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access to one another's markets. This corporate model is fluid and flexible- a
Once the opportunity is met, the venture will, more often than not, disband. In
the concept's purest form, each company that links up with others to create a
The Internet corporation to be a 'must have' road map for every corporation
that will soon find itself, its members and most importantly, its customers,
16
Research article A concept for supporting the formation of Internet corporations through negotiation by
Boris Kotting published in (WET ICE ‘99) , pp 40
17
Book, The Internet Corporation: Structuring and Revitalizing the Corporation for the 21st Century
byWilliam, H.Davidow, pp 23
18
Book The Complete idods guide: Ecommerce
Do we really need to build Internet Company? Let’s turn the question around
and state it as “Do we really need to invest money to reduce our cost?”
Believe it or not the answer is often “no”. There will be thousands of business
next year that will spend more on e-commerce than they will ever receive
back in profit. Many of these companies would be better off financially if they
invested their money and focused their operations on tasks that provide the
companies that can redirect staff towards value added tasks, such as sales
through the greater use of automation. They can also reach new customers in
unstructured data, the linking of several local area networks into wide area
networks.
There are five basic dimensions that organizations can virtually organize and
Location
Organizational interfaces or boundaries
Organizational processes
Organizational structures
Products / services
following:
of their physical location; People can connect with each other regardless of
overcome.
The first and foremost is Economics. The need for greater productivity per
hungry new competitors. Big companies used to live off their fat in the lean
times. Lean is in, lean is good. Second force is Ecology i.e. Statutory need to
reduce the numbers of commuters into our city cores, to reduce automobile
pollution and to reduce the demand for ever more transportation capacity.
Internet offices, along with telecommuting, van pooling, transit vouchers, are
19
Book The Complete idods guide: Ecommerce
20
Book The Complete idods guide: Ecommerce
all attempts to deal with the environmental impact of millions of people
swamping our cities. The last but not the least is Technology. New
unstructured data, the linking of several local area networks into wide area
networks.
from paper banking to paperless banking which will majorly benefit the
commercial banks.
financial and banking services via internet world wide web. It’s called a
mortar and exists only on the internet. With cybercafés and kiosks springing
need for the customer to have any financial software program installed on the
a direct link between the customer’s own pc and the bank via a modem, the
its main benefits from retail services such as short-term lending, deposits, cash
the bank are being replaced by online ones performed by the customers
themselves.
age21 that “Internet Banking is a term that suggests the ultimate state of
banks get bigger and more virtual, their markets will get more diffuse, harder
21
Edward P. Shea, “Rethinking CRA in a technological age,” CRA Bulletin, Vol. 5, No. 3, 1995
Professor V. Shankar and his associates define in their article Customer
of IT on banks. Banks are using new tools and techniques to find out their
customers need and offer them tailor made products and services. The impact
The article titled as Core Banking Solution for Banks-The Indian Experience
(CBS) as a single channels enabler for banks as providers for all their products
such as ATM, debit cards, Telebanking, Internet Banking etc., as well as other
important functions. In spite of this some banks have failed to implement CBS
22
V. Shankar, A. K. Smith, A. Rangaswamy: Customer satisfaction and loyalty in online and offline
environments, Intern. J. of Research in Marketing, Vol. 20 pp. 153-175, 2003
23
IUP Journal May-June 2005
2.3 Types of Internet Banking
Banking industry is continuously increasing their product day by day, by
which banks are transfering from real to Internet very speedily. Banks divided
Internet Banking products into 3 types based on the levels of access granted.
They are:
This type of banking provides general purpose information like interest rates,
branch location, bank products and their features, loan and deposit
calculations are provided in the banks website. There exist facilities for
The information is still largely of the 'read only' format. Identification and
fetched from the bank's application system either in batch mode or off-line.
by the customer for online update. This system requires high degree of
security and control. In this environment, web server and application systems
Banking, Mobile Banking, Smart Cards, are the types of fully electronics
transactional system.
