Internet banking and its pros & cons

Briefing about Internet Banking and its Pros and Cons

1. Internet Banking- Pros & Cons Presented by: Anurag Kusan New Delhi Institute of Management PGDM Section Omega Roll Number: 396 Business Communications & Corporate Skills

2. What is Banking? Banking may be classified as: Business Communications & Corporate Skills Retail Banking : It is designed to meet the requirement of Individual customers and encourage their savings that includes payment of utility bills, consumer bills and so on. Corporate Banking : It caters to the need of corporate customers like managing cash, opening letters of credit, bills discounting and so on.

3. IT in Banking Sector Business Communications & Corporate Skills

4. Information Technology Business Communications & Corporate Skills Information Technology (IT) is the acquisition, processing, storage and dissemination of vocal, pictorial , textual and numerical information by micro electronics, which is the combination of electronics and telecommunications. Information Technology renders data, information or any perceived knowledge via multimedia distribution mechanism. Application of IT in different business sectors has made it easy to communicate and fetch the desired information irrespective of the limitations such as distance and time.

5. Information Technology in Banking Business Communications & Corporate Skills Application of IT in the banking sector has lead to an increase in productivity by providing right information to the customers on time. Thus, it has helped the banks to see a competitive advantage. Helps customers to be updated about the daily transactions and activities. IT in Banking has helped in eliminating the boundations such as time and distance. A customer can remotely access their particular accounts and do monetary transactions.

6. How does the Internet Banking works? Business Communications & Corporate Skills Every customer availing Internet Banking should have Internet connectivity and a computer. The Internet Banking system of the bank has centralized database that is web-enabled. Services offered by the bank are displayed in a menu on the website. Once a service is chosen, further interaction is dictated by the nature of service.

7. Contd.. Business Communications & Corporate Skills Once the branch offices of the banks are interconnected through satellite of terrestrial links, there would be no physical identity of any branch. It would then permit the customers to access services and perform activities anytime, anywhere and anyhow banking.

8. Types of Internet Banking (e-Banking) Business Communications & Corporate Skills

9. Telephone Banking Business Communications & Corporate Skills Allows users to perform financial transactions over the telephone/cell phone

10. Online Banking Business Communications & Corporate Skills Allows customers to perform financial transactions of a secured website operated by the bank

11. SMS Banking Business Communications & Corporate Skills Permits customers to access selected services of the bank with the help of SMS (Short Messaging Service)

12. Mobile Banking Business Communications & Corporate Skills Allow users to check account balance, account transactions and payments through the Mobile

13. Pros & Cons of Internet Banking Business Communications & Corporate Skills

14. Pros: Business Communications & Corporate Skills Customers can access their bank account anytime, remotely. Thus, it eliminates limitations of time as well as distance. e-Banking is cost-effective as the bank can handle thousands of customers at once. It eliminates the requirement of too many cashiers & clerks. Account information of the customers are available round the clock, hence the customers can customize their future payments and activities as per their needs & convenience.

15. Contd.. Business Communications & Corporate Skills It is easy to transfer money, irrespective of the geographical boundaries. Internet Banking allows customers to enjoy quick transactions as compared to the traditional banking. Permits customers to buy/sell items such as shares, online shopping and so on.

16. Cons: Business Communications & Corporate Skills Theft is the major problem concerned with the internet banking. Loss of bank user id’s & passwords may lead to theft & fraud cases Hackers may hack the account details of the Internet Banking customers despite having the internet security and antivirus. In the beginning, customers may find difficulty in understanding the internet banking platform. On the occasions when the bank server is down, it obstructs the customers from accessing the Internet Banking services.

17. Thank You Business Communications & Corporate Skills