ICT GROUP ASSIGNMENT FOR

GRADE 12
Group member name
1. Blen Dagnew
2. Kadun Kefyalewu
3. Meklit Emkulu
4. Mikiyas Nega
5. Natnael Minase
6. Yabsra Alemayew

1/11/2021 G.C

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Contents
 Introduction to E-banking
 Forms of E-banking
 Benefits of E-banking
 Concerns with E-banking
 E-banking global
perspective

Source
Encyclopedia
Mangalmay.org
Studyrankersonline

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 DEFINITION OF E-BANKING
Electronic banking, also known as electronic funds transfer (EFT),is simply the use of electronic
means to transfer funds directlyfrom one account to another, rather than by cheque or cash.
Youcan use electronic funds transfer to:
· Have your paycheck deposited directly into your bank orcredit union checking account.
· Withdraw money from your checking account from an ATMmachine with a personal
identification number (PIN), at yourconvenience, day or night.
· Instruct your bank or credit union to automatically pay certainmonthly bills from your account,
such asyour auto loan or yourmortgage payment.
· Have the bank or credit union transfer funds each monthfrom your checking account to your
mutual fund account.
· Have your government social security benefits check or yourtax refund deposited directly into
your checking account.
· Buy groceries, gasoline and other purchases at the point-ofsale,using a check card rather than
cash, credit or a personalcheck.
· Use a smart card with a prepaid amount of moneyembedded in it for use instead of cash at a
payphone,expressway road toll, or on college campuses at the library'sphotocopy machine or
bookstores.
· Use your computer and personal finance software tocoordinate your total personal
financialmanagement process,integrating data and activities related to your income,
spending,saving, investing,recordkeeping, bill-paying and taxes, alongwith basic financial
analysis and decision making.

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 VARIOUS FORMS OF E-BANKING:
INTERNET BANKING:
Internet Banking lets you handle many banking transactions viayour personal computer. For
instance, you may use your computerto view your account balance, request transfers
betweenaccounts, and pay bills electronically.
Internet banking system and method in which a personalcomputer is connected by a network
service provider directly to ahost computer system of a bank such that customer
servicerequests can be processed automatically without need forintervention by customer
service representatives. The system iscapable of distinguishing between those customer
servicerequests which are capable of automated fulfillment and thoserequests which require
handling by a customer servicerepresentative. The system is integrated with the host
computersystem of the bank so that the remote banking customer canaccess other automated
services of the bank. The method of theinvention includes the steps of inputting a customer
bankingrequest from among a menu of banking requests at a remotepersonnel computer;
transmitting the banking requests to a hostcomputer over a network; receiving the request at
the hostcomputer; identifying the type of customer banking requestreceived; automatic logging
of the service request, comparing thereceived request to a stored table of request types, each
of therequest types having an attribute to indicate whether the request type is capable of being
fulfilled by a customer service representative or by an automated system; and, depending upon
the attribute, directing the request either to a queue for handling by a customer service
representative or to a queue for processing by an automated system.

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AUTOMATED TELLER MACHINES (ATM):
An unattended electronic machine in a public place, connected to a data system and related
equipment and activated by a bank customer to obtain cash withdrawals and other banking
services. Also called automatic teller machine, cash machine; also called money machine.
An automated teller machine or automatic teller machine(ATM) is an electronic computerized
telecommunications devicethat allows a financial institution's customers to directly use asecure
method of communication to access their bank accounts,order or make cash withdrawals (or
cash advances using a creditcard) and check their account balances without the need for
ahuman bank teller (or cashier in the UK). Many ATMs also allowpeople to deposit cash or
cheques, transfer money between theirbank accounts, top up their mobile phones' pre-paid
accounts oreven buy postage stamps.
On most modern ATMs, the customer identifies him or herself byinserting a plastic card with a
magnetic stripe or a plasticsmartcard with a chip, that contains his or her account number.
The customer then verifies their identity by entering a passcode, often referred to as a PIN
(Personal Identification Number) of four or more digits. Upon successful entry of the PIN, the
customer may perform a transaction. If the number is entered incorrectly several times in a row
(usually three attempts per card insertion), some ATMs will attempt retain the card as a security
precaution to prevent an unauthorized user from discovering the PIN by guesswork. Captured
cards are often destroyed if the ATM owner is not the card issuing bank, as noncustomer's
identities cannot be reliably confirmed. The Indian market today has approximately more than
17,000 ATM’s.
TELE BANKING:
Undertaking a host of banking related services including financial transactions from the
convenience of customers chosen placeanywhere across the GLOBE and any time of date and
night hasnow been made possible by introducing on-line Telebankingservices. By dialing the
given Telebanking number through alandline or a mobile from anywhere, the customer can
access hisaccount and by following the user-friendly menu, entire bankingcan be done through
Interactive Voice Response (IVR) system.With sufficient numbers of hunting lines made
available, customercall will hardly fail. The system is bi-lingual and has followingfacilities
offered:
· Automatic balance voice out for the default account.
· Balance inquiry and transaction inquiry in all
· Inquiry of all term deposit account
· Statement of account by Fax, e-mail or ordinary mail.
· Cheque book request

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· Stop payment which is on-line and instantaneous
· Transfer of funds with CBS which is automatic andinstantaneous
· Utility Bill Payments
· Renewal of term deposit which is automatic andinstantaneous
· Voice out of last five transactions.
SMART CARD:
A smart card usually contains an embedded 8-bit microprocessor(a kind of computer chip).
Themicroprocessor is under a contactpad on one side of the card. Think of the microprocessor
asreplacing the usual magnetic stripe present on a credit card ordebit card.The microprocessor
on the smart card is there for security. Thehost computer and card reader actually "talk" to the
microprocessor. The microprocessor enforces access to the data on the card.
The chips in these cards are capable of many kinds oftransactions. For example, a person could
make purchases fromtheir credit account, debit account or from a stored account valuethat's
reload able. The enhanced memory and processing capacityof the smart card is many times
that of traditional magnetic-stripecards and can accommodate several different applications on
a
Single card.
DEBIT CARD:
Debit cards are also known as check cards. Debit cards look likecredit cards or ATM (automated
teller machine) cards, but operatelike cash or a personal check. Debit cards are different from
credit
Cards. While a credit card is a way to "pay later," a debit card is away to "pay now." When you
use a debit card, your money isquickly deducted from your checking or savings account.
E-CHEQUE:
· An e-Cheque is the electronic version or representation ofpaper cheque.
· The Information and Legal Framework on the E-Cheque isthe same as that of the paper
cheque’s.
· It can now be used in place of paper cheques to do any andall remote transactions.
· An E-cheque work the same way a cheque does, the chequewriter "writes" the e-Cheque using
one of many types ofelectronic devices and "gives" the e-Cheque to the payeeelectronically.
The payee "deposits" the Electronic Chequereceives credit, and the payee's bank "clears" the e-

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Cheque tothepaying bank. The paying bank validates the e-Cheque andthen "charges" the
check writer's account for the check
OTHER FORMS OF ELECTRONIC BANKING
· Direct Deposit
· Electronic Bill Payment
· Electronic Check Conversion
· Cash Value Stored, Etc.
BENEFITS/CONCERNS OF E-BANKING
BENEFITS OF E-BANKING
For Banks:
Price- In the long run a bank can save on money by not paying fortellers or for managing
branches. Plus, it's cheaper to maketransactions over the Internet.
Customer Base- The Internet allows banks to reach a whole newmarket- and a well off one too,
because there are no geographicboundaries with the Internet. The Internet also provides a
levelplaying field for small banks who want to add to their customerbase.
Efficiency- Banks can become more efficient than they already areby providing Internet access
for their customers. The Internetprovides the bank with an almost paper less system.Customer
Service and Satisfaction- Banking on the Internet notonly allow the customer to have a full
range of services availableto them but it also allows them some services not offered at any
ofthe branches. The person does not have to go to a branch wherethat service may or may not
be offer.
For Customers:
Bill Pay: Bill Pay is a service offered through Internet banking thatallows the customer to set up
bill payments to just about anyone.
Customer can select the person or company whom he wants tomake a payment and Bill Pay will
withdraw the money from hisaccount and send the payee a paper check or an electronic.
Payment
Other Important Facilities: E- banking gives customer the controlover nearly every aspect of
managing his bank accounts. Besidesthe Customers can, Buy and Sell Securities, Check Stock
MarketInformation, Check Currency Rates, Check Balances,See whichchecks are cleared,
Transfer Money, View Transaction History andavoid going to an actual bank. The best benefit is
that Internetbanking is free

