offer the same to their customers. In fact, all major banks provide e-banking services to their customers.

14. Services available through E-Banking in India NEFT RTGS IMPS

15. NEFT National Electronic Fund Transfer (NEFT) is a payment system which allows one-to-one fund transfer.  Using NEFT, individuals and corporates can transfer funds electronically from any bank branch to any individual or corporate with an account with any other bank branch in the Country. NEFT service is available 24×7 on internet banking. But, it is a time-restricted service at the bank branch.

16. RTGS Real-Time Gross Settlement (RTGS) is a continuous settlement of funds individually on an order by order basis.  This payment system ensures that the receiver’s account gets credited with the funds almost immediately and not after a certain duration, as is the case with other payment modes like NEFT. This method is majorly used for large value transfers, the minimum amount to be remitted through RTGS is 2 lakh rupees.

17. IMPS IMPS is used to transfer funds instantly within banks across India via mobile, internet and ATM. IMPS is an inexpensive mode of fund transfer. Other fund transfer mediums such as NEFT and RTGS charge significantly higher than IMPS. It does not require details like account number, IFSC code, etc. Funds can be transferred via IMPS just with the mobile number of the beneficiary.

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