1. E-banking

2. 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

3. 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.

4. Development of E-banking
1980s :
- Rapid development of the Internet
- TCP/IP system (communication system)
- E-commerce

5. Development of E-banking
Early 1980s :
- Access to their accounts with the computer of the bank .

6. 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

7. 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

8. Distribution of Three Types of Internet Banking
35 institutions
80% of total customer deposits
- 60% of total assets of Hong Kong banking sector

9. Growth of Internet Banking Accounts
Personal internet banking accounts grew 12.5%
Business internet banking accounts grew 53.3%

10. 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

11. Advantages of E-banking
Benefits for Banks
Benefits for Small to Medium Businesses
Benefits for Customers

12. 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

13. Benefits for Small to Medium Businesses
To run its operations more effectively
Lower cost than traditional financial management mechanisms

14. 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

15. Benefits for Customers
Communication
communicate easily
Environmental
Abolishing the uses of paper
Others
- Offering one-stop-shop solutions

16. Brokerage Services To create a group of investment to observe
To learn about companies’ financial performance online

17. Automatic Teller Machine( ATM )
First electronic channel introduced to HK
Accepting deposits and dispenses cash
Convenient in handling accounts

18. A Demonstration of Paying Tax Online of HSBC
Step 1
- Click “Add New Merchant”

19. A Demonstration of Paying Tax Online of HSBC
- Choose the category, merchant and bill type
- Insert the bill payee account number

20. A Demonstration of Paying Tax Online of HSBC
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

21. 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

22. Security Risk Increasing number of fraudulent bank websites
Fake s purporting to be sent from banks
Use of Trojan Horse programs to capture user IDs and passwords

23. Fraudulent Bank Websites
A suspicious bank website:
Original bank website
The website was believed to aim to trick persons into disclosing their sensitive personal information.

24. 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

25. Viruses and Worms -Trojan Horse Program
When we open some suspicious websites or
Trojan Horse Program will install our computer secretly
Hidden in the computer
When you access bank websites
Capture our account and the password

26. Persecutions For Bank:
Should provide specific guidance to their customers

27. 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.

28. 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.

29. 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.

30. Multiple Security Controls

31. Step 1
Unique ID and PIN to login

32. Step 2
Unique Singer PIN to authorize transaction

33. Step 3
128-Bit SSL & java applet guarantee end-to-end encryption

34. Step 4
Optional use of digital certificate to login and sign transaction

35. The End