Assignment on Online Banking

termination PAPER ON ONLINE BANKING serve IN BANGLADESH 1. DEFINITION OF ONLINE BANKING Online swearingis a inspection and repair offered by bevels that bothows floorholders to glide slope their sexual conquest data via the earnings. In companionship to take advantage of online banking, an account holder would need to meet some(prenominal) technologarithmical requirements, such(prenominal) as having a personal computer with cyberspace access and web browser. If those conditions atomic number 18 satisfied, online banking keister be performed from anywhere in the world.To minimize the risk of fraud, online banking is enabled done a secure server, which grants the individualistic a private access to his or herbankaccount. Online banking is de firmed to streamline banking chores that differently require considerable time and effort. Thus, online banking facilitates direct access to account details, enables inter interpolate of monetary resource, in allows for multipl e standards stipends, and performs an array other proceeding. Online banking is acquirable twenty four hours, septette sidereal days a week, regardless of the banks working hours. Today, most banks offer online banking nices. . HOW many BANKERS PROVIDE ONLINE BANKING SERVICES IN BANGLADESH Bangladesh jargon Governor Dr Atiur Rahman said 79 percent institutions under the countrys banking sector be providing online suffice at present. He said, 37 banks are providing all- turn up online service, while six are desexting preparations to set up online service. Almost 79 percent institutions are under online service now. Dr Atiur came up with the comment at the inauguration of the quaternary International e-banking and Mobile Commerce Conference as the chief lymph gland at a hotel in Dhaka Monday 10th July2012Science and Information communication engineering Ministry Secretary Nazrul Islam Khan, Bangladesh Telecommunication Regularity Commission Chairman popular (Retd) Zia Ahmed, FBCCI President AK Azad, Chief Marketing Officer of Eco-Bharat Anand Ramanand, Dell Bangladeshs republic Director Sonia Bashir spoke at the inaugural session. Dr Atiur said, 23 banks were given the compliment of providing online serve up to June, 2012. Amongst them, 14 banks postulate al pose started the service. 3. PROSPECT OF ONLINE BANKING SERVICE IN BANGLADESH Information engineering science surroundings changes rapidly.It is estimated that the number of cyberspace habitrs in Bangladesh go forth increase in a young years. The number of natural branches will be decreased (the pro blame of physical branches will change to advice and last centers) and most of the transactions will be concluded via master(prenominal) e-banking channels online Internet bank and m-banking services. Rapid growth of e-banking in Bangladesh is pass judgmented. 4. good OF ONLINE BANKING SERVICE IN BANGLADESH What are the three bulkyest things about the Internet? E-mail, music, and online banking Whether for the contrivance or the control, online banking is an aspect of banking that nobody dirty dog resist.Our children will credibly laugh when we tell them lot used to actually go to a bank to collapse bills. Online banking rocks Many of the benefits of doing your banking online are obvious You dont create to confront in line. You dont have to plan your day around the banks hours. You sack up flavour at your vestibular sense whenever you want, not rightful(prenominal) when you get a statement. in that location are some hidden benefits too. As a young bank customer, youre just learning how to manage your m unrivalledy and observe your spend patterns. Online banking allows you to suck in your specie on a daily basis if you want to.By retentivity close tabs on your funds, youll al slip appearance be aware of whats happening in your bank account. For those experienced spenders, this option is far much appealing than the fast discovery that youre b roke Its also secondful to watch how much refer youre gathering on investments and savings or what service charges you have incurred. What to expect Here are some of the features available through online banking View balances Checking your balance doesnt require much work. You simply take away Account balances and take a look at your balance and past transactions.If you have more than than one account, you burn also do transfers between accounts. Pay bills To pay your bills online, you just need to add to your account the names of the companies you wish to pay bills to. In the Pay Bills section, select Add payees, search for the name of the company and live up to in the account number for each company. You can also sign up for the E-bills service that sends you a bill by e-mail quite of a printed one by regular mail. Transfer funds When you select Transfer Funds, youll be asked where to transfer the currency to and from, when, and the bar.Set up recurring bill payments or transfers If you sterilize a regular payment each month, it magnate be convenient to set up an automatic withdrawal from your account. manage CIBC investments If you have any CIBC investments, you can keep an eye on those stocks or mutual funds here. Send and nab an INTERAC e-TransferTM2 This could be the end of the birthday cheque You can receive transfers from other peoples accounts, or set up transfers from your account to someone elses. The recipient will get an e-mail notifying them of the transaction.View CIBC visa* accounts Always a good place to monitor your spending. You can make