Internet Banking involves consumers using the internet to access their bank
banking can mean the setting up of web page by bank to give information
There are two ways to offer of Internet banking. First, an existing bank with
physical offices can establish a website and offer Internet banking in addition
plastic ATM card with magnetic strip or a plastic smart card with a chip that
tremendous rise in the past few years in India “Automated teller machines are
The best part about this Internet Banking is it access of 24 hours and 7 days.
There are many research in past few year related with customer perception
towards ATM services in India and in world shows that ATM is one of the
will result in huge savings in the employee- related cost for the banks. The
cost incurred in servicing customers through ATM is 1/3 rd of the cost incurred
if the same customer were to be served personally through the branches of the
bank.
24
www.worldbank.org/indicator/FB.ATM
Phone Banking25 : Phone banking is also one of the types of Internet Banking
transaction over the telephone, without the need to visit bank branch or
automated teller machine. Telephone banking times can be longer than the
branch opening times and some financial institutions offer the services on a 24
hour basis. From the banks point of view, telephone banking reduces the cost
branch for non cash withdrawal and deposit transactions. To access telephone
banking, the customer would call the special phone number set up by bank,
and enter on the keypad the customer number and password. Some banks have
set up additional securities steps for access, but there is no consistency to the
representatives.
India, it’s very economical and easy to maintain mobile for a person in its
25
www.worldbank.org/indicator/FB.PhoneBanking
26
www.worldbank.org/indicator/FB.MobileBanking
mobile Internet users by March 2015, up from 87.1 million in December 2014
as more people are accessing the web through mobile devices and dongles, a
According to the report, the number of mobile Internet users increased to 87.1
million by December 2014 from 78.7 million users in October 2014, who
This tremendous growth of mobile users forces banking industry to begin one
another type of Internet baking i.e mobile banking to provide better service for
their customers. The main reason that mobile banking scores over internet
need access to a computer terminal to access their bank accounts, now they
can do so on-the-go while waiting for the bus to work, traveling or when they
are waiting for their orders to come through in a restaurant. it is a way for the
other mobile device. It is a quite popular method of banking that fits in well
In mobile banking some banks offer only the option of text alerts, which are
messages sent to your cell phone that alert you to activity on your account
such as deposits, withdrawals, and ATM or credit card use, this is a basic type
27
http://gadgets.ndtv.com/mobiles/news/165-million-mobile-internet-users-in-india-by-march-report-
312466
of mobile banking. A more involved type of mobile banking allows the user to
log into his or her account from a cell phone, and then use the phone to make
payments, check balances, transfer money between accounts, notify the bank
of a lost or stolen credit card, stop payment on a check, receive a new PIN, or
into a bank, log on from their home computer, or make a phone call. While all
of this is true, some are concerned about the security of mobile banking.
communication.
system etc,
employees.
other partners which would necessitate a well qualified and robust group
denial of services, fraud, waste and abuse. There are chances that the
that the target clientele is restricted to those who have home PC or can
cause constraints.
Since the usages of Internet Banking not restricted in any specific customers
the concept involved in many different areas, so that use of Internet Banking
From a government point of view, the Internet Banking systems pose a threat
to the antitrust laws. Internet Banking also arouse concerns about the reserve
28
Vulnerabilities in e-banking: A study of various security aspects in e-banking - Tejinder Pal Singh Brar
, International Journal of Computing & Business Research Proceedings of ‘I-Society 2014,ISSN
(Online): 2229-6166
concerned with the use of high quality of encryption algorithms because
Businesses also raise concerns about this new media of interaction. Since
concern about the security of their money. At the same time, these businesses
also consider the potential savings in time and financial charges (making cash
deposits and withdrawals which some banks charge money for these
connected to the customer. Businesses ponder the thought that there are
enough potential customers who would not make a purchase because the
business did not offer a particular payment system (e.g. electronic cash and
electronic check). This would result in a loss of sales. On the other side of the
coin, if this system becomes wide spread, this would allow more buying
Banks are pressured from other financial institutions to provide a wide range
transaction and by investing the funds they hold between the time of deposit
and the time of withdrawal, also known as the “spread”. With more financial
transactions being processed by their central computer systems, banks are also
Individuals are mainly concern with the security of the system, in particular
information and the security that goes hand and hand with this information is
related to the electronic banking industry are electronic cash and electronic
checks.29
internet users. For Internet Banking users who most likely connect to the
internet via dial-up modem, is faced with a smaller risk of someone breaking
into their computers. Only organizations such as banks with dedicated internet
connections face the risk of someone from the internet gaining unauthorized
29
Basic Reflections on Security. Http://www.esd.de/eng/secu/secu.htm#10
users still face the security risks with unauthorized access into their banking
accounts.” 30
pin etc.
access.
