Features of E-banking

Features of E-banking: E–banking is a product designed for the purposes

of online banking that enables you to have easy and safe access to your bank
account. E-banking or Online banking is a generic term for the delivery of
banking services and products through the electronic channels such as the
telephone, the internet, the cell phone etc.

.Transactional :

 a) Electronic Bill Presentment and Payment (EBPP)

 b) Funds transfer between customers own checking and savings accounts,
or to another customers account.
 c) Investment purchase or sale.
 d) Loan application and transactions such as repayments.

. Non-transactional :

 Financial Institution Administration features allowing financial

institutions to manage the online experience of their end users.
 ASP/ Hosting Administration – features allowing the hosting company to
administer the solution across financial institution.
 (e.g. online statements, Check links, Chat, Cobrowsing etc.)

(i) Dealing in money:

The banks accept deposits from the public and advancing them as loans
to the needy people. The deposits may be of different types current,
fixed, savings, etc. accounts. The deposits are accepted on various terms
and conditions.

(ii) Deposits must be withdrawn able:

The deposits (other than fixed deposits) made by the public can be
withdraw able by cheques, draft or otherwise, i.e., the bank issue and pay
cheques. The deposits are usually withdrawn able on demand.
(iii) Dealing with credit:
The banks are the institutions that can create credit i.e., creation of
additional money for lending. Thus, "creation of credit' is the unique
feature of banking.
(iv) Commercial in nature:
Since all the banking functions are carried on with the aim of making
profit, it is regarded as a commercial institution.
(v) Nature of agent:
Besides the basic functions of accepting deposits and lending money as
loans, banks possess the character of an agent because of its various
agency services.

SPECIFICATIONS :

Internet banking system provides is specifically developed for online

banking for Balance Enquiry, Funds Transfer to another account in the
same bank, Request for cheque book/change of address/stop payment
of cheques, Mini statements (Viewing Monthly and annual statements).

Purpose

The Traditional way of maintaining details of a user in a bank was to

enter the details and record them. Every time the user need to perform
some transactions he has to go to bank and perform the necessary
actions, which may not be so feasible all the time. It may be a hard-
hitting task for the users and the bankers too.

The project gives real life understanding of Internet banking and

activities performed by various roles in the supply chain. Here, we
provide an automation for banking system through Internet.

Internet banking system project captures activities performed by

different roles in real life banking which provides enhanced techniques
for maintaining the required information up-to-date, which results in
efficiency.The project gives real life understanding of Internet banking
and activities performed by various roles in the supply chain.

Scope

This Project investigates the entry threshold for providing a new

transaction service channel via the real options approach, where the
entry threshold is established by using an Internet banking system
designed for the use of normal users(individuals), Industrialists,
Entrepreneurs, Educational Institutions(Financial sections), Organizations
and Academicians under transaction rate uncertainty.

Customer must have a valid User Id and password to login to the system

If a wrong password is given thrice in succession, that account will be

locked and the customer will not be able to use it. When an invalid
password is entered a warning is given to the user that his account is
going to get locked.

After the valid user logs in he is shown the list of accounts he has with
the bank.

On selecting the desired account he is taken to a page which shows the

present balance in that particular account number.

User can request for the details of the last ‘n’ number of transactions that
he has performed.

A report can also be taken of this.

User can make a funds transfer to another account in the same bank.
User is provided with a transaction password which is different from the
login password.

User can transfer funds from his account to any other account with this
bank. If the transaction is successful a notification should appear to the
customer, in case it is unsuccessful, a proper message should be given to
the customer as to why it failed.
User can request for cheque book/change of address/stop payment of
cheque’s

User can view his monthly as well as annual statements. He can also take
print out of the same.

Generate reports at every section

Administrator can take a back up of the database for every instance that
is happening, periodically.

All users are authenticated to avail the services

FAQ section is also included for end users benefit.

Definitions, Acronyms and Abbreviations

Administrator: He is the super user who can add new customers into
banking system, and assigns corresponding username, password,
account type and other details. When any customer withdraws his
account from the bank, he can delete their account and stop the
transactions immediately. He can generate different reports. He also
takes the system backup.

Team Members (Customers): After logging in he can request for

balance enquiry in his account, Funds Transfer to another account in the
same bank, Request for cheque book/change of address/stop payment
of cheques, Mini statements (Viewing Monthly and annual statements).

Industrialists, Entrepreneur, Organizations and academicians: These are

another type of customers. They will have extra information to be
entered while logging in such as organization Id and so on. They can
also perform all the actions what the normal customers are going to
perform.

HTML: Hypertext Markup Language is a markup language used to

design static web pages.

EJB: Enterprise Java Beans.

J2EE: Java 2 Enterprise Edition is a programming platform part of the
Java Platform for developing and running distributed multitier
architecture Java applications, based largely on modular software
components running on an application server.

