Possibilities of e-banking

Marek Chlebicki Grzegorz Sieczkowski Hermann Ossowski

International Programme Virrat 2006

Poland

  Republic Official language – Polish  Area 311,904 km 2  Population ca. 39,000,000  Internet TLD .pl (also .eu)

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Warsaw

 The Capital of Poland  Largest city:  Area 516.9 km²  Population 1,692,900  Located on the Vistula river

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Warsaw University



Established in 1816 as The Royal University of Warsaw



Nowadays



18 schools and 25 units



60 766 students



5 531 employees – 2816 academic teachers

 www.uw.edu.pl

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BUW

 Founded in 1817  Library holdings: 2,483,787 vol.

 One of the three largest collections of scholarly books in Poland  From 15.12.1999 new modern building  www.buw.uw.edu.pl

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School of Management

    Founded in 1972 as the Institute of Management Studies The oldest university faculty of its kind in this part of Europe Employs 12 full professors, 3 associate professors, 15 people with a higher doctorate, 22 doctoral students Partner of Socrates Erasmus Programme  www.wz.uw.edu.pl

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School of Management

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Marek Chlebicki Grzegorz Sieczkowski

   Born 26.05.1982 in Warsaw Work experience:  One year in life insurance companies (Fin Life S.A.)  One year in Raiffeisen Bank Polska S.A.

Studies:  Business Management   Born 01.09.1982 in Warsaw Work experience:  Racing Team Manager  Board of Management Proxy  Studies:  Quality Management

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Germany

Emden • Area: 357,050 km2 • Population: ca. 83,000,000 • Internet TLD .de

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Emden

• Located directly at the Northsea • Inhabitants: >50.000

• Third biggest harbour in Germany • Capital of Ostfriesland

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FH-OOW

• University fusion of five cities • Students: 10,000 (3,800 in Emden) • Professors: about 300 • Founded in 2000

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Hermann Ossowski

• • • Born 23.09.1981 in Flensburg Work experience: Six month in the Copenhagen stock exchange Studies: Business Consulting and information systems

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Possibilities of e-banking International Programme Virrat 2006



Internet banking – term used for performing transactions, payments etc. over the internet through a bank’s secure website.

 (Any other definition could vary is correct.)  

So internet banking means for real that… If you have a computer and a connection to the Internet, Your excuses for not trying online banking and bill paying have just dried up!!!

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What is the most important in

e-banking

in the

marketing point of view

?



P – Place?



P – Price?

 

P – Promotion?

P – Product ?



THE 5 P !!!



P – PEOPLE – BANK CUSTOMERS

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E-banking website may meet hypothetical expectations of an Internet business

but fall down flat when it comes to interactive design and user experience.

 Basics of e-banking effective website design: 

Always keep your customer in mind.



Clarity of intent and navigation.



Do not confuse the audience.



Let your customers control their web experience.



Regularly audit yourself. 16

Marketing point of view.

 Web channels need to

market

:  The website should

provide customers to

:  T he bank’s

product and services

 Present

corporate information

about global businesses 

Access their financial information – anytime; anywhere



Transact real-time



Make empowered online financial decisions

 First of all website is for customers to provide them bank’s

core

online products and services.

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The most common advantages for customers using

e-banking

.

 Possibility of reviewing accounts 24 / 7  Possibility of using bank products and services from every place with Internet connection  Lower prices of account operations  Faster commissions realization  Easy communication  Money and time saving  Personal safety and protection from robberies

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The most common barriers for customers not using

e-banking

.

  External:  

lack of infrastructure (especially communication infrastructure) limited Internet access



costs, upkeep, total profits

 Internal: 

routines, inertia, habits



safety feeling



lack of information and knowledge

E-banking safety – barriers for customers:  Being afraid of data privacy in the internet:

45%

 Being afraid of data security and data manipulating:

43%

 Lack of trust to e-banking security systems:

48%

 Lack of knowledge about internet securities:

65% 19

 

Survey findings



1000

people questioned across UK in August 2005

83%

- must do more to protect themselves online With

53%

- saying they didn’t know how to improve security 

40%

- were afraid that criminal can clear their bank account 

85%

didn’t think that doing something about cyber crime was their problem 

49%

said business should try to tackle it 

11%

think the gouvernment should solve it

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The survey found that those who were doing something to protect themselves often

didn’t do enough

 Only 28% update security programs weekly  14% update monthly  32% did it every three months  6% NEVER BY COMPARISON:  Anti-virus companies update their scanning systems

EVERY HOUR 21

Some bad habits were revealed by the survey too

 22% opened attachements on e-mails from people they didn’t know  One of the many routes malicious hackers use to get viruses, worms, spyware onto PC’s  A further 9% happily forwarded these mails to friends and family

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Fears vs. threats Risky business ?

 Ignorance about basic computer security  Javelin Strategy and Research  Unsecured online transactions were responsible for fewer than 2,5% identity theft cases.

 At the Bank of America  Less than 1% of fraud occurs via online transactions

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Beyond the single password

 Log-in security  Contain both numbers and letters (also capital) and change it periodically  Biometric fingerprint readers  Tokens – password valid for

60

seconds  Transfer confirmation  Another, different password  Sending code to your mobile via sms  Bank of America - Images and secret questions  Automatic notifications - unusual transactions take place or if account balances goes below a certain level

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Staying safe online 6 steps to improve security

2.

3.

4.

5.

6.

1.

Use anti-spy and anti-virus programs with at least weekly basis update Install a firewall and make sure it’s switched on Update your operating system Disable pop-ups in your browser Never click on e mail links to enter bank’s site Monitor your computer and stay alert to threats

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Banks

 They can do a lot to secure its clients by:  Using https and other safe protocols  Multi stage log-in process with application of hi tech devices  Further securities to do a transfer from account  Teaching about fraud prevention  But their efforts can an be ineffective without CUSTOMER will

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Secret Socket Layer (SSL)

1 e.g. : •https •Pop3 •Smtp 3

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4 2

Phishing

Phishing = "fish" for users financial information and/or passwords by masquerading as a trustworthy company in an apparently official electronic communication.

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Example: Chase

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Phishing

 Biggest problem in internet security is not hard- or software, but the dupability of users  In the next years customers will be more sensitized because of increased Phishing

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How to do e-banking?

Balance userfriendly secure

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Conclusion

 e-banking should always be focussed on the customer  The safety must be as secure as needful BUT as easy as useful!

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Thank you for you attention!

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