30
See Kit Burden, “Insurance of E-commerce Risks” [2000] I.C.C.L.R. Issue 2.
Firewall controls: To prevent unauthorized users accessing the private
considerably. The internet has level led the playing field and afforded open
and from any location via the World Wide Web is a convenience unknown a
short time ago. Thus, a bank's Internet presence transforms from 'brochure
ware' status to 'Internet banking' status once the bank goes through a
about his or her specific account relationship. The six primary drivers of
There are many different views given by educator related with the benefits of
delivery channel for financial institutions. The author also describes the
and the mechanism to protect the customer’s data. The advantages of internet
banking are:
Internet Banking. The state of Internet Banking in India has been explored
using various concepts like E-banking scale, and gap analysis related to the
various services and the security features offered. In order to have a clear and
focused insight about the perceptions of users (and non-users) about Internet
Banking a survey was conducted. The findings of the survey provide valuable
31
Mishra A. K., “Recent Trands in Internet Banking” International Journal of Research and Management,
issue I Dec 12.
32
Geetika, Nandan Tanuj, Upadhyay Ashwani , “Internet Banking in India: Issues and Prospects”, The
ICFAI University Journal of Bank Management, Volume-VII Issue 2 (May 2008) pages: 47-61
insights into concern for security, reasons for lower penetration, and likeliness
improve both product range and service quality in the banking sector.
presently noticed between public sector banks and the new generation private
sector as well as foreign banks would be noticeably narrowed down. But the
dominance of public sector banks, which accounts for nearly 80% share in the
Technology has played a vital role in the evolution of banking sector, through
Bank would ready with so many new technology which will going to be
We all know about ATM's that accept our credit/debit card and the PIN
number to dispense cash. Biometric ATM's are the latest inventions to help us
avoid fraud and duplication. If somebody steals our card and also knows our
PIN they can easily withdraw cash from our account. In case of biometric
ATM's they cannot. Usually the PIN for bio ATM's is the finger print of the
card holder or his eye retina scan etc. These cannot be duplicated and hence
they are very safe and secure. But they are very costly when compared to
traditional ATM machines and hence they are not very widely used now a
days but future banking will defiantly go with biometrix Banks are more
possible for the low literacy population to use banks. With the development
numbers. Software vendors are coming up with finger print solutions for the
rural masses. Chennai based Financial Software and Systems (FSS) has
recently launched its Biometric ATM Interface Solution (BAIS) that enables
Systems (P) Ltd. says, Customers opting for biometric authentication can visit
prompted to set his finger in the fingerprint scanner. The transaction along
verifies the fingerprint with the server, and if successful, requests the banking
instructs the ATM to complete the transaction. FSS’ BAIS solution meets this
confirming authorization.
M pesa is a mobile phone based money transfer and micro financing service,
which allows users with a national ID to use their money easily with a mobile.
HDFC bank.
Mobile Payment
As much as mobile banking may please or even delight customers, most banks
have discovered that on its own, mobile banking is not really a moneymaker.
That’s where mobile payments come in. While mobile banking, much like
online banking before it, is generally offered for free, banks have an
of mobile banking in order to fully realize the potential of the medium,” noted
Tower Group in an August report. The industry is just in the beginning stages
identified about two dozen mobile payment options that it thinks have
potential. Says Lloyd L. Hamm Jr., chief administration officer of the $6.6
billion Boston-based Eastern Bank, “It’s the wild, wild West out there right
now. Everyone thinks they have the next best solution.” That complexity is
banks with more than $500 million of assets plan to offer mobile payments by
2011. Even the smallest banks are getting into the act. Seventeen percent of
banks with less than $100 million in assets expect to offer mobile payments.
CHAPTER 3