your mention display panel payments online, right from your account. Order cheques We dont need them much anymore collectible to online banking and debit purchases, precisely if you still use cheques, you can clubhouse them directly from the CIBC website. Take control Online banking helps you become more of a banker, track your accounts like a small business that you control every day. erst you get started, youll be hooked. Soon enough youll be hold ining your bank account as often as your e-mail. 5. FUNCTIONS OF ONLINE BANKING SERVICE IN BANGLADESHOnline banking is the practice of reservation bank transactions via the Internet. It will give you an excellent fortune to shunt the time-consuming, paper-based aspects of traditional banking in post to manage your finances more effectively. By switching to electronic bills, statements, and payments, the average American household can except 6. 6 pounds of paper in one year And you can pass any fraudulent transactions faster than if you received a statement by snail post. Thanks to innovative technology and the Internet in particular, we no coherenter have to leave the house to make payments.Online banking is available 24 hours a day, 7 days a week, so you can do it anytime, anywhere. Online banking allows us to perform various services with the click of a mouse. You can 1. Pay a bill. Electronic bill payment service allows a forceor to send capital from his or her online account to a creditor or merchant, for example to a public utility or a surgical incision store. There is no need to stand in a long line on a weekend morning to handle your transactions The payment is realisticly instant, though some pecuniary institutions can contain until the next business day to send out the payment.If it is necessary, the bank can generate and mail a paper cheque or bankers swig to a creditor who is not set up to receive electronic payments. 2. account payments in advance. nearly banks offer customers the ability to schedule a payment on a specified date. Once the amount is entered and the payee is checked off, the funds are mechanically deducted from your online bank account. It is especially useful if you always allow due dates. For example, you can schedule credit card or mortgage payments to make sure that you will not incur late fees and ruin your FICO score. 3.Transfer funds. Do you want to send money quickly and securely? With online banking, you can make money transfers between your own accounts, or send money to a third party account. All you need is recipient/payee cultivation and enough funds in your account. Quite often, the operations are performed in real time. 4. Manage all your accounts in one place. Online banking is a great time saver because it provides an opportunity to handle several bank accounts (checking, savings, CDs, IRAs, etcetera ) from one site. Most new accounts you open will be automatically added to online banking. . View images of your checks online. Do you need a copy of a paying check? With online banking, you can view and print scanned images of the front and back of all checks you have written. It is easy and convenient. 6. Apply for a loan or credit card. Having an account online, you can apply for a credit card or a loan (a car loan, a student loan, a mortgage, a home equity loan, etc. ) from the same bank. If you have a good credit score and long relationship history with your bank, your application is in all likelihood to be approved. 7. Purchase and manage CD accounts.If you have some amount of money you want to invest, you can purchase a certificate of deposit from your bank. Online banking lets you compare all available offers and their terms, for example APY or maturity periods. When you incarnate the purchase, the funds will be automatically deducted from your account. 8. Order travelers checks. You can order American Express Travelers Cheques online. The bank will typically charge your online account for the amount of the cheques you bought and an express delivery fee. 9. Increase your overdraft. dismission into the red shouldnt leave you red-facedYou can increase your overdraft online. Log in to online banking and click on Overdraft in the menu. 10. Order a cheque book. accomplish yourself at least one trip to the bank by gild cheque book online. You will need to visit your bank formerly when you get a confirmation mental object that your cheque book is ready for collection. 11. View up-to-the-minute account statements and balance. There is no need to clench for the bank statement to arrive in the snail post to check account balances. You can view all transactions and withdrawals every day just by logging in to your online account.In addition, you can immediately neb errors or unauthorized transactions in the statement. 12. View automatically updated spending report. All your purchases are sorted into acquainted(predicate) categories automatically no pass on to save, no expenses to enter. It is easy to see where your money goes 13. Track your payment history. Online banking gives you an opportunity to search your payments by transaction type, date, description or amount. When did you last pay Company X? When did you buy your computer? To whom did you make your most recent payment? Your bank knows the answers. 14.Integrate the data with personal finance progra ms. Online banking lets you import electronic payment data in personal finance software such as Quicken or Microsoft Money. You will be able to access your online accounts directly from your personal finance program. An Internet connection and online account log in instruction is required. 15. Change contact details. Have you moved to a new house? Changed your telephone number? You can log in to your online account and change contact information (e-mail address, telephone number, password, etc. ). It is more secure than to send this information by e-mail. 16.Utilize investment research. You can receive real-time quotes, analytics, news and stock grocery store information to make a more amendd decision. 17. Take advantage of online brokerage. Internet banking lets you invest online. You can place and confirm trades 24 hours a day, seven days a week. Most banks provide a wide range of money market instruments from various issuers. 18. Get alerts. This service allows you to receive timely e-mail messages from your bank about any critical changes related to your Internet accounts. For example, you can get alerts when you make a withdrawal or change your contact information. 9. confirm terms and conditions. Did you forget your interest rates or payment due date? You can verify all information about your account online. 20. Chat with your customer assistant department. If you need help, you can send message to your banks customer assistant department. They will help you puzzle out your problem. 6. SWOT ANALYSIS OF ONLINE BANKING SERVICE IN BANGLADESH SWOT Analysis To go steady out the viability of a particular product we mustiness perform a SWOT Analysis of the product. This will analyze the Strengths, Weaknesses, Opportunities ,and Threats of the particular product.For analyzing the performance of Internet Banking in Bangladesh we the following SWOT Analysis is considered. Strengths Internet Banking is new in our market. Only a few banks are now offering profits services in solving banking problems. Most of the banks are offering besides accounting information online. Actual fund transfer and fund expenditure is not possible in all the banks that are offering cyberspace services. So this product will revere the benefit of a branch mover. It is cheap both for the banks and the customers. The bank will be able to light down the overhead costs and make more profit out of it.Internet banking will require less manual workers. Again the customers will be able to save time as well as money for their transaction needs. Internet banking is convenient as the service is available all the time at just a click away. Weaknesses Security crack-up The system will have a problem with the identification of the individual who is initiating the transaction. In Bangladesh, the identification of an individual is not yet supported digitally. So in that location will be a problem in woful to the Internet era for banking purposes just now.First we will have to develop a digital database of the users of the internet banking services. The transaction can be cancelled that via internet. The internet theme of our country is not that much supportive to provide all time access to the web. So there will be a problem in executing the service with its full functionality. Opportunities Non-branch banking is enough popular in our country. Many banks are now offering non-branch banking facilities. A person can withdraw or deposit money in any branch of the bank he has account with. The internet services are becoming very common to us.So a service offered through the internet will be widely accepted in the practiced future. Threats People have concern about security and privacy. They like to flavor their money with their hand. They actually dont believe in virtual money transfer. In the field of IT new technology is coming every day. The one which is very popular today might get archaic tomorrow. So to have a competitive e dge over the competitors the banks must always update their services. The movement towards online banking might marginalized the customers who do not have internet access or who are not technologically sound.Despite the carriage of online Internet service in Bangladesh, its scope is largely underutilized. The reasons include mellowed service charges, lack of awareness, poor telecommunication systems, government insurance, low buy power of potential clients, and lack of institutional support. 7. CHALLENGES / RISKS OF ONLINE BANKING SERVICE IN BANGLADESH by and large it is believed that banks in Bangladesh are facing different problems adopting e-banking. Inefficiency and lack of adequate cognition of the top management of the last generation about ebanking whitethorn have to be put at the first place.The top management set the way for future development. For the change they must have silent its significance and prospect. Only so, proper strategic plan could be done, portion a djustment with changing national and international business and technological environment could be made, the coming challenges from the national and international. competition prosperingly faced, and the market parting retained and gained. The lack of communication channel and technological and technical infrastructure support may be seen as the second crucial challenges of e-banking in Bangladesh.It is not enough that there are enough communication channels, but they must be efficient, competitive, competent, cost effective and supportive to the services. In the millennium of ICT every nation has to think global, so worldwide efficient networking and WAP have to be ensured. Ensuring mature technology is also very central for successful introduction of the e-banking which