DB2: DB2 Database is the database management system that delivers a

flexible and cost effective database platform to build robust on demand
business applications.

WAS: Web sphere application server is an application server that runs

business applications and supports the J2EE and web services standards.

WSAD: Web sphere studio application developer is a toolkit which is

designed for the creation of more complex projects, providing fully
dynamic web application utilizing EJB’s. This consist of EJB tools , CMP
,data mapping tools & a universal test client that is designed to aid
testing of EJB’ s.

HTTP: Hypertext Transfer Protocol is a transaction oriented client/server

protocol between web browser & a Web Server.

HTTPS: Secure Hypertext Transfer Protocol is a HTTP over SSL (secure

socket layer)

TCP/IP: Transmission Control Protocol/Internet Protocol, the suite of

communication protocols used to connect hosts on the Internet. TCP/IP
uses several protocols, the two main ones being TCP and IP.

Issues in e-banking transactions

 Real time cheque clearing is still a small percentage of paper-based

cheque clearing despite the fact that banks were required by the SBP
to ensure implementation of PRISM at branch levels from January
last year.

 Real time cheque clearing is still a small percentage of paper-based

cheque clearing despite the fact that banks were required by the SBP
 to ensure implementation of PRISM at branch levels from January
last year.

 Key challenges to the growth of e-banking include lower investment

by banks in fin-tech, low level of financial literacy and a lack of trained
staff at banks to fix issues in the functioning of software and electronic
machines that make e-transactions possible.

 In a broader context, concentration of the internet and smart-phone

applications in a few big cities and in upper income groups also
hampers the growth of e-banking. “More importantly, a lack of
documentation culture itself makes it difficult to push people to use
banking channels for transacting business or for saving money and
that, in turn, also reflects in less-accelerated movement of e-banking
transactions,” says a banker.

“There is a misconception in many minds that paper-based transactions can

somehow save them [customers] from being exposed to tax authorities
while e-banking transactions cannot”

 “There is a misconception in many minds that paper-based

transactions can somehow save them from being exposed to tax
authorities while e-banking transactions cannot.

 Despite all this, two key factors have been instrumental in promoting
e-banking: the spread of information technology and the SBP’s
constant persuasion of banks to deepen and widen the online banking
culture. Amazing growth in branchless banking is a result of both.

 Business-to-business (BB) online transactions in branchless banking

now remain well over 100m in each quarter, whereas till the end of
2011, the number of such transactions was below 21m, SBP stats
show.

 Expansion in the internet banking footprint, after the last year’s

launch of 4G cellular phone connectivity, is an example of how growth
in banking e-transactions responds to improvement in technology.
 Internet banking transactions grew more than 19pc in a year, thanks
largely to 4G-supported smart-phone applications, from 4.085m in
Jan-March 2015 to 4.864m in Jan-March 2016. Cash and utility bills
payments through the internet, account-to-account fund transfers and
third-party account-to-account transfers all showed a rising trend, the
latest SBP report reveals.

 Bankers say BB online transactions in branchless banking are

expected to get a boost after the launch, this month, of the electronic
import form (EIF). They say that it is not the mere implementation of
EIF, but its spillover effect on the domestic economy, widening of the
culture of issuing electronic sale/purchase receipts and electronic
money transfers, that would make a real impact on the growth of
online transactions.
 The future growth of e-banking in Pakistan, as elsewhere in the world,
also depends largely on the growth of the domestic e-commerce
sector.
 Currently, the country’s e-commerce is valued at $100m and is
growing at an annual rate of 100pc, which means that as we enter the
next decade the e-commerce value will easily hit the $1bn mark.
 People associated with online shopping portals say that e-banking
transactions would rise very fast if the prevailing culture of cash-on-
delivery weakens over time and other modes of payments become
popular.
 The use of mobile wallets or M-wallets, for example, has the potential
of boosting both e-commerce volumes as well as e-banking
transactions once this concept of payment takes root.
 Under the payment through M-wallet, once the customer selects this
mode of payment, they are required to enter their personal
identification number, and if their M-wallet has enough deposits to
cover purchases, the amount is deducted from their account and their
buying transaction is completed. But the M-wallet concept has just
started and the number of active users is yet to grow to a certain level
to make an impact.
 On the other hand, credit cards are doing well and contributing
sufficiently to the growth of both e-banking transactions and e-
commerce.
 The issuance of guidelines for third-party service providers (TPSP) by
the SBP, in May this year, is designed to take branchless banking and
e-banking transactions to a new level, central bankers say.
 Under these guidelines, third-party service providers can help banks
and other financial institutions, which now have the liberty to enter
into a one-on-one arrangement with mobile phone companies to run
 their mobile banking operations, or hire a third-party’s services for
this purpose.
 Companies desiring to offer third party services are required to meet a
set of financial and operational criteria laid down by the central bank.