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CONCERNS WITH E-BANKING
As with any new technology new problems are faced.
Customer support - banks will have to create a whole newcustomer relations department to
help customers. Banks have tomake sure that the customers receive assistance quickly if
theyneed help. Any major problems or disastrous can destroy thebanks reputation quickly an
easily. By showing thecustomer thatthe Internet is reliable you are able to get the customer to
trustonline banking more and more.
Laws - While Internet banking does not have national or stateboundaries, the law does.
Companies will have to make sure thatthey have software in place software market, creating a
monopoly.
Security: customer always worries about their protection andsecurity or accuracy. There are
always question whether or notsomething took place.
Other challenges: lack of knowledge from customers end, sitchanges by the banks, etc
E-BANKING GLOBAL PERSPECTIVE
The advent of Internet has initiated an electronic revolution in theglobal banking sector. The
dynamic and flexible nature of thiscommunication channel as well as its ubiquitous reach has
helpedinleveraging a variety of banking activities. New bankingintermediaries offering entirely
new types of banking services haveemerged as a result of innovative e-business models. The
Internethas emerged as one of the major distribution channels of bankingproducts and
services, for the banks in US and in the Europeancountries.
Initially, banks promoted their core capabilities i.e., products,services and advice through
Internet. Then, they entered the ecommercemarket as providers/distributors of their own
productsand services. More recently, due to advances in Internet securityand the advent of
relevant protocols, banks have discovered thatthey can play their primary role as financial
intermediators andfacilitators of complete commercial transactions via electronicnetworks
especially through the Internet.
Banking transactions had already started taking place through theInternet way back in 1995.
The Internet promised an ideal platformfor commercial exchange, helping banks to achieve new
levels ofefficiency in financial transactions by strengthening customerrelationship, promoting
price discovery and spend aggregation andincreasing the reach.
Global E-banking industry is covered by the following four
sections:
· E-banking Strategies: It reveals the key strategies thatbanks must implement to derive
maximum value through theonline channel. It also brings guidance for those banks, whichare
planning to build online businesses.
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· E-banking Transactions: It discusses how Internet hasradically transformed banking
transactions. The section focuseson cross border transactions, B2B transactions, electronic
billpayment and presentment and mobile payments. In spite of allthe hype, E-banking has been
a non-starter in severalcountries.
· E-banking Trends: It discuss the innovation of newtechnologies in banks.
E-BANKING TRANSACTIONS:
The introduction of new technologies has radically transformed banking transactions. In the
past, customers had to come physically into the bank branch to do banking transactions
including transfers, deposits and withdrawals. Banks had to employ several tellers to physically
make all those transactions.
Automatic Teller Machines (ATMs) were then introduced which allowed people to do their
banking on their own, practically anytime and anywhere. This helped the banks cut down on
the number of tellers and focus on managing money. The Internet then brought another venue
with which customers could do banking, reducing the need for ATMs. Online banking allowed
customers to do financial transactions from their PCs at home via Internet. Now, with the
emergence of Wireless Application Protocol (WAP) technology, banks can use the infrastructure
and applications developed for the Internet and move it to mobile phones. Now people no
longer have to be tied to a desktop PC to do their banking. The WAP interface is much faster
and convenient than the Internet, allowing customers to see account details, transaction
details, make bill payments, and even check credit card balance.
E-BANKING TRANSACTIONS:
The introduction of new technologies has radically transformedbanking transactions. In the
past, customers had to comephysically into the bank branch to do banking
transactionsincluding transfers, deposits and withdrawals. Banks had toemploy several tellers
to physically make all those transactions.
Automatic Teller Machines (ATMs) were then introduced whichallowed people to do their
banking on their own, practicallyanytime and anywhere. This helped the banks cut down on
thenumber of tellers and focus on managing money. The Internetthen brought another venue
with which customers could dobanking, reducing the need for ATMs. Online banking
allowedcustomers to do financial transactions from their PCs at home via
Internet. Now, with the emergence of Wireless ApplicationProtocol (WAP) technology, banks
can use the infrastructure and applications developed for the Internet and move it to
mobilephones. Now people no longer have to be tied to a desktop PC todo their banking. The
WAP interface is much faster andconvenient than the Internet, allowing customers to see
accountdetails, transaction details, make bill payments, and even checkcredit card balance.

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