includes adequate software. Modern technology is available but oft very costly, but the countries like Bangladesh have other decisive proportional advantages that could be used to compensate the cost of the m odern technology.In this way, the modern technology could be made economically viable, cost-effective and competitive even in the world market. Qualified human resource is another factor that has to be considered, which means experts have to be made available in the market. In the long run such services cant be made competitive with hired or imported human resources. So, several(prenominal) educational institutes must be established for the supply of the experts for the management of the hard- and software of the sectors. It is expected that a part of the existing employees both from the rank and file may resist the change.To motivate and integrate them in the change, training and reorientation program must be launched. Security of the services is very important to popularize it. To protect the service from piracy and fraudulency reliable security systems must be ensured. In this regard, government, banks, and Bangladesh Bank must work together. So and so, ways and means must be f ound to protect fraud and money laundering but at the same time ensuring fund transferring. 8. pass / SUGGESTIONS OF ONLINE BANKING SERVICE IN BANGLADESHMost of the countries have adopted E-banking and the consumers seem to like the convenience of E-banking despite some continuing hesitancy. The widespread uses of ATMs has paved the way for greater acceptance of other forms of electronic money such as pine cards and POS. Direct deposit, and to a lesser extent, electronic bill payment, are and to a lesser extent gaining popularity. In addition, as more people purchase personal computer and use the internet, home banking should become more widely accepted. But a cashless or check less financial system is still not in the state of foreseeable future.Though there are 28 banks in Bangladesh, mostly head quartered in Dhaka. Most of these banks do not offer online or electronic service such as Direct Deposit. There are some ATM machines, though not nearly as concentrated as in a develope d economy. The Ministry of Science, Information and Communication Technology has given out the policy for the development in the IT sector. The ministry has concentrated on the following sections Human Resources ripening through Education and Training ICT Infrastructure development Research and teaching in ICT Development of ICT Industry Development of E-Commerce E-Government / E-Governance establishment Establishment of take-headed Issues. The Government spending in ICT is going to increase by at least 2% of ADPin coming years. The ICT companies will get preferential terms which will be able to meet up 20% of its taxation expenditure. BCC has created a centralized fund for R&D which would encourage alter 1% of all profits from ICT-enabled services to the HRD fund. This will greatly help the development if ICT in Bangladesh. The software support for internet banking, i. e. FLEXCUBE is available in Bangladesh.Again Bangladesh Government is working on the copyright law and the preservation of clever property act. After the successful holdation of all these policies and strategies we are expecting that more than 50% of the banks will be offering internet banking facilities that is now 12% only. E-banking is in its nascent state in Bangladesh. At present, Information Technology (IT) is a subject of widespread interest in Bangladesh. The government has stated IT as a thrust sector and set up a vision of Digital Bangladesh in 2021. But Bangladesh has a long way to go in a very short time to enjoy the fruits of information age.It will be only possible when there will be political commitment with better IT infrastructure, internal network, country field of study and above all ahigh speed fiber optic link to the information superhighway. In order to ensure a successful practice of e-banking in Bangladesh, we recommend the following. * E-banking systems should be simple to use, fast and user friendly. * E-banking services should be standardized so that wh erever the solution is used the customer is familiar with the procedure followed. * Government should compel the banking sectors to automate their operation and going online by a specific period. Provide adequate training and technological support to develop the manpower. * Appropriate legal framework. * Proper infrastructure development. * Government should implement the cyber laws to ensure proper security about customers information (i. e. Credit card number) . * Government should establish proper educational institution to create efficient IT professionals to support e-banking in Bangladesh. * Developing of integrated e-banking software. Government, in collaboration with the banks, should educate and inform its citizens and customers on the workability and effectiveness of E-banking.This will increase the confidence level of customers. * The clearing house operation in Bangladesh should be fully change system. * Banks should have adequate research and technological background i n this regard. * Bank can charge normal profit to enlarge the market sizing on the electronic banking products. * Political commitment to improve governance and institutional strength is essential for successful application of e-banking. * As e-bank users mostly use ATMs and POS in most cases, the banks should emphasize on providing uninterruptible service.