Transcript Disadvantages on E

Content
•
•
•
•
•
•
What is E-banking?
Development of E-banking
Advantages of the E-Banking
Disadvantages and Risk of E-banking
Precaution of risk and security
Persecutions
What is E-banking?
Definition:
The provision of banking service through
electronic channels and the customer can
access the data without any time and
geographical limitation.
Development of E-banking
1980s :
- Rapid development of the Internet
- TCP/IP system (communication system)
- E-commerce
Development of E-banking
Early 1980s :
- Access to their accounts with the
computer of the bank .
Development of E-banking
May 1995 :
Wells Fargo - the first bank in the world to
offer customer access to their accounts
over the internet .
• Allows customer to see their accounts
online
Development of E-banking
Hong Kong (September 1999 ):
Bank of East Asia - first launched Internet
banking
• Mortgage applications , personal loans
and stock trading
• Basic banking functions
Distribution of Three Types of Internet
Banking
• 35 institutions
- 80% of total
customer deposits
- 60% of total assets of
Hong Kong banking
sector
Growth of Internet Banking Accounts
• Personal internet banking accounts grew 12.5%
• Business internet banking accounts grew 53.3%
Distribution of Internet Banking among
35 Institutions
• Six major institutions are serving :
- 78% of all personal internet banking accounts
- 66% of all business internet banking accounts
Advantages of E-banking
•
Benefits for Banks
•
Benefits for Small to Medium
Businesses
•
Benefits for Customers
Benefits for Banks
•
Larger customer coverage
•
Reducing the costs of operations
•
Promoting their services and products
internationally
•
Increasing the customer satisfaction and
providing a personalized relationship with
customers
Benefits for Small to Medium Businesses
•
To run its operations more effectively
•
Lower cost than traditional financial
management mechanisms
Benefits for Customers
Convenience
- 24 hours a day, seven days a week
Cost
- Reducing transfer fees
Speed
- Faster circulation of assets
Competitiveness
- Fostering competition in financial market
Benefits for Customers
Communication
- communicate easily
Environmental
- Abolishing the uses of paper
Others
-
Offering one-stop-shop solutions
Brokerage Services
• To create a group
of investment to
observe
• To learn about
companies’ financial
performance online
Automatic Teller
Machine( ATM )
• First electronic channel
introduced to HK
• Accepting deposits and
dispenses cash
• Convenient in handling
accounts
A Demonstration of Paying Tax Online of HSBC
Step 1
- Click “Add New Merchant”
A Demonstration of Paying Tax Online of HSBC
- Choose the category, merchant and bill type
- Insert the bill payee account number
Step 2
A Demonstration of Paying Tax Online of HSBC
• Choose the account that you want to transfer
from
• Insert the amount of fund that you would like to
transfer
• Choosing the date of transfer
Disadvantages on E-banking
•A need for customer skill to deal with
computers and browsers.
E.g. Elderly, Housewives → Inconvenient
•Site change it will make the customer
have some confusion or delay.
•Security Risk
Security Risk
• Increasing number of fraudulent bank
websites
• Fake emails purporting to be sent from
banks
• Use of Trojan Horse programs to capture
user IDs and passwords
Fraudulent Bank Websites
• A suspicious bank website:
www.onlinebea.com
• Original bank website
www.hkbea.com
• The website was
believed to aim
to trick persons
into disclosing
their sensitive
personal information.
Fake Emails
• Email send from
Fraudulent bank
• Verify the
personal information
• Guide customer
enter the fraud link
• Disclosing their
ATM card numbers
and their passwords
Viruses and Worms
-Trojan Horse Program
• When we open
some suspicious
websites or email
• Trojan Horse Program
will install our
computer secretly
• Hidden in the computer
• When you access
bank websites
• Capture our
account and
the password
Persecutions
For Bank:
• Should provide specific guidance to their
customers
For Customers :
• Should not disclose their customer IDs
(e.g., account numbers) or passwords to
anyone else.
• Periodically change their passwords
• Should promptly log out from the service
• Should regularly check their account
balances and statements to identify
unusual transactions.
• Do not access Corporate Cyberbanking
through public terminals.
• To safeguard your computer from any
other hacker attack, install anti-virus and
anti-spyware software on your computer
and update it regularly.
Case From Newspaper
• Don’t use the hyperlink to
login to the website of
banks
• Should deeply check the
postscript of the website
• Observe that is it have the
encryption and compare
the login account of
encryption cert is equal to
the bank.
Multiple Security
Controls
Step 1
• Unique ID and PIN to login
Step 2
• Unique Singer PIN to authorize transaction
Step 3
• 128-Bit SSL & java applet guarantee
end-to-end encryption
Step 4
• Optional use of digital certificate to
login and sign